Navigating: Change
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Dicky MarcelinusNavigating: Change
Uploaded by
Dicky MarcelinusPT BANK CENTRAL ASIA TBK
2019
ANNUAL REPORT
NAVIGATING
CHANGE
Theme Continuity
Maintaining a Solid Position
2015 Navigating Challenges, Capturing Opportunities
The Indonesian economy continued to be negatively impacted by a weak global
economy and a variety of domestic macro-economic challenges. The relative slowdown
in the domestic economy was reflected in the Indonesian banking industry with
deterioration in loan quality and slower loan and third party funds growth.
BCA successfully maintained its solid position in 2015 by consistently implementing
prudent policies focused on maintaining loan quality, a strong capital and a healthy
liquidity position.
BCA’s solid financial position allows the Bank to support its customers through all
economic conditions while providing a strong base to capture business opportunities
for future growth.
Expanding Capabilities
2016 Capturing Opportunities
Ongoing improvements ensure the Bank to provide the best possible services to
customers; fulfill the evolving financial needs of the Bank’s customers and remain at the
cutting edge of technological developments. BCA remains committed to invest in both
transaction banking franchise and lending capabilities while supporting development
of the Bank’s subsidiaries.
The challenging environment faced by the Bank in 2016 served as a test of the
resilience of BCA’s business model. Throughout the year, BCA focused on exploring
and optimizing various business opportunities while remaining prudent at all times.
The Bank’s solid business model allowed BCA to deliver another year of sound financial
performance.
2017 Trust Through Quality
2017 provided both challenges and opportunities for the banking industry in Indonesia,
and BCA specifically. Throughout the year, BCA invested in infrastructure and resources
to strengthen its core transaction banking and lending business.
BCA continues to adapt, embracing technological advances and capturing business
opportunities, while maintaining a prudent approach to business. The Bank always
prioritizes the comfort of its customers by providing convenient, secure and reliable
services at all times.
With the loyal support of its customers, BCA successfully delivered a year of strong
financial performance and maintained its position as the bank of choice in Indonesia.
2018 Positioning for Growth
BCA’s transaction banking constantly innovates and adapts along with changes in
customer behavior and the high adoption of digital technology advancement.
We pay attention to the principle of prudence and continue to maintain a sufficient
capital and liquidity position for the development of a long-term loan portfolio.
Increasing data processing capability provides opportunities to generate a selection
of banking solutions across BCA customer segments.
Investment in information technology, networks and human resources will support
the Bank’s business continuity. BCA is optimistic that the Indonesian economy and
banking sector have good prospects and potential to continue growing in the coming
years.
2019
Navigating Change
Na
BCA is ev
evolving alongside the current changes in digital technology, customer
behavior and the business environment.
In response
respon to these changes, BCA is undertaking various strategic initiatives to
maintain its excellence in delivering banking services; satisfying customer needs
through offering quality products and services is its foundation. The company
undertakes continuous product and service innovations by optimizing the
undertak
latest developments
dev in technology keeping quality customer experiences at the
forefront of its actions. BCA fosters a culture of innovation, collaboration and
effective teamwork in every area of business in order to improve its readiness to
adapt to changing circumstances.
With all these actions, BCA is actively navigating change to create new
opportunities that can support the company’s growth in the future and provide
opportun
value to its stakeholders.
added va
2019 Annual Report | PT Bank Central Asia Tbk 1
Contents
14 23 47 113
Main Management Corporate Management
Highlights Report Discussion
and Analysis
97 Share Ownership Percentage of Commissioners
and Directors
Main Highlights 98 BCA Group Structure and Subsidiaries Ownership
99 Record of BCA Share and Other Securities Listing
14 Financial Highlights 100 Information on Subsidiaries
18 Stock and Bond Highlights 102 Capital Market Supporting Institution
103 Awards and Certifications
108 Branches
111 Information on Company’s Website
Management Report
24 Report of the Board of Directors
Management Discussion
36 Board of Commissioner’s Supervisory Report
and Analysis
114 Business Review
114 Business Segment Performance Overview
116 Transaction Banking
124 Corporate Banking
48 Company General Information 130 Commercial and SME Banking
49 Line of Business 136 Individual Banking
50 Milestones 142 Treasury and International Banking
52 Event Highlights 2019 148 Business Support
58 Corporate Culture (Vision, Mission & Core Values) 148 Risk Management
60 Products and Services 244 Human Resources
62 Organization Structure 252 Network and Operation
64 Board of Directors and Board of Commissioners 256 Information Technology
Profiles 260 Overview of Macroeconomics and
80 Board of Commissioners Committee Members and the Banking Sector
Corporate Secretary Profiles
263 Financial Performance Overview BCA in 2019
92 Senior Officers 264 s &INANCIAL 0OSITION
94 Number of Employees and Competence Development 264 - Assets
94 Number of Employees by Organization Level, 270 - Liabilities
Seniority, Age, Education Level and Status
272 - Equity
95 Employee Competence Development
273 s 0ROlT OR ,OSS 3TATEMENTS
95 Training and/or Education for the Board of
Commissioners, Board of Directors, Committees, 273 - Net Interest Income
Corporate Secretary, and Internal Audit Unit 276 - Operating Income other than Interest
96 Shareholder Composition 277 - Operating Expenses
96 BCA Ultimate Shareholder 278 !LLOWANCE FOR )MPAIRMENT ,OSSES ON &INANCIAL
96 Details of 20 Largest Shareholders Assets
97 Details of Shareholders with More than 5% Share 279 - Income Before Tax
Ownership 279 - Net Income
97 Public Shareholders with Less than 5% Share 280 - Statements of Comprehensive Income
Ownership
280 s #ASH &LOW
281 s +EY &INANCIAL 2ATIOS
2 2019 Annual Report | PT Bank Central Asia Tbk
297 565 587
Corporate Corporate Consolidated
Governance Social Financial
Responsibility Statements
282 Overview of Subsidiary Performance 393 Meeting of Board of Commissioners, Board of
286 Directors and Joint Meetings
Other Material Information
403 Affiliated Relationship
286 s 4ARGET !CHIEVEMENT IN AND 0ROJECTION FOR
405 Diversity in The Composition of the Boards of
286 s 0ROSPECT AND 3TRATEGIC 0RIORITIES IN
Commissioners and Directors
286 - Macroeconomic and Banking Sector Prospects
409 Remuneration Policy
in 2020
420 Committees Under Board of Commissioners
287 - Strategy Priorities of BCA in 2020
441 Executive Committees of Board of Directors
288 s -ARKETING !SPECT
289 464 Corporate Secretary
s $EBT 3ERVICE !BILITY AND ,OAN 2ECEIVABLES
Collectability 472 Internal Audit Division
289 s #APITAL 3TRUCTURE AND -ANAGEMENT 0OLICY 476 0UBLIC !CCOUNTANT &IRM %XTERNAL !UDIT
290 - Capital Structure 478 #OMPLIANCE &UNCTION
290 - Management Policy on Capital Structure 482 Application of Risk Management
291 - Basis Management Policy on Capital Structure 489 Internal Control System
291 s $IVIDEND 0OLICY 492 !PPLICATION OF !NTI &RAUD 3TRATEGY
291 s -ATERIAL #OMMITMENTS FOR #APITAL %XPENDITURE 495 Whistleblowing System
291 - Purpose of Material Commitments for Capital 498 Anti Gratuity
Expenditure
499 !FlLIATED 4RANSACTIONS 4RANSACTIONS WITH #ONmICT
292 3OURCE OF &UNDS FOR #APITAL %XPENDITURE of Interest
292 #URRENCY AND &OREIGN %XCHANGE 2ISK -ITIGATION 503 Legal Cases
Related To Capital Expenditures
505 Significant Cases and Administrative Sanction
292 s 2EALIZATION OF #APITAL %XPENDITURE
507 Access to Information and Corporate Data
292 s )NFORMATION AND -ATERIAL )NFORMATION AFTER THE
523 Code of Ethics
$ATE OF &INANCIAL 2EPORTING
526 Corporate Culture
292 s -ANAGEMENT ANDOR %MPLOYEES 3TOCK /PTION 0LAN
(MSOP/ESOP) 527 Stock Option
292 s 2EALIZATION OF 0UBLIC /FFERING &UNDS 527 Shares Buy Back
292 s -ATERIAL )NFORMATION 2EGARDING )NVESTMENT 527 Other Corporate Actions
Expansion, Divestment and Acquisition 529 0ROVISION OF &UND TO 2ELATED 0ARTY AND ,ARGE
293 s )NFORMATION ON -ATERIAL 4RANSACTIONS WITH #ONmICTS Exposure
of Interest 530 Strategic Plan
293 s $ISCLOSURE OF 4RANSACTIONS WITH 2ELATED 0ARTIES 530 4RANSPARENCY OF "#! &INANCIAL AND .ON &INANCIAL
293 s 'ROUP 7IDE &UNDING #OMMITMENTS AND /THER Conditions Undisclosed in other Reports
&ACILITIES TO 3INGLE /UTSIDE $EBTORS 532 Sustainability Governance
293 s )MPACT OF #HANGES IN ,AWS AND 2EGULATIONS 533 0ROVISION OF &UNDS FOR 3OCIAL !CTIVITIES
294 s #HANGES IN !CCOUNTING 0OLICIES 533 0ROVISION OF &UNDS FOR 0OLITICAL !CTIVITIES
294 s "USINESS #ONTINUITY 534 Implementation of Integrated Governance
295 s 0RIME ,ENDING 2ATE 552 &ULlLMENT )NDEX OF 'OVERNANCE 2ECOMMENDATIONS
Corporate Social
Corporate Governance Responsibility
304 Introduction 566 Corporate Social Responsibility
325 General Meeting of Shareholders
355 Information on Main Shareholders/Controllers
Consolidated
356 Board of Commissioners
Financial Statements
373 Board of Directors
587 Consolidated Financial Statements
2019 Annual Report | PT Bank Central Asia Tbk 3
4 2019 Annual Report | PT Bank Central Asia Tbk
NAVIGATING CHANGE
BCA is evolving alongside the current changes in digital technology, customer
behavior and the business environment.
In response to these changes, BCA is undertaking various strategic initiatives
to maintain its excellence in delivering banking services; satisfying customer
needs through offering quality products and services is its foundation.
The company undertakes continuous product and service innovations by
optimizing the latest developments in technology keeping quality customer
experiences at the forefront of its actions. BCA fosters a culture of innovation,
collaboration and effective teamwork in every area of business in order to
improve its readiness to adapt to changing circumstances.
With all these actions, BCA is actively navigating change to create new
opportunities that can support the company’s growth in the future and
provide added value to its stakeholders.
Third Party Funds Loans
Rp
699.0 Rp
586.9 Rp
28.6
trillion trillion trillion
YoY 11.0% YoY 9.1% YoY 10.5%
2019 Annual Report | PT Bank Central Asia Tbk 5
MAINTAINING THE QUALITY OF
Financial Performance
Solid Growth
Through well-directed strategic policies and business management, BCA
maintains strong and robust growth amid the dynamics of the economy,
business disruption and accelerated digital development.
Current Account and Savings Accounts (CASA) Net Interest Margin (NIM)
75.9% (contribution to total Third Party
Funds
530.6 6.2 %
Rp
Rp trillion
YoY 9.8% Non Performing Loan (NPL) - gross
Operating Income 1.3 %
Rp 71.6 trillion
YoY 13.6%
Loan to Deposits Ratio (LDR)
Income Before Provision and Tax (PPOP)
80.5 %
Capital Adequacy Ratio (CAR)
Rp 40.9 YoY 15.5%
trillion
23.8 %
6 2019 Annual Report | PT Bank Central Asia Tbk
Strong Growth in
Digital Transactions
Number of Transactions Transaction Value
Mobile Banking Mobile Banking
YoY 99.2% YoY 50.4%
3.8 billion Rp 2,089 trillion
Internet Banking Internet Banking
YoY 10.8% YoY 17.5%
2.5 billion Rp 10,701 trillion
2019 Annual Report | PT Bank Central Asia Tbk 7
DELIVERING
banking virtual assistant
accessible through a
QR code-based peer-to-peer number of popular chat
transfer with BCA Mobile and apps
Sakuku e-wallet
mobile apps for
access to BCA
internet banking and bonds and insurance
and mobile banking
services
through mobilephone keyboard in
online merchant
payment feature
emphasizing speed
online savings account
opening through BCA
Mobile
Online Account Opening Composition of Number of
Number of Accounts
(April - December 2019) Transactions in Digital Channels
>21 >450 98.2 %
million customerss thousand to total
accounts transaction
8 201
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Bank 2019 for Achievement 2019 Excellence 2019
s "EST !SIAN "ANK BCA – The Best Bank in Indonesia
s "EST "ANK IN )NDONESIA
Asiamoney BrandZ & WPP Kantar Bank Indonesia
Asiamoney Awards 2019 Most Valuable Brands 2019 Bank Indonesia Award 2019
s "EST $OMESTIC "ANK BCA - Top 100 Most Valuable "ANK DENGAN +EPATUHAN
s "EST $IGITAL "ANK Global Brands 2019 0ELAPORAN +EUANGAN 4ERBAIK
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SUSTAINABILITY
2019 PERFORMANCE
HIGHLIGHTS
Economic Performance
Branch Service Quality Amount of Customer Engagement
(BSQ) index Tax paid (CE) index
4.86 (Scale of 1-5)
Rp 7.7
trillion
4.67(Scale of 1-5)
12.6% YoY
Total sustainable business
ACTIVITY CATEGORIES ++5" Total frequency of digital
financing banking transactions
Rp 116.3 trillion
8.4 billion
35.4% YoY
13.8% YoY
10 2019 Annual Report | PT Bank Central Asia Tbk
Social and Community Performance
27.3% 55.3% 63.8%
Women that occupy Women that occupy
Director positions Branch Head positions &EMALE EMPLOYEES
of total employees
that received
promotion
613 98,072
people
17.976 Received service
people
&INANCIAL LITERACY
patients
Cataract surgery education participants
Received health service from
Bakti BCA Partner Clinics
20 656
ATMs
people
Employee received sustaibility
1,606
people
Number of ATM
Wicara for people finance training
Non-degree education
with disabilities program Alumni
Environmental Performance
20,200 12.9 %
Reduction in paper 61
trees usage at 7 head Branches that support
Mangrove trees planted with a office locations, the green office
potential reduction concept
total planted area of 12 hectares
of 24.5 tCO2 eq
BCA contributes to preservation’s
6 orangutans
efforts of protected faunas’
habitats including Tarsiers on
the Peramun hill, Orangutans
261 kWh/m2/year
Electricity consumption at
IN +ALIMANTAN AND 4URTLES IN
Banyuwangi Menara BCA, Wisma Asia II,
Reintroduction of and Wisma BCA Pondok Indah
ORANGUTANS IN +ALIMANTAN
2019 Annual Report | PT Bank Central Asia Tbk 11
12 BAKTI BCA
ASSISTED VILLAGES
s 0ENTINGSARI 4OURISM 6ILLAGE 3LEMAN 9OGYAKARTA
s 7IRAWISATA 'OA 0INDUL 'UNUNG +IDUL 9OGYAKARTA
s !IK 2USA "EREHUN 4OURISM 6ILLAGE 4ERONG 7EST "ELITUNG
s 4AMANSARI 4OURISM 6ILLAGE "ANYUWANGI %AST *AVA
s "UKIT 0ERAMUN 7EST "ELITUNG
s 'UNONG ,UMUT %AST "ELITUNG
s .AGARI 3ILOKEK 7EST 3UMATERA
s @7AYANG 7UKIRSARI 4OURISM 6ILLAGE )MOGIRI 9OGYAKARTA
s @+AMPUNG "ATIK 'EMAH 3UMILIR 0EKALOGAN #ENTRAL *AVA
s @+AMPUNG !DAT 3IJUNJUNG 7EST 3UMATERA
s $OESOEN +OPI 3IRAP 3EMARANG #ENTRAL *AVA
s 0UCAK 4INGGAN 4OURISM 6ILLAGE "ADUNG "ALI
12 2019 Annual Report | PT Bank Central Asia Tbk
MSCI FTSE4Good KEHATI
First Place in the list Fourth Place in the list BCA is included in
of 10 MSCI Indonesia’s of 10 FTSE4Good ASEAN THE 32) +%(!4) INDEX COMPANY
Main Constituents 5 Main Constituents – list period November 2019 - April
as LST/ESG Leaders – *ANUARY 4HE 32) +%(!4) INDEX REFERS
*ANUARY to Sustainable and Responsible
Investment criteria. Companies in
this index are considered to have
MSCI index calculates reported &43%'OOD )NDEX IS AN INDEX concern for the environment,
ESG performance with its peers that transparently selects and corporate governance, community
in Indonesia’s capital markets. segregates based on ESG criteria involvement, human resources,
BCA achieved first place in the in ASEAN’s capital markets. human rights, and business
list of 10 main constituents of BCA is ranked fourth in the list behaviour with business ethics
MSCI Indonesia ESG Leaders as of of 10 main constituents as of that are accepted at the
*ANUARY &URTHERMORE January 31, 2020. international level.
BCA was granted a rating of
A from MSCI ESG rating in www.kehati.or.id
ati.or.id and
&EBRUARY www.idx.co.id
co.id
2019 Annual Report | PT Bank Central Asia Tbk 13
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
FINANCIAL HIGHLIGHTS
Total Assets Loans - gross
(in trillion Rupiah) (in trillion Rupiah)
919.0 586.9
824.8 538.1
750.3 467.5
676.7
415.9
594.4 387.6
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Third Party Funds Total Equity
(in trillion Rupiah) (in trillion Rupiah)
699.0 174.1
629.8
151.8
581.1
530.1 131.4
473.7
112.7
89.6
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Net Income
Operating Income Attributable to Equity Holders of Parent Entity
(in trillion Rupiah) (in trillion Rupiah)
71.6 28.6
63.0 25.9
57.0 23.3
53.8 20.6
47.9
18.0
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
14 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Return on Assets (ROA) Return on Equity (ROE)
4.0% 3.9% 4.0% 4.0% 21.9%
3.8% 20.5%
19.2% 18.8%
18.0%
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Net Interest Margin (NIM) Capital Adequacy Ratio (CAR)
6.7% 6.8% 23.4% 23.8%
23.1%
6.2% 6.2% 21.9%
6.1%
18.7%
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
Loan to Deposit Ratio (LDR) Non-Performing Loans (NPL) - gross
81.1% 81.6% 80.5% 1.5%
78.2% 1.4%
77.1% 1.3% 1.3%
0.7%
2015 2016 2017 2018 2019 2015 2016 2017 2018 2019
2019 Annual Report | PT Bank Central Asia Tbk 15
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
FINANCIAL HIGHLIGHTS - Continued
&INANCIAL (IGHLIGHTS IN THE LAST YEARS1 (Audited, Consolidated, as of or for the year ended December 31)
(in billion Rupiah) 2019 2018 2017 2016 2015
Financial Position
Total Assets 918,989 824,788
Total Earning Assets 818,694 734,401 672,235 604,049 527,407
Loans - gross 586,940 538,100 467,509 415,896 387,643
Loans - net 572,034 524,531 454,265 403,391 378,616
Securities - net
152,559 118,294 140,350 111,256 51,668
(including Securities Purchased Under Agreements to Resell)
Placements with Bank Indonesia and Other Banks 30,948 31,683 18,969 35,364 56,259
Total Liabilities1 744,846 618,918 564,024 504,748
4HIRD 0ARTY &UNDS2 698,980 629,812 581,115 530,134 473,666
CASA 530,552 483,004 443,666 408,205 360,261
Current Accounts 184,918 166,822 151,250 137,853 115,653
Savings Accounts 345,634 316,182 292,416 270,352 244,608
Time Deposits 168,428 146,808 137,449 121,929 113,405
Borrowings and Deposits from Other Banks 9,050 8,588 8,799 7,690 5,899
Debt Securities Issued3 1,348 240 610 2,332 2,821
Subordinated Bonds 500 500 - - -
Total Equity 112,715 89,625
Comprehensive Income
Operating Income 71,623 63,034 56,982 53,779 47,876
Net Interest Income 50,477 45,291 41,827 40,079 35,869
Operating Income other than Interest 21,145 17,743 15,155 13,700 12,007
)MPAIRMENT ,OSSES ON &INANCIAL !SSETS (4,591) (2,676) (2,633) (4,561) (3,505)
Operating Expenses (30,742) (27,651) (25,190) (23,379) (21,714)
Income Before Tax 36,289 32,707 29,159 25,839 22,657
Net Income 28,570 25,852
Other Comprehensive Income (Expenses) 2,568 910 755 6,772 (344)
Total Comprehensive Income 26,762 24,076 27,404 17,692
Net Income Attributable to:
Equity Holders of Parent Entity 28,565 25,855 20,606 18,019
Non-Controlling Interest 5 (3) 11 26 17
Comprehensive Income Attributable to:
Equity Holders of Parent Entity 26,766 24,064 17,674
Non-Controlling Interest 6 (4) 12 26 18
Earnings per Share (in Rupiah, full amount) 1,159 1,049 945
All numbers in this document use English notation, unless otherwise stated.
1. Including temporary syirkah funds amounting to Rp 4,779 billion in 2019, Rp 4,596 billion in 2018, Rp 3,978 billion in 2017, Rp 3,467 billion in 2016 and Rp 2,802 billion in 2015.
2. Third party funds excluding deposits from other banks.
4HE DEBT SECURITIES ISSUED REPRESENT BONDS AND MEDIUM TERM NOTES ISSUED BY "#! &INANCE A SUBSIDIARY OF THE "ANK THAT IS ENGAGED IN WHEELER lNANCING
16 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
2019 2018 2017 2016 2015
4
Financial Ratios
Capital
Capital Adequacy Ratio (CAR)5 23.8% 23.4% 23.1% 21.9% 18.7%
CAR Tier 1 22.8% 22.4% 22.1% 21.0% 17.8%
CAR Tier 2 1.0% 1.0% 1.0% 0.9% 0.9%
&IXED !SSETS TO #APITAL 18.5% 19.4% 19.8% 22.4% 18.6%
Assets Quality
Non Performing Earning Assets and Non Earning Assets to
0.9% 0.9% 0.9% 0.8% 0.6%
Total Earning Assets and Non Earning Assets
Non Performing Earning Assets to Total Earning Assets 1.0% 1.1% 1.1% 1.1% 0.7%
Allowance Provision on Earning Assets to Total Earning Assets 1.9% 1.9% 2.1% 2.3% 2.0%
Non Performing Loans (NPL) - gross6 1.3% 1.4% 1.5% 1.3% 0.7%
Non Performing Loans (NPL) - net 0.5% 0.4% 0.4% 0.3% 0.2%
Rentability
Return on Assets (ROA)7 4.0% 4.0% 3.9% 4.0% 3.8%
Return on Equity (ROE)8 18.0% 18.8% 19.2% 20.5% 21.9%
Net Interest Margin (NIM)9 6.2% 6.1% 6.2% 6.8% 6.7%
Cost Efficiency Ratio (CER) 43.7% 44.3% 44.4% 43.9% 46.5%
Operating Expenses to Operating Revenues (BOPO) 59.1% 58.2% 58.6% 60.4% 63.2%
Liquidity
Loan to Deposit Ratio (LDR)10 80.5% 81.6% 78.2% 77.1% 81.1%
Current Accounts & Savings Accounts (CASA) Ratio 75.9% 76.7% 76.3% 77.0% 76.1%
Liabilities to Equity Ratio 438.5% 454.2% 479.3% 507.5% 570.4%
Liabilities to Assets Ratio 81.4% 82.0% 82.7% 83.5% 85.1%
Liquidity Coverage Ratio (LCR)11 276.3% 278.2% 353.0% 391.3% 363.3%
Compliance
Percentage Violation of Legal Lending Limit
a. Related Parties 0.0% 0.0% 0.0% 0.0% 0.0%
b. Non Related Parties 0.0% 0.0% 0.0% 0.0% 0.0%
Percentage Lending in Excess of Legal Lending Limit
a. Related Parties 0.0% 0.0% 0.0% 0.0% 0.0%
b. Non Related Parties 0.0% 0.0% 0.0% 0.0% 0.0%
Minimum Reserve Requirement
a. Primary Reserve Requirement - Rupiah 6.1% 6.6% 7.0% 7.3% 7.5%
B 2ESERVE 2EQUIREMENT &OREIGN #URRENCY 8.5% 8.4% 8.5% 8.5% 9.1%
Net Open Position (NOP) 0.9% 0.5% 0.5% 0.2% 0.4%
Other Key Indicators
Number of Accounts (in thousands) 21,743 19,040 17,048 15,583 14,129
Number of Branches12 1,256 1,249 1,235 1,211 1,182
Number of ATMs 17,928 17,778 17,658 17,207 17,081
Number of ATM Cards (in thousands) 20,069 17,594 15,767 14,402 13,090
Number of Credit Cards (in thousands) 4,029 3,609 3,296 2,983 2,748
0ARENT COMPANY ONLY lNANCIAL RATIOS HAVE BEEN PRESENTED BASED ON #IRCULAR ,ETTER OF )NDONESIA &INANCIAL 3ERVICES !UTHORITY .O3%/*+ DATED 3EPTEMBER
regarding Transparency and Publication of Commercial Bank.
5. CAR is calculated with credit risk, operational risk and market risk based on Circular Letter of Bank Indonesia No.11/3/DPNP dated January 27, 2009 which was later changed into
#IRCULAR ,ETTER OF )NDONESIAS &INANCIAL 3ERVICES !UTHORITY .O 3%/*+ DATED *ULY REGARDING THE 2ISK 7EIGHTED !SSETS #ALCULATION FOR /PERATIONAL 2ISK USING THE
"ASIC )NDICATOR !PPROACH AND CALCULATED BASED ON )NDONESIAS &INANCIAL 3ERVICES !UTHORITY 2EGULATION .O 0/*+ DATED *ANUARY REGARDING #APITAL !DEQUACY
Ratio (CAR) for Commercial Banks.
6. Calculated from total non performing loans (substandard, doubtful, loss) divided by total loans.
7. Calculated from income (loss) before tax divided by average total assets.
8. Calculated from net income (loss) divided by average Tier 1 Capital.
9. Calculated from net interest income (expense) divided by average of earning assets.
10. Calculated from total loan portfolio to third party divided by total third party funds and securities that met certain criterias and issued by the Bank for funding purposes.
#ALCULATED FROM TOTAL (IGH 1UALITY ,IQUID !SSET (1,! DIVIDED BY TOTAL NET CASH mOW BASED ON )NDONESIA &INANCIAL 3ERVICES !UTHORITY 2EGULATION .O 0/*+ REGARDING
Liquidity Coverage Ratio for Commercial Bank.
12. Including cash offices.
2019 Annual Report | PT Bank Central Asia Tbk 17
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
STOCK AND BOND
HIGHLIGHTS
BCA Share Performance in 2015 - 2019
35,000 280,000
Volume
Share Price
30,000 240,000
25,000 200,000
Share Price (in Rupiah)
Volume (in thousands)
20,000 160,000
15,000 120,000
10,000 80,000
5,000 40,000
0 0
Jan-15 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Source: Bloomberg
2019 2018 2017 2016 2015
Highest Price (in Rupiah) 34,000 26,975 22,750 16,200 15,600
Lowest Price (in Rupiah) 25,575 20,600 14,950 12,625 11,000
Closing Price (in Rupiah) 33,425 26,000 21,900 15,500 13,300
Market Capitalization (in billion Rupiah) 824,094 641,030 539,945 382,153 327,912
Earnings per Share (in Rupiah) 1,159 1,049 945 836 731
Book Value per Share (in Rupiah) 7,059 6,151 5,326 4,560 3,625
P/E (x) 28.8 24.8 23.2 18.5 18.2
P/BV (x) 4.7 4.2 4.1 3.4 3.7
Source: Bloomberg
BCA Share Price, Volume & Market Capitalization
in 2015 – 2019
Price
Transaction Market
Year Quarter Highest Lowest Closing Volume Capitalization
(in Rupiah) (in Rupiah) (in Rupiah) (in thousand) (in billion Rupiah)
I 28,750 25,575 27,750 904,895 684,177
II 30,950 25,700 29,975 806,069 739,034
2019
III 31,450 28,825 30,350 765,867 748,280
IV 34,000 29,750 33,425 764,201 824,094
I 24,700 21,325 23,300 1,002,328 574,462
II 23,650 20,825 21,475 876,115 529,466
2018
III 25,475 20,600 24,150 919,397 595,418
IV 26,975 22,175 26,000 1,016,290 641,030
I 17,000 14,950 16,550 919,042 408,040
II 18,550 16,575 18,150 1,360,255 447,488
2017
III 20,375 18,075 20,300 824,300 500,497
IV 22,750 20,050 21,900 968,402 539,945
I 13,925 12,750 13,300 1,179,220 327,912
II 13,450 12,625 13,325 992,972 328,528
2016
III 16,000 13,200 15,700 1,410,037 387,084
IV 16,200 13,950 15,500 1,158,886 382,153
I 14,825 12,800 14,825 771,201 365,511
II 15,600 12,900 13,500 977,269 332,843
2015
III 13,900 11,000 12,275 850,501 302,640
IV 13,800 11,875 13,300 891,297 327,912
Source: Bloomberg
18 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BCA Capital Structure in 2015 – 2019
2019 2018 2017 2016 2015
Authorized Capital
Number of Shares 88,000,000,000 88,000,000,000 88,000,000,000 88,000,000,000 88,000,000,000
Total par Value (in Rupiah) 5,500,000,000,000 5,500,000,000,000 5,500,000,000,000 5,500,000,000,000 5,500,000,000,000
Unissued
Number of Shares 63,344,990,000 63,344,990,000 63,344,990,000 63,344,990,000 63,344,990,000
Total par Value (in Rupiah) 3,959,061,875,000 3,959,061,875,000 3,959,061,875,000 3,959,061,875,000 3,959,061,875,000
Issued and Fully Paid Up Capital
Number of Shares 24,655,010,000 24,655,010,000 24,655,010,000 24,655,010,000 24,655,010,000
Total par Value (in Rupiah) 1,540,938,125,000 1,540,938,125,000 1,540,938,125,000 1,540,938,125,000 1,540,938,125,000
Outstanding Shares
Number of Shares 24,655,010,000 24,655,010,000 24,655,010,000 24,655,010,000 24,655,010,000
Total par Value (in Rupiah) 1,540,938,125,000 1,540,938,125,000 1,540,938,125,000 1,540,938,125,000 1,540,938,125,000
BCA Cash Dividends in 2015 – 2019
2019 2018 2017 2016 2015
Earnings per Share (in Rupiah) 1,159 1,049 945 836 731
Cash Dividends per Share (in Rupiah) na 340.0 255.0 200.0 160.0
Cash Dividends Amount (in Rupiah) na 8,382,703,400,000 6,287,027,550,000 4,931,002,000,000 3,944,801,600,000
Interim Dividend (in Rupiah) 100.0 85.0 80.0 70.0 55.0
Cum Dividend for Trading in:
Regular and Negotiated Market 5 Dec 2019 30 Nov 2018 28 Nov 2017 30 Nov 2016 12 Nov 2015
Cash Market 9 Dec 2019 4 Dec 2018 4 Dec 2017 5 Dec 2016 17 Nov 2015
&INAL $IVIDEND IN 2UPIAH na 255.0 175.0 130.0 105.0
Cum Dividend for Trading in:
Regular and Negotiated Market na 23 Apr 2019 12 Apr 2018 13 Apr 2017 14 Apr 2016
Cash Market na 25 Apr 2019 17 Apr 2018 20 Apr 2017 19 Apr 2016
Dividend Payout Ratio na
2019 Annual Report | PT Bank Central Asia Tbk 19
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BCA Dividends History*
Amount Recording Payment
Description Declared Cum-Dividend
per Share Date Date
2019 Interim Rp 100.0 29 Nov 2019 Regular and
Negotiation Market 5 Dec 2019 9 Dec 2019 20 Dec 2019
Cash Market 9 Dec 2019
&INAL Rp 255.0 15 Apr 2019 Regular and
Negotiation Market 23 Apr 2019 25 Apr 2019 30 Apr 2019
Cash Market 25 Apr 2019
2018 Interim Rp 85.0 26 Nov 2018 Regular and
Negotiation Market 30 Nov 2018 4 Dec 2018 21 Dec 2018
Cash Market 4 Dec 2018
&INAL Rp 175.0 9 Apr 2018 Regular and
Negotiation Market 12 Apr 2018 17 Apr 2018 30 Apr 2018
Cash Market 17 Apr 2018
2017 Interim Rp 80.0 23 Nov 2017 Regular and
Negotiation Market 28 Nov 2017 4 Dec 2017 20 Dec 2017
Cash Market 4 Dec 2017
&INAL Rp 130.0 10 Apr 2017 Regular and
Negotiation Market 13 Apr 2017 20 Apr 2017 28 Apr 2017
Cash Market 20 Apr 2017
2016 Interim Rp 70.0 25 Nov 2016 Regular and
Negotiation Market 30 Nov 2016 5 Dec 2016 22 Dec 2016
Cash Market 5 Dec 2016
&INAL Rp 105.0 11 Apr 2016 Regular and
Negotiation Market 14 Apr 2016 19 Apr 2016 29 Apr 2016
Cash Market 19 Apr 2016
2015 Interim Rp 55.0 9 Nov 2015 Regular and
Negotiation Market 12 Nov 2015 17 Nov 2015 9 Dec 2015
Cash Market 17 Nov 2015
&INAL Rp 98.0 13 Apr 2015 Regular and
Negotiation Market 16 Apr 2015 21 Apr 2015 13 May 2015
Cash Market 21 Apr 2015
2014 Interim Rp 50.0 17 Nov 2014 Regular and
Negotiation Market 4 Dec 2014 9 Dec 2014 23 Dec 2014
Cash Market 9 Dec 2014
&INAL Rp 75.0 10 Apr 2014 Regular and
Negotiation Market 29 Apr 2014 5 May 2014 20 May 2014
Cash Market 5 May 2014
2013 Interim Rp 45.0 11 Nov 2013 Regular and
Negotiation Market 28 Nov 2013 3 Dec 2013 17 Dec 2013
Cash Market 3 Dec 2013
&INAL Rp 71.0 8 May 2013 Regular and
Negotiation Market 28 May 2013 31 May 2013 17 Jun 2013
Cash Market 31 May 2013
2012 Interim Rp 43.5 12 Nov 2012 Regular and
Negotiation Market 3 Dec 2012 6 Dec 2012 20 Dec 2012
Cash Market 6 Dec 2012
&INAL Rp 70.0 22 May 2012 Regular and
Negotiation Market 8 Jun 2012 13 Jun 2012 27 Jun 2012
Cash Market 13 Jun 2012
2011 Interim Rp 43.5 17 Nov 2011 Regular and
Negotiation Market 6 Dec 2011 9 Dec 2011 23 Dec 2011
Cash Market 9 Dec 2011
&INAL Rp 70.0 16 May 2011 Regular and
Negotiation Market 6 Jun 2011 9 Jun 2011 23 Jun 2011
Cash Market 9 Jun 2011
2010 Interim Rp 42.5 1 Nov 2010 Regular and
Negotiation Market 19 Nov 2010 24 Nov 2010 9 Dec 2010
Cash Market 24 Nov 2010
&INAL Rp 70.0 7 May 2010 Regular and
Negotiation Market 31 May 2010 3 Jun 2010 17 Jun 2010
Cash Market 3 Jun 2010
2009 Interim Rp 40.0 26 Oct 2009 Regular and
Negotiation Market 12 Nov 2009 17 Nov 2009 2 Dec 2009
Cash Market 17 Nov 2009
&INAL Rp 65.0 20 May 2009 Regular and
Negotiation Market 9 Jun 2009 12 Jun 2009 26 Jun 2009
Cash Market 12 Jun 2009
20 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Amount Recording Payment
Description Declared Cum-Dividend
per Share Date Date
2008 Interim Rp 35.0 22 Dec 2008 Regular and
Negotiation Market 15 Jan 2009 20 Jan 2009 30 Jan 2009
Cash Market 20 Jan 2009
&INAL Rp 63.5 26 May 2008 Regular and
Negotiation Market 12 Jun 2008 17 Jun 2008 1 Jul 2008
Cash Market 17 Jun 2008
2007 Interim Rp 55.0 12 Nov 2007 Regular and
Negotiation Market 29 Nov 2007 4 Dec 2007 18 Dec 2007
Cash Market 4 Dec 2007
&INAL Rp 115.0 21 May 2007 Regular and
Negotiation Market 8 Jun 2007 13 Jun 2007 27 Jun 2007
Cash Market 13 Jun 2007
2006 Interim Rp 55.0 21 Sep 2006 Regular and
Negotiation Market 10 Oct 2006 13 Oct 2006 3 Nov 2006
Cash Market 13 Oct 2006
&INAL Rp 90.0 17 May 2006 Regular and
Negotiation Market 6 Jun 2006 9 Jun 2006 23 Jun 2006
Cash Market 9 Jun 2006
2005 Interim Rp 50.0 15 Sep 2005 Regular and
Negotiation Market 6 Oct 2005 11 Oct 2005 25 Oct 2005
Cash Market 11 Oct 2005
&INAL Rp 80.0 28 Jun 2005 Regular and
Negotiation Market 19 Jul 2005 22 Jul 2005 5 Aug 2005
Cash Market 22 Jul 2005
2004 Interim Rp 50.0 27 Oct 2004 Regular and
Negotiation Market 22 Nov 2004 25 Nov 2004 8 Dec 2004
Cash Market 25 Nov 2004
&INAL Rp 112.5 8 Jun 2004 Regular and
Negotiation Market 30 Jun 2004 6 Jul 2004 20 Jul 2004
Cash Market 6 Jul 2004
&INAL Rp 225.0 7 Nov 2003 Regular and
Negotiation Market 3 Dec 2003 8 Dec 2003 19 Dec 2003
Cash Market 8 Dec 2003
&INAL Rp 140.0 10 Oct 2002 Regular and
Negotiation Market 29 Oct 2002 1 Nov 2002 15 Nov 2002
Cash Market 1 Nov 2002
2001 Interim Rp 85.0 29 Oct 2001 Regular and
Negotiation Market 14 Nov 2001 20 Nov 2001 4 Dec 2001
Cash Market 20 Nov 2001
* BCA conducted a 2 for 1 stock split, one share was split into two shares, effective on May 15, 2001, June 8, 2004 and January 31, 2008
Bonds Highlights
Recording Nominal Value Maturity Interest Rating
Instrument Currency Tenor Trustee Underwriter
Date of the Bond Date Rate (2019)
Bank Central Asia Continuous Subordinated Bonds I Phase I 2018
- Seri A 6 July 2018 Rupiah Rp435 billion 7 years 5 July 2025 7.75% p.a idAA PT Bank PT BCA
(Pefindo) Rakyat Sekuritas
Indonesia
(Persero) Tbk
- Seri B 6 July 2018 Rupiah Rp65 billion 12 years 5 July 2030 8.00% p.a idAA PT Bank PT BCA
(Pefindo) Rakyat Sekuritas
Indonesia
(Persero) Tbk
#ONSOLIDATED BASIS THE "ANK POSSESSES OBLIGATIONS IN THE FORM OF BONDS ISSUED BY THE SUBSIDIARY "#! &INANCE WHICH PER
$ECEMBER WAS RECORDED AT 2P BILLION )NFORMATION ON BONDS ISSUED BY "#! &INANCE CAN BE FOUND IN THE AUDITED
#ONSOLIDATED &INANCIAL 3TATEMENTS ON PAGES
2019 Annual Report | PT Bank Central Asia Tbk 21
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
22 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
MANAGEMENT
REPORT
2019 Annual Report | PT Bank Central Asia Tbk 23
24 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
REPORT OF THE BOARD OF DIRECTORS
Dear Valued Shareholders,
We are pleased to report that BCA and its subsidiaries
booked a solid performance through disciplined execution
of the Bank’s policies and business plan.
BCA takes into account both BCA continues to strengthen its ability to provide exceptional
internal and external factors banking services in response to the digitally evolving
business environment, and navigate challenges into new
to determine its strategic
opportunities to support future business performance.
initiatives, while preserving
strong liquidity and capital Indonesia’s Economy and Banking Industry
positions, and promoting 2019 has been a year of challenges and change, marked by
a balance between loan global issues such as the prolonged US-China trade war which
growth and asset quality. BECAME THE MAJOR CAUSE OF A GLOBAL ECONOMIC SLOWDOWN 4HE
US experienced a similar slowdown in its economy, which
only grew by 2.3%, a decrease from the previous year of
4HE &ED GRADUALLY LOWERED ITS &ED &UNDS 2ATE &&2
by 75 basis point (bps) to 1.75% by year end, and actively
intervened in the interbank market through Permanent
Open Market Operations (POMO) to improve liquidity.
7E EXPECT &&2 ADJUSTMENTS WILL CONTINUE DEPENDING ON
US economic developments.
Jahja Setiaatmadja
President Director
2019 Annual Report | PT Bank Central Asia Tbk 25
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Indonesia managed well its biggest election ever for president of government marketable debt securities with a more
and legislative seats. We wish to express our appreciation to attractive return than bank deposits.
all parties who contributed to the successful elections.
Banking sector loan growth was mainly derived from the
The Indonesian economy remained defensive, achieving construction, household, manufacturing industries and
economic growth of 5.0%. It maintained the pace of GDP wholesale & retail trade sector. These four industries recorded
growth with large domestic consumption and government nominal loan growth of Rp190.4 trillion, accounting for
spending. We appreciate the government continuing taking 59.1% of overall sector loan growth. Credit demand came
appropriate measures to keep domestic macroeconomic in below our expectations despite declining interest rates.
stability in check. Businesses remained cautious about expansion considering
the recent macroeconomic outlook. The new cabinet is
The current account deficit narrowed to USD30.4 billion in expected to foster stronger business confidence, and may
2019, accounting for 2.7% of GDP, an improvement from lead to higher loan growth in the long run. The banking
USD30.6 billion (2.9% of GDP) the previous year. This was due sector managed credit quality with a tolerable NPL ratio of
to government efforts amongst others to manage imports, as 2.5%, compared to 2.4% the previous year. Capital remained
well as declining global oil prices, which eventually led to a solid with a CAR of 23.4%, relatively stable from 23.0%
relatively stable Rupiah. At year end, the Rupiah exchange in 2018.
rate strengthened and stood at below Rp14,000 per USD. In
2019, Indonesia received a sovereign rating upgrade from Indonesian banks experience a more competitive
international rating agency of BBB/Outlook Stable from environment due to shifting of customer behavior as well as
BBB-/Outlook Stable. This has boosted the confidence level from the entrance of fintech and e-commerce players which
in the country’s economic growth prospects. gained a prominent presence in the financial service industry.
These new players’ “time to market” is faster, while banks
The Indonesian monetary authority adopted accommodative have to adhere to stringent regulations. Notwithstanding
policies to sustain economic growth. Bank Indonesia lowered the challenges, banks also see many opportunities for
its policy rate (seven-day reverse repo rate) four times or 100 collaboration with marketplace and startup players to
bps to 5.0% at year end. This was consistent with emerging create synergy in offering financial services, particularly to
countries such as Malaysia, Philippines and India, and the millennial or tech-savvy customers.
GLOBAL DECLINE IN INTEREST RATES )NmATION WAS CONTAINED AT
THROUGHOUT THE YEAR 4HE &INANCIAL 3ERVICES !UTHORITY BCA believes the government will continue implementing
/*+ ALSO CARRIED OUT ITS SUPERVISORY ROLE AND PROACTIVELY necessary macroprudential measures to ensure the country’s
discussed future risks with financial players. macroeconomic stability.
The banking sector reported a moderate performance, Implementation of BCA Strategic Policy
with loan and third party funds growth of 6.1% and 6.5% BCA takes into account both internal and external factors
respectively. Liquidity in the sector remained tight with to determine its strategic initiatives, while preserving strong
LDR at 94.4%, with banks continuing to compete for third liquidity and capital positions, and promoting a balance
party funds. Competition was intensified by the issuance between loan growth and asset quality.
26 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BCA focused on growing its CASA through the provision of Development of transaction banking and digital banking
reliable, secure and convenient banking transaction services, services
to maintain its strong liquidity. It carried out initiatives "#! PRIORITIZED STRENGTHENING TRANSACTION BANKING REmECTED
to improve facilities, products and services using digital in its annual business plan and strategic work programs.
technology, expand network coverage in the payment Reliable payment settlement services are the driving force
ecosystem, and enlarge the customer base, which translates behind customer trust in our services, leading to sticky and
into a higher number of accounts and transactions. In 2019, solid CASA growth.
the Bank registered a remarkable increase in the number of
accounts by 14.2% to more than 21 million accounts., while The Bank’s initiatives to strengthen transaction banking
the number of transactions also grew strongly by 34.5%. This capabilities were heavily focused on the development of
led to a sustainable growth of CASA, which is the Bank’s core digital platform services, such as online account opening
funds, growing 9.8% to Rp530.6 trillion, contributing 75.9% through BCA Mobile. Since its launch early in the year, this
of total third party funds. facility has received positive feedback and contributed to
customer growth.
Loans outgrew the banking industry amid the modest pace
of economic recovery. Loan quality was intact through /THER NOTABLE INNOVATIONS LAUNCHED INCLUDE "#! +EYBOARD
the implementation of prudent banking principles and which allows customers to transact without having to close
disciplined risk management. Loan disbursement focused on chatting apps, cardless cash ATM withdrawal using a one-
potential sectors and customers with sound track records. We time pin via BCA Mobile, and the Welma application to meet
took part in government programs through loan syndication customer demand for investment products such as mutual
to prospective infrastructure developments, including funds, bonds and insurance.
ELECTRICITY TOLL ROAD AND TELECOMMUNICATION PROJECTS ,OAN
diversification in various economic sectors was carried out to The Bank continued to strengthen collaboration with
reduce concentration risk. e-commerce and fintech companies to expand the
coverage of its payment ecosystem. It utilized Application
BCA co-operated with its subsidiaries to develop new Programming Interface (API) technology for integration
products and services. We are committed to supporting of co-partner systems with its system. More than 1,600
the performance of our subsidiaries, to deliver the highest co-partners, consisting of e-commerce and fintech players,
possible customer satisfaction with the group’s products and have now connected with our system.
services.
These initiatives were supported by a robust information
The Board of Directors is dedicated to implementing strategic technology infrastructure and a reliable security system.
initiatives that take into account sound risk management and Information technology was modernized to support the
THE PRINCIPLES OF GOOD CORPORATE GOVERNANCE 4HIS IS REmECTED reliability of banking transaction services. Machine learning,
in strong stakeholder confidence, as acknowledged by the big data and artificial intelligence technology were adopted
appreciation received from regulators, investors and leading to enhance data analytics capability, enriching user experience
independent agencies. and improving the security and operational systems.
2019 Annual Report | PT Bank Central Asia Tbk 27
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BOARD OF DIRECTORS
*AHJA 3ETIAATMADJA Lianawaty Suwono
President Director Director
Rudy Susanto Vera Eve Lim Subur Tan Suwignyo Budiman
Director Director Director Deputy President Director
28 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
)NAWATY (ANDOJO
Director
Henry Koenaifi Armand Wahyudi Hartono Santoso %RWAN 9URIS !NG
Director Deputy President Director Director Independent Director
2019 Annual Report | PT Bank Central Asia Tbk 29
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
%NHANCEMENT OF THE "#! -OBILE BANKING AND +LIK "#! higher than the industry average of 6.1%. We focused on
internet banking platforms saw the number of transactions disbursing loans to customers with positive track records and
performed through these two digital channels grow by maintained loan diversification to mitigate concentration
99.2% and 10.8% from previous year.. These two digital risk. Loan growth was supported by the corporate segment,
channels are the driving force of BCA’s integrated e-channels. which grew by 11.8% compare to previous year. We also
Some 98.2% of customer transactions were performed via participated in loan syndication for prospective infrastructure
electronic channels outside the branch network. We welcome PROJECTS RELATED TO TOLL ROADS ELECTRICITY TELECOMMUNICATIONS
this achievement and are committed to offering high quality and airports.
digital banking solutions to our customers.
Loan growth was also driven by the commercial and SME
The Bank selectively expanded its conventional branch segments at 12.2% and 13.6% respectively, supported by the
network (bricks and mortar) to complement its digital optimization of the role of the commercial business centers
banking network. We believe the branches remain important at the regional offices, and the development of SME centers
to building relationships with customers and serving those at branches. The consumer segment saw loan growth of
with sizable transactions. Even though they only made up 0.7%, largely supported by mortgage growth. Vehicle loan
1.8% of the total transaction volume, branch transactions growth was under pressure due to the slowdown in auto
represented 49.1% of our total transaction value during sales. The Bank remained proactive by offering products at
the year. Expansion of the branch network will focus on competitive interest rates and holding various promotional
simplicity and efficiency, including cash offices or non- activities and special events, such as BCA Expoversary, to
permanent branch networks that use digital equipment optimize its performance in the consumer segment.
- BCA Express. We utilized digital technology to improve
branch service quality and operational efficiency, and In 2019, NPL was 1.3%, a slight decrease from 1.4% in 2018,
continued to install self-service machines. To complement supported by write-offs of older non-performing loans. The
the branch network’s cash deposit and withdrawal services, NPL level remained in line with the Bank’s risk appetite. To
we increased the composition of cash recycling machines maintain loan quality, the business units and risk management
to total ATM machines. A number of transaction banking team monitored debtor payment capacity and conducted
service initiatives fostered our CASA growth at a CAGR of stress tests to measure the impact of any significant changes
11.4% over the past 10 years. in the macroeconomy against debtor performance.
Quality Growth of Loan Portfolio BCA improved its loan infrastructure, leveraging technology
BCA posted solid loan growth, higher than the banking to accelerate the approval process, while implementing
industry average, thanks to consistent execution of its work prudent banking principles. We also focused on improving
plan and programs. This growth did not come at the expense the competency of our credit employees (account and
of loan quality as we continue to implement disciplined and relationship officers) through training programs, both
prudent credit risk management. on-site and e-learning through a digital application.
Information technology was utilized to manage data and
The less favorable macroeconomic environment and debtor information, which complemented credit analysis
general elections forced many business players to postpone and captured potential new debtors in various customer
expansion. Nevertheless, we recorded loan growth of 9.1%, segments.
30 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
The development of comprehensive solutions and services We recently completed the acquisition of Bank Royal, part
BCA strives to provide comprehensive products and services, of our business plan for the year, and are in the process
improving coordination among business units and synergy of formulating its business model, which will focus on the
with subsidiaries, to meet growing customer needs. provision of digital services in collaboration with BCA. We
also signed a conditional sale and purchase agreement to
The Bank strengthened its business in foreign exchange, cross acquire Rabobank Indonesia. This acquisition is expected to
border remittance, trade finance, wealth management and be completed in 2020.
bancassurance, and in the business lines of its subsidiaries. We
collaborated with subsidiaries engaged in vehicle financing, Financial Performance, Targets and Challenges
sharia bank, securities, remittance, general insurance, BCA and its subsidiaries recorded a solid financial
life insurance and venture capital investment in startup performance in 2019 with a net profit of Rp28.6 trillion, a
company. 10.5% increase from 2018. Operating income grew by 13.6%
to Rp71.6 trillion.
The provision of comprehensive financial products and
services complemented our core transaction banking and Overall performance in 2019 exceeded the set targets,
generated cross selling opportunities to support overall with loans growing 9.1% to Rp586.9 trillion, compared to
performance. We are confident our subsidiaries have the target of 6%-8%. Third party funds grew by 11.0% to
room for growth by leveraging our wide customer base. Rp699.0 trillion, higher than the target of 8%-10%.
Comprehensive financial services delivered in cooperation
with subsidiaries will reinforce the relationship with our BCA recorded strong Return on Assets (ROA) and Return
customers. on Equity (ROE) of 4.0% and 18.0%, respectively, with the
capital and liquidity positions remaining solid. The Capital
Adequacy Ratio (CAR) was at 23.8%, and the Loan to Deposit
Ratio (LDR) at 80.5%.
Target vs Achievement 2019
Achievement 2019 Target 2019
Loan growth 9.1% 6.0% - 8.0%
Third party funds growth 11.0% 8.0% - 10.0%
Return on Assets (ROA) 4.0% > 3.5%
Return on Equity (ROE) 18.0% > 17.0%
Capital Adequacy Ratio (CAR) 23.8% > 23.0%
Loan to Deposit Ratio (LDR) 80.5% < 83.0%
The Indonesia banking sector encountered many challenges, BCA continued to focus on improving transaction banking
including maintaining adequate liquidity in the high LDR through the development of payment settlement features
environment. As for BCA, maintaining a solid liquidity and services to support solid CASA growth. As loan demand
position is always a priority. WAS LOWER THAN ANTICIPATED WE MADE RATE ADJUSTMENTS ON
the time deposit side, lowering the one-month time deposit
by 125 bps in July-December 2019.
2019 Annual Report | PT Bank Central Asia Tbk 31
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
The Indonesian banking sector also faced challenges in We collaborate with numerous fintech and e-commerce
keeping loan growth at sound quality. BCA embraced these companies leveraging on the API technology. The
challenges by seeking lending opportunities while adopting collaborations provide convenient services and encourage
disciplined risk management. Loan disbursement focused on customers to perform banking transactions through digital
high quality debtors with strong track records, and extended channels, providing the Bank with strong grounds to widen
to various economic sectors to minimize concentration risk. the customer base and grow the number of transactions.
Stress testing was also carried out to measure the impact
of the deterioration of macroeconomic conditions on loan Indonesia’s business environment is expected to be more
quality and overall performance. favorable after the successful general elections, the
inauguration of the president and the formation of a new
Analysis of Business Prospects and Strategy in 2020 cabinet, serving as an investment catalyst for business
The Indonesian economy will continue to face external and expansion and supporting loan growth in 2020 and beyond.
internal challenges in 2020. It is estimated to grow at a BCA will seek market opportunities to expand its lending
modest pace in line with a gradual economic recovery. The services in various segments, while remaining cautious in
corona-virus outbreak added challenges to the global and regard to changes in loan quality. The implementation of
domestic economy, particularly in the first semester of 2020. disciplined risk management is key to maintaining sound
Given such a backdrop, as a proxy to the economy banks are asset quality, and sound asset quality.
now even more cautious on the asset quality rather than on
growth. In response to macroeconomic developments, banks BCA is committed to growing with its subsidiaries, and
expect to grow moderately both in the lending and funding. supporting capital needs in line with business development.
"#!S THIRD PARTY FUNDS AND LOANS ARE PROJECTED TO GROW We are optimistic our subsidiaries will increase their
moderately. Given the high LDR, banking sector liquidity contribution to our overall performance, either in interest or
is estimated to remain tight, which may lead to more fee-based income.
competition for third party funds. We will remain focused
on maintaining adequate liquidity and prioritizing CASA Implementation of Corporate Governance
growth. We will continue to develop the numerous features BCA implements good corporate governance at all levels,
and facilities of digital banking products and services, expand from the Board of Commissioners and the Board of Directors
the network and payment acceptance system for customers, to middle management and employees. The application of
and pursue customer base growth. GCG plays a role in business sustainability and minimizing
risks.
Indonesian banks also face competition from fintech
companies that leverage technology advancements to This GCG is based on the principles of transparency,
provide financial services. While this is a threat to transaction accountability, responsibility, independence and fairness.
banks, it also provides opportunities for collaboration GCG is conducted with reference to national and
with the companies in a fast growing payment ecosystem. INTERNATIONAL PRACTICES INCLUDING REGULATIONS OF THE &INANCIAL
32 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Services Authority, Bank Indonesia, and the ASEAN Corporate To instill a culture of employee innovation in the digital era
Governance Scorecard. GCG is also based on banking industry and prepare for succession, BCA set up training development
best practices. and recruitment programs. We believe human resources
who match our needs, and are adaptive to any changes in
The Bank engages in active communication with its the business environment, are essential to our success. To
customers, regulators and the capital market community, achieve higher productivity, we promote human resource
and promotes transparency to stakeholders. We ensure governance while providing a positive work environment.
the clear segregation of duties and responsibilities among
business units and apply checks and balances when carrying The focus on regeneration and succession is part of a strategy
out internal controls. to ensure a sustainable organizational structure. The Bank
promotes coaching programs for senior staff to share their
In 2019, Board of Directors held 36 of Board of Directors KNOWLEDGE VALUES AND EXPERIENCES WITH JUNIOR STAFF AND
-EETINGS AND OF JOINT MEETINGS WITH THE "OARD OF encourages community groups such as BCA Open Source
Commissioners. BCA achieved ‘Good’ rating in a corporate (BOS), a knowledge sharing forum for broadening strategic
governance self-assessment, and for its commitment to GCG, perspective at managerial level.
was awarded the Best Rights of Shareholders award by the
Indonesian Institute for Corporate Directorship (IICD). BCA is determined to maintain its position as an employer
of choice by promoting a conducive work environment,
Performance of Committees providing a continuous learning culture, and encouraging
The Board of Directors is assisted by a number of committees. a work life balance for employees. This commitment to
We wish to express our gratitude to the executive committees creating a positive working environment has gained the
under the Board, which have performed their duties and appreciation of several leading institutions, including: Best
responsibilities and offered valuable input to support Companies to Work for in Asia from HR Asia, and Indonesia’s
our role. Each committee held regular meetings to discuss -OST !DMIRED #OMPANIES FROM THE &RONTIER #ONSULTING
business programs, taking into account macroeconomic Group and Marketing Magazine.
conditions, the Bank’s internal dynamics, and the prevailing
regulations. Corporate Social Responsibility
The Bank is continuously involved in numerous corporate
Development of Human Resources social responsibility (CSR) activities that focus on making a
Employees play an important role in maintaining our difference in the lives of Indonesian society. The CSR program
sustainable business and financial performance. Anticipating COOPERATES WITH HIGHLY REPUTABLE INSTITUTIONS SUCH AS 77&
the increasing complexity of customer needs and rapid 5.)#%& AND )NDONESIAN 2ED #ROSS 0-) AS WELL AS LEADING
changes in technology, we are committed to enhancing Indonesian universities. Social activities focus on community
the competencies and capabilities of employees, while empowerment, education and culture, as well as healthcare
building an agile culture to respond to the dynamic business and sports.
environment.
2019 Annual Report | PT Bank Central Asia Tbk 33
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
We cooperate with local communities to empower tourist One of the key milestones in 2019 was the establishment
villages, creating business opportunities and local employment of the Environment Sustainability Governance (ESG) unit as
for 12 villages across the country. This focus on empowering part of the corporate secretary and communication division.
communities has been fruitful and gained recognition, with Our sustainability finance vision is “to be the bank of choice
Desa Pentingsari tourist village in Yogyakarta receiving a AND A MAJOR PILLAR OF THE )NDONESIAN ECONOMY THAT ALIGNS
'REEN &OUNDATION AWARD FOR BEING ONE OF )NDONESIAS 4OP with Indonesia’s sustainable development”. This vision is
100 Sustainable Destinations. We also received an Indonesia supported by the mission statement of “to align its business
Sustainable Tourism Award – Green Gold for Bukit Peramun activities with the principles of sustainable finance”.
village empowerment in Belitung island.
As a part of the commitment to implement sustainable
To promote quality education in Indonesia, the Bank runs finance, the Bank extended financing to the environmentally-
accounting and computer engineering education programs, friendly energy conservation and organic agriculture sectors.
offering scholarships to students enrolled in the accounting The financing portfolio for sustainable business activities
scholarship program (PPA) and information technology CATEGORY ++5" GREW BY TO 2P TRILLION
scholarship program (PPTI). Some 392 students were enrolled of which was made up of SMEs and 30% from non-SME
IN THE 00! FOR 004) AND IN TELLER AND #3/ ON THE JOB environmentally-friendly businesses. Growth in this portfolio
training. We also offer education facilities aid, scholarships exceeded the earlier target of 8%.
in banking education, financial literacy support, and support
17 schools in the Lampung, Banten and Yogyakarta provinces. BCA has also carried out a number of initiatives to support
responsible banking, such as promoting energy savings
To preserve and develop local culture, BCA cooperated with activities, embracing diversity and gender equality, and
institutions to introduce Indonesian culture to the younger creating social and environmental impact. Achievement
generation through events such as the Wayang Day and the highlights include a MSCI ESG Rating of “A”, the highest in
Wayang Seminar. We encourage employees to participate in the country, and a score of 4.67 out of 5.00 for the Gallup
blood donor activities and facilitate healthcare services for Customer Engagement index.
the disadvantaged, including the provision of free cataract
surgery for more than 5,000 people. Last year we rolled out a sustainable banking e-learning to
educate and increase awareness of sustainable finance to our
Sustainable Finance Implementation at BCA employees. We promote the green office concept through
BCA is inspired to go beyond making profit and to create the use of motion sensor LEDs in some offices, switching off
value in a sustainable way. The Bank has adopted and lights during the lunch hour, and pursuing other sustainable
implemented a broad range of sustainability practices in activities such as limiting plastic bottle use. We believe that
promoting sustainable finance in the areas of environment, long term value creation has to begin with being more
social and governance. BCA was one of the first movers responsible to our environment, society and governance.
in implementing sustainable banking, fully backed by
management board commitments to increase our sustainable
finance contribution, which is in line with the agenda of our
regulators.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Changes in the Composition of the Board of Directors Appreciation for all Stakeholders
In 2019, the annual general meeting of shareholders We wish to express our appreciation to our customers for
appointed Suwignyo Budiman as Deputy President Director, their trust and loyalty, and all employees for their hard work
REPLACING %UGENE +EITH 'ALBRAITH WHO HAS COMPLETED HIS to achieve the set targets despite a challenging year. BCA’s
service. BCA wishes to express its gratitude and appreciation motto: One Goal, One Soul, One Joy has been our continual
to Eugene for his commitment, dedication and hard work. motivation and a reminder to look for a common direction
His long service contributed to BCA’s strategic business to achieve the vision of becoming the bank of choice for the
development and sustainable performance. Eugene served community.
as President Commissioner from 2002 to 2011, and Deputy
President Director from 2011 to 2019. We appreciate the support and guidance of the members
of the Board of Commissioners who have helped us to carry
There were changes in the composition of the Board of out our duties, enabling BCA to record a solid performance.
$IRECTORS WITH )NAWATY (ANDOJO REPLACING 3UBUR 4AN AS THE 4HE "OARD OF $IRECTORS IS GRATEFUL TO THE &INANCIAL 3ERVICES
new compliance director. Subur Tan took a new role as the !UTHORITY /*+ AND "ANK )NDONESIA FOR THEIR PRUDENT
new Director in charge of the credit and legal department. supervision, advice, and maintaining a stable financial system
With these changes, BCA is confident that it will sustain its in Indonesia.
solid performance well into the future.
Last but certainly not least, on behalf of the Board of Directors
and management, we would like to express our gratitude to
all stakeholders for their trust and support throughout 2019.
Jakarta, March 2020
On behalf of the Board of Directors,
*AHJA 3ETIAATMADJA
President Director
2019 Annual Report | PT Bank Central Asia Tbk 35
36 2019 Annual Report | PT Bank Central Asia Tbk
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BOARD OF COMMISSIONER’S
SUPERVISORY REPORT
Dear Valued Shareholders,
The Board of Commissioners
recognizes the consistent
Against the backdrop of prolonged global uncertainties
execution of the business and moderate domestic GDP growth, BCA delivered a
plan with the Bank’s positive performance with 10.5% growth in net profit to
stated vision, mission and Rp28.6 trillion. This stellar achievement is accompanied by
strategic directions. The an ample capital and liquidity position, while asset quality
remained intact. In addition to robust financial strengths,
Bank successfully adapted
BCA continues to pursue a sound strategy in navigating
its business strategy in
change and ensuring good corporate governance practices
responding to the dynamic for sustainable value creation and growth.
economic environment,
growing competition, and We respectfully thank the Board of Directors for addressing
rapid technological changes. the challenges and changes of business dynamics, while
maintaining business sustainability. The Board of Directors
have formulated a business plan that adopts prudential
banking principles and ensures the execution of BCA’s
strategic initiatives.
Djohan Emir Setijoso
President Commissioner
2019 Annual Report | PT Bank Central Asia Tbk 37
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BOARD OF COMMISSIONERS
Left to right :
Sumantri Slamet $JOHAN %MIR 3ETIJOSO Raden Pardede Cyrillus Harinowo Tonny Kusnadi
Independent Commissioner President Commissioner Independent Commissioner Independent Commissioner Commissioner
38 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Review of the Indonesian Economy and Banking Sector Stagnant domestic growth over the last few years has
The 2019 economy experienced a slowdown across the globe, caused a deterioration of loan quality in many sectors.
centered around the uncertainties of the US-China trade war Nominal non-performing and special mentioned loans
AND THE ANXIETY OVER "REXIT IN THE %UROZONE -AJOR DEVELOPED showed an increasing trend throughout 2019. Restructured
countries saw lower growth relative to the previous year. loans as a percentage of total loans also showed no signs
Global policymakers have implemented an accommodative of improvement. Despite declining asset quality, the overall
approach by lowering their policy rates to boost economic banking sector NPL ratio remained at a manageable level,
GROWTH 4HIS WAS LED BY 4HE 53 &EDERAL 2ESERVE &ED WHICH standing at 2.5% compared to 2.4% in the previous year. The
CUT ITS &ED &UND 2ATE &&2 BY BPS TO WHILE OTHER capital position remained robust to absorb potential loan
countries followed suit. losses. CAR stood at 23.4% compared to 23.0% a year ago.
The Indonesian economy has been resilient, with a moderate We believe the regulator will continue to focus on protecting
5.0% GDP growth in 2019, supported by large private macroeconomic and banking industry stability through
consumption, government spending, and prompt monetary policies tailored in accordance to the global and domestic
and fiscal measures. Bank Indonesia cautiously eased its market developments.
monetary policy by gradually lowering its 7-day reverse repo
rate by 100 bps in total to 5.0%. Assessment of Performance of Board of Directors
The Board of Commissioners acknowledges the Board of
The government focused on managing the current account Director’s strong performance in delivering positive business
deficit and maintaining the attractiveness of the domestic growth and maintaining sound asset quality with full support
financial market. The current account deficit was curbed at from employees. BCA’s overall performance was above the
USD30.4 billion, or 2.7% of GDP, as the government placed banking industry average, on the grounds of good corporate
necessary actions to control imports, particularly for oil and governance and prudent risk management practices.
CONSUMER PRODUCTS )NmATION WAS CONTAINED AT THE LOW RATE Execution of appropriate strategies and initiatives played a
OF &OREIGN lNANCIAL MARKET INmOW REMAINED STRONG pivotal role to respond the macroeconomic developments
resulting in a capital account surplus for the country and a and business dynamics.
relatively stable local currency. By the end of the year, the
Rupiah closed at Rp13,866 per USD. In 2019, BCA achieved its strategic targets both in financial and
non-financial aspects. On the financial side, net profit grew
While the Indonesian banking sector posted modest growth by 10.5% to Rp28.6 trillion, on the back of a 13.6% increase
in both loans and third party funds, banks were cautious to in operating income to Rp71.6 trillion. Balance sheets grew
safeguard loan quality after the economic slowdown and to healthily with loans expanding 9.1% to Rp586.9 and third
address liquidity challenges. The sector LDR has been above party funds rose 11.0% to Rp699.0 trillion. CASA, being the
93% since 2018, triggering intensified competition for third bank’s core funding, grew by 9.8% to Rp530.6 trillion, higher
party funds. The race for funding was also heightened by than the industry average of 8.6%, thanks to customer trust
government initiatives to raise funds through a series of in the Bank’s transaction banking franchise. The growth was
government bonds issuance offering more attractive returns in sync with the Bank’s aspiration to consistently provide
compared to conventional savings products. Overall, banking convenient, secure and reliable transaction banking services
sector liquidity remained adequate as loan demand was in reaching customers across all segments. Return on Assets
softer than expected. (ROA) and Return on Equity (ROE) also achieved the set
2019 Annual Report | PT Bank Central Asia Tbk 39
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
targets. The Bank maintained its sound capital and liquidity The Bank established strategic steps to continuously enhance
position, with a Capital Adequacy Ratio (CAR) of 23.8%, its capabilities as a provider of reliable transaction banking
a Loan to Deposit Ratio (LDR) of 80.5% and a Liquidity services while maintaining customer trust. Its competitive
Coverage Ratio (LCR) of 276.3%. The Board of Commissioners advantages are sustained by the adoption of technology-
appreciates the steps taken by the management team to based products and services, and expansion of the
maintain the Bank’s solid performance. payment ecosystem through collaboration with fintech and
e-commerce companies. Development initiatives always take
On the non-financial front, we are excited to see the Bank into account security, convenience and good governance,
has well embraced the era of digitalization which has both from the perspective of customers and the Bank itself.
changed the banking industry landscape. The bank’s various
digital initiatives and innovations are the key differentiators E-channel capabilities, particularly the Bank’s internet
to strengthen the transaction banking franchise. BCA has and mobile banking and application-based services, are
developed a host of attractive features and facilities using constantly upgraded to cater to the shift in customer
state-of-the-art technology to meet evolving customer needs behavior and the need for convenience. These efforts have
and to facilitate convenient transactions. Management has garnered encouraging results as 98.2% of transactions were
built an agile organization promoting an innovative culture, conducted through the internet, mobile banking and ATMs,
automation and digitalization of business processes and while the remaining 1.8% came from branches. In terms of
operations, and developing staff competencies. We believe value, some 49.1% of the total transaction amount originated
agility is one of the key features for the organization to grow from branch banking. This strongly indicates the important
sustainably in these ever-changing business dynamics. role of branches for serving large banking transactions and
maintaining close customer relationships.
The Board of Commissioners appreciates the efforts carried
out by the Board of Directors in registering solid performance We are pleased to see that BCA’s robust transaction franchise
of CASA growth, stronger transaction banking franchise and supported CASA growth of 9.8% to reach Rp530.6 trillion,
quality loans. With customer satisfaction as our top priority, accounting for 75.9% of total third party funds, its main
the Board of Directors has our full support throughout source of funding. Time deposits grew by 14.7%, even though
THE JOURNEY OF BECOMING THE BANK OF CHOICE OFFERING the interest rates were relatively lower than competitors,
comprehensive financial solutions across the country. We are REmECTING STRONG CUSTOMER TRUST OF THE "ANK 4OTAL THIRD PARTY
also supportive of BCA in strengthening the synergies with funds grew by 11.0% to Rp699.0 trillion, outperforming the
its subsidiaries and in providing full support to subsidiary average industry growth.
business performance.
On the loan side, apart from improving its products and
Supervision of Strategy Implementation services, BCA also focused on strengthening its credit
The Board of Commissioners recognizes the consistent process infrastructure by leveraging technology. BCA aims to
execution of the business plan with the Bank’s stated vision, improve the turnaround time from the loan application cycle
mission and strategic directions. The Bank successfully up to loan disbursement, while still adhering to prudential
adapted its business strategy in responding to the dynamic banking principles. The bank emphasizes disbursing loans to
economic environment, growing competition, and rapid sectors with growth potential and to customers with strong
technological changes. track records.
40 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BCA’s loan growth was seen across segments, especially Board of Commissioners View on Board of Directors
from corporate, commercial and SME. Disbursement was Assessment in relation to the Bank’s Business Prospect
well diversified in various economic sectors to manage The Board of Directors is of the view that global economic
concentration risk, while regular stress testing was carried challenges will remain in 2020. After the first stage of the
out to measure the adverse impact of macroeconomic trade agreement between the US and China, the next trade
changes on loan quality. The Bank consistently outperforms arrangement will be one of the main factors affecting future
its competitors and the industry average when managing global economic growth. The corona-virus outbreak toward
ASSET QUALITY AS REmECTED IN THE LOWEST .0, RATIO WITHIN THE the end of 2019 is likely to add pressure to business players
industry. across industries, and may lead to an imbalance of supply
and demand.
To support overall performance and provide comprehensive
financial services, BCA strengthened the coordination &URTHER INTEREST RATE CUTS ARE EXPECTED IN TO STIMULATE
between transaction banking, loans and other business units, economic growth, while banks may face tight liquidity,
and established synergy with its subsidiaries. During the year, presenting more funding competition. The success story of
BCA accommodated the needs of its subsidiaries through the the presidential and legislative elections and the formation
provision of capital, with cooperation in various ventures of the new cabinet are expected to be the catalysts for
SUCH AS JOINT lNANCING AND MARKETING WHICH WILL GENERATE domestic reform and boosting investor confidence to
mutual benefits for all parties. The subsidiaries showed support long term economic growth. As for 2020, Indonesia’s
positive business growth and made a positive contribution to '$0 GROWTH IS PROJECTED AT A MODEST n LEADING TO A
overall group profitability. moderate pace of growth in loans and third party funds in
the banking sector.
BCA completed the acquisition of Bank Royal as part of our
commitment to support Indonesian banking consolidation. The Board of Commissioners shares the same view as the Board
The Bank also signed a conditional sale and purchase of Directors on the above outlook, and remains cautiously
agreement to acquire all stakes in Rabobank Indonesia, optimistic. We agree with the Bank’s strategic directions,
which is expected to reach completion in 2020. particularly in keeping a balance between the aspects of
liquidity and capital positions, as well as loan growth and
The Board of Commissioners and the Board of Directors are asset quality. All of these have been accommodated in the
committed to maintain public trust while setting appropriate Bank’s 2020 business plan as the base to tap opportunities
strategic initiatives to deliver value added to stakeholders. and manage risks.
The executions must be within the framework of good
governance principles, prudent risk management and The Bank will continue focusing on strategic initiatives in
effective internal control. strengthening transaction banking capabilities, applying
a prudent intermediary role and promoting collaboration
with subsidiaries. We are confident that BCA will maintain
robust growth in the long run and offer added value to
stakeholders.
2019 Annual Report | PT Bank Central Asia Tbk 41
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Implementation of Good Corporate Governance BCA is inspired to go beyond making profit and to create
BCA implements the principles and practices of good corporate VALUE IN A SUSTAINABLE WAY REmECTED BY A INCREASE
governance (GCG) at all levels. GCG implementation is based in its financing portfolio for sustainable business activities
on transparency, accountability, responsibility, independence CATEGORY ++5" TO 2P TRILLION WITH THE 3-% SECTOR
and fairness, and conforms with the prevailing regulations. PROVIDING OF TOTAL ++5" lNANCING 4HE REMAINING
The corporate governance manual is regularly reviewed to comprised of non-SME environmentally-friendly businesses.
ensure it is in line with the latest regulatory updates, and
has become more consistent with the ASEAN Corporate The Banks’s ESG program was also carried out through a
Governance Scorecard. number of initiatives, such as promoting energy savings
activities, embracing diversity and gender equality, and
BCA is committed to preserve the trust of stakeholders creating social and environmental impact. Achievement
and sustain long-term corporate performance. This goal highlights include a MSCI ESG Rating of “A”, the highest
is inseparable from constant implementation of GCG. In in the country and a score of 4.67 out of 5.00 for the Gallup
recognition of this, and for transparency and information Customer Engagement index.
disclosure while keeping a sound sustainable business, the
"ANK RECEIVED AN AWARD IN THE "EST &INANCIAL 3ECTOR CATEGORY Board of Commissioners Role and Opinion on Whistleblowing
from the Indonesian Institute for Corporate Directorship System
))#$ &URTHERMORE '#' SELF ASSESSMENTS ON A STAND ALONE The Board of Commissioners has directed and supervised
and consolidated basis with its subsidiaries, were rated the formulation and implementation of a whistleblowing
“Good”. system.
Sustainable Finance Initiatives The whistleblowing policy aims to improve the effectiveness
BCA is devoted to implementing economic, social and of the system in detecting internal fraudulent activities
environmental sustainability programs under the supervision and violations. A special working unit has been set up for
of the Board of Commissioners. Sustainability programs were the system’s implementation, which is responsible to the
set through the formulation of the sustainable finance action President Director and reports directly to the Board of
plan, and are implemented and monitored on a regular basis. Commissioners.
The Board of Commissioners fully supports BCA’s sustainable To promote the whistleblowing system to employees as part
finance vision which is “to become the bank of choice and of anti-fraud awareness, socialization is conducted through
A MAJOR PILLAR OF THE )NDONESIAN ECONOMY THAT ALIGNS WITH compulsory e-learning, e-posters and visual advertisements
Indonesia’s sustainable development” The Bank is committed WITHIN "#! PREMISES &RAUD AND OTHER VIOLATIONS CAN BE
to supporting Indonesia’s sustainable development, which reported by internal and external parties through the
is in line with the Bank’s mission statement of “to align company website. The whistleblowing system is expected
corporate activities with the principles of sustainable to detect and provide early warning signs of fraudulent
finance”. activities and violations, supporting the implementation of
good corporate governance.
42 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Supervising and Advising the Board of Directors
The Board of Commissioners and the Board of Directors work together to ensure the Bank’s sustainable growth. The Board
of Commissioners supervises the activities of the Board of Directors, and provides guidance and advice to the Board of
Directors regarding policy and strategic plans, through meetings and memorandums. There were 37 meetings of the Board
OF #OMMISSIONERS AND JOINT MEETINGS OF THE "OARDS OF #OMMISSIONERS AND $IRECTORS 4HE "OARD OF #OMMISSIONERS ALSO
conducted ad-hoc meetings as required.
Below is a summary of the input and advice provided by the Board of Commissioners to the Board of Directors from January
to December 2019.
Topic Summary
Business Strategy and s 4HE "OARD OF #OMMISSIONERS ALONG WITH THE "OARD OF $IRECTORS REGULARLY REVIEWED
Management and assessed the Bank’s performance and the competition landscape in banking
industry.
s 4HE "OARD OF #OMMISSIONERS GAVE GUIDANCE AS WELL AS APPROVAL ON THE "ANKS
corporate actions, including among others the decision on dividend payouts, plan
and follow up on the acquisitions process.
Risk Management s 4HE "OARD OF #OMMISSIONERS EMPHASIZED TO MAINTAIN THE SOLID LIQUIDITY POSITIONS AS
one of the Banks priority.
s $IRECTION TO PERFORMED REVIEWS ON CERTAIN INDUSTRIES CONSISTENT WITH THE LATEST
development of macroeconomic.
s 4HE "OARD OF #OMMISSIONERS PUT HIGH ATTENTION ON POTENTIAL "ANKS STRATEGIC RISKS
and ask for an assessment and mitigation plans on those risks.
s )N RELATION TO THE IMPLEMENTATION OF INTEGRATED RISK MANAGEMENT THE "OARD OF
Commissioners always focus on the importance of monitoring the interdependence
risks among entities within BCA’s financial conglomeration.
Audit and Compliance s 4HE IMPLEMENTATION OF THE DUTIES AND RESPONSIBILITIES OF THE "OARD OF #OMMISSIONERS
are aligned with the latest laws/regulations.
s 4HE "OARD OF #OMMISSIONERS PUT ATTENTION TO THE RESCHEDULING OF AUDIT RESULTS FOLLOW
ups that requires its consent, while ask to submit the proposal before the deadline.
s %MPHASIZE THE IMPORTANCE OF THE QUALITY OF AUDIT PROCESS AND INSTITUTION IN EACH
subsidiary regarding the implementation of integrated internal audit.
2019 Annual Report | PT Bank Central Asia Tbk 43
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Assessment of Performance of Committees Under Board of risk management committee, the risk management working
Commissioners unit and the IT Steering Committee.
The audit, risk oversight, remuneration and nomination
and the integrated corporate governance committees The remuneration and nomination committee provides
showed good performances and upheld high standards of recommendations to the Board of Commissioners on BCA’s
competency. These committees supported the performance overall remuneration policy. It held five meetings, including
of the Board of Commissioners throughout the year. those related to the tantiem policy, remuneration and talent
mapping.
The audit committee ensures the appropriate implementation
of internal controls, and assists the Board of Commissioners The integrated corporate governance committee
in overseeing the implementation of internal and external supports the Board of Commissioners in supervising the
audit functions, corporate governance, and compliance with implementation of the integrated corporate governance of
prevailing laws and regulations. The committee held 21 BCA and its subsidiaries. It held four meetings and reported
meetings, met with the internal audit division 6 times, and on the implementation of integrated corporate governance
reviewed more than 114 internal audit reports. to the Board of Commissioners.
The risk oversight committee supports, and provides Changes to Composition of Board of Commissioners
recommendations to the Board of Commissioners to There were no changes to the membership of the Board of
improve the effectiveness of its risk management duties and Commissioners. Commissioner profiles are elaborated in the
responsibilities. The committee held 14 meetings that covered company profile section of this report on pages 75-79. Each
credit risk, operational risk, cyber security and the business member of the Board carries out their supervisory function
continuity plan, as well as evaluating the performance of the and provides advice to the Board of Directors in accordance
with their respective competencies and experience.
Members of the Board of Commissioners are:
Name Position
$JOHAN %MIR 3ETIJOSO President Commissioner
4ONNY +USNADI Commissioner
Cyrillus Harinowo Independent Commissioner and the Head of the Audit Committee
Raden Pardede Independent Commissioner and the Head of the Remuneration and Nomination
Committee
Sumantri Slamet Independent Commissioner and the Head of the Risk Oversight Committee and the
Integrated Corporate Governance Committee
44 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Appreciation of Stakeholders 7E WOULD LIKE TO EXTEND OUR APPRECIATION TO THE &INANCIAL
We understand the Bank’s achievements are inseparable 3ERVICES !UTHORITY /*+ AND "ANK )NDONESIA FOR CARRYING
from the support given by all stakeholders. The Board out their supervision and providing support this year, and in
of Commissioners wishes to express our gratitude to all the years to come. BCA is committed to making a positive
shareholders, business partners, staff and other stakeholders contribution to the Indonesian economy and providing the
for their trust and supports. We applaud the Board of best possible value for customers, stakeholders and the
Directors, who managed business growth and steered Indonesian community.
toward a solid financial position, and to the subsidiaries who
contributed to the overall performance of the BCA group.
Jakarta, March 2019
On behalf of the Board of Commissioners,
$JOHAN %MIR 3ETIJOSO
President Commissioner
2019 Annual Report | PT Bank Central Asia Tbk 45
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
46 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
CORPORATE
PROFILE
2019 Annual Report | PT Bank Central Asia Tbk 47
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
COMPANY GENERAL
INFORMATION
As of 31 December 2019
Name Change of Name
PT Bank Central Asia Tbk Effective on 2 September 1975
the name of the Bank was changed to
Line of Business PT Bank Central Asia (BCA)
Commercial Bank
Headquarters:
Ownership Menara BCA, Grand Indonesia
PT Dwimuria Investama Andalan 54.94% Jl. M.H. Thamrin No. 1
Public 45.06% Jakarta 10310
Tel. (62 21) 2358 8000
Establishment &AX
10 October 1955
Networks:
Legal Basis of Incorporation 1,256 branches, 17,928 ATM,
Notary Deed No. 38 of Raden Mas Soeprapto and hundreds of thousands EDCs
dated 10 August 1955. (Information of branches address can be found in
Approved by the Minister of Justice in the Branches section on pages 108-110)
Decision Letter
No. J.A.5/89/19 dated 10 October 1955 Subsidiaries:
s 04 "#! &INANCE
s "#! &INANCE ,IMITED
s 04 "ANK "#! 3YARIAH
s 04 "#! 3EKURITAS
s 04 !SURANSI 5MUM "#!
Authorized Capital s 04 "#! -ULTI &INANCE
Rp5,500,000,000,000 s 04 !SURANSI *IWA "#!
(88,000,000,000 shares) s 04 #ENTRAL #APITAL 6ENTURA
s 04 "ANK 2OYAL )NDONESIA
Issued and Fully Paid Up Capital (Information of subsidiaries address can be found
Rp1,540,938,125.000 in the Information on Subsidiaries section
(24,655,010,000 shares) on pages 100-101)
Stock Exchange Company Website:
Shares of PT Bank Central Asia Tbk www.bca.co.id
are listed and traded at the Indonesia www.klikbca.com
Stock Exchange (IDX)
Call Center:
Listing Date Halo BCA 1500888
31 May 2000
Corporate Secretary
Share Code s 0UBLIC 2ELATIONS
BBCA s )NVESTOR 2ELATIONS
Menara BCA, 20th &LOOR
ISIN Code Grand Indonesia
ID1000109507 Jl. M.H. Thamrin No. 1
Jakarta 10310
SWIFT Code Tel. (62 21) 2358 8000
CENAIDJA &AX
E-mail: humas@bca.co.id
Total Employees investor_relations@bca.co.id
24,789
48 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
LINE OF BUSINESS
In 2019, BCA carried out banking business and activities with consideration to the Bank’s Articles of Association. Based on
Article 3 of its Articles of Association, BCA as a Commercial Bank may engage the following business activities:
a. To collect funds from the public in the form of deposits k. To conduct factoring (anjak piutang), credit card and
comprising of clearing account (giro), time deposit, trusteeship services;
deposit certificate (sertifikat deposito), savings account l. To provide financing and/or conduct business activities
an/or any other form equivalent thereto; under Sharia Law, through either the establishment
b. To provide credit facilities; of a subsidiary or formation of Sharia Business Unit in
c. To issue debt acknowledgment letters; accordance with the rules and regulations stipulated
d. To purchase, sell or guarantee, whether at its own risk BY "ANK )NDONESIA OR )NDONESIAN &INANCIAL 3ERVICES
or for the benefits of and at the request of its customers, Authority or other authorized institutions;
the following: m. To carry out business activities in foreign currencies in
i. Drafts, including drafts accepted by bank with a accordance with the rules and regulations determined
validity period not to exceed that in the normal BY "ANK )NDONESIA OR )NDONESIAN &INANCIAL 3ERVICES
practice for trading of such instruments; Authority or other authorized institutions;
ii. Debt acknowledgment letters and other commercial n. To conduct capital participation in banks or other
papers, with a validity period no to exceed that in financial companies, such as leasing companies, venture
the normal practice for trading such papers; capital companies, securities companies, insurance
companies, and a clearance, settlement and depository
iii. State treasury notes and government guarantees;
INSTITUTIONS SUBJECT TO RULES AND REGULATIONS STIPULATED
iv. Certificates of Bank Indonesia (SBI)
BY "ANK )NDONESIA OR )NDONESIAS &INANCIAL 3ERVICES
v. Bonds;
Authority or other authorized institutions;
vi. Commercial papers with a validity period in
o. To conduct temporary capital participation for the
accordance with the prevailing laws and regulations;
purpose of dealing with credit failure, provided that
vii. Other commercial papers with a validity period in SUCH PARTICIPATION MUST BE LATER WITHDRAWN SUBJECT
accordance with the prevailing laws and regulations. to the regulations stipulated by Bank Indonesia,
e. To transfer funds, either for its own benefit or for the OR )NDONESIAS &INANCIAL 3ERVICES !UTHORITY OR OTHER
benefits of its customers; authorized institutions;
f. To place fund at, to borrow funds from, or to lend funds p. To act as a founder (pendiri) or managing executive
to other banks, whether by letters, telecommunication (pengurus) of pension funds in accordance with the
facilities, or bearer drafts, cheques or other media; existing regulations on pension funds; and
g. To receive payments of receivables from commercial q. To conduct other activities generally conducted by
papers and make calculations with or among this banks to the extent permitted by the prevailing laws
parties; and regulations, including among others, any measures
h. To provide safe deposit box for goods or valuable pertaining to restructuring or credit rescue, such as
papers; buying collateral, whether partially or wholly, at an
i. To engage in custody activities for the benefit of any auction or by other means, in the event that a debtor
other party under a contract; fails to fulfill its obligations to the bank, provided that
J 4O CONDUCT A PLACEMENT OF FUND FROM ONE CUSTOMER TO such collateral must be cashed immediately.
another customer in the form of commercial papers
that are not registered on the stock exchange;
2019 Annual Report | PT Bank Central Asia Tbk 49
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
MILESTONES
1990’s
1970’s BCA develops the
Automated Teller
BCA works with well-
known institutions, such
Effective on 2 September Machine (ATM) as PT Telkom and Citibank,
1975 the name of the Bank network as an allowing BCA’s customers
was changed to PT Bank alternative delivery to pay their Telkom phone
Central Asia (BCA). channel. bill or Citibank credit card
bill through BCA ATMs.
BCA strengthens its delivery In 1991, BCA installed
channels and obtained a 50 ATM units in various
LICENSE TO OPEN AS A &OREIGN locations in Jakarta.
Exchange Bank in 1977.
BCA intensively
1955 develops the ATM
Bank Central Asia (BCA) network and features.
founded as “NV Perseroan
Dagang Dan Industrie
3EMARANG +NITTING &ACTORYv
1980’s
BCA aggressively expanded
its branch network in line
with the deregulation of the
Indonesian banking sector.
1997-1998 1999
1957 BCA developed its BCA experiences a bank BCA was fully
BCA commenced operations information technology rush during the Indonesian recapitalized with the
ON &EBRUARY WITH capacity, by establishing an economic crisis. Government of Indonesia,
Head Office located in online system for its branch through IBRA, assuming
Jakarta. office network, and launches In 1998 BCA became a ownership of 92.8% of
new products and services Bank Take Over (BTO) BCA shares in exchange
including the Tahapan BCA and was placed under for liquidity support from
savings accounts product. the recapitalization and Bank Indonesia and a
restructuring program swap of related-party
operated by the Indonesian loans for Government
Bank Restructuring Agency Bonds.
(IBRA), a Government
Institution.
Corporate actions highlights in 2000-2005 Business development after 2000
2000 2004
IBRA divested 22.5% of its BCA IBRA divested a further 1.4% BCA strengthens and develops BCA develops expertise in
shares through an Initial Public of its BCA shares to domestic its products and services, lending, including expansion
Offering, reducing its ownership investors through a private especially in electronic into vehicle financing through
of BCA to 70.3%. placement. banking, by launching Debit ITS SUBSIDIARY "#! &INANCE
"#! 4UNAI "#! +LIK"#!
internet banking, m-BCA
mobile banking, EDCBIZZ, etc.
2001 2005
In a Secondary Public Offering, The Government of Indonesia BCA establishes a Disaster
10% of BCA’s total shares were through PT Perusahaan Recovery Center in Singapore.
made available to the market. Pengelola Aset (PPA), divested
IBRA’s ownership of BCA the remaining 5.02% of its BCA
decreased to 60.3%. shares and no longer has share
ownership in BCA.
2002 Note: There has been dilution effect
to existing shareholders as new shares
&AR)NDO )NVESTMENT -AURITIUS were issued in accordance with the
Limited acquired 51% of BCA’s Management Stock Option Plan, in
shares through a strategic private which stock options were executable
in the period from November 2001 to
placement.
November 2006
50 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
2019
2007 BCA completed a
BCA became a pioneer
in introducing fixed-rate
mortgage products. BCA
2017-2018 100% share acquisition
(directly and indirectly)
launches its stored-value To embrace the growing of PT Bank Royal
CARD &LAZZ #ARD AND e-commerce and cashless
payment sectors, BCA started
Indonesia in October
introduced Weekend
Banking to maintain to collaborate with fintech 2019. Post-acquisition,
its transaction banking and e-commerce companies Bank Royal’s business
leadership.
2014-2016 through the Application
Programming Interface (API)
model will transform
BCA developed MyBCA, a platform. This platform into a digital-based
self-service digital banking facilitates an interconnected bank, complementing
outlet; expanded cash system between those BCA’s established digital
recycling machine-based companies with the BCA
2008-2009 ATM networks; and launched
the Sakuku app-based
transaction banking system.
channels.
BCA proactively manages
its lending and liquidity electronic wallet. BCA continued developing In December 2019,
various methods of payment BCA entered into a
position in the face of
The Bank’s cash management for online transactions. In
unprecedented global conditional sale and
turbulence while continuing services for institutional 2018 BCA launched a peer-
to strengthen the core customers were enriched on to-peer transfer feature purchase agreement
transaction banking internet banking platforms, using QR code technology, (CSPA) to acquire a
franchise. THE +LIK"#! INTEGRATED applicable on m-BCA and
100% equity stake in
business solution. This Sakuku. BCA launched the
BCA completes the setting service provides features to /NE+LIK SERVICE A PAYMENT PT Bank Rabobank
up of a mirroring IT system meet the needs of business feature available at online International Indonesia
to strengthen business customers. MERCHANTS /NE+LIK OFFERS SUBJECT TO REGULATORY AND
continuity and reduce speed and convenience.
operational risk.
shareholders approvals.
In January 2014, BCA
purchased shares in In 2018 BCA launched
BCA introduces Solitaire, PT Central Santosa the VIRA virtual assistant, "#! INJECTED ADDITIONAL
a new banking service for &INANCE #3 &INANCE A accessible through a number
high net-worth individual
capital into BCA Syariah
two-wheeler financing of popular chat apps,
customers. company, increasing the utilizing artificial intelligence and CCV to support the
Bank’s effective ownership technology. business growth of the
from 25% to 70%. BCA two subsidiaries.
also obtained permission The micro, small and
to provide life insurance medium-sized enterprise
services through PT Asuransi -3-% CENTER PILOT PROJECT BCA launched a series
Jiwa BCA (BCA Life). was launched in several
branches to increase
of innovative services
BCA entered new lines of
throughout 2019
)N ITS ROLE AS A MAJOR GATEWAY penetration in the segment
business including Sharia amid tight competition. INCLUDING "#! +EYBOARD
and perception bank, BCA
banking, motorcycle financing, participated in the successful (a finger-tip access to
general insurance and the "#! AND 04 !)! &INANCIAL
implementation of the banking services on
capital markets business. (AIA Indonesia) renewed
government’s tax amnesty various online chat
In 2013, BCA increased its their bancassurance
program from July 2016 to
effective ownership from platforms); online account
March 2017. agreement in 2017 to
25% to 100% in its general
expand the scope of their opening through BCA
insurance arm PT Asuransi
partnership. Mobile; Welma (a mobile
Umum BCA (formerly PT
#ENTRAL 3EJAHTERA )NSURANCE application for wealth
and also known as BCA BCA increased ownership in
ITS SUBSIDIARIES #3 &INANCE management services).
Insurance).
BCA Sekuritas and BCA
BCA strengthened its Enhancing the reliability of Life, in 2017, to further
The Bank is establishing
transaction banking through its banking services, BCA strengthen integration
and enhance business a future branch model
further development of completes a new Disaster
innovative products and Recovery Center (DRC) facility cooperation between these leveraging a range of
services, notably with mobile in Surabaya which functions subsidiaries and BCA. technologies. The new
banking applications in the as a disaster recovery backup
model will enrich the
latest smartphones, with data center, integrated with
payment settlement services the current two mirroring data customer experience and
through e-commerce, and centers. The new DRC replaced improve the operational
through a new concept of the previous DRC in Singapore.
efficiency of the branches.
Electronic Banking Center
which equips ATM Centers
with additional technology-
backed features.
2019 Annual Report | PT Bank Central Asia Tbk 51
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
EVENT HIGHLIGHTS 2019
*ANUARY
In Support of Inclusive Finance,
BCA is Distribution Partner of SBR005
&OLLOWING ITS PREVIOUS PARTICIPATION AS
distribution partner for the issuance
of SBR004, BCA is again entrusted
to become a distribution partner for
SBR005.
*ANUARY
BCA OneKlik, Another Payment
Option at Shopee 22 February
Online payment is increasingly
becoming more popular BCA Expoversary 2019 Officially Opened
among consumers who shop in in Commemoration of BCA’s 62nd
e-commerce portals. Recognizing Anniversary
this trend, PT Bank Central Asia In its 62nd year of existence, PT Bank
Tbk (BCA) and Shopee Indonesia Central Asia Tbk (BCA) consistently
collaborated in a strategic strives to provide the best for customers
initiative to provide payment for through its routine event, the BCA
PURCHASES THROUGH /NE+LIK Expoversary, as a one-stop services event
where customers may find a variety of
financial and banking solutions in one
single location.
&EBRUARY 28 February
%NJOY THE #ONVENIENCE OF 04 "ANK #ENTRAL !SIA 4BK &ULL 9EAR
Banking Transaction while 2018 Results - Positioning for
Chatting with BCA Keyboard Growth
BCA launches the BCA PT Bank Central Asia Tbk (IDX:
+EYBOARD THE NEWEST FEATURE BBCA) and its subsidiaries reported
in its BCA Mobile app, giving the consolidated financial
the convenience of banking performance for 2018, ending the
transaction access via the year with growth of 10.9% in net
keyboard of a mobile device. profit to Rp25.9 trillion, compared
with Rp23.3 trillion recorded in
2017. The Bank’s operational
revenue, consisting of net interest
income and other operational
income, grew by 10.6% to Rp63.0 1 March
trillion in 2018, compared with
First in Indonesia, the BCA Super League
Rp57.0 trillion in 2017. Net interest
Triathlon Bali, a Memorable Multi-Sport
income increased 8.3% to Rp45.3 Festival for All
trillion, while other operational The Super League Triathlon (SLT), a
income grew by 17.0% to Rp17.7 global multi-sport race festival in which
trillion in 2018. participants compete for endurance,
collaborated with PT Bank Central
Asia Tbk (BCA) in organizing the BCA
Super League Triathlon Bali, a unique
TRIATHLON RACE THAT ALSO PROVIDE ENJOYABLE
entertainment for sport fans and families
in Indonesia.
52 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
-ARCH
BCA Again Received the Taxpayer
Award for Timely and Compliance in
Tax Payment
As a result of consistency in tax
payment and tax reporting, BCA
was one of several recipients of
the Taxpayer Award 2019 from the
Directorate General of Taxation
Regional Office - Large Taxpayer.
This is the second time BCA received 15 March
such award following the same "#! #ONTRIBUTED 2P BILLION IN
award given to BCA in 2018 for Syndicated Loan Facility to
compliance in taxation. PT Buana Finance Tbk.
BCA Awarded the ISO 9001:2015 Certification PT Bank Central Asia Tbk (BCA),
PT Bank Central Asia Tbk (BCA) received ISO as a mandated lead arranger
9001:2015 Certification for its performance in and bookrunner, channeled a
consumer loans. The certification was based on syndicated loan facility of Rp1
an evaluation of the quality of the consumer TRILLION TO 04 "UANA &INANCE
loan process and services provided by BCA, Tbk. An eight-bank syndication
which resulted in the creation of added value provided the facility with a
with consideration of investment continuity 36-month tenor and a six-month
and sustainability for BCA as a bank and for drawdown period.
consumers as beneficiaries.
27 March 11 April
"#! ,AUNCHES 39.2'9 AN BCA Held the Annual General Meeting
Accelerator Program and of Shareholders
Collaboration Forum for Startups PT Bank Central Asia Tbk held
BCA collaborated with Digitaraya, an Annual General Meeting of
a world-class accelerator company Shareholders (AGMS), which gave
supported by Google Developers approval to the annual report
Launchpad as a partner in including the Company’s financial
the accelerator program, and statements and the report of the
WITH +5-05, AS A PARTNER IN Board of Commissioners supervisory
community and co-working duties for the 2018 fiscal year. With
space management, in the the approval of the annual report,
launch of SYNRGY, a fintech The AGMS provides discharge and
startup accelerator program and acquittal of responsibility (acquit et BCA Officially Launched the Account
simultaneously a collaborative decharge) to members of the Board of Opening Feature on BCA Mobile for a
forum for fintech startups to help Directors and Board of Commissioners Simpler Account Opening Process
support the growth of the startup for the management and supervision Opening an account with BCA is now
ecosystem in Indonesia. actions carried out throughout the possible via online. The new feature
fiscal year 2018. will facilitate customers who do not
have the time to visit a BCA branch to
open an account.
2019 Annual Report | PT Bank Central Asia Tbk 53
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
EVENT HIGHLIGHTS 2019 - continued
25 April
PT Bank Central Asia Tbk
Quarter I 2019 Results -
Positioning for Growth
PT Bank Central Asia Tbk (IDX:
BBCA) and its subsidiaries
reported consolidated financial
performance in the first quarter
of 2019 with net profit growth
of 10.1% reaching Rp 6.1 trillion 2 May
compared to Rp 5.5 trillion a
BCA Supports Financial Inclusion
year earlier. The Bank’s operating
through SimPel BCA
income, which consists of net
BCA re-launched the SimPel BCA
interest income and other
savings account product during
operating income, grew by
the SimPel Day organized by
13.7% to Rp16.7 trillion in the
THE &INANCIAL 3ERVICES !UTHORITY
first quarter of 2019 compared
/*+ AND THE NATIONAL BANKING
to Rp14.7 trillion in the previous
industry, including BCA, in
year. Net interest income increased
an effort to support financial
11.2% YoY to Rp12.0 trillion, while
inclusion through the Students
other operating income grew
Savings (SimPel) program.
20.7% YoY to Rp4.7 trillion in the
first quarter of 2019.
*UNE
BCA EGMS Approves the
Acquisition of PT Bank Royal
Indonesia
PT Bank Central Asia Tbk (BCA)
held an Extraordinary General
Meeting of Shareholders (EGMS),
which approved the planned
acquisition of all shares of
PT Bank Royal Indonesia
(Bank Royal).
9 May
BCA Affirms Commitment to
Smart Farming-Based Agriculture
PT Bank Central Asia Tbk (BCA), *UNE
through the excellent business
solution pillar of its corporate BCA received the Gallup Great
social responsibility (CSR) Workplace Award for the Third Time
Bakti BCA program, affirms its PT Bank Central Asia Tbk received the
commitment for development Gallup Great Workplace Award for the
of agriculture sector through third time, following the same award
the implementation of SMART given in 2015 and again in 2017.
&ARMING IN )NDONESIA 4HIS
commitment takes the form of a
Rp 120 million aid to corn farmers
in Manggalewa District, Dompu
Regency, Nusa Tenggara Barat
(NTB).
54 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
*ULY
BCA and KSEI Sign Agreement as
Administrator Bank for Customer Fund
Account (RDN) and as Payment Bank
In support of the progress of the capital
market industry in Indonesia, BCA
COOPERATED WITH 04 +USTODIAN 3ENTRAL
%FEK )NDONESIA +3%) TO PROVIDE SERVICES
as administrator bank for customer fund
accounts (RDN) and as payment bank
for the 2019-2024 period. Cooperation
*UNE BETWEEN "#! AND +3%) BEGAN IN
Improving Service Quality, and in 2012, BCA was appointed to serve
BCA Inaugurated the Makassar as one the administrator banks for RDN.
Regional Office
PT Bank Central Asia Tbk (BCA)
strives at all times to provide
conveniences and improved
service quality to its loyal
customers. On June 21, 2019,
BCA officially inaugurated *ULY
the operations of the PT Bank Central Asia Tbk First Half 2019
Makassar Regional IV Office in Results - Positioning for Better Growth
Panakkukang. PT Bank Central Asia Tbk and its subsidiaries
reported consolidated financial performance
for the first semester of 2019 with a net
profit growth of 12.6% to Rp12.9 trillion
compared to Rp 11.4 trillion in the previous
year. The Bank’s operating income, which
consists of net interest income and other
operating income, increased by 16.1%
to Rp34.2 trillion in the first half of 2019
compared to Rp29.5 trillion in the previous
year. Net interest income increased by
13.1% YoY to Rp24.6 trillion, while other
operating income grew 24.5% YoY to Rp9.6
trillion in the first half of 2019.
1 August
"#! ,AUNCHED THE @4EACHING
Factory: BCA Cash Management
Academy’ Program
14 August
PT Bank Central Asia Tbk
and PT E-Science Indonesia The Initiator of Digital Banking at
officially launched the BCA Cash "#! *AHJA 3ETIAATMADJA #%/ OF "#!
Management Academy, a teaching 2ECEIVED A @,IFETIME !CHIEVEMENT
factory program intended to Award
FACILITATE VOCATIONAL SCHOOLS 3-+ &OLLOWING EXCELLENT RESULTS IN THE
to produce work-ready graduates implementation of digital banking
for cash management and ATM and innovation at BCA throughout
management companies. *AHJA 3ETIAATMADJA #%/ OF
BCA, received the award for Lifetime
Achievement at the IDX Channel
Innovation Award in Jakarta.
2019 Annual Report | PT Bank Central Asia Tbk 55
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
EVENT HIGHLIGHTS 2019 - continued
4 September
In Appreciation of Loyal Customers,
Six BCA Directors Serve Customers
during National Customer Day
During the National Customer Day
2019), six BCA directors went to serve
customers at a number of branch
offices in Jakarta, in the spirit of
creating quality product and services
21 August to serve BCA’s customers throughout
Indonesia.
Public Expose 2019 - Positioning for
Growth
BCA disseminated its loan
performance in Semester I 2019 at
the Public Expose - Investor Summit
7 September
2019 event organized by the In Support of Farmers Communities
Indonesia Stock Exchange. IN #ENTRAL *AVA "#! )NAUGURATED THE
Doesoen Kopi Sirap Foster Village in
Semarang
In awareness of local economic potential,
"#! OFlCIALLY LAUNCHED THE 'RIYA +OPI
DONATION PROGRAM IN CONJUNCTION WITH
coffee harvest time on Sunday at the
$OESOEN +OPI 3IRAP FOSTER VILLAGE
Semarang.
8 October
BCA Launched the WELMA
Wealth Management Apps at the
Indonesia Knowledge Forum VIII
2019
)N CONJUNCTION WITH THE )NDONESIA
+NOWLEDGE &ORUM )+& 6))) EVENT
with the theme of Nurturing
Mindset for the Next Era of
Capital Culture, BCA launched the
11 October
25 September WELMA wealth management app CS Finance Becomes BCA Multi Finance
that can be used for the purchase to Provide the Best in Services
For the Seventh Time, BCA
of investment products such as PT Bank Central Asia Tbk (BCA) is
Received International Recognition
mutual funds and bonds, as well committed to deliver innovations in
at the Asiamoney Awards as for education on insurance, various financing solutions to help
BCA was again successful in via mobile device. customers and business partners to
receiving two international
meet their needs. In support of this
recognitions as Best Domestic
commitment, BCA inaugurated a new
Bank and Best Digital Bank at the
MULTIlNANCE ENTITY 04 "#! -ULTI &INANCE
Asiamoney 2019 Award held in
"#!-& REPLACING THE PREVIOUS lNANCING
Singapore.
ENTITY 04 #ENTRAL 3ENTOSA &INANCE
#3 &INANCE "#! -ULTI &INANCE NOW
officially provides the various financing
functions previously delivered by CS
&INANCE WITH ADDITIONAL BUSINESS FOCUS
56 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
11 November
"#! AND *#" )NTERNATIONAL LAUNCHED
THE "#! *#" "LACK #REDIT #ARD
The BCA JCB Black credit card
product was launched to
accommodate the needs of customers
for transactions, travelling and
product purchases at domestic and
28 October overseas merchants.
PT Bank Central Asia Tbk
First Nine Month 2019 Results -
Solid and Sustainable Growth
PT Bank Central Asia Tbk (IDX:
BBCA) and its subsidiaries reported 18 November
consolidated financial performance
BCA’s Cash Recycling machine (CRM)
for the first nine months of 2019.
Awarded MURI Record
Net income increased by 13.0% YoY
BCA was awarded the MURI Record
to Rp20.9 trillion supported by the
as The National Private Bank with the
achievement of solid operational
Most in Number of Cash Recycling
performance. In line with BCA’s
Machines in Indonesia.
credit growth, net interest income
increased by 12.2% YoY to
Rp37.4 trillion. Other operating
income rose 19.3% YoY to Rp15.0
trillion, driven by increased fees
and commissions as well as trade
transaction revenues.
6 December
Halo BCA Garnered 26 Medals at 2019
Contact Center World
Halo BCA – the digital services center
and technology innovation system group
garnered 26 medals at the 2019 Top
Ranking Performance Award Contact
Center World. The medals were awarded
$ECEMBER in two categories, namely the individual
and the corporate categories, consisting
Consistent in its Support for
Healthcare, BCA Donated
of 17 Gold, eight Silver, and one Bronze 10 December
medals.
Equipment for Cataract Surgery BCA Donated to 15,000 Informal Workers
and Blood Donor
4HROUGH "0*3 +ETENAGAKERJAAN
BCA donated equipment for
The Bank payed the premiums for
cataract surgery and blood
working accident protection and life
donation, valued at a total of
insurance for 15,000 informal workers
2P BILLION TO 30"+ 0ERDAMI
THROUGH "0*3 +ETENAGAKERJAAN AT THE
(EAD /FlCE 0ERDAMI $+) *AKARTA
Jakarta Grogol branch, hoping it can
Chapter, and Perdami Riau Chapter,
be used to for informal workers from
as well as donation of equipment
segments such as market traders, public
FOR BLOOD DONATION TO 54$ 0-) $+)
transport drivers, fishermen and online
Jakarta.
motorbike taxi/dispatchers.
2019 Annual Report | PT Bank Central Asia Tbk 57
&INANCIAL (IGHLIGHTS Management Report Corporate Profile Management Discussion and Analysis
CORPORATE CULTURE
Mission
To build centers of
excellence in payment
settlements
and financial solutions for
businesses and individuals
To understand diverse
customer needs and provide
the right financial services
Vision to optimize customer
satisfaction
To be the bank
To enhance our
of choice and a
corporate franchise and
MAJOR PILLAR OF stakeholders value
the Indonesian
economy
58 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility #ONSOLIDATED &INANCIAL 3TATEMENTS
Core Values
Customer
&OCUS
Teamwork
Integrity
Continuous
Pursuit of Excellence
The vision and mission statements have been approved by the Board of Directors and the Board of Commissioners of PT Bank Central Asia Tbk
THROUGH $ECREE .O 3+$)2 DATED &EBRUARY CONCERNING 6ISION AND -ISSION OF 04 "ANK #ENTRAL !SIA 4BK -EANWHILE THE CORE
VALUES WERE APPROVED THROUGH $ECREE .O 3+$)2 DATED *UNE CONCERNING CORE VALUES OF 04 "ANK #ENTRAL !SIA 4BK
More detailed information of corporate culture can be found in the Corporate Governance section on pages 526-527.
2019 Annual Report | PT Bank Central Asia Tbk 59
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PRODUCTS AND SERVICES
As of 31 December 2019
Products and Services Description Products and Services Description
Tahapan Payable Management / Disbursement
Tahapan Xpresi Receivable Management / Collection
Tahapan Gold (including B2B & B2C)
Cash Management Services Account & Liquidity Management
4AHAPAN "ERJANGKA
4AHAPAN "ERJANGKA 3I-UDA BCA Card
Tapres BCA Mastercard
Deposits Accounts BCA Visa
3IMPANAN 0ELAJAR
4ABUNGAN+U BCA Amex
Credit Cards
Laku BCA JCB
BCA Dollar Regular Premium Unit Link
$EPOSITO "ERJANGKA Maxi Infinite Link Assurance
Giro Maxi Protection
Safe Deposit Box Maxi Syariah
Transfer Provisa Platinum Syariah
Remittance Provisa Max Assurance
#OLLECTION DAN +LIRING Single Premium Unit Link
Bank Notes Provisa Signature Assurance
Travellers' Cheque Health Protection
Virtual Account Hospital 100% Refundable
Sub Account "IMA 0ROTEKSI +ESEHATANKU
Payment Optima Health Protection
Auto Debit Optima Cancer Protection
Transaction Banking Payroll Services Optima Medical Care
Services Cash Pick Up 0ROTEKSI 0ENYAKIT +RITIS -AKSIMA
*ASA +USTODIAN (PRIMA)
Business Debit Card (BDC) "#! ,IFE 0ERLINDUNGAN +RITIS /PTIMA
(PELITA)
Payment Gateaway
0ROTEKSI +ESEHATAN 5LTIMA 02!4!-!
STAR Teller
Life Protection
eBranch
BCA Life Heritage Protection
eService Bancassurance Products
b-Save Accident Protection
State Revenue Module Generation 3
(MPN G3) BCA Life Proteksi Hidupku
e-Billing (local tax payment: PPN, PPh, BCA Life Proteksi Jiwa Optima
and others) Life Protection 100% Refundable
ATM BCA (multifunction, non cash and Optima Accident Protection
cash recycling machine) Education
EDC BCA Proteksi Edukasi Maksima (EduPlan)
Debit BCA Retirement
Tunai BCA BCA Life Purna Medis Optima
&LAZZ (PURNAMA)
Autoprint Proteksi Retirement Maksima
BCA mobile (RetirePlan)
m-BCA Corporate Solutions
Internet Banking 0ROGRAM 0ENSIUN $0,+
+LIK"#! )NDIVIDU FOR INDIVIDUAL Health Corporate Insurance
customers needs Life Corporate Insurance
+LIK"#! "ISNIS FOR BUSINESS NEEDS General Insurance
+LIK"#! "ISNIS )NTEGRATED 3OLUTION &IRE )NSURANCE
with a more comprehensive features Property All Risks Insurance (PAR)
THAN +LIK"#! "ISNIS FOR EXAMPLE TO Vehicle Insurance
accomodate supply chain services Travel Insurance
Electronic Banking
API BCA -ONEY -ARKET -UTUAL &UND
/NE+LIK Bahana Dana Likuid *
Welma "ATAVIA $ANA +AS -AXIMA
VIRA Danareksa Gebyar Dana Likuid
Sakuku &IRST 3TATE )NDONESIA -ONEY -ARKET
Duitt &UND
"#! +LIK0AY Schroder Dana Likuid
WhatsApp Bank BCA Mutual Fund Investment 0ROTECTED -UTUAL &UND
SMS BCA Products Batavia Proteksi Gebyar III ***
SMS Top Up Batavia Proteksi Gebyar V
BCA by Phone Batavia Proteksi Gebyar VI
Info SMS/Email Batavia Proteksi Gebyar 7
Video Banking Batavia Proteksi Gebyar 8
CS Digital Batavia Proteksi Gebyar 9
Call Center (Halo BCA) Batavia Proteksi Gebyar 10
Host to Host (H2H) ERP Integration Batavia Proteksi Gebyar 11
60 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Products and Services Description Products and Services Description
Danareksa Proteksi Gebyar 1 Negotiable Certicate of Deposit
Danareksa Proteksi Gebyar 2 (NCD)
Treasury Investment Sukuk BI (SukBI)
&IXED )NCOME -UTUAL &UND )$2 Products
Bahana Pendapatan Tetap Makara (continued) 3URAT "ERHARGA +OMERSIAL 3"+
Prima $EPOSITO "ERJANGKA -ONEY -ARKET
Batavia Dana Obligasi Ultima (DBMM)
BNP Paribas Prima II Mortgage
Danareksa Gebyar Indonesia II Vehicle Loan
Eastspring Investments Yield Discovery Syndication Loan
Nikko Gebyar Indonesia Dua Working Capital Loan
Panin Gebyar Indonesia II 0RE %XPORT &INANCING
Schroder Dana Mantap Plus II Trust Receipt
Schroder Prestasi Gebyar Indonesia II Investment Loan
&IXED )NCOME -UTUAL &UND 53$ $ISTRIBUTOR &INANCING
BNP Paribas Prima USD 3UPPLIER &INANCING
Credit Facilities
3CHRODER 53$ "OND &UND $EALER &INANCING
(YBRID -UTUAL &UND &RANCHISE &INANCING
BNP Paribas Spektra * 3HOWROOM &INANCING
Mutual Fund Investment Schroder Dana Terpadu II )NVESTMENT &INANCING
Products 3CHRODER 3YARIAH "ALANCED &UND Business Personal Loan
(continued) %QUITY -UTUAL &UND )$2 +REDIT 5SAHA 2AKYAT
Ashmore Dana Ekuitas Nusantara Personal Loan
Ashmore Dana Progresif Nusantara 0INJAMAN "ERJANGKA -ONEY -ARKET
Batavia Dana Saham (PBMM)
Batavia Dana Saham Optimal Advance Payment Guarante
BNP Paribas Ekuitas Bid Guarantee
BNP Paribas Pesona Counter Guarantee
BNP Paribas Pesona Syariah Custom Guarantee (P4BM)
$ANAREKSA -AWAR +ONSUMER Direct Pay Guarantee
Standby LC / Bank
Eastspring Investments Value Discovery Guarantees &INANCIAL 'UARANTEE
&IRST 3TATE )NDO%QUITY 3ECTORAL &UND Maintenance Guarantee
3CHRODER 0LUS %QUITY &UND Payment Guarantee
Schroder Dana Istimewa Performance Guarantee
Schroder Dana Prestasi Inward Documentary Collection
Schroder Dana Prestasi Plus LC Issuance
Reksa Dana Saham USD Trust Receipt
BNP Paribas Cakra Syariah USD ,# &ORFAITING
3CHRODER 'LOBAL 3HARIA %QUITY &UND LC Confirmation
(USD) Export Import Facilities LC Discounting
(Trade Finance) LC Negotiation
Government Securities (SBN)
Conventional Government Securities Letter of Guarantee
(SUN): Outward Documentary Collection
Indonesian Retail Bond (ORI) 0RE %XPORT &INANCING %XPORT ,OAN
Surat Perbendaharaan Negara (SPN) 3+"$. )SSUANCE
Saving Bond Ritel (SBR) Trust Receipt
Global Bond 3+"$. &ORFAITING
Government Sharia Securities (SBSN) or Local LC Letter of Guarantee
Sukuk Negara: 3+"$. $ISCOUNTING
Surat Perbendaharaan Negara TOD
Syariah (SPNS) TOM
0ROJECT "ASED 3UKUK 0"3 SPOT
Treasury Investment Sukuk &ORWARD
Products Global Bond Swaps
3URAT "ERHARGA +ORPORASI Foreign Exchange Facilities Cross Currency Swap (CCS)
Surat Berharga Negara Asing Interest Rate Swaps (IRS)
(Government Bills/Bonds)
&8 /PTION
Medium Term Notes (MTN)
$OMESTIC .ON $ELIVERABLE &ORWARD
Promissory Notes $.$&
+REDIT $ERIVATIF #,. %"! Overnight Index Swap
Surat Berharga Pasar Uang: *
Sertifikat Bank Indonesia (SBI) **
Sertifikat Deposito Bank Indonesia
(SDBI) ***
Surat Berharga Bank Indonesia
(SBBI) Valas
* Not Available for purchase transactions and incoming transfers, but BCA still serves sales transactions and outgoing transfers.
** Not Available for purchase transactions and incoming or outgoing transfers, but BCA still serves sales transactions
*** Has matured on September 2, 2019
2019 Annual Report | PT Bank Central Asia Tbk 61
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
ORGANIZATION STRUCTURE
GENERAL MEETING OF SHAREHOLDERS
As of 31 December 2019
BOARD OF DIRECTORS
Asset & Liability
Committee (ALCO) PRESIDENT DIRECTOR
*AHJA 3ETIAATMADJA
Anti
Credit Policy &RAUD
Committee Soeni Atonie
Corporate
Social
Credit Committee Responsibility
Inge Setiawati Internal
Audit*)
Risk Management Ayna Dewi Setianingrum
Committee
Information
Technology $%0549
Steering Committee PRESIDENT DIRECTOR
Suwignyo Budiman
Employee Relations
Committee
CORPORATE SME & COMMERCIAL HUMAN CAPITAL
Integrated "!.+).' "!.+).' MANAGEMENT
Risk Management DIRECTOR DIRECTOR DIRECTOR
Committee Rudy Susanto (ENRY +OENAIl Lianawaty Suwono
EXECUTIVE EXECUTIVE EXECUTIVE
SUBSIDIARIES VICE VICE
PRESIDENT VICE PRESIDENT
Linus Ekabranko PRESIDENT #HRISTINA 7AHJUNI
Wira Chandra
Central Capital Windoe Setyabudhi
Ventura
Corporate Consumer Wealth SME & Human Capital Network &
BCA Sekuritas Treasury Commercial
Business^^) &INANCE Management Management Regional
Janto Havianto Business
s 'UNAWAN +02 ++" Eva Agrayani Hendra Development
Prayogo Mathilda Simon 4JONG Liston Nainggolan 4ANUMIHARDJA Management
"#! &INANCE ,TD s )NGE 3ETIAWATY
(ONG +ONG International s +RISTIAN -ARBUN
Weminto Suryadi
Banking s 2AYMOND Cash
Individual Learning &
Edmund Tanuwibowo Customer Management Development Procurement
BCA Syariah Tondobala s 9ULI -ELATI
Business Rusdianti Salim
Suryaningrum Teddy Gunawan &ACILITY
Development Management
Asuransi Ugahary Yovvy Credit Ong Sukianto
Umum BCA Chandra Services
Corporate Jip Tommy
&INANCE Sutanto
Asuransi Jiwa Lay Susiana
BCA Santoso
Bank Royal
Indonesia Corporate
Business
$HEJANI 3URJADI
BCA Multi
&INANCE
"#! &INANCE
CORPORATE INDIVIDUAL
"53).%33 "!.+).'
"!.+).' "!.+).'
62 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BOARD OF COMMISSIONERS
$JOHAN %MIR 3ETIJOSO 4ONNY +USNADI #YRILLUS (ARINOWO 2ADEN
Pardede, Sumantri Slamet
Remuneration
and
Nomination
Committee
Risk Oversight
Committee
Audit
Committee
Integrated
Corporate
Governance
Committee
$%0549
PRESIDENT DIRECTOR
Armand Wahyudi Hartono
COMPLIANCE &).!.#% reporting lines
.%47/2+ TRANSACTION CREDIT &
2)3+ CORPORATE
DISTRIBUTION "!.+).' LEGAL monitoring lines
MANAGEMENT PLANNING
DIRECTOR DIRECTOR DIRECTOR
DIRECTOR ^) DIRECTOR #)
Erwan Yuris Ang Santoso Subur Tan communication lines
)NAWATY (ANDOJO Vera Eve Lim
coordination lines
Notes:
*)
Oversee internal audit/
EXECUTIVE EXECUTIVE risk management /
EXECUTIVE VICE VICE compliance function of
VICE subsidiaries in association
PRESIDENT PRESIDENT with integrated corporate
PRESIDENT Raymon Yonarto $EDDY -ULJADI governance & integrated
Hendrawinata risk management
application.
^^)
Corporate Banking
Operation Information Corporate Credit
Director appoints which
Regional & Transaction Compliance*) corporate business group
Strategy Technology Strategy &
Branch Banking s +HO 6INCENTIUS
Banking &ERIC 3USILO ,IE Analysis are reporting to EVP
Management Development Chandra Business Planning s %DY 'UNAWAN #)
&INANCE #ORPORATE
s ,ANNY "UDIATI Lilik Winarni +HOSASIH Development s 'RACE 0UTRI !YU Planning Director
s 9ANDY 2AMADHANI s *AYAPRAWIRYA Jan Hendra $EWIJANY s /VERSEES COORDINATES
Risk s (ELENA -ARIA overall management of
s &RENGKY #HANDRA + Diah
Domestic Management*) !TMODJO subsidiaries
s (ENDRIK 3IA s *IP 4HOMAS
Eduard Guntoro
&INANCE s /VERSEES SUBSIDIARIES
s %NNY +AMAL Payment Sutanto Transaction s 4AN 4ESIEN
financial performance
Services Purba 4ANUDJAJA
s $ANIEL (ENDARTO Banking
s *O 2UDY +URNIAWAN Dipasusila s $JULIANTO ,IONG ^)
Compliance & Risk
Partnership s )NA 7IDJAJA Management Director
s (ARYONO Solution
Wongsonegoro Enterprise Corporate s 7IDJAJA oversees subsidiaries risk
Electronic Development Security Secretary & Stephen as part of integrated risk
s $JOKO 2OSMIATUN management
-IJAATA
Banking Herry Theo **) ,UKMAN (ADIWIJAYA Corporate
s ,UKMAN Services Communication **) also as ad interim.
s -INGTO 0URBA Joanes Justira Transaction (ERA &ENDAYANI
s &REDDY 3ULIMAN Gunawan Credit Change of Senior Officers
Banking Haryn
Recovery after December 31, 2019
Product Megawaty
UNTIL &EBRUARY
International Development s 7ELLY 9ANDOKO WAS
Banking Ina Suwandi appointed as Division
Services Head of Transaction
Legal Banking Partnership
Siswanto Sutanto **) Transaction Januar Agung Solution Development
Banking Saputera **)
s *ANUAR !GUNG 3APUTRA
Business was appointed as Division
Digital Support & Head of Legal
Services Services
Wani Sabu s ,INDA $JOJONEGORO
s 7ILSON +ARIMUN
CORPORATE SUPPORT
2019 Annual Report | PT Bank Central Asia Tbk 63
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BOARD OF DIRECTORS PROFILE
Educational Background and Training
Graduated with a bachelor’s degree in Accounting from
University of Indonesia (1982).
In 2019, participated in the following training, seminars and
conferences:
s !NNUAL -EETING OF THE &INANCIAL 3ERVICES )NDUSTRY /*+
Jakarta, Indonesia.
s "ANKING %CONOMIC $IALOGUE WITH THE 'OVERNOR OF "ANK
)NDONESIA ).$%& "ANK 3INARMAS 4HE #ONSUMER "ANKING
School - Jakarta, Indonesia.
s +%00 AND "ANKING $ISCUSSION /*+ *AKARTA )NDONESIA
s "ANK )NDONESIA -EETING ON THE $IRECTION OF $IGITIZING
the National Banking Industry - Bank Indonesia - Jakarta,
Indonesia.
s .ATIONAL 3EMINAR ON 3/% !WAKENING )NFRASTRUCTURE 3ECTOR
BUMN Study Center - Jakarta, Indonesia.
s th !SIA 0ACIlC #%/ &ORUM )## )NTERNATIONAL #HAMBER OF
Commerce) - Jakarta, Indonesia.
s 4HE 7ALL 3TREET *OURNAL #%/ #OUNCIL 4HE 7ALL 3TREET *OURNAL
- Tokyo, Japan.
s &'$ 0ROSPECTS AND 2ISKS OF THE "ANKING SECTOR AFTER THE
2019 Election amid an increasingly uncertain International
Economic and (Trade) environment - BIN (State Intelligence
Agency) - Jakarta, Indonesia.
s )-# -EETING )-# )NTERNATIONAL -ONETARY #ONFERENCE
0ARIS &RANCE
s $IGITAL 4RANSFORMATION IN "#! "#! *AKARTA )NDONESIA
*AHJA 3ETIAATMADJA
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
President Director
s )NTENSIVE ,EADERSHIP 0ROGRAM ),0 4RAINING FOR 3ENIOR ,EADER
Competency Development, Topic: Building A Great Corporate
Culture Work Life Integration - BPJS Health - Bogor, Indonesia.
s #%/ .ETWORKING ND !NNIVERSARY OF THE )NDONESIAN
Indonesian citizen, aged 64. Domiciled in Indonesia. Appointed Capital Market) Topic: Embracing the Opportunities in
as the President Director of BCA at the 2011 Annual GMS and $YNAMIC 'LOBAL %CONOMY /*+ 04 "%) 04 +0%) 04 +3%)
approved by Bank Indonesia on June 17, 2011. He was last Jakarta, Indonesia.
reappointed at the 2016 Annual GMS for a five-year term. s 0ROSPECT OF %CONOMIC #HALLENGES #OMMUNICATION &ORUM
for Banking Compliance Director - Jakarta, Indonesia
Roles and Responsibilities s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
President Director of BCA is responsible for the general $EVELOPMENT &INANCE #ORPORATION )NDIA "#! *AKARTA
coordination as well as to oversee the Internal Audit Division, Indonesia.
the Corporate Social Responsibility Work Unit and the Anti- s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
&RAUD "UREAU AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Career Affiliation
Previously served as Deputy President Director of BCA Has no financial relationship, stock ownership relationship,
(2005-2011), he was responsible for the Branch Banking business, and/or family relationship with members of the Board of
Treasury Division, International Banking Division and overseas Commissioners fellow member of the Board of Directors, and/or
representative offices. He worked as a Director of BCA from BCA controlling shareholders.
1999 to 2005, and held a variety of managerial positions within
THE "ANK FROM 0RIOR TO JOINING "#! HE WORKED AS THE Dual Positions
&INANCE $IRECTOR OF A LEADING )NDONESIAN AUTOMOTIVE COMPANY Holds no position as a member of a Board of Commissioners,
PT Indomobil (1989-1990), and held various managerial positions Board of Directors, or Executive Officers at other banks,
at one of Indonesia’s largest pharmaceutical companies, PT companies, and/or institutions.
+ALBE &ARMA WITH HIS LAST TITLE AS &INANCE $IRECTOR
He started his career in 1979 as an accountant at an accounting
company (Price Waterhouse).
64 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Career
Suwignyo Budiman began his career as a System Analyst
in Bank Rakyat Indonesia (BRI) in 1975, and held
various managerial positions including, the Head of the
Technology Division (1992-1995), Special Staff to the Board
of Directors (1995-1996), Head of Palembang Region
(1996-1998), Head of the Operational Division (1998-2000) and
his last position at BRI was as the Head of the Central Java Region.
Joined BCA and served as Director (2002-2019) and was appointed
as the Deputy President Director since 2019.
He was also a member of the proxy team of the Board of Directors
at BCA (May to July 1998).
Educational Background and Training
(OLDS A BACHELORS DEGREE FROM 5NIVERSITY OF 'ADJAH -ADA
and an MBA from the University of Arizona, USA (1986).
In 2019, participated in the following training, seminars and
conferences:
s $IGITAL 4RANSFORMATION IN "#! "#! *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA "#! *AKARTA
Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Suwignyo Budiman
Deputy President Director
Affiliation
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
Indonesian citizen, aged 69. Domiciled in Indonesia. Appointed BCA controlling shareholders.
as the Deputy President Director of BCA at the Annual GMS on
April 11, 2019 for the term of office until the closing of the Dual Positions
Annual GMS of BCA held in 2021 and has effectively served as Holds no position as a member of the Board of Commissioners,
Deputy President Director of BCA since October 3, 2019. a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
Roles and Responsibilities
BCA’s Deputy President Director who is responsible for the
mortgage business, auto loans (four-wheeled and two-
wheeled), individual customer business development and
wealth management business and coordination/supervision in
the SME/commercial and HR department. He also monitors the
business development of BCA’s subsidiary entities engaged in
sharia banking, PT BCA Syariah, subsidiaries engaged in general
insurance and life insurance, PT Asuransi Umum BCA (BCA
Insurance), and PT Asuransi Jiwa BCA (BCA Life) and subsidiaries
engaged in general banking PT Bank Royal Indonesia.
2019 Annual Report | PT Bank Central Asia Tbk 65
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Indonesian citizen, 44 years old. Domiciled in Indonesia.
Appointed as the Deputy President Director of BCA at the
!NNUAL '-3 FOR A lVE YEAR TERM AND APPROVED BY /*+ ON
June 21, 2016.
Roles and Responsibilities
BCA’s Deputy President Director who is in charge of general
supervision of the Network Distribution Director and
Transaction Banking Director, and is responsible for the
Information Technology Group and operational work units
including operations Strategy and Development Division
- Services, Domestic Payment Services, Electronic Banking
Services, International Banking Services and Digital Services.
Also monitors the development of PT Central Capital Ventura, a
subsidiary engaged in venture capital.
Career
Previously served as a Director of BCA in 2009. He served as
BCA’s Head of Regional Planning and Development (2004-2009).
0RIOR TO JOINING "#! !RMAND 7AHYUDI (ARTONO HELD VARIOUS
MANAGERIAL POSITIONS AT 04 $JARUM WITH SEVERAL
POSITIONS AS &INANCE $IRECTOR $EPUTY 0URCHASING $IRECTOR AND
Head of Human Resources. He became an analyst at Global
Credit Research and Investment Banking, JP Morgan Singapore
(1997-1998).
Educational Background and Training
Graduated from the University of California, San Diego (1996)
Armand Wahyudi Hartono
and holds a degree of Master of Science in Engineering Economic
Deputy President Director
System and Operation Research (1997) from Stanford University,
USA.
In 2019, participated in the following training, seminars and
conferences:
s 4RADING 4RENDS "#! *AKARTA )NDONESIA
s )NFORMATION 4ECHNOLOGY 3YMPOSIUM 'ARTNER "ARCELONA
Spanyol - Gartner- Barcelona, Spain
s 3HARING 3ESSION h.AVIGATING #HANGEv BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #OOPERATION )NDIA "#! *AKARTA
Indonesia
s 3HARING 3ESSION h4HE %COSYSTEMv BY /6/ 4OKOPEDIA (ALODOC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Affiliation
Has financial relationships and family relationships with BCA
controlling shareholders, Robert Budi Hartono and Bambang
Hartono, but has no financial relationships, stock ownership
relationships, and/or family relationships with any members
of the Board of Commissioners, and/or fellow members of the
Board of Directors.
Dual Positions
Holds no position as a members of the Board of Commissioners,
the Board of Directors or Executive Officers at another banks,
companies and/or other institutions.
66 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Indonesian citizen, 59 years old. Domiciled in Indonesia.
Appointed as a Director of BCA at the 2002 Annual GMS and
approved by Bank Indonesia on August 13, 2002. The latest
appointment was effective since the 2016 Annual GMS for a five-
year term.
Roles and Responsibilities
BCA Director who is responsible for Credit Analysis, Credit Rescue
and Legal.
Career
Joined BCA since 1986 and held several managerial positions
including as the Head of Credit for Operational Headquarter
(1991-1995), head of legal bureau (1995-1999) and Deputy Head
of Legal Division (1999-2000). His last position was Head of
Internal Legal Counsel before being appointed as a member of
the Board of Directors of BCA.
Educational Background and Training
He holds a bachelor of law from Jenderal Soedirman University
AND COMPLETED HIS .OTARY 0ROGRAM FROM THE &ACULTY OF
Law at the University of Indonesia (2002).
In 2019, participated in the following training, seminars and
conferences:
s 4RADING 4RENDS "#! *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
Subur Tan
$EVELOPMENT &INANCE #ORPORATION )NDIA "#! *AKARTA
Director
Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Affiliation
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Positions
Holds no position as a member of the Board of Commissioners,
a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
2019 Annual Report | PT Bank Central Asia Tbk 67
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Indonesian citizen, 60 years old. Domiciled in Indonesia.
Appointed as a Director of BCA at the 2007 Extraordnary GMS
AND APPROVED BY "ANK )NDONESIA ON &EBRUARY 4HE LATEST
appointment was effective since the 2016 Annual GMS for a five-
year term.
Roles and Responsibilities
BCA Director who is responsible for commercial and SME
Business, cash management and credit services. Also monitors
the development of a wholly-owned subsidiary of BCA, PT
"#! &INANCE WHICH IS ENGAGED IN AUTO LOANS AND 04 "#! -ULTI
&INANCE ENGAGED IN INDUSTRY AND FACTORING lNANCING CONSUMER
financing and leasing.
Career
0RIOR TO SERVING AS $IRECTOR OF "#! (ENRY +OENAIl WAS 0RESIDENT
$IRECTOR OF 04 "#! &INANCE !PPOINTED BY THE
Indonesian Bank Restructuring Agency (IBRA) to serve as the
Coordinator of the Management Team of PT Bank Bali Tbk and
members of the Bank Jaya Management Team (1999-2000).
Joined BCA in 1989 and has held various managerial positions,
both in branch offices and head office. Before starting his career
IN THE BANKING INDUSTRY AND JOINING "#! IN (ENRY +OENAIl
worked at IBM, a global company in the field of information
technology, for 6 years.
Educational Background and Training
Graduated with MBA from Monash University, Melbourne,
Henry Koenaifi
Australia (2001), a masters in Management from the Indonesian
Director
Institute of Management Development (IPMI) in 2000, and a
Civil Engineering Engineer from Parahyangan Catholic University
(1984).
In 2019, participated in the following training, seminars and
conferences:
s 4RADING 4RENDS "#! *AKARTA )NDONESIA
s %CONOMIC $IALOGUE 3EMINAR %CONOMIC 0ROSPECTS &ISCAL
Policy - Indonesian China Institute (LIT) - Jakarta, Indonesia.
s $IGITAL 4RANSFORMATION IN "#! "#! *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s )NDONESIA "ANKING %XPO 0%2"!.!3 *AKARTA )NDONESIA
s 3HARING 3ESSION WITH 0ROF !NDY 2OSE AND -R 3AMUEL 4SIEN
Business School, National University of Singapore - Singapore.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA "#! *AKARTA
Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Affiliation
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Positions
Holds no position as a member of the Board of Commissioners,
a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
68 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Indonesian citizen, 60 years old. Domiciled in Indonesia.
Appointed as a Director of BCA at the 2011 Annual GMS and
approved by Bank Indonesia on August 25, 2011. Appointed
as an Independent Director on April 7, 2014. The latest
appointment is effective since the 2016 Annual GMS for a five-
year term.
Roles and Responsibilities
Network Distribution Director who is responsible for managing,
supervising and monitoring of regional and branch daily
operations, and is in charge of the Branch Support Divisions,
the Procurement Division and the Network Management and
Regional Development Division.
Career
Previously he served as Head of Regional Offices in Jakarta,
Surabaya, Medan and Malang (2000-2011). Also served as BCA
Bandung Branch Manager (1995-2000), BCA Pekanbaru Branch
Manager (1989-1995), and Head of Credit Department at BCA
Pekanbaru Branch (1987-1989). His career at BCA began in 1985
as a trainee at BCA Medan.
Educational Background and Training
Graduated with a Bachelor of Law from Satyagama University
(2010) and a Masters of Business Law from Trisakti University,
Jakarta (2012).
In 2019, participated in the following training, seminars and
%RWAN 9URIS !NG
conferences:
Independent Director
s 2EFRESHMENT OF 3-2 ,EVEL 6 -ANAGING 0EOPLE 2ISK IN A "ANK
+)2!. *AKARTA )NDONESIA
s !3%!. 'LOBAL ,EADERSHIP 0ROGRAM ,3% ,ONDON 3CHOOL
of Economics & Political Science (LSE) and SRW & Co. - London,
England.
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA n "#! *AKARTA
Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Affiliation
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Positions
Holds no position as a member of the Board of Commissioners,
a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
2019 Annual Report | PT Bank Central Asia Tbk 69
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Bank Restructuring Agency (IBRA) as Head of theLoan Work
Out II division (2001-2002) and Senior Credit Officer (1999-2001).
(E ALSO SERVED AT 04 "ANK ,4#" #ENTRAL !SIA A JOINT VENTURE
between the Long-Term Credit Bank of Japan Ltd. And PT
"ANK #ENTRAL !SIA 4BK AS 6ICE 0RESIDENT OF #ORPORATE &INANCE
3ENIOR -ANAGER OF #ORPORATE &INANCE
-ANAGER OF #ORPORATE &INANCE AND !SSISTANT -ANAGER
OF #ORPORATE &INANCE (E STARTED HIS CAREER AT 04 "ANK
Danamon Indonesia Tbk in 1992 as a trainee in the Credit
Marketing Program.
Educational Background and Training
Graduated with a bachelor’s degree in Civil Engineering from
4ARUMANEGARA 5NIVERSITY AND EARNED AN -"! IN &INANCE
FROM THE 5NIVERSITY OF 4ENNESSEE +NOXVILLE 53!
In 2019, participated in the following training, seminars and
conferences:
s 4RADING 4RENDS "#! *AKARTA )NDONESIA
s 4REASURY CERTIlCATION !DVANCE LEVEL REFRESHMENT PROGRAM
ACI - Bali, Indonesia.
s $ISCUSSION OF +%00 AND "ANKING &INANCIAL 3ERVICES !UTHORITY
Jakarta, Indonesia.
s &OCUS 'ROUP $ISCUSSION &'$ $EVELOPMENT OF )NDONESIAN
"ANKING 3TRATEGY )SSUES &INANCIAL 3ERVICES !UTHORITY *AKARTA
Indonesia.
s )N (OUSE "RIElNG %&-! %&-! *AKARTA )NDONESIA
s "#! )NTERNATIONAL "ANKING 7ORKSHOP $)" *AKARTA )NDONESIA
Rudy Susanto
s &INANCIAL 3YSTEM 3TABILITY #OMMUNICATION &ORUM 1UARTER ))
Director
2019 - Bank Indonesia - Jakarta, Indonesia.
s 4REASURY CUSTOMER APPRECIATION "#! *AKARTA )NDONESIA
s 3IBOS 3IBOS ,ONDON %NGLAND
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
Indonesian citizen, aged 57. Domiciled in Indonesia. Appointed s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
as a Director of BCA at the 2014 annual general meeting of $EVELOPMENT &INANCE #ORPORATION )NDIA "#!*AKARTA
SHAREHOLDERS AND APPROVED BY /*+ ON *ULY (E WAS LAST Indonesia.
reappointed at the 2016 annual general meeting of shareholders s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
for a five-year term. AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Roles and Responsibilities Affiliation
BCA Director who is responsible for the Corporate Banking and Has no financial relationship, stock ownership relationship,
#ORPORATE &INANCE 'ROUP #ORPORATE "RANCH 4REASURY $IVISION and/or family relationship with members of the Board of
and International Banking Division. Also supervises BCA’s wholly- Commissioners fellow member of the Board of Directors, and/or
OWNED SUBSIDIARY IN REMITTANCE SERVICE "#! &INANCE ,IMITED BCA controlling shareholders.
(Hongkong), and securities subsidiary, PT BCA Securities.
Dual Positions
Career Holds no position as a member of the Board of Commissioners,
3INCE JOINING "#! IN 2UDY 3USANTO HAS HELD VARIOUS a Board of Directors or Executive Officers at other banks,
managerial positions, including Executive Vice President of the companies and/or other institutions.
Credit Risk Analysis Group (2011-2014), Head of the Credit Risk
Analysis Group (2004-2011), and Head of The Credit Division
0RIOR TO JOINING "#! HE WORKED AT THE )NDONESIAN
70 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
develop Human Resource Information Systems. She has held
various managerial positions, such as Head of HR Operations
Support (1996-1998), Head of the HR Operations and Support
System Bureau (1998-1999), Head of Management Development
Program and Head of Career Development Bureau (1999-2000),
Head of HR Resourcing and Development Bureau (2000-2002),
$EPUTY (EAD OF (UMAN 2ESOURCES $IVISION &ROM
2014 to July 2016, she also served as President Commissioner of
PT Asuransi Jiwa BCA.
Educational Background and Training
Graduated in Business Information Computing Systems, San
&RANCISCO 3TATE 5NIVERSITY #ALIFORNIA 53!
In 2019, participated in the following training, seminars and
conferences:
s 4HE th HRDI Gathering - HR Directors Indonesia & SAP -
Jakarta, Indonesia.
s 4HE th Indonesia HR Director Summit - Intipesan - Jakarta,
Indonesia.
s #%/ OF 0OWER "REAKFAST "UILDING A ,ASTING ,EGACY IN THE
Digital Economy Era - Siloam Hospital - Jakarta, Indonesia.
s (2 3YMPOSIUM "ACK 4O "ASICS #ENTER FOR )SLAMIC "ANKING
&INANCE AND -ANAGEMENT #)"&- "ANDAR 3RI "EGAWAN
Brunei Darussalam.
s 'ALLUP 'REAT 7ORKPLACE !WARD #LIFTON 3TRENGTHS 3UMMIT
Gallup - Nebraska, USA.
s -ERCER !NNUAL &ORUM h"ECOMING &UTURE &IT #URATING
Lianawaty Suwono
the Work Experience” - Mercer- Jakarta, Indonesia.
Director
s $IGITAL #OMPANY $IGITAL 0ROCESS $IGITAL 7ORKFORCE )$3TAR
Jakarta, Indonesia.
s $IGITAL 4RANSFORMATION IN "#! "#! *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
Indonesian citizen, 53 years old. Domiciled in Indonesia. s )NFORMATION 4ECHNOLOGY 3YMPOSIUM 'ARTNER "ARCELONA
Appointed as a Director of BCA at the 2016 annual general Spain
meeting of shareholders for a five-year term and approved by s #OMPASSIONATE 3YSTEMS ,EADERSHIP FOR A 3USTAINABLE 7ORLD
/*+ ON *ULY Transforming Public Policies, Corporate and Education Systems
IN THE $IGITAL %RA /*+ *AKARTA )NDONESIA
Roles and Responsibilities s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
BCA Director who is responsible for managing human resources $EVELOPMENT &INANCE #ORPORATION )NDIA "#!*AKARTA
strategies and policies as well as learning and development of Indonesia.
human resources. s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Career
Previously, served as Head of the Human Capital Management Affiliation
Division (2006-2016), and as a member of the Remuneration and Has no financial relationship, stock ownership relationship,
Nomination Committee (2007-2016). Her career at BCA began and/or family relationship with members of the Board of
in 1991 as a management trainee in the BCA Management Commissioners fellow member of the Board of Directors, and/or
Development Program and was later appointed as Business BCA controlling shareholders.
Analyst (1992-1996) in the Information Systems division,
HANDLING )NTEGRATED "ANKING 3YSTEMS 0ROJECT FOR )NTEGRATED Dual Positions
Deposit Systems and integrated loan systems. After working Holds no position as a member of the Board of Commissioners,
in Information Technology, Lianawaty Suwono continued her a Board of Directors or Executive Officers at other banks,
career in Human Resources starting with the assignment to companies and/or other institutions.
2019 Annual Report | PT Bank Central Asia Tbk 71
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Indonesian citizen, 68 years old. Domiciled in Indonesia.
Appointed as a Director in charge of compliance at the Annual
GMS held on April 11, 2019 for a term of office until the closing
OF THE "#! !NNUAL '-3 HELD IN AND WAS APPROVED BY /*+
on August 23, 2019.
Roles and Responsibilities
BCA Director who is responsible for the Compliance, Risk
Management and Information Asset Security (Enterprise
Security).
Career
Previously served as Director of BCA (2016-2019). Joined BCA in
1980 and has held several managerial positions in the internal
audit field, namely as Head of the Internal Audit Bureau
(1985-1988), Deputy Head of theInternal Audit Division
(1988-1990) and Head of the Internal Audit Division (1990-2008).
Subsequently she served as a member of the Audit Committee
(2008-2016) and a member of the Integrated Governance
#OMMITTEE )NAWATY (ANDOJO WAS ACTIVE AS A
university lecturer and at several training internal audit
institutions in Jakarta (2000-2016), besides being active as a
CONSULTANTEXPERT IN VARIOUS CONSULTANCY PROJECTS IN INTERNAL AUDIT
"EFORE JOINING "#! SERVED AS (EAD OF &INANCE OF
PT Naintex (1976-1980), a company engaged in the textile sector.
Educational Background and Training
)NAWATY (ANDOJO
'RADUATED WITH A BACHELORS DEGREE FROM THE &ACULTY OF
Director
%CONOMICS 0ARAHYANGAN #ATHOLIC 5NIVERSITY "ANDUNG MAJORING
in Business/ Management (1976) and Accounting (1979), and a
Master’s in Management from Prasetiya Mulya Business School,
Jakarta (2003).
In 2019, participated in the following training, seminars and
conferences:
s 4RADING 4RENDS "#! *AKARTA )NDONESIA
s $IGITAL 4RANSFORMATION IN "#! "#! *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s )#!S nd Annual APAC Conference 2019 - International
Compliance Association - Singapore.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA "#!*AKARTA
Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Affiliation
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Positions
Holds no position as a member of the Board of Commissioners,
a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
72 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Indonesian citizen, aged 54. Domiciled in Indonesia. Appointed
as a Director of BCA at the 2016 Annual GMS for a five-year term
AND APPROVED BY /*+ ON !UGUST
Roles and Responsibilities
BCA Director who is responsible for Transaction Banking
Business Development and Marketing, Transaction Banking
Partnership Solution Development, Transaction Banking Product
Development, and Transaction Banking Business Supports and
Services.
Career
Previously served as Head of the Consumer Card Business
Services and Support Group (2015-2016). His career at BCA
began in 1992 as Head of Supporting Administration
Department. Throughout his career, he held various managerial
positions, such as Head of Marketing for non Jabodetabek
Area (1996-1998), Chief of Area Marketing Bureau (1998-2000),
Deputy Head of Consumer Network Division and Deputy Head of
Network and Sales (2000-2005), Head of the Small and Medium
Business Division (2005-2009), Head of the Credit Card Business
Unit (2009-2012), Head of Merchant and Consumer Credit Card
'ROUP (E WAS ALSO HEAD OF THE "#! 0ENSION &UND A
pension fund management company (2003-2016), Commissioner
of PT Abacus Cash Solution, a cash management service provider
company (2010-2016), Board of executives of the Indonesian
#REDIT #ARD !SSOCIATION !++) PRESENT CHAIRPERSON OF
Committee VII of the Indonesian Payment System Association
Santoso
(ASPI) (2016-present), Chair of Research, Study and Publication
Director
(RPP) at the Indonesian Bankers Association (IBI) (2019-present).
Educational Background and Training
#OMPLETED THE EDUCATION AT THE &ACULTY OF %NGINEERING 4RISAKTI
University, Jakarta (1989).
In 2019, participated in the following training, seminars and
conferences:
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s !MERICAN %XPRESS #ONFERENCE 'LOBAL .ETWORK 0ATNER &ORUM
AMEX - New York, USA.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA "#!*AKARTA
Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Affiliation
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Positions
Holds no position as a member of the Board of Commissioners,
a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
2019 Annual Report | PT Bank Central Asia Tbk 73
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
at PT Bank Danamon Indonesia Tbk (1998-2003). In 1990, she
began at PT Bank Danamon Indonesia Tbk as Head of Corporate
Planning and Information Systems. She started her career
AS AN !SSISTANT &INANCIAL -ANAGER AT 04 !SURANSI 3INARMAS
!SSISTANT -ANAGER OF !CCOUNTING AND &INANCE AT
04 -"& ,EASING
Educational Background and Training
Completed undergraduate education at Tarumanegara
University in Economics/Accounting (1989) and enrolled in the
Executive Program at the Stanford Graduate School of Business
in 2008.
In 2019, participated in the following training, seminars and
conferences:
s 4RADING 4RENDS "#! *AKARTA )NDONESIA
s "ANKING %CONOMIC $IALOGUE WITH ") ).$%& 'OVERNOR 3INARMAS
Bank, The Consumer Banking School - Jakarta, Indonesia.
s -ANDIRI )NVESTMENT &ORUM -ANDIRI 3EKURITAS *AKARTA
Indonesia.
s -ONEY ,IVE )NDONESIA #ONFERENCE -ONEY &ORCE *AKARTA
Indonesia
s 5"3 )NDONESIA #ONFERENCE 5"3 *AKARTA )NDONESIA
s th !SIA 0ACIlC #%/ &ORUM )## )NDONESIA )NTERNATIONAL
Chamber of Commerce) - Jakarta, Indonesia.
s #&/ /FlCE 3TRATEGIC 7ORKSHOP "#! *AKARTA )NDONESIA
s #REDIT 3UISSE !SIAN )NVESTMENT #ONFERENCE #REDIT 3UISSE
(ONG +ONG (ONG +ONG
s !#3) 86 3EMINAR ()-! 0ERBANAS )NSTITUTE *AKARTA )NDONESIA
s !"& 2ETAIL "ANKING &ORUM #-' "USINESS #ONFERENCE
Vera Eve Lim Jakarta, Indonesia.
Director s #)-" .ON $EAL 2OADSHOW #)-" (ONG +ONG (ONG +ONG
s $IGITAL "#' !SIA 0ACIlC #ONFERENCE "#' (ONG +ONG (ONG
+ONG
s .OMURA )NVESTMENT &ORUM !SIA .OMURA 3INGAPORE
s #'3 #)-" th Annual Indonesia Conference-CIMB-Bali
Indonesian citizen, aged 54. Domiciled in Indonesia. Appointed s -ONEY,)6% $IGITAL "ANKING !0!# 3INGAPORE
as a Director of BCA at the 2018 Annual GMS and approved by s #ITI )NDONESIA )NVESTOR #ONFERENCE #ITI *AKARTA
/*+ ON !PRIL s -ACQUARIE !3%!. #ONFERENCE IN 3INGAPORE -ACQUARIE
Singapore
Roles and Responsibilities s *0 -ORGAN !SIA 0ACIlC #%/ #&/ *0 -ORGAN 53!
BCA Director who is responsible for the Corporate Strategy s 4RANSFORMING !3%!. /RGANIZATION 5NDERSTANDING #HINA .EXT
AND 0LANNING $IVISION THE &INANCE $IVISION AND THE #ORPORATE Move - AGLP - Shanghai, China
Secretary and Communications Division. s )NFORMATION 4ECHNOLOGY 3YMPOSIUM 'ARTNER "ARCELONA
Spain
Career s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
0REVIOUSLY SERVED AS THE %XECUTIVE 6ICE 0RESIDENT OF &INANCE $EVELOPMENT &INANCE #ORPORATION )NDIA "#!*AKARTA
AND 0LANNING AND #ORPORATE 3ECRETARIAT 0RIOR TO JOINING "#! Indonesia.
she held various Director and Commissioner positions including s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
$IRECTOR AND #HIEF &INANCIAL /FlCER OF 04 "ANK $ANAMON AND $JARUM 'ROUP "#! *AKARTA )NDONESIA
Indonesia Tbk (2006-2017), Commissioner of PT Adira Dinamika
-ULTI &INANCE AND CONCURRENTLY $IRECTOR OF 04 "ANK $ANAMON Affiliation
Indonesia Tbk (2010-2017), Deputy President Commissioner Has no financial relationship, stock ownership relationship,
of PT Asuransi Adira Dinamika and concurrently a Director of and/or family relationship with members of the Board of
PT Bank Danamon Indonesia Tbk (2008-2013), and various Commissioners fellow member of the Board of Directors, and/or
MANAGERIAL POSITIONS INCLUDING AS #HIEF &INANCIAL /FlCER OF BCA controlling shareholders.
PT Bank Danamon Indonesia Tbk (2003-2006), and Head of
Division and Deputy Head of Divisions In Corporate Planning, Dual Functions
)NVESTOR 2ELATIONS &INANCIAL !CCOUNTING AND 4AX 2EGULATORY Holds no position as a member of the Board of Commissioners,
Reporting, Management Information System (MIS) and others a Board of Directors or Executive Officers at other banks,
companies and/or other institutions.
74 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BOARD OF COMMISSIONERS PROFILE
Indonesian citizen, aged 78. Lives in Indonesia. Appointed
president commissioner of BCA at the 2011 annual general
meeting of shareholders and approved by Bank Indonesia on
August 25, 2011. He was last reappointed at the 2016 annual
general meeting of shareholders for a five-year term.
Career
$JOHAN %MIR 3ETIJOSO PREVIOUSLY SERVED AS PRESIDENT DIRECTOR
of BCA (1999-2011) responsible by the end of that period for
general coordination, internal audit, corporate planning,
finance and accounting division as well as corporate affairs. Prior
TO JOINING "#! HE WORKED AT "ANK 2AKYAT )NDONESIA FROM
to 1998, with his last position being director; and was president
commissioner of Inter Pacific Bank (1993-1998). Aside from
serving as president commissioner of BCA, he is actively involved
in various organizations.
Educational Background and Training
Graduated from the Bogor Institute of Agriculture (1964).
In 2019, he participated in a number of training programs,
seminars and conferences, including:
s 4RADING 4RENDS n "#! n *AKARTA )NDONESIA
s +NOWLEDGE 3HARING "#! /PEN 3OURCE !RAB #HINA 2ELATIONS
in Economy and Business in the Middle East – BCA – Jakarta,
Indonesia.
s '2# 3UMMIT 3USTAINING 4HROUGH )NTEGRATED '2# n #2-3
Indonesia – Jakarta, Indonesia.
$JOHAN %MIR 3ETIJOSO s 3EMINAR 4HE 2OLE OF THE #OMPLIANCE $IRECTOR IN !DDRESSING
President Commissioner the Challenges of Digital Economy and Banking Readiness in
&ACING -UTUAL %VALUATION 2EVIEW -%2 n "ANKING #OMPLIANCE
$IRECTOR #OMMUNICATION &ORUM n *AKARTA )NDONESIA
s $IGITAL 4RANSFORMATION IN "#! n "#! n *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA n "#! n *AKARTA
Indonesia
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP n "#! n *AKARTA )NDONESIA
Affiliations
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Functions
Also serves as a member of the remuneration and nomination
committee of PT Bank Central Asia Tbk but holds no position as a
member of the Board of Commissioners, a member of the Board
of Directors, or executive officer at another bank, company, and/
or institution.
2019 Annual Report | PT Bank Central Asia Tbk 75
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Indonesian citizen, aged 72. Lives in Indonesia. Appointed a
commissioner of BCA at the 2003 annual general meeting of
shareholders and approved by Bank Indonesia on September
4, 2003. He was last reappointed at the 2016 annual general
meeting of shareholders for a five-year term.
Career
0RIOR TO JOINING "#! HE WAS A DIRECTOR AT 04 #IPTA +ARYA "UMI
Indah, a property development and construction company
(2001-2002), where he previously served as commissioner. He also
held several previous managerial positions: president director of
04 3ARANA +ENCANA -ULYA AN ELECTRONIC APPLIANCE DISTRIBUTOR
(1999-2001); chief manager of corporate banking for PT Bank
Central Asia (1992-1998); general manager at PT Tamara Indah,
an engineering and general supplier company (1988-1992);
and general manager at PT Indomobil, a leading Indonesian
automotive company (1987).
Educational Background and Training
Holds a bachelor’s degree in mechanical engineering from the
5NIVERSITY OF "RAWIJAYA -ALANG
Participated in several training programs, seminars and
conferences in 2019, including:
s 4RADING 4RENDS n "#! n *AKARTA )NDONESIA
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 4HE !SIA 'LOBAL 0AYMENT 3UMMIT n #URRENCY 2ESEARCH -ALTA
Limited – Bali, Indonesia.
Tonny Kusnadi
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
Commissioner
$EVELOPMENT &INANCE #ORPORATION )NDIA n "#! n *AKARTA
Indonesia
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP n "#! n *AKARTA )NDONESIA
Affiliations
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Functions
Concurrently serving as president commissioner of PT Sarana
Menara Nusantara Tbk.
76 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Educational Background and Training
Graduated and received a bachelor’s degree in accounting from
'ADJAH -ADA 5NIVERSITY OBTAINED A MASTERS DEGREE IN
development economics from the Centre for Development
Economics, Williams College, Massachusetts (1981), and a PhD
in monetary and international policy from Vanderbilt University,
Nashville, Tennessee, USA (1985).
In 2019, he participated in a number of training programs,
seminars and conferences, including:
s !3%!. 'LOBAL ,EADERSHIP 0ROGRAMME ,3% n ,ONDON
School of Economics & Political Science (LSE) and SRW & Co. –
,ONDON 5NITED +INGDOM
s .ATIONAL 3EMINAR ON 3/% 2EVITALIZATION )NFRASTRUCTURE 3ECTOR n
SOE Centre of Studies – Jakarta, Indonesia.
s +NOWLEDGE 3HARING "#! /PEN 3OURCE !RAB #HINA 2ELATIONS
in Economy and Business in the Middle East – BCA – Jakarta,
Indonesia.
s $IGITAL 4RANSFORMATION IN "#! n "#! n *AKARTA )NDONESIA
s $IGITAL +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA n "#! n *AKARTA
Indonesia
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP n "#! n *AKARTA )NDONESIA
Affiliations
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Cyrillus Harinowo
Commissioners fellow member of the Board of Directors, and/or
Independent Commissioner
BCA controlling shareholders.
Dual Functions
Also serves as chairman of the audit committee of PT Bank
Indonesian citizen, aged 66. Lives in Indonesia. Appointed an Central Asia Tbk but holds no position as a member of the
independent commissioner of BCA at the 2003 annual general Board of Commissioners, a member of the Board of Directors, or
meeting of shareholders and approved by Bank Indonesia on executive officer at another bank, company, and/or institution.
September 4, 2003. He was last reappointed at the 2016 annual
general meeting of shareholders for a five-year term.
Career
0RIOR TO JOINING "#! HE SERVED TWENTY lVE YEARS WITH "ANK
Indonesia as, among others, director of the money market and
giralization, and monetary management department (1994-
1998), a director level position. He also served as an alternate
executive director and technical assistance advisor for the
monetary and exchange affairs department, International
-ONETARY &UND )-& 7ASHINGTON (E HAS EXPERIENCE
as a delegation member in meetings for the Inter Governmental
Group on Indonesia (IGGI), Consultative Group for Indonesia (CGI),
)-& AND 7ORLD "ANK (E HAS HELD SEVERAL MANAGERIAL POSITIONS
in both governmental and nongovernmental institutions and
was assistant to the minister of trade (1988-1989). A lecturer at
SEVERAL MAJOR UNIVERSITIES IN *AKARTA SPEAKER AND ARTICLE WRITER
ON )NDONESIAS PUBLIC DEBT THE )-& AND THE 4HE
Spring of Indonesia’s Economy (2005).
2019 Annual Report | PT Bank Central Asia Tbk 77
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Indonesian citizen, aged 59. Lives in Indonesia. Appointed an
independent commissioner of BCA at the 2004 annual general
meeting of shareholders and approved by Bank Indonesia
on June 14, 2004. Since May 15, 2006, he has served as an
independent commissioner. He was last reappointed as an
independent commissioner at the 2016 annual general meeting
of shareholders for a five-year term.
Career
He was president commissioner of state asset management
company PPA (2008-2009), after serving as a vice president
director of PPA (2004-2008). He has served both in governmental
and nongovernmental institutions, including as vice chairman of
the National Economic Committee (2010-2014), special adviser to
MINISTER OF lNANCE CHAIRMAN OF )NDONESIA &INANCIAL
3TABILITY 3YSTEM &ORUM SECRETARY OF lNANCIAL STABILITY
system committee (2008-2009), chief of financing for Indonesian
infrastructure development (2004-2005), special adviser to
coordinating minister for economic affairs (2004-2005), executive
director of PT Danareksa (2002-2004), deputy coordinator of the
assistance team to the minister of finance Republic of Indonesia
(2000-2004), chief economist and division head at PT Danareksa
(1995-2002), founder of Danareksa Research Institute in 1995,
consultant to the World Bank (1994-1995), member of planning
staff in the Department of Industry Republic of Indonesia (1985-
AND PROCESS ENGINEER AT 04 0UPUK +UJANG &ERTILIZER
Industry in 1985. He is also a guest lecturer at Bandung Institute
of Technology, University of Indonesia and Prasetya Mulya
Raden Pardede
Business School.
Independent Commissioner
Educational Background and Training
Graduated in chemical engineering from Bandung Institute of
Technology (1984) and obtained a PhD in economics from Boston
University, USA (1995).
In 2019, he participated in a number of training programs,
seminars and conferences, including:
s 4RADING 4RENDS n "#! n *AKARTA )NDONESIA
s *0 -ORGANS !SIA 0ACIlC #%/ #&/ #ONFERENCE n *0 -ORGAN
– New York, United States.
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA n "#! n *AKARTA
Indonesia
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP n "#! n *AKARTA )NDONESIA
Affiliations
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Commissioners fellow member of the Board of Directors, and/or
BCA controlling shareholders.
Dual Functions
Concurrently serving as chairman of the remuneration and
NOMINATION COMMITTEE OF 04 "ANK #ENTRAL !SIA 4"+ AND
independent commissioner of PT Adaro Energy Tbk.
78 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Educational Background and Training
Completed undergraduate studies at the faculty of mathematics
and natural sciences, the University of Indonesia (1978) and
earned his MSc (1981) and PhD in computer science (1983) from
the University of Illinois, Urbana Champaign (US).
In 2019, he participated in a number of training programs,
seminars and conferences, including:
s 4RADING 4RENDS n "#! n *AKARTA )NDONESIA
s .ATIONAL 3EMINAR ON 3/% 2EVITALIZATION )NFRASTRUCTURE 3ECTOR n
SOE Centre of Studies – Jakarta, Indonesia.
s +NOWLEDGE 3HARING "#! /PEN 3OURCE !RAB #HINA 2ELATIONS
in Economy and Business in the Middle East – BCA – Jakarta,
Indonesia.
s $ATA !NALYSIS AND 0ROGRAMMING FOR &INANCE n .EW 9ORK
)NSTITUTE FOR &INANCE n .EW 9ORK 5NITED 3TATES
s *0 -ORGANS !SIA 0ACIlC #%/ #&/ #ONFERENCE n *0 -ORGAN
– New York, United States.
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING
$EVELOPMENT &INANCE #ORPORATION )NDIA n "#! n *AKARTA
Indonesia
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC
AND $JARUM 'ROUP n "#! n *AKARTA )NDONESIA
Affiliations
Has no financial relationship, stock ownership relationship,
and/or family relationship with members of the Board of
Sumantri Slamet
Commissioners fellow member of the Board of Directors, and/or
Independent Commissioner
BCA controlling shareholders.
Dual Functions
Concurrently serving as chairman of the risk oversight committee
Indonesian citizen, aged 65. Lives in Indonesia. Appointed an and the integrated corporate governance committee of PT Bank
independent commissioner of BCA at the 2016 annual general Central Asia Tbk, independent commissioner and head of audit
meeting of shareholders for a five-year term and approved by committee of PT Multi Bintang Indonesia Tbk, and also member of
/*+ ON *ULY the Risk Committee of University of Indonesia. Previously served
as member of the Board of Trustees of University of Indonesia,
Career member of information technology and risk management
Previously served as a member of Board of Trustee of Universitas committee of PT Bursa Efek Indonesia.
)NDONESIA &OUNDATION MEMBER OF RISK COMMITTEE OF 5NIVERSITAS
Indonesia, member of information technology and risk
management committee of PT Bursa Efek Indonesia, audit
committee and remuneration and nomination committee at
PT CIMB Niaga Tbk, and president commissioner of PT Danakita
Investama, an investment management company. He also held
various managerial positions and served as director in several
COMPANIES INCLUDING AS HEAD OF PROJECT lNANCE AND INVESTOR
relations – strategy and business development at PT Medco
Energy International Tbk (Medco) and as managing director of
several subsidiaries of Medco outside of Indonesia: in Singapore,
THE 53 /MAN 9EMEN AND &RANCE (E WAS A DIRECTOR OF
PT Surya Citra Televisi – SCTV (2005-2008) and director at
PT Surya Citra Media Tbk (2004-2008).
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AUDIT COMMITTEE PROFILE
Cyrillus Harinowo has been chairman of the audit committee of BCA since
2015. His latest appointment become effective on June 2, 2016 according to the
$ECREE OF THE "OARD OF $IRECTORS .O 3+$)2 (E CONCURRENTLY SERVES AS
Independent Commissioner. More detailed information can be found at the Board
of Commissioners profile on page 77.
Cyrillus Harinowo
Chairman
Indonesian citizen, aged 69. Resides in Indonesia. He has been a member of the
audit committee since 2011. His latest appointment became effective on June 2,
ACCORDING TO THE $ECREE OF THE "OARD OF $IRECTORS .O 3+$)2
Career
0RIOR TO JOINING "#! HE SERVED AT "ANK )NDONESIA FOR THIRTY YEARS MOST OF HIS CAREER
was spent in the banking supervisory area, and also as chief representative of Bank
Indonesia in Singapore (2002-2005), with his last position before retiring from
"ANK )NDONESIA AS DIRECTOR OF ASSETS RECOVERY SPECIAL UNIT &OLLOWING HIS
retirement, he was appointed finance director of Bank Indonesia Employee Welfare
&OUNDATION OR 9++ ")
Educational Background
Graduated with a bachelor’s degree in accounting from Airlangga University
(1978) and obtained his master of science degree in economic development and
international trade from Colorado State University, USA (1984).
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s !#))! #ONFERENCE AND /N 3ITE ,EARNING 4OWARDS 3USTAINABLE -ANAGEMENT IN
A New Era – ACIIA – Tokyo, Japan.
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
Ilham Ikhsan s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Member Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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Indonesian citizen, aged 64. Resides in Indonesia. Appointed a member of the audit
committee on June 2, 2016 according to the Decree of the Board of Directors No.
3+$)2
Career
Started her career at BCA in 1978, and then worked as a system analyst at PT Giwang
Selogam, a steel importer and distributor company (1984-1987) and as the finance
manager at PT Multi Electrindo Raya (1998-1991). She returned to BCA as financial
control adviser (1991-1995), accounting adviser (1995-1998), financial support adviser
(1998-2001), deputy head of finance I (2001-2010), and as a consultant in the finance
and corporate planning division (2010-2012). She then served as financial director
AT 04 $ANAMAS )NSAN +REASI !NDALAN A SUBSIDIARY OF "#! 0ENSION &UND #OMPANY
engaging in human resource development (2012-2015).
Educational Background
Completed her undergraduate studies at the economic faculty of the University of
Indonesia in 1982.
Training and Certification
In 2019, she participated in various training programs, seminars and conferences,
including:
s !DVANCED "ANK ,IQUIDITY -ANAGEMENT 3TRESS 4EST #ONTINGENCY 0LANNING AND
&UNDS 4RANSFER 0RICING n ,-) 9OGYAKARTA )NDONESIA
4JEN ,ESTARI
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
Member
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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RISK OVERSIGHT COMMITTEE PROFILE
Sumantri Slamet has been chairman of the risk oversight committee since September
ACCORDING TO THE $ECREE OF THE "OARD OF $IRECTORS .O !3+$)2
Currently he also serves as an independent commissioner and chairman of the
integrated governance committee. More detailed information can be found in the
Board of Commissioners profile on page 79.
Sumantri Slamet
Chairman
Indonesian citizen, aged 58. Resides in Indonesia. She has been a member of the
risk oversight committee since 2007. Her latest appointment become effective on
3EPTEMBER ACCORDING TO THE $ECREE OF THE "OARD OF $IRECTORS .O !3+
DIR/2016
Career
Endang Swasthika Wibowo is an academic and researcher in risk management,
finance and banking. Previously, she served as head of the magister management
PROGRAM IN BANKING AT !"&)) 0ERBANAS AS A TRAINER OF RISK MANAGEMENT #ERTIlED
GARP-BSMR), head of Perbanas Research and Community Development Centre (2000-
2006), advisor of Ekuinbank at the Legislation Unit in the People’s Representative
#OUNCIL COMMISSIONER OF 04 0UTERA ,INTAS +EMAS !IR &REIGHT &ORWARDER
Co (2000-2004), and head of management department, STIE Perbanas (1990-1993).
Educational Background
Graduated in economics from Indonesian Islamic University, Yogyakarta (1985),
and earned a graduate diploma in banking and finance (1996) as well as a master’s
degree in banking from Monash University, Australia (1998).
Training and Certification
In 2019, she participated in various training programs, seminars and conferences,
including:
s !DVANCED "ANK ,IQUIDITY -ANAGEMENT 3TRESS 4EST #ONTINGENCY 0LANNING AND
Endang Swasthika Wibowo
&UNDS 4RANSFER 0RICING n ,-) 9OGYAKARTA )NDONESIA
Member
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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Indonesian citizen, aged 58. Resides in Indonesia. Appointed as a member of the risk
oversight committee on September 30, 2016 according to the Decree of the Board of
$IRECTORS .O !3+ $)2
Career
Joined BCA in 1990 as a management trainee in the Bank’s management
development program with initial placement in the retail banking division in 1991
before serving as an adviser in the retail lending division (1997-2005). Then served in
the risk management unit of BCA (2005-2016) with the last position as senior adviser
of credit risk management.
Educational Background
Graduated in civil engineering from the Trisakti University, Jakarta, in 1986.
Training and Certification
In 2019, participated in various training programs, seminars and conferences,
including:
s 4REASURY $EALER AND 2ISK -ANAGEMENT (OW TO -ITIGATE -ARKET 2ISK IN "ANKS n
LSPP – Jakarta, Indonesia.
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
Lianny Somyadewi D. BCA - Jakarta, Indonesia.
Member
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REMUNERATION AND NOMINATION
COMMITTEE PROFILE
Raden Pardede has been the chairman of the remuneration and nomination
committee since 2007. His latest appointment become effective on August 10,
ACCORDING TO THE $ECREE OF THE "OARD OF $IRECTORS .O !3+$)2 (E
concurrently serves as an independent commissioner. More detailed information can
be found in the Board of Commissioners profile on page 78.
Raden Pardede
Chairman
$JOHAN %MIR 3ETIJOSO HAS BEEN A MEMBER OF THE REMUNERATION AND NOMINATION
committee since 2011. His latest appointment become effective on August 10,
ACCORDING TO THE $ECREE OF THE "OARD OF $IRECTORS .O !3+$)2
He concurrently serves as president commissioner. More detailed information
can be found in the Board of Commissioners profile on page 75.
$JOHAN %MIR 3ETIJOSO
Member
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Indonesian citizen, aged 47. Resides in Indonesia. Appointed as a member of the
remuneration and nomination committee on August 10, 2016 according to the
$ECREE OF THE "OARD OF $IRECTORS .O !3+$)2 (E HAS ALSO SERVED AS HEAD
of the human capital management division since August 1, 2016.
Career
Began his career in BCA in 1990 and has had many experiences in developing the
Bank’s human resources training programs since 1997. Later held various managerial
positions including as deputy head of the training and development division (2009-
2011), head of the learning and development sub division (2011-2015), head of
network and regional planning work unit (2015-2016), and head of human capital
MANAGEMENT DIVISION PRESENT /NCE WORKED IN 04 +ALBE &ARMA 4BK AS SENIOR
manager (2006-2008).
Educational Background
Completed his undergraduate studies in accounting at Tarumanagara University in
1995 and earned a master’s degree in finance from University of Indonesia, Jakarta
in 2002.
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s !NNUAL #ONFERENCE ),/ n ),/ n 'ENEVA 3WISS
(ENDRA 4ANUMIHARDJA s !GILE ,EADERSHIP 3TRATEGIC 6ISIONING FOR $RIVING )NNOVATION .ATIONAL 5NIVERSITY
Member of Singapore (NUS), NUS Business School - Bogor, Indonesia.
s !GILE /RGANIZATION 0IVOTAL ,ABS 3INGAPORE
s 'ENERAL -ANAGEMENT 4RAINING FOR 0ENSION &UNDS $IKLAT -ANAJEMEN 5MUM
$ANA 0ENSIUN n )NDONESIAN !SSOCIATION OF 0ENSION &UNDS !SOSIASI $ANA 0ENSIUN
Indonesia) - Menara Taspen, Jakarta.
s 3HARING 3ESSION .AVIGATING #HANGE OLEH ($&# "ANK (OUSING $EVELOPMENT
&INANCE #ORPORATION )NDIA "#! *AKARTA )NDONESIA
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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PROFILE OF THE INTEGRATED CORPORATE
GOVERNANCE COMMITTEE
Sumantri Slamet has been the chairman of the integrated corporate governance
committee since 2016. His latest appointment became effective on September
ACCORDING TO THE $ECREE OF THE "OARD OF $IRECTORS .O 3+$)2
Currently he also serves as an independent commissioner and chairman of the risk
oversight committee. More detailed information can be found in the Board of
Commissioners profile on page 79.
Sumantri Slamet
Chairman
Indonesian citizen, aged 72. Resides in Indonesia. He was appointed a member of the
integrated corporate governance committee in 2016. His latest appointment became
effective on September 25, 2017 according to the Decree of the Board of Directors
.O 3+$)2
Career
Wimpie Rianto is a banking practitioner with extensive experience including in risk
management and finance. He started his career at Citibank N.A. Jakarta from 1972
to 1976, before holding various managerial positions with BCA from 1976 to 1994.
He then served as deputy president director of Bank LTCB Central Asia (1994–1997)
and president director of Bank Yama (1997-1999). He returned to BCA from 1999 to
2002 as head of risk management and compliance division. Prior to being appointed
to the integrated corporate governance committee of BCA, he served as compliance
director (2004-2007) and independent commissioner (2007-2014) of Bank Sinar Mas,
and as a member of the risk oversight committee of BCA (2015-2016).
Educational Background
/BTAINED HIS BACHELORS DEGREE IN ECONOMICS FROM THE !TMAJAYA #ATHOLIC 5NIVERSITY
Jakarta (1972). Active attending professional training and skills enhancement
programs, such as in risk management, both domestic and overseas.
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
Wimpie Rianto
including
Member
s )NDONESIA +NOWLEDGE &ORUM n "#! n *AKARTA )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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Indonesian citizen, aged 60. Resides in Indonesia. She was appointed a member of
the integrated corporate governance committee in 2019 according to the Decree of
THE "OARD OF $IRECTORS .O 3+$)2 DATED -AY 3HE CONCURRENTLY
SERVES AS THE INDEPENDENT COMMISSIONER OF 04 "#! &INANCE
Career
Starting her career in 1978 – 1981 in import and export companies and in 1981 began
TO JOIN 04 "ANK #ENTRAL !SIA 4BK WITH VARIOUS POSITIONS THROUGHOUT HER CAREER UNTIL
*ULY WITH HER LAST POSITION AS (EAD OF &INANCE AND !CCOUNTING $IVISION !ND
after that until now she has been a trainer and financial consultant and partner at
Leny-Astrid & Associates, also since 2016 until now she has served as an Independent
#OMMISSIONER AT 04 "#! &INANCE
Educational Background
Graduated in accounting from Yayasan Akuntansi Indonesia (1983) and Sekolah
Tinggi Management PPM (1996)
Training and Certification
In 2019, she participated in various training programs, seminars and conferences,
including:
s 3EMINAR .ASIONAL !NTI &RAUD 3TRATEGY )N -ULTIlNANCE )NDUSTRY !00) *AKARTA
Indonesia.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India – BCA - Jakarta, Indonesia.
Sulistiyowati s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
Member BCA - Jakarta, Indonesia.
Indonesian citizen, aged 65. Resides in Indonesia. He became a member of the
integrated corporate governance committee in 2015. His latest appointment became
effective on September 25, 2017 according to the Decree of the Board of Directors
.O 3+$)2 #URRENTLY HE ALSO SERVES AS INDEPENDENT COMMISSIONER OF
PT Asuransi Umum BCA since 2011.
Career
0RIOR TO JOINING "#! FROM TO 'USTIONO +USTIANTO HELD VARIOUS SENIOR
positions, both in financial and nonfinancial industries, such as VP of Citibank N.A
Jakarta, director of PT Bank Tiara Asia Tbk (later merged to PT Bank Danamon
Tbk), division head of BPPN Bank restructuring unit, deputy president director of
PT Bank Internasional Indonesia Tbk (now PT Bank Maybank Indonesia Tbk), director
OF 04 4RI 0OLYTA )NDONESIA 4BK NOW 04 #HANDRA !SRI 0ETROCHEMICAL 4BK #&/ OF
04 "ROADBAND -ULTIMEDIA 4BK NOW 04 &IRST -EDIA 4BK AND PRESIDENT DIRECTOR OF
PT Indonesia Air Transport Tbk
Educational Background
Obtained a civil engineering degree from the civil engineering faculty of the Petra
Christian University, Surabaya (1979), and a master of business administration
FROM )NSTITUT 0ENGEMBANGAN -ANAJEMEN )NDONESIA )NDONESIAN -ANAGEMENT
Development Institute, IPMI) in 1988
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s 7ORKSHOP )3/ )NTERNATIONAL 2ISK -ANAGEMENT 3TANDARD %2- 'UIDANCE FOR
The Implementation ISO-31004 - CRMS Indonesia - Bandung.
Gustiono Kustianto s -ASTER #LASS 2ISK 'OVERNANCE FOR 3ENIOR -ANAGERS AND "OARD -EMBERS #2-3
Global dan ERMA- Enterprise Risk Management Academy - Bali, Indonesia.
Member s 2ISK -ANAGEMENT 4HE .EXT 'ENERATIONS %2-! %NTERPRISE 2ISK -ANAGEMENT
Academy - Bali, Indonesia.
Profession Related Certification:
s #ERTIlED IN PROFESSIONAL RISK GOVERNANCE #2'0 ISSUED BY ,EMBAGA 3ERTIlKASI
0ROFESI -ANAJEMEN 2ISIKO 2ISK -ANAGEMENT 0ROFESSION #ERTIlCATION )NSTITUTION
- LSPMR)
s #ERTIlED IN ENTERPRISE RISK GOVERNANCE ISSUED BY %NTERPRISE 2ISK -ANAGEMENT
Academy (ERMA).
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Indonesian citizen, aged 63. Resides in Indonesia. He has been a member of the
integrated corporate governance committee since 2015. His latest appointment
became effective on September 25, 2017 according to the Decree of the Board of
$IRECTORS .O 3+$)2 #URRENTLY HE ALSO SERVES AS INDEPENDENT COMMISSIONER
and chairman of the audit committee of PT Asuransi Jiwa BCA, since November 2014.
Career
0RIOR TO JOINING "#! 0UDJIANTO DEVELOPED HIS CAREER AT 04 !SURANSI +ESEHATAN
Indonesia (PT Askes - Persero) for 31 years and at PT Asuransi Jiwa InHealth Indonesia
for five years. He began his career at PT Askes, Jakarta, as staff in the finance division,
in 1977. He was promoted to finance manager assistant (1983-1987), accounting
manager (1988-1999), and accounting general manager (2000-2008). During 2009-
0UDJIANTO WAS THE lNANCE DIRECTOR HUMAN RESOURCES AND GENERAL AFFAIRS OF
PT Asuransi Jiwa InHealth Indonesia, Jakarta.
Educational Background
Completed his bachelor’s degree in the commercial administration department at
Universitas Terbuka Jakarta (1990) and master’s degree in financial management at
3EKOLAH 4INGGI -ANAJEMEN )--) *AKARTA
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s 3EMINAR $IGITAL 2ISK -ANAGEMENT IN )NSURANCE TAHUN !SOSIASI !SURANSI
Jiwa Indonesia (Indonesian Life Insurance Association - AAJI) - Bali, Indonesia.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
0UDJIANTO Corporation) India - BCA- Jakarta, Indonesia.
Member s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
Indonesian citizen, aged 65. Resides in Indonesia. He has been a member of the
integrated corporate governance committee since 2015. His latest appointment
became effective on September 25,2017 according to the Decree of the Board of
$IRECTORS .O 3+$)2 #URRENTLY HE ALSO SERVES AS INDEPENDENT COMMISSIONER
PT Bank BCA Syariah since November 2013.
Career
He has worked at BCA for 32 years and at PT BCA Syariah for three years. He began
his career at BCA Palembang as a clearing officer in 1978. In 1983, he became BCA
representative at Bank Indonesia acting as a counterpart for small investment loans
+)+ AND PERMANENT WORKING CAPITAL LOANS +-+0 ! YEAR LATER HE SERVED AT THE
4ABANAS AND 4ASKA DIVISION 0REVIOUSLY 3UYANTO 3UTIJADI WAS THE AUTHORIZED SIGNER OF
BCA Palembang (1985-1986). Then consecutively from 1987-2004, he served as head
of BCA branch offices including the supporting branches of Palembang, Pangkal
0INANG *AMBI "RANCH (AYAM 7URUK 'AJAH -ADA 7ISMA !SIA AND AS HEAD OF
regional office V Medan. Retired from BCA in 2010. In 2013 he was appointed as an
independent commissioner of PT BCA Syariah,
Educational Background
/BTAINED A BACHELORS DEGREE IN ECONOMICS FROM THE 5NIVERSITY OF 3RIWIJAYA
Palembang (1983).
Training and Certification
3UYANTO 3UTJIADI
In 2019, participated in various training programs, seminars and conferences,
Member
including:
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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Indonesian citizen, aged 51. Resides in Indonesia. He became a member of the
integrated corporate governance committee in 2015. His latest appointment became
effective on September 25 ,2017 according to the Decree of the Board of Directors
.O 3+$)2 #URRENTLY HE ALSO SERVES AS THE MEMBER OF SYARIAH SUPERVISORY
board of TP Bank BCA Syariah.
Career
0RIOR TO JOINING 04 "ANK "#! 3YARIAH HE DEVELOPED HIS CAREER AT 04 "ANK -UAMALAT
Indonesia Tbk as senior corporate banking (1993-1994), then held the position
AS DIRECTOR OF +ARIM "USINESS #ONSULTANT &ROM 3UTEDJO
Prihatono served as a member of the audit committee and risk oversight committee
of PT Bank BCA Syariah.
Educational Background
Obtained a bachelor’s degree in management from the economics faculty of
+RISNADWIPAYANA 5NIVERSITY AND A MASTERS DEGREE IN MANAGEMENT FROM "INUS
Business School (2014).
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s 7ORKSHOP 0RA )JTIMA 3ANAWI !NNUAL -EETING $03 4AHUN "IDANG 0ERBANKAN
3YARIAH $EWAN 3YARIAH .ASIONAL -AJELIS 5LAMA )NDONESIA 3EMARANG )NDONESIA
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
3UTEDJO 0RIHATONO Corporation) India - BCA- Jakarta, Indonesia.
Member s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
Indonesian citizen, aged 61. Resides in Indonesia. He was appointed a member of
the integrated corporate governance committee in 2016. His latest appointment
became effective on September 25,2017 according to the Decree of the Board of
$IRECTORS .O 3+$)2 #URRENTLY HE ALSO SERVES AS INDEPENDENT DIRECTOR OF
"#! &INANCE ,IMITED SINCE *ANUARY
Career
Joined BCA in 1984 and has since held various managerial positions including as
general manager and head of global trade and payment services (2009-2013), chief
manager and deputy head of international banking division (1995-2009), deputy
CHAIRMAN OF 37)&4 )NDONESIA !SSOCIATION SENIOR MANAGER AND DEPUTY
head of the Sudirman branch (1990-1995), and manager of the Asemka branch
(1984-1990).
Educational Background
Completed undergraduate studies in general management and marketing at
Catholic Parahyangan University, Bandung (1983).
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
2UDY (ARJONO
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
Member
BCA - Jakarta, Indonesia.
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Indonesian citizen, aged 62. Resides in Indonesia. He was appointed a member
of integrated corporate governance committee of BCA in 2016. His latest
appointment became effective on September 25,2017 according to the Decree
OF THE "OARD OF $IRECTORS .O 3+$)2 #URRENTLY HE ALSO SERVES AS
AN INDEPENDENT COMMISSIONER OF #ENTRAL 3ANTOSA &INANCE SINCE .OVEMBER
28, 2016, a member of the audit committee of PT Asuransi Jiwa BCA since
/CTOBER AND A MEMBER OF THE AUDIT COMMITTEE OF 04 "#! &INANCE SINCE
August 2015.
Career
Started his career with BCA in 1992 and has since held various positions in lending
business units including as head of credit risk analysis group (2006-2012), adviser of
credit risk review work unit (2000-2006), and head of loans recovery (1992-2000).
Educational Background
Obtained a bachelor’s degree and a master’s degree in economics from the University
of Mannheim, Germany (1991)
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
Mendari Handaya
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
Member
BCA - Jakarta, Indonesia.
Indonesian citizen, aged 53. Resides in Indonesia. He was appointed a member of
the integrated corporate governance committee on September 25, 2017 according
TO THE $ECREE OF THE "OARD OF $IRECTORS .O 3+$)2 #URRENTLY HE ALSO SERVES
as an independent commissioner of PT BCA Sekuritas since 2017.
Career
Currently serves as president commissioner of PT Dayalima Abisatya since 2012,
PRESIDENT COMMISSIONER OF 04 +ARYA 'RIYA "ERSAMA SINCE AND INDEPENDENT
commissioner of PT Pelayaran Nasional Bina Buana Raya Tbk since 2012. Hendra
Iskandar Lubis has also served as an independent consultant in the area of corporate
finance and capital markets (2012-2014, and 2016-present). Previously, he served as
PRESIDENT DIRECTOR OF 04 0ElNDO 2ISET +ONSULTASI DIRECTOR OF INVESTMENT
BANKING AND CORPORATE lNANCE AT 04 /3+ .USADANA 3ECURITIES )NDONESIA
DIRECTOR OF 04 #ATUNILAI &INANS !DHINARYA ADVISOR AT ,IPPO 'ROUP
(2000-2002), and the group head of bank restructuring and division head of asset
management investment at the Indonesian Bank Restructuring Agency – IBRA (1998-
2000).
Educational Background
Completed his bachelor’s degree in urban and regional planning techniques
at Bandung Institute of Technology (1990) and earned a master of business
administration degree from George Washington University, USA (1994)
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
Hendra Iskandar Lubis including:
Member s -ULTIlNANCE #ONSUMER 0ROTECTION 2ISK -ANAGEMENT AND &RAUD %ARLY 7ARNING
System in Digital Era - Asosiasi Perusahaan Pembiayaan Indonesia - Bali, Indonesia.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India - BCA- Jakarta, Indonesia.
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'RUP
BCA - Jakarta, Indonesia.
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CORPORATE SECRETARY PROFILE
Indonesian citizen, aged 49. Resides in Jakarta. Appointed the corporate secretary of
"#! ON 3EPTEMBER ACCORDING TO THE $ECREE .O 3+(#-+0!
He has also served as senior executive vice president responsible for accounting &
finance and tax and economic research since May 1, 2018.
Career
Raymon Yonarto held various managerial position at BCA including the division head
of finance and planning (2011-2018), corporate secretary (2007-2011) and head of
INVESTOR RELATIONS 0RIOR TO JOINING "#! HE WAS THE VICE PRESIDENT OF THE
&INANCIAL 3ECTOR 0OLICY #OMMITTEE VICE PRESIDENT OF THE )NDONESIAN "ANK
Restructuring Agency (1998-2002), banking analyst at PT DBS Securities Indonesia
(1996-1998) and staff at the finance, accounting and internal audit department of
Modern Group (1994-1996).
Educational Background
(E OBTAINED A BACHELOR OF ARTS MAJOR IN ACCOUNTING FROM THE 0HILIPPINES #HRISTIAN
University (1994) and He holds an MBA from Strathclyde University in the United
+INGDOM WHERE HE ATTENDED AS A #HEVENING 3CHOLAR
Training and Certification
In 2019, he participated in various training programs, seminars and conferences,
including:
s nd #REDIT 3UISSE !SIAN )NVESTMENT #ONFERENCE #REDIT 3UISSE (ONG +ONG (ONG
2AYMON 9ONARTO
+ONG
Corporate Secretary
s !GILE ,EADERSHIP 3TRATEGIC 6ISIONING FOR $RIVING )NNOVATION .ATIONAL 5NIVERSITY
of Singapore (NUS), NUS Business School - Bogor, Indonesia.
s !SIA 0ACIlC #%/ #&/ #ONFERENCE *0 -ORGAN .EW 9ORK
s 4HE th Annual Collaborative Indonesia Corporate Day - Daiwa & Bahana - Tokyo,
Japan.
s )NDONESIA +NOWLEDGE &ORUM "#! *AKARTA )NDONESIA
s th Annual Asia Pacific Summit – Morgan Stanley - Singapore.
s 3HARING 3ESSION .AVIGATING #HANGE BY ($&# "ANK (OUSING $EVELOPMENT &INANCE
Corporation) India – BCA – Jakarta, Indonesia
s 3HARING 3ESSION 4HE %COSYSTEM BY /6/ 4OKOPEDIA (ALO$OC AND $JARUM 'ROUP n
BCA – Jakarta, Indonesia.
2019 Annual Report | PT Bank Central Asia Tbk 91
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
SENIOR OFFICERS
As of 31 December 2019
Name Position
Lanny Budiati Head of Regional Office I, Bandung
Yandy Ramadhani Head of Regional Office II, Semarang
&RENGKY #HANDRA +USUMA Head of Regional Office III, Surabaya
Hendrik Sia Head of Regional Office IV, Denpasar
%NNY +AMAL Head of Regional Office V, Medan
Daniel Hendarto Head of Regional Office VI, Palembang
*O 2UDY +URNIAWAN Head of Regional Office VII, Malang
Haryono Wongsonegoro Head of Regional Office VIII, Pondok Indah, Jakarta
$JOKO 2OSMIATUN -IJAATA Head of Regional Office IX, Matraman, Jakarta
Lukman Head of Regional Office X, Pluit, Jakarta
Mingto Purba Head of Regional Office XI, Balikpapan
&REDDY 3ULIMAN Head of Regional Office XII, Wisma Asia, Jakarta
Raymon Yonarto %XECUTIVE 6ICE 0RESIDENT OF &INANCE AND #ORPORATE 3ECRETARY #ORPORATE #OMMUNICATION
Division
Linus Ekabranko Windoe Executive Vice President of Treasury & International Banking Division
#HRISTINA 7AHJUNI 3ETYABUDHI Executive Vice President of Wealth Management Division
$EDDY -ULJADI (ENDRAWINATA Executive Vice President of Credit Risk Analysis Group
Wira Chandra %XECUTIVE 6ICE 0RESIDENT OF #ORPORATE "ANKING #ORPORATE &INANCE
Inge Setiawati* Head of Corporate Social Responsibility
Soenie Atonie (EAD OF !NTI &RAUD "UREAU
Ayna Dewi Setianingrum Internal Audit Division Head
Liston Nainggolan Commercial & SME Business Division Head
Mathilda Simon Consumer Credit Division Head
Ugahary Yovvy Chandra Individual Customer Business Development Division Head
Rusdianti Salim Cash Management Division Head
(ENDRA 4ANUMIHARDJA Human Capital Management Division Head
Teddy Gunawan Learning and Development Division Head
Ong Sukianto Logistic & Building Division Head
Weminto Suryadi Network & Regional Development Division Head
Jan Hendra Transaction Banking Business Development & Marketing Division Head
Ina Suwandi Transaction Banking Product Develop Division Head
Janto Havianto* Treasury Division Head
Edmund Tondobala* International Banking Division Head
(ERA &ENDAYANI (ARYN Corporate Secretary and Communication Division Head
Lilik Winarni Operation Strategy & Development Division Head
*
%VA !GRAYANI 4JONG Wealth Management Division Head
Edy Gunawan* Head of Corporate Credit Risk Analysis Group
'RACE 0UTRI !YU $EWIJANY* Head of Corporate Credit Risk Analysis Group
*
(ELENA -ARIA !TMODJO Head of Corporate Credit Risk Analysis Group
4AN 4ESIEN 4ANUDJAJA* Head of Corporate Credit Risk Analysis Group
$JULIJANTO ,IONG* Head of Commercial & SME Credit Risk Analysis Group
*
)NA 7IDJAJA Head of Commercial & SME Credit Risk Analysis Group
92 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
As of 31 December 2019
Name Position
7IDJAJA 3TEPHEN* Head of Commercial & SME Credit Risk Analysis Group
Gunawan Prayogo Head of Corporate Banking Group
Inge Setiawaty* Head of Corporate Transaction Group
+RISTIAN -ARBUN Head of Corporate Banking Group
Raymond Tanuwibowo Head of Corporate Banking Group
Yuli Melati Suryaningrum Head of Corporate Banking Group
Lay Susiana Santoso (EAD OF #ORPORATE &INANCE 'ROUP
$HEJANI 3URJADI Head of Menara BCA Corporate Branch Office
+HO 6INCENTIUS #HANDRA +HOSASIH* Head of Data Management & IT Management Office Group
Jayaprawirya Diah* Head of Digital Innovation Solution Group
*
Jip Thomas Sutanto Head of IT Infrastructure & Operation Group
,INDA $JOJONEGORO Head of Credit & Consumer Card Services Group
7ILSON +ARIMUN Head of Transaction Banking Business Support Group
&ERIC 3USILO ,IE Head of Compliance
,UKMAN (ADIWIJAYA Head of Enterprise Security
Eduard Guntoro Purba Head of Risk Management
Megawaty Head of Credit Recovery
Wani Sabu Head of Digital Services
Jip Tommy Sutanto Head of Credit Services
Dipasusila Head of Domestic Payment Services
Joanes Justira Gunawan Head of Electronic Banking Services
Siswanto Sutanto 1) Head of International Payment & Support Services
Herry Theo 2) 3ENIOR 6ICE 0RESIDENT MANAGEMENT +&## "RANCH
Januar Agung Saputera 3) Senior Advicer of Legal Group
*
Report to the Executive Vice President
1)
ad interim as Head of Global Trade & Payment Services
2)
ad interim as Transaction Banking Partnership Solution Development Division Head
3)
ad interim as Head of Legal Group
2019 Annual Report | PT Bank Central Asia Tbk 93
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
NUMBER OF EMPLOYEES AND
COMPETENCE DEVELOPMENT
Number of Employees
At the end of 2019 BCA had 24,789 employees, representing a decrease of 0.6% compared to 24,941 employees in 2018.
Employee by Organization Level
2019 2018 2017
Non Staff 1,304 1,181 1,187
Staff 18,884 19,330 19,994
Managers 4,511 4,346 4,176
Senior Officers (Including the Board of Commissioners and Directors) 90 84 82
Total 24,789 24,941
Employee by Seniority
2019 2018 2017
≤ 1 Year 1,842 1,177 1,712
> 1 – 5 Year 5,985 6,967 7,048
> 5 – 10 Years 3,864 2,626 1,802
> 10 – 15 Years 841 773 621
> 15 – 20 Years 1,436 1,712 1,936
> 20 Years 10,821 11,686 12,320
Total 24,789 24,941
Employee by Age
2019 2018 2017
≤ 25 Years 2,812 2,740 3,387
> 25 – 30 Years old 6,121 6,128 5,706
> 30 – 35 Years old 2,762 2,060 1,629
> 35 – 40 Years old 1,007 1,203 1,595
> 40 – 45 Years old 3,167 3,712 4,278
> 45 – 50 Years old 5,078 5,375 5,429
> 50 Years old 3,842 3,723 3,415
Total 24,789 24,941
Employee by Education Level
2019 2018 2017
Up to Senior High School 4,016 4,357 4,868
Diploma and Undergraduate 19,885 19,741 19,771
Graduate and Doctorate 888 843 800
Total 24,789 24,941
Employee by Status
2019 2018 2017
Permanent 23,211 23,833 24,343
Non Permanent* 1,578 1,108 1,096
Total 24,789 24,941
* including contract employee, probationary and trainee
94 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Employee Competence Development
Employee Training
2019 2018 2017
Number Number Number of Number Number Number of Number Number Number of
of Classes of Days Participants of Classes of Days Participants of Classes of Days Participants
Managerial Leadership &
642 63,968 19,923 706 58,656 22,973 617 43,598 18,082
Personal Development
Credit Management 200 30,788 5,261 179 22,721 4,111 115 7,240 2,624
Risk Management
40 822 481 39 831 511 21 635 437
Certification Program
Sales 189 9,841 6,372 123 7,443 3,840 118 6,730 4,004
Service 144 8,619 6,429 93 5,812 4,129 25 1,718 1,350
Operations & Information
861 123,706 21,285 835 110,200 24,152 904 122,056 22,404
Technology
Other 196 10,994 7,797 30 1,850 732 168 10,448 7,929
Total 2,272 67,548 2,005 60,448 1,968 192,425
Employee Training Expenses (in million Rupiah)
2019 2018 2017
Total Employee Training Expenses 297,826
More detailed information regarding competence development can be seen in this Annual Report under the Human Resources chapter on page 244-251.
TRAINING AND/OR EDUCATION FOR THE
BOARD OF COMMISSIONERS, BOARD OF
DIRECTORS, COMMITTEES, CORPORATE
SECRETARY, AND INTERNAL AUDIT UNIT
Information regarding training and/or education for the Board of Commissioners, Board of Directors, Committees,
Corporate Secretary, and Internal Audit Unit is presented in the section on Corporate Profile, pages 64-91 and Corporate
Governance, pages 304-565 in this Annual Report.
2019 Annual Report | PT Bank Central Asia Tbk 95
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
SHAREHOLDER COMPOSITION
BCA Ultimate Shareholder
As of 31 December 2019
Robert Budi Hartono Bambang Hartono
(Ultimate Shareholder) (Ultimate Shareholder)
PT Dwimuria Investama
Public
Andalan
*
Note:
Controlling Shareholders
Controlling Line
* Of the portion of shares belonging to public shareholders, 2.49% is owned by affiliated parties of PT Dwimuria Investama Andalan, 1.76% is owned
by Anthoni Salim. In addition, 0.19% is owned by certain members of the current Board of Commissioners and Board of Directors of BCA.
Details of 20 Largest Shareholders
As of 31 December 2019
Number of Shares
No Name
(in millions)
1 DWIMURIA INVESTAMA ANDALAN 13,546 54.94
2 ')# 3! '/6%2.-%.4 /& 3).'!0/2% 279 1.38
3 TRICIPTA MANDHALA GUMILANG 263 1.07
4 CATURGUWIRATNA SUMAPALA 252 1.06
5 *0-#" .! 2% %52/0!#)&)# '2/74( &5.$ 245 1.02
6 ANTHONI SALIM 171 1.00
7 ".9- 2% ".9-," 2% %-0,/9%%3 02/6)$%.4&$ "/!2$ 158 0.75
8 (3"# "!.+ 0,# 3! 3!5$) !2!")!. -/.%4!29 !54(/2)49 157 0.61
9 *0-#" .! 2% 6!.'5!2$ 4/4!, ).4%2.!4)/.!, 34/#+ ).$%8 &5.$ 156 0.59
10 *0-#" .! 2% 6!.'5!2$ %-%2').' -!2+%43 34/#+ ).$%8 &5.$ 143 0.55
11 *0-", 3! 5#)43 #,4 2% *0-/2'!. &5.$3 129 0.54
12 ,'4 "!.+ !' #,)%.4 !33%43 129 0.47
13 *0-#" .! 2% .%7 7/2,$ &5.$ ).# 124 0.46
14 $*3 +%4%.!'!+%2*!!. 02/'2!- *(4 121 0.46
15 ANTHONI SALIM 105 0.45
16 *0-",3!! !)& #,4 2% 34)#(4).' $%0/3)4!29 !0' %-%2').' -!2+%43 %15)49 0//, 105 0.44
17 04 025$%.4)!, ,)&% !3352!.#% 2%& 105 0.43
18 ""( "/34/. 3! -!44(%73 0!#)&)# 4)'%2 &5.$ 101 0.43
19 *0-#" .! 2% 42/7% 02)#% %-%2').' -!2+%43 34/#+ &5.$ 94 0.42
20 ,).'+!2 -5,)! ).$!( 04 90 0.41
Total 16,470 66.80
3OURCE )NDONESIAN #ENTRAL 3ECURITIES $EPOSITORY +3%)
Note:
Several of the listed institutions act as custodians for shareholders
96
96 2 019 Annual Report | PT Bank Central Asia Tbk
2019
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
$ETAILS OF 3HAREHOLDERS WITH -ORE THAN 3HARE /WNERSHIP
As at 31 December 2019, there are no shareholders with more than 5% shareownership, except PT Dwimuria Investama
Andalan as the controlling shareholder of BCA.
0UBLIC 3HAREHOLDERS WITH ,ESS THAN 3HARES /WNERSHIP
Composition*
Individual
Local 3.27%
&OREIGN 0.03%
Institution
Local 6.95%
&OREIGN 34.81%
Total
Composition*
Local Shareholders
Individual 3.27%
Limited Liability Company 3.03%
Insurance 1.82%
Danareksa 1.63%
&OUNDATION 0.47%
Cooperative 0.00%
Foreign Shareholders
Individual 0.03%
&OREIGN %NTITY 34.81%
Total
* Calculated based on total number of BCA outstanding share amounting to 24,655,010,000.
3OURCE )NDONESIAN #ENTRAL 3ECURITIES $EPOSITORY +3%) AND 04 2AYA 3AHAM 2EGISTRA
Share Ownership Percentage of Commissioners and Directors
As at 31 December 2019, the Board of Commissioners and Board of Directors of BCA hold on aggregate 0.19% of the
shares of BCA. Details of the share ownership of individual Commissioner and Director are presented in the section on
#ONSOLIDATED &INANCIAL 3TATEMENTS ON PAGE
2019 Annual Report | PT Bank Central Asia Tbk 97
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BCA GROUP STRUCTURE AND
SUBSIDIARIES OWNERSHIP
100% 99.576% 99.9999% 75% 75% 99.9997% 90% 90% 99.99997%
PT Central
BCA Finance 0.424% PT BCA 0.0001% PT Bank BCA 25% PT Asuransi 25% PT BCA Multi 0.0003% PT BCA PT Asuransi 0.00003% PT Bank Royal
Capital
Limited Finance Syariah Umum BCA Finance Sekuritas *IWA "#! Indonesia
Ventura
Subsidiaries Business
PT BCA Finance Investment financing, working capital financing, multipurpose
financing, operating lease, other financing activities based on
approval from authorized agency
BCA Finance Limited
Remittance and money lending
PT Bank BCA Syariah
Sharia Banking
PT BCA Sekuritas
Securities brokerage dealer and underwriter for issuance of securities
PT Asuransi Umum BCA (BCA Insurance)
General insurance
PT BCA Multi Finance Investment financing, working capital financing, multipurpose
(Formerly Central Santosa Finance/ CSF) financing, operating lease, other financing activities based on
approval from authorized agency
PT Asuransi Jiwa BCA (BCA Life)
Life insurance
PT Central Capital Ventura (CCV)
Venture capital company
PT Bank Royal Indonesia (Bank Royal)
Banking (Commercial Banking)
98 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
RECORD OF BCA SHARE AND
OTHER SECURITIES LISTING
PT Bank Central Asia Tbk (BCA) held Initial Public Offering (IPO) on 11 May 2000. The IPO was listed on the Jakarta Stock Exchange and
the Surabaya Stock Exchange on 31 May 2000 (Currently both exchanges were merged into the Indonesia Stock Exchange).
Record of BCA Share Listing at the Indonesia Stock Exchange
Number of Total par Value
Date Description
Outstanding Shares (in Rupiah)
11 May 2000 Initial Public Offering (IPO) 2,943,986,000 2,943,986,000 500
15 May 2001 Stock split I with ratio of 1:2 x2 5,887,972,000 250
Shares issued in accordance with the
2001 58,025,000 5,945,997,000 250
Management Stock Option Plan (MSOP)
Shares issued in accordance with the
2002 71,526,000 6,017,523,000 250
Management Stock Option Plan (MSOP)
Shares issued in accordance with the
2003 113,611,500 6,131,134,500 250
Management Stock Option Plan (MSOP)
8 June 2004 Stock split II with ratio of 1:2 x2 12,262,269,000 125
Shares issued in accordance with the
2004 40,944,500 12,303,213,500 125
Management Stock Option Plan (MSOP)
Shares issued in accordance with the
2005 15,888,000 12,319,101,500 125
Management Stock Option Plan (MSOP)
Shares issued in accordance with the
2006 8,403,500 12,327,505,000 125
Management Stock Option Plan (MSOP)
31 January 2008 Stock split III with ratio of 1:2 x2 24,655,010,000 62.5
Note:
The Extraordinary General Meeting of Shareholders on 12 April 2001 decided to increase the issued capital by issuing 147,199,300 shares through the Management Stock
Option Plan (MSOP). The MSOP was executable from 10 November 2001 up to 9 November 2006. Shares issued in accordance with the MSOP program above were taken into
account for the effect of the stock split.
Record of Other Securities Listing
In 2018 BCA has issued subordinated bonds, which detail can be seen in the Bonds Highlights on page 21.
2019 Annual Report | PT Bank Central Asia Tbk 99
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
INFORMATION ON SUBSIDIARIES
As of 31 December 2019
Company Name Share Ownership Type of Business
04 "#! &INANCE PT Bank Central Asia Tbk : 99.576% )NVESTMENT &INANCING 7ORKING #APITAL &INANCING -ULTIPURPOSE
&INANCING !CTIVITIES /PERATING ,EASE /THER &INANCING !CTIVITIES
"#! &INANCE ,IMITED based on approval from authorized agency
Total : 100%
"#! &INANCE ,IMITED PT Bank Central Asia Tbk : 100% Remittance dan Money Lending
PT Bank BCA Syariah PT Bank Central Asia Tbk : 99.9999% Sharia Banking
(BCA Syariah)
04 "#! &INANCE
Total : 100%
PT BCA Sekuritas PT Bank Central Asia Tbk : 90% Securities Brokerage Dealer and Underwriter for Issuance of
Securities
Chandra Adisusanto : 10%
Total : 100%
PT Asuransi Umum BCA PT Bank Central Asia Tbk : 75% General Insurance
(BCA Insurance)
04 "#! &INANCE
Total : 100%
04 "#! -ULTI &INANCE PT Bank Central Asia Tbk : 75% )NVESTMENT &INANCING 7ORKING #APITAL &INANCING -ULTIPURPOSE
&ORMERLY 04 #ENTRAL 3ANTOSA &INANCING !CTIVITIES /PERATING ,EASE /THER &INANCING !CTIVITIES
&INANCE #3& 04 "#! &INANCE based on approval from authorized agency
Total : 100%
PT Asuransi Jiwa BCA PT Bank Central Asia Tbk : 90% Life Insurance
(BCA Life)
Chandra Adisusanto : 10%
Total : 100%
PT Central Capital Ventura PT Bank Central Asia Tbk : 99.99975% Venture Capital Company
(CCV)
04 "#! &INANCE
Total : 100%
PT Bank Royal Indonesia PT Bank Central Asia Tbk : 99.999965% Banking (Commercial Banking)
(Bank Royal)
04 "#! &INANCE
Total : 100%
100 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Total Assets Operational
Brief Profile Company Address
(in billion Rupiah) Status
04 "#! &INANCE WAS ESTABLISHED IN AND CURRENTLY 10,873.2 Wisma BCA Pondok Indah Lantai 8, Operating
provides vehicle financing, particularly 4-wheeler or more. Jl. Metro Pondok Indah No. 10
"#! BECAME A MAJOR SHAREHOLDER IN Jakarta 12310
Tel. : (021) 29973100
"#! &INANCE ,IMITED WAS ESTABLISHED IN AND 783.7 5NIT & 4HE #ENTER Operating
currently holds a business license as a money lender with a 99 Queen's Road Central,
focus on fund remittance services. BCA owned direct and (ONG +ONG
indirect ownership to 100% in 1996. Telp. : (852) 28474249
PT Bank BCA Syariah (formerly PT Bank UIB) was 8,634.4 Jl. Jatinegara Timur No. 72 Operating
established in 1991 and currently operates as a sharia Jakarta 13310
bank. BCA owned direct and indirect ownership to 100% Telp. : (021) 8505030, 8505035,
in 2009. 8190072
PT BCA Sekuritas (formerly PT Dinamika Usaha Jaya) 762.3 Menara BCA, Grand Indonesia Operating
was established in 1990 with business lines as securities Lantai 41, Suite 4101
BROKERAGE AND INVESTMENT BANK "#! BECAME A MAJOR Jl. M.H. Thamrin No.1
shareholder in 2011. Jakarta 10310
Telp. : (021) 23587222
04 !SURANSI 5MUM "#! FORMERLY 04 #ENTRAL 3EJAHTERA 2,060.4 Gedung Sahid Sudirman Center Operating
Insurance) was established in 1988 as an insurance ,ANTAI 5NIT &
company particularly engaged in general or loss insurance *L *END 3UDIRMAN +AV
ACTIVITIES "#! THROUGH 04 "#! &INANCE HELD A SHARES Jakarta 10220
ownership in 2010 and increased its direct and indirect Telp. : (021) 27889588
ownership to 100% in 2013.
04 "#! -ULTI &INANCE FORMERLY KNOWN AS 04 #ENTRAL 1,358.0 WTC Mangga Dua Lantai 6 Blok CL Operating
3ANTOSA &INANCE#3& WAS ESTABLISHED IN AND IS No. 001
engaged in motorcycle, car and multipurpose financing. In Jl. Mangga Dua Raya No.8
2010, BCA owned a 25% stake of the company indirectly Jakarta 14430
THROUGH 04 "#! &INANCE )N THE "ANK BECAME THE Telp. : (021) 29648200
MAJORITY SHAREHOLDER WITH OWNERSHIP OF )N IT
increased its direct and indirect ownership to 100%).
PT Asuransi Jiwa BCA was established in 2013 as a life 1,154.7 Chaze Plaza Lantai 22 Operating
insurance company and began its operation in 2014. *L *END 3UDIRMAN +AV
In 2017, BCA became a direct shareholder in Jakarta 12920
PT Asuransi Jiwa BCA with 90% shares ownership, Telp. : (021) 21888000
whereas previously BCA has indirect shareholding through
PT BCA Sekuritas and PT Asuransi Umum BCA.
PT Central Capital Ventura, was established in 2017 as a 404.1 'EDUNG /FlCE ,ANTAI 5NIT & Operating
venture capital company. BCA owned direct and indirect SCBD Lot 28
ownership to 100%. *L *END 3UDIRMAN +AV
Jakarta 12190
PT Bank Royal Indonesia engages in commercial banking 2,808.3 Jl. Suryopranoto No.52 Operating
BUSINESS WITH THE STATUS OF "ANK "5+5 ) "#! OWNED Jakarta Pusat 10130
direct and indirect ownership to 100% in 2019. Telp. : (021) 63864472, 63864473
2019 Annual Report | PT Bank Central Asia Tbk 101
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
CAPITAL MARKET SUPPORTING
INSTITUTION
As of 31 December 2019
Public Accounting Trustee
4ANUDIREDJA 7IBISANA 2INTIS 2EKAN BCA Continuous Subordinated Bonds I
(a member firm of PwC Global network) Phase I 2018
WTC 3 (Series A & B)
*L *END 3UDIRMAN +AV
Jakarta 12920 PT Bank Rakyat Indonesia (Persero) Tbk
Indonesia Trust and Corporate Services
Tel. (62-21) 521 2901 Investment Services Division
&AX Gedung BRI II - 30th &LOOR
*L *ENDRAL 3UDIRMAN +AV
Share Registrar Jakarta Pusat 10210
PT Raya Saham Registra Tel. (62-21) 250 0124, 575 2362, 575 8130
Gedung Plaza Sentral, 2nd &LOOR &AX
*L *END 3UDIRMAN +AV
Jakarta 12930 Notary (Annual GMS)
Tel. (62-21) 252 5666 Fathiah Helmi,S.H.
&AX 'RAHA )RAMA C &LOOR
Website : www.registra.co.id *L (2 2ASUNA 3AID "LOK 8 +AV
+UNINGAN *AKARTA 3ELATAN
Securities Rating Agency Indonesia
Fitch Ratings Singapore Pte Ltd Tel. (62-21) 5290 7304-6
/NE 2AFmES 1UAY &AX
South Tower #22-11
Singapore 048583 Notary (Extraordinary GMS)
Tel. (65) 6796 7200 Christina Dwi Utami, S.H., M.Hum., M.Kn
Website : www.fitchratings.com *L +( :AINUL !RIlN .O
Jakarta Barat 11140
PT Fitch Ratings Indonesia Indonesia
DBS Bank Tower, 24th &LOOR 3UITE Tel. (62-21) 634 5668
*L 0ROF $R 3ATRIO +AV &AX
Jakarta 12940
Tel. (62-21) 2988 6800 Law Firm Consultant
Hadiputranto, Hadinoto & Partners
PT Pemeringkat Efek Indonesia (PEFINDO) Pacific Century Place, Level 35
Panin Tower Senayan City, 17th &LOOR Sudirman Central Business District Lot 10
Jl. Asia Afrika Lot 19, Jakarta 10270 *L *ENDRAL 3UDIRMAN +AV
Tel. (62-21) 7278 2380 Jakarta 12190
Website : www.pefindo.com Indonesia
Tel. (62-21) 2960 8888
&AX
102 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
AWARDS AND
CERTIFICATIONS
Living Legend Obsession Awards 2019
Companies Award
2019
Indonesia Inhouse 2018 Asiamoney
Magazine Awards Asia’s Outstanding
2019 Companies Poll
Obsession Media Group
Best Private Bank
Warta Ekonomi
Living Legend Company Euromoney Awards
- Excellence Customer
Relation Services
For Excellence 2019
Indonesia Millenials Asiamoney
Serikat Perusahaan Pers s /VERALL /UTSTANDING
Top Brand Award s )NFO"#! 3ILVER 7INNER Company in Indonesia
2019 category: The Best of s )NDONESIAS /UTSTANDING
E-Magazine Private #OMPANIES IN &INANCIALS
Company
s )NFO"#! 'OLD 7INNER
category: The Best of
Private Company Euromoney Magazine
Indonesia’s Best Bank 2019 Euromoney-
Asiamoney Trade
Finance Survey
Indonesia 4th Digital
Warta Ekonomi Innovation Award 2018 Asiamoney
s &LAZZ "#! nd Millennial’s 2019 Country Awards
Choice in E-Money
Category
s +02 "#! nd Millennial’s
Choice in Home
Ownership Loans
Category
s +ARTU +REDIT "#! st
Millennial’s Choice in
Credit Card Category
Asiamoney
s "ANK "#! st Millennial’s
4RADE &INANCE -ARKET
Choice in Bank Category
Leader in Indonesia (Asian
s 4AHAPAN "#! st Warta Ekonomi
Asiamoney Banks Only) 2019
Millennial’s Choice Saving Innovative Company in
Account Category Quickly Responding to Indonesia’s Best Domestic
Customer Problems in Bank
$IGITAL &INANCIAL 3ERVICES
- Category: National
0RIVATE &OREIGN %XCHANGE
Commercial Bank
2019 Annual Report | PT Bank Central Asia Tbk 103
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
AWARDS AND CERTIFICATIONS - Continued
Digital Popular Digital Brand Awards
Brand Award 2019 2019
HR Asia Awards 2019 Banking Service
Excellence Awards
2019
Infobank Magazine
Rank I
TRAS n CO Indonesia s % -ONEY "ANK
Category: s #ONVENTIONAL #OMMERCIAL
HR Asia
s #REDIT #ARD Bank
Best Companies to Work
s )NTERNET "ANKING s 7EALTH #ONVENTIONAL -AJALAH )NFOBANK
for In Asia 2019 Commercial Bank
s -OBILE "ANKING s st Best Mobile Banking
s "ANK #ALL #ENTER s % -ONEY "ANK s st Best Digital Lounge
s "ANK 5MUM +ONVENSIONAL s st Best Atm Public Area
s 7EALTH -ANAGEMENT s st Best Opening Account
Conventional Commercial Mobile Aplication
Indonesia Finance Bank s nd Best CDM/CRM
Positive Organization Award - II – 2019 s 6EHICLE ,OAN #ONVENTIONAL s th Best Overall
Commercial Bank
Award 2019 Performance
s th Best Digital Banking
Rank II
s #REDIT #ARD n #ONVENTIONAL
Commercial Bank
s $EBIT #ARD #ONVENTIONAL
Commercial Bank Bisnis Indonesia Award
s 4IME $EPOSIT n #ONVENTIONAL
Commercial Bank 2019
s 3AVING n #ONVENTIONAL
Commercial Bank
s 3AVING n #ONVENTIONAL
Economic Review Commercial Bank
SWA Magazine s 4IME $EPOSIT n #ONVENTIONAL
The Most Positive 4HE "EST IN &INANCE FOR Commercial Bank
/RGANIZATION &OR Sustainable Performance s $EBIT #ARD #ONVENTIONAL
its Achievement in Award Commercial Bank
Implementing Positive s #REDIT #ARD n #ONVENTIONAL
Organization Dimensions Commercial Bank
Best Bank Awards Rank III
s -ORTGAGE #ONVENTIONAL Bisnis Indonesia
2019 Commercial Bank
MRI - Infobank Category Private Commercial
"ANK &OREIGN %XCHANGE
Better Brand 2019 The Best Digital Brand 2014-
2018
s 4HE "EST $IGITAL "RAND
2018
s 4IME $EPOSIT n #ONVENTIONAL
Commercial Bank
s #ONVENTIONAL #OMMERCIAL
Bank
Investor Magazine s 3AVING n #ONVENTIONAL
Best Bank 2019 Category Commercial Bank
Commercial Bank of s $EBIT #ARD #ONVENTIONAL
Category Buku-IV (Core Commercial Bank
Infobank Magazine
s #REDIT #ARD n #ONVENTIONAL
"ETTER "RAND &INANCIAL Capital > Rp 30 Trillion)
Commercial Bank
Service s 7EALTH -ANAGEMENT
Conventional Commercial
Bank
s 6EHICLE ,OAN #ONVENTIONAL
Commercial Bank
104 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
RRI Finansial Award Contact Center
2019 World (CCW) Asia
Service Quality Pacific Award 2019 SWA 100 Wealth
Award 2019 Added Creator
Award 2019
Iconomics & RRI
Contact Center World
s 4OP -OST &AMOUS
GOLD
)NDONESIA &INANCIAL
Service Excellence 1. Best in Mega Contact
#%/ -R *AHJA
Magazine Center
3ETIAATMADJA
s 0RIORITY "ANKING 2. Best Green Contact
s "RAND !WARENESS "RAND
s 2EGULER "ANKING Center
Image, Customer Service
s 0LATINUM #REDIT #ARD 3. Best Contact Center
1UALITY "ANK OF "5+5
s 'OLD #REDIT #ARD Design
category)
s 3ILVER #REDIT #ARD 4. Best Community Spirit
s "ANKING FOR #ORPORATE 5. Best Technology
Customers Innovation SWA Magazine
6. Best Outbound s 2ANK ) )NDONESIA 4HE
Marketeers OMNI Campaign Best Public Companies
"RAND OF 4HE 9EAR 7. Best in Customer Service Based on WAI
CSA Award 8. Best Recruitment
2019 s 2ANK ) !3%!. 4HE "EST
9. Best Use of Social Media Public Companies Based
10. Best Analyst on WAI
11. Best Sales Manager s 2ANK ) )NDONESIA 4HE
12. Best Quality Auditor Best Public Companies
"EST 7&- Based on WAI, Category:
14. Best HR Banks
15. Best IT s 2ANK ) !3%!. 4HE "EST
16. Best Sales Pro Public Companies Based
17. Best Supervisor on WAI, Category : Banks
Indonesia Stock Analyst 18. Best Manager
Markplus Inc 19. Best Trainer
Association & CSA Research
OMNI Brand of The Year
Best Issuer of Analyst’s
2019 (Perbankan) SILVER
Choice in 2019
1. Best Self Service
Technology IDX Channel
2. Best Direct Response Innovation Award
Corporate Image 3. Best Sales Campaign
2019
4. Best Help Desk
Award 2019 5. Best Executive/Director
6. Best Sales Manager
"EST 7&-
"EST 0ROJECT -ANAGER
9. Best CS Profesional
10. Best Sales Pro
11. Best Supervisor
BRONZE
1. Best Incentive Scheme
&RONTIER 'ROUP -AJALAH 2. Best Quality Auditor
Marketing 3. Best IT Support
s 4HE "EST "UILDING AND "EST 0ROJECT -ANAGER
Managing Corporate IDX Channel
Image, Category: s ,IFETIME !CHIEVEMENT
National Bank (Asset > -R *AHJA 3ETIAATMADJA
500 Trillion) s "EST #4/ -R !RMAND 7
Hartono)
2019 Annual Report | PT Bank Central Asia Tbk 105
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
AWARDS AND CERTIFICATIONS - Continued
24th Infobank The Asiamoney
Awards 2019 Awards 2019
BrandZ TOP 50 Most CECT Award
Valuable Indonesian
Brands 2019
Asiamoney Center for Entrepreneurship,
Infobank Magazine
BrandZ s "EST $OMESTIC "ANK Change and Third Sector
s 4HE "EST 0ERFORMANCE
Rank No. 1 of Top 50 Most s "EST $IGITAL "ANK (CECT) Universitas Trisakti
Bank 2019
Valuable Indonesian Brands s #32 #ORE 3UBJECT BASED
s 4HE -OST %FlCIENCY "ANK
2019 on ISO 26000: “Consumer
in Indonesia 2019
Issues”
s 4HE -OST 6ALUE "ANK
WPP Kantar s /VERALL 3USTAINABILITY
predicate “Very Good” for Indonesia
Rank No. 99 Top 100 Most 0ERFORMANCE h&INANCE
&INANCAL 0ERFORMANCE OF
Valuable Global Brands 2010 Property&Bank Industry”
2014-2018
Award 2019
IBIA Indonesia Best The Finance Top
Indonesia Contact Issuers Award 2019 Financial Institution
Center Association 2019
(ICCA) Award 2019
Property&Bank Magazine
s 4OP "ANKER OF 4HE
9EAR -R *AHJA
Thinknovatecomm & 3ETIAATMADJA
Pikiran Rakyat s 4OP ,EADER IN )NNOVATIVE
Top 20 Companies Banking Technology
with Highest Market
Capitalization
The Finance (Infobank
Social Media Award Group)
Indonesia Contact Center s 4OP &INANCIAL
Association 2019 Institution 2019
Grand Champion s 4OP 4HE "EST #&/ ON
(17 Platinum, 9 Gold, &INANCIAL )NSTITUTION
13 Silver dan 6 Bronze ) (Mrs. Vera Eve Lim)
Marketing Magazine
Great Performing Brand
in Social Media category
Credit Card
106 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Tempo Financial
The 11th IICD
Business Award
Corporate Governance
Kementerian 2019 Bank Indonesia
Award 2019
Keuangan Award 2019
s 4HE "EST 0ERFORMANCE AS
the Main Dealer in the Tempo Magazine
Secondary Market in 2018. s 4HE "EST &INANCIAL
s 4HE "EST 3"3. !UCTION Performance Bank
Participant in 2019 for (Category Conventional
Indonesia Institute for
Conventional Bank Bank with Asset >100T)
Corporate Governance Bank Indonesia
category s 4HE "EST "ANK IN $IGITAL
(IICG) & Berita Satu The Bank with the Best
"EST &INANCIAL 3ECTOR Banking Services &INANCIAL 2EPORTING
s 4HE "EST "ANK IN 2ETAIL Compliance
Banking Services
Marketeer of The s 4HE "EST "ANK IN
Customer Satisfaction
9EAR Services Contact Center
Forbes Indonesia Best s 4HE "EST 0AYMENT IN
Service Excellence
of The Best Awards Customer Satisfaction
Services (Electronic Award
2019 Money Category)
CNBC Indonesia Award
Markplus Inc 2019
s 4HE "EST )NDUSTRY
Marketing Champion
2019 for the Commercial
Service Excellence
Banking sector
Magazine
s -ARKETEER OF THE 9EAR
s #ONTACT #ENTER #USTOMER
2019 (Mr. Armand W.
Forbes Indonesia Service Email Centers
Hartono)
8th Rank - TOP 50 Best of s (ALO"#! 4WITTER
The Best High Performing Customer Service
Public Listed Companies in s "ANK "#! &ACEBOOK
Indonesia Customer Service
"ANKERS OF THE 9EAR s (ALO "#! 0RIORITAS
CNBC Indonesia Call Center
2019
The Best CEO 2019 s (ALO "#! n #ALL #ENTER
-R *AHJA 3ETIAATMADJA In the Category of:
- Regular Banking
- Platinum Credit Card
- Regular Credit Card
- Personal Loan
- EDC
- Mortgage
s (ALO "#! #HAT
s (ALO "#! ,IFE #HAT
-AJALAH )NFOBANK
Bankers of the Year 2019
-R *AHJA 3ETIAATMADJA
2019 Annual Report | PT Bank Central Asia Tbk 107
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BRANCHES
As of 31 December 2019
REGION I REGION III
Address: Number of Branches: Address: Number of Branches:
Jln. Asia Afrika 122-124 11 Main Branches Jln. Raya Darmo 5 13 Main Branches
Bandung 40261 67 Sub Branches Surabaya 60265 92 Sub Branches
Tel. (022) 4236303 12 Cash Offices Tel. (031) 5618921 33 Cash Offices
Locations: Locations:
Bandung -AJALENGKA Bangkalan Pamekasan
"ANJAR Ngamprah "OJONEGORO Sampang
Ciamis Purwakarta Gresik 3IDOARJO
#IANJUR Singaparna Jombang Sumenep
Cimahi Soreang Lamongan Surabaya
Cirebon Subang -OJOKERTO Tuban
Garut Sukabumi
Indramayu Sumber REGION IV
+ARAWANG Sumedang Address: Number of Branches:
*LN "OULEVARD "LOK & .O 13 Main Branches
+UNINGAN Tasikmalaya Makassar 90231 62 Sub Branches
Tel. (0411) 453355 20 Cash Offices
REGION II Locations:
Address: Number of Branches: Ambon Palopo
Jln. Pemuda 90-92 13 Main Branches Bau Bau Palu
Semarang 50133 83 Sub Branches
Tel. (024) 3550333 28 Cash Offices Bitung Pare Pare
Locations: Denpasar Pinrang
"ANJARNEGARA Purbalingga Gianyar Praya
Bantul Purwodadi Gorontalo Ruteng
Batang Purwokerto Jayapura Selong
Blora 0URWOREJO +ENDARI Semarapura
Boyolali Rembang +OTAMOBAGU Sentani
Brebes Salatiga +UPANG 3INGARAJA
Cilacap Semarang Luwuk Sorong
Demak Slawi Makassar Sungguminasa
Jepara Sleman Manado Tabanan
+AJEN Sragen Manokwari Ternate
+ARANGANYAR 3UKOHARJO Mataram Timika
+EBUMEN Surakarta Mengwwi Tomohon
+ENDAL Tegal Negara Watampone
+LATEN Temanggung
+UDUS Ungaran
Magelang Wates
Mungkid Wonogiri
Pati Wonosari
Pekalongan Wonosobo
Pemalang Yogyakarta
108 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
REGION V REGION VII
Address: Number of Branches: Address: Number of Branches:
Jln. Diponegoro 15 13 Main Branches Jln. Jend.Basuki Rachmat 70-74 11 Main Branches
Medan 20112 56 Sub Branches Malang 65111 49 Sub Branches
Tel. (061) 4155800 / 4575800 20 Cash Offices Tel. (0341) 358500 15 Cash Offices
Locations: Locations:
Banda Aceh Medan Banyuwangi Magetan
Bandar Seri Bentan Padang Batu Malang
Batam Payakumbuh Blitar -EJAYAN
Bengkalis Pekanbaru Bondowoso .GANJUK
"INJAI Pematang Siantar Jember Ngawi
Bireuen Rantau Prapat +ANIGORO Pasuruan
Bukittinggi Sei Rampah +EDIRI Ponorogo
Dumai 4ANJUNG "ALAI +EPANJEN Probolinggo
+ISARAN 4ANJUNG "ALAI +ARIMUN +RAKSAAN Situbondo
Lhokseumawe 4ANJUNG 0INANG ,UMAJANG Trenggalek
Limapuluh Tebing Tinggi Madiun Tulungagung
Lubuk Pakam Tembilahan
REGION VIII
REGION VI Address: Number of Branches:
Wisma BCA Pondok Indah 11 Main Branches
Address: Number of Branches : Jln. Metro Pondok Indah No.10 97 Sub Branches
*LN +APTEN 2IVAI 10 Main Branches Jakarta 12310 26 Cash Offices
Palembang 30129 38 Sub Branches Tel. (021) 29973488
Tel. (0711) 312244 33 Cash Offices
Locations:
Locations:
Cibinong Purwakarta
Bandar Lampung Menggala
Cikarang Tangerang
Bangko Mentok
Depok Tangerang Selatan
"ATURAJA Metro
Jakarta Tigaraksa
Bengkulu Muara Bungo (Pusat, Selatan, Timur & Utara)
Curup Muara Enim
Gunung Sugih Pagar Alam REGION IX
Jambi Palembang Address: Number of Branches:
+ALIANDA Pangkal Pinang Jln. Matraman Raya 14-16 13 Main Branches
Jakarta 13150 109 Sub Branches
+EPAHIANG Pangkalan Balai Tel. (021) 8581259 21 Cash Offices
+OBA Prabumulih Locations:
+OTABUMI Pringsewu Bekasi Depok
+UALA 4UNGKAL Sekayu Bogor Jakarta
(Pusat, Selatan, Timur & Utara)
Lahat Sungai Liat
Cibinong +ARAWANG
Lubuk Linggau 4ANJUNG 0ANDAN
Cikarang
Manggar Toboali
Martapura
2019 Annual Report | PT Bank Central Asia Tbk 109
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BRANCHES - continued
REGION X NON REGION OFFICE
Address: Number of Branches: Address: Number of Branches:
Jln. Pluit Selatan Raya 10 Main Branches Menara BCA, Grand Indonesia 1 Main Branches
+OMPLEK 0ERKANTORAN ,ANDMARK 89 Sub Branches Jln. MH Thamrin No. 1
Pluit Blok A No.8 3 Cash Offices Jakarta 10310
Jakarta 14440 Tel. (021) 23588000
Tel. (021) 6601718
Locations:
Locations:
Jakarta (Pusat)
Jakarta (Barat, Pusat & Utara)
REPRESENTATIVE OFFICE
REGION XI
Singapore Hong Kong
Address: Number of Branches: Address: Address:
Jln. Jend. Sudirman 139 8 Main Branches 360 orchard road 5NIT & 4HE #ENTER
Balikpapan 76113 37 Sub Branches #06-06A International building 99 Queen’s Road Central
Tel. (0542) 737133 7 Cash Offices Singapore 238869 (ONG +ONG
Locations:
Balikpapan Samarinda
"ANJARBARU Sambas
"ANJARMASIN Sampit
Batulicin Sangatta
Bontang Singkawang
+ETAPANG Sintang
+OTA +UBU Sungai Raya
Martapura 4ANJUNG
Mempawah 4ANJUNG 2EDEB
Palangkaraya Tarakan
Pangkalan Bun Tenggarong
Pontianak
REGION XII
Address: Number of Branches:
Wisma Asia I 12 Main Branches
Jln. S. Parman kav.79 94 Sub Branches
Jakarta 11420 26 Cash Offices
Tel. (021) 5638888
Locations:
Cilegon Serang
Jakarta (Barat & Pusat) Tangerang
Pandeglang Tangerang Selatan
Rangkasbitung Tigaraksa
110 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
INFORMATION ON
COMPANY’S WEBSITE
BCA has developed its website, which can be accessed
through https://www.bca.co.id/ to enable the public to
receive thorough information about the company.
On the website, BCA provides information on banking
products and services solutions to meet individual
and business needs, details about the Bank and other
important information.
Information on The Company’s Website
Individual
Banking products and Individual Solu
oluti
tion
services solutions to s )DEAL 2ESIDENTIAL Business
meet individual needs s )DEAL 4RANSPORTATION
Banking products and Solution for Business and Corpora ate
s &UTURE )NVESTMENT
services solutions to s #OMMERCIAL "USINESS 3-% 3OLUTIONS
s -AXIMUM 0ROTECTION
meet business needs s #ORPORATE "USINESS
s %DUCATION 0LAN
s 3OLUTIONS FOR &INANCIAL )NSTITUTION
s $REAM ,IFESTYLE
s &INANCIAL 4ECHNOLOGY
s .EED FOR !DDITIONAL &UNDS
s 0RATICAL 3AVINGS Pro
roduct and Services
s %ASY OF 4RANSACTIONS s 3AVING
s ,OANS
Product and Services
s % "ANKING
s 3AVING
s #REDIT #ARD
s ,OANS
s "ANKING 3ERVICES
s % "ANKING
s 4REASURY AND #USTODIAN
s $EBIT #ARD
s #REDIT #ARD
s 2EMITTANCE Career
s )NVESTMENT AND )NSURANCE
Working environment, Daily Activities in BCA
Innovation career opportunities
s MY"#
Y ! and other information Career Opportunity
s "#! !LAM 3UTERA about careers at BCA. s &RESH 'RADUATES
s 6)2! s %XPERIENCED
s "#!
# %XPRESS s -AGANG "AKTI
Tools Our Team
s 3IMULATION
Information
s #URRENCY AND )NTEREST 2ATE
s .EWS !RTICLE
s &EE ,IMIT
s 3CHEDULE
s !PPLICATION
s !NNOUNCEMENT
About BCA There is also the Halo BCA services section on the
This secttion
io provides Corporate website to allow communication through chatting
detailed inf
i ormation s 'ET TO +NOW !BOUT "#!
about the cocompany s #32 "AKTI "#! should there be questions related to the Bank’s products
s 3OCIAL -EDIA "#! AND SERVICES OR TO GIVE FEEDBACK TO THE COMPANY &OR
s "#! 'ROUPP
s .EWS further information about BCA, please contact:
s .EWSROOMM +AFE "#!
Corporate Secretary:
In estor Rel
Inv e ations
s 0UBLIC 2ELATIONS
s &INA
INANCI
NCIAL (IGHLIGHTS
1UARTERLY &INANCIALS s )NVESTOR 2ELATIONS
,APORAN +EUANGAN 0ER "ULAN
N
s !NNUAL 2EPORT
Menara BCA, 20th &LOOR 'RAND )NDONESIA
s 3TOCK )NFORMATION "#! Jl.M.H.Thamrin No.1, Jakarta 10310
s #REDIT 2ATINGS
s )NVESTOR .EWS Phone (62 21) 2358 8000
Good Corporate Governance
&AX
s /RGANIZATION 3TRUCTURE Email : humas@bca.co.id
s $EED OF #OMPANY
s #ORPORATE !CTION investor_relations@bca.co.id
s #ORPORATE 'OVERNANCE
20 9 Annual
201
2019 Annual
Annu al Report
Report | PT Bank Central Asia Tbk 111
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112 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
MANAGEMENT
DISCUSSION
AND ANALYSIS
Contents
114 Business Review 286 s 0ROSPECT AND 3TRATEGIC 0RIORITIES
114 Business Segment Performance Overview 286 - Macroeconomic and Banking Sector Prospects
116 Transaction Banking in 2020
124 Corporate Banking 287 - Strategy Priorities of BCA in 2020
130 Commercial and SME Banking 288 s -ARKETING !SPECT
136 Individual Banking 289 s $EBT 3ERVICE !BILITY AND ,OAN 2ECEIVABLES
142 Treasury and International Banking Collectability
148 289 s #APITAL 3TRUCTURE AND -ANAGEMENT 0OLICY
Business Support
148 290 - Capital Structure
Risk Management
244 290 - Management Policy on Capital Structure
Human Resources
252 291 - Basis Management Policy on Capital Structure
Network and Operation
256 291 s $IVIDEND 0OLICY
Information Technology
260 291 s -ATERIAL #OMMITMENTS FOR #APITAL %XPENDITURE
Overview of Macroeconomics and
the Banking Sector 291 - Purpose of Material Commitments for Capital
263 Financial Performance Overview BCA in 2019 Expenditure
264 292 3OURCE OF &UNDS FOR #APITAL %XPENDITURE
s &INANCIAL 0OSITION
264 292 #URRENCY AND &OREIGN %XCHANGE 2ISK -ITIGATION
- Assets
Related To Capital Expenditures
270 - Liabilities
292 s 2EALIZATION OF #APITAL %XPENDITURE
272 - Equity
292 s )NFORMATION AND -ATERIAL )NFORMATION AFTER THE
273 s 0ROlT OR ,OSS 3TATEMENTS $ATE OF &INANCIAL 2EPORTING
273 - Net Interest Income 292 s -ANAGEMENT ANDOR %MPLOYEES 3TOCK /PTION
276 - Operating Income other than Interest Plan (MSOP/ESOP)
277 - Operating Expenses 292 s 2EALIZATION OF 0UBLIC /FFERING &UNDS
278 !LLOWANCE FOR )MPAIRMENT ,OSSES ON &INANCIAL 292 s -ATERIAL )NFORMATION 2EGARDING )NVESTMENT
Assets Expansion, Divestment and Acquisition
279 - Income Before Tax 293 s )NFORMATION ON -ATERIAL 4RANSACTIONS WITH
279 - Net Income #ONmICTS OF )NTEREST
280 - Statements of Comprehensive Income 293 s $ISCLOSURE OF 4RANSACTIONS WITH 2ELATED 0ARTIES
280 s #ASH &LOW 293 s 'ROUP 7IDE &UNDING #OMMITMENTS AND /THER
281 s +EY &INANCIAL 2ATIOS &ACILITIES TO 3INGLE /UTSIDE $EBTORS
282 Overview of Subsidiary Performance 293 s )MPACT OF #HANGES IN ,AWS AND 2EGULATIONS
286 Other Material Information 294 s #HANGES IN !CCOUNTING 0OLICIES
286 s 4ARGET !CHIEVEMENT IN AND 0ROJECTION 294 s "USINESS #ONTINUITY
for 2020 295 s 0RIME ,ENDING 2ATE
2019 Annual Report | PT Bank Central Asia Tbk 113
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BUSINESS SEGMENT
PERFORMANCE OVERVIEW
Transaction Banking
Third-party deposits grew by 11.0% to Rp699.0 trillion in
Number of Transaction Number of Account
2019, supported by a 9.8% growth in CASA to Rp530.6
9O9 9O9
trillion. Overall, CASA contributed 75.9% of total third
party deposits, supported by high growth in payment
transaction frequency, particularly through electronic
channels. 34.5 % 14.2 %
In 2019, BCA reached a significant growth in customer
base by 14.7% YoY, the highest growth in the past three
Third Party Funds Composition
years. The number of transactions through internet (in trillion Rupiah)
and mobile banking in the last two years experienced 699.0
remarkable growth of 10.9% and 82.1% (CAGR Dec 629.8
581.1
168.4
2017-Dec 2019), respectively. Almost 75% of customer 146.8
137.4
transactions are conducted through internet banking
345.6
and mobile banking 316.2
292.4
At the end of the year, we had 1,256 branch offices 184.9
166.8
consisting of 139 main branch offices, 873 sub-branch 151.3
offices, and 244 cash offices. In addition to the branch 2017 2018 2019
offices, 57 BCA Express and 22 functional offices are also Current
Account
Saving
Account
Time
Deposits
part of our network
Corporate Banking
Corporate Loan Growth Throughout 2019, corporate banking was one of main
9O9 drivers of the Bank’s overall credit growth, as corporate
loans grew 11.8% to Rp238.5 trillion, contributing 40.5%
11.8 %
of total loans.
Corporate loan growth was mainly driven by 17.6%
growth of investment loans to Rp114.7 trillion. Working
capital loans grew 6.8% from last year to Rp123.8 trillion,
Corporate Loan Portfolio mostly due to loan growth in the financial services
(in trillion Rupiah)
238.5
and consumer financing sector. We managed a non-
213.4
26.2
performing loan (NPL) level of 1.4%.
177.3 26.7
23.4 In order to sustain corporate loan growth, we continue to
212.3 explore business opportunities and deepen penetration
186.7
153.9 by targeting high quality customers in prospective
industries
2017 2018 2019
Rupiah &OREIGN #URRENCIES
114 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Commercial and SME Banking
Loans from Commercial and SME segments grew 12.8% Commercial and SME Loan growth
to Rp214.2 trillion, contributing 36.4% of the Bank’s 9O9
total loans in 2019. Commercial loans grew 12.2% to
Rp125.7 trillion while SME loans increased 13.6% to
Rp88.5 trillion. The Bank saw working capital needs
supporting both segments’ loan growth. The NPL level
12.8 %
for commercial and SME loans was 1.4%, compared to
1.6% the previous year.
Commercial and SME Loan Portfolio
(in trillion Rupiah)
To reinforce the growth of commercial loans, BCA
125.7
strengthened the role of commercial business centers.
112.1
In the SME segment, the loan portfolio managed by 98.7
88.5
3-% CENTERS ACROSS MAJOR CITIES SHOWED INCREASING 77.9
performance. The centers contributed significantly at 65.9
45% of the growth of SME loans.
2017 2018 2019 2017 2018 2019
Commercial Small and Medium Enterprise (SME)
Individual Banking
Supported by a large customer base, BCA is well- In 2019, BCA booked mortgage growth of Rp3.3 trillion,
positioned to expand its products and services to cater a 4.2% increase from the previous year. The mortgage
to the needs of today’s customers. Digital account portfolio made up 61.9% of the Bank’s total consumer
opening which was launched in April 2019 recruited loans. BCA had 4.0 million credit cards in circulation, a
more than 450,000 new customer accounts, contributing 11,6% increase from the end of 2018, with transaction
significantly to the Bank’s customer accounts growth of value reaching Rp78.5 trillion.
14.2% YoY in 2019.
During the past decade, BCA’s consumer loans have
grown at a compounded annual growth rate (CAGR)
of 17.0%. Throughout 2019, they grew by 0.7% to
Rp132.6 trillion.
2019
Consumer Loan Composition in 2019
10,6% Increase / (decrease) Increase / (decrease)
2019 2018
2019 2018 2017
Nominal % Nominal %
Mortgage 82,056 78,780 73,025 3,276 4.2% 5,755 7.9%
27,4%
62,0% Vehicle 36,469 39,998 38,302 (3,529) -8.8% 1,696 4.4%
Credit Card 14,106 12,893 11,528 1,213 9.4% 1,365 11.8%
Total Consumer 122,855 960 8,816
Vehicle
Mortgage Credit Card
Loans
2019 Annual Report | PT Bank Central Asia Tbk 115
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Business Review
TRANSACTION
BANKING
As one of the leading transaction banking service
BCA continues to improve the providers in Indonesia, BCA continues to strengthen
features and facilities of its its capabilities through various strategies to bring its
transaction banking products platform and services to the next level, for better user
and services, in accordance experience as well as security for any financial services
and transaction.
with customer needs and the
latest technology. Third party Recent rapid technology development has enabled
funds grew by 11.0% YoY in 2019 new innovations in various areas, including transaction
to Rp699.0 trillion, with the Bank’s banking services, and has transformed customer behavior.
CASA reaching 75.9% of the total Today, customers are increasingly searching for products,
services and facilities that are easier, faster and more
third party funds.
convenient to use. BCA strengthens the capabilities of
its transaction services through the development of an
integrated multi-channel network and the expansion of
its payment services ecosystem. This is done through the
development of innovative features for digital banking
services, which are in line with customer needs and the
latest technology trends.
Transaction Banking Third Party Funds
in 2019 (in trillion Rupiah)
CASA 345.6
530.6
316.2
292.4
Rp trillion
184.9
166.8 168.4
151.3 146.8
137.4
Number of transactions
9O9
34.5 % 2017 2018 2019 2017 2018 2019 2017 2018 2019
Current Accounts Savings Accounts Time Deposits
116 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Such strategic initiatives, and customer trust in BCA’s These products are supported by a reliable transaction
transaction banking, drove the Bank’s solid CASA growth. network that integrates various channels such as branch
Third-party deposits grew by 11.0% to Rp699.0 trillion in offices, ATMs, EDCs and digital networks like BCA Mobile,
2019, supported by a 9.8% growth in CASA to Rp530.6 +LIK"#! INTERNET BANKING AND OTHER BANKING CHANNELS
trillion. Overall, CASA contributed 75.9% of total third
party funds, supported by high growth in payment BCA continues to improve the features and facilities of its
transaction frequency, particularly through electronic transaction banking products and services, in accordance
channels. with customer needs and the latest technology. The Bank
develops innovative digital-based business solutions
Solid Transaction Banking Franchise through the Application Programming Interface (API)
To meet the need for transaction banking services, BCA to facilitate connectivity between various digital
offers various products for each customer segment, both applications in the payment ecosystem. This supports the
individual and business, such as savings and current use of the Bank’s products and services through wider
accounts, debit cards, credit cards, electronic money, and payment ecosystem.
virtual accounts that can be used for making payments.
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TRANSACTION BANKING
The high level of convenience and reliability provided To serve customers who want to fulfill their long-term
by BCA’s transaction network has built customer trust in PLANS THE "ANK OFFERS 4AHAPAN "ERJANGKA 4AHAKA
conducting personal and business transactions through an installment savings plan that comes with BCA life
the Bank’s ecosystem. Most individual business customers insurance protection. A Tahaka account can be opened
also use savings accounts as transactional accounts for at any branch office, or via MyBCA video banking or
their business needs. This has supported the sustainable internet banking. To serve the younger generation,
growth of the Bank’s current and savings accounts. BCA also provides Tahaka SiMuda, which requires lower
monthly deposits than Tahaka.
In the individual segment, Tahapan BCA remains the
Bank’s top savings product with the most significant and BCA also offers current accounts for its business
stable contribution to third party funds. The range of customers, which are available in nine currencies. Current
Tahapan products offered is tailored to each customer account holders can access various facilities such as
SEGMENT &OR EXAMPLE 4AHAPAN 8PRESI IS ALIGNED WITH internet and mobile banking, and notification features
a more creative youth lifestyle and comes with various for each transaction via Short Message Service (SMS) and
PROMOTIONS AND ATTRACTIVE !4- CARD DESIGNS &OR BUSINESS e-mail to make monitoring them easier.
needs, Tahapan Gold provides individual customers with
complete and detailed transaction information for easier
business operations. We also offer Tapres, for those who
need a savings account with a higher interest rate.
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Outstanding Kartu Kredit &OR CREDIT CARD ISSUANCE "#! COOPERATES WITH VARIOUS
(in trillion Rupiah)
international networks such as Visa, Mastercard, American
Express, JCB, NETS and UnionPay International (UPI). In
14.1 2019, we issued the BCA JCB Black credit card through
12.9 a strategic alliance with JCB as the leading payment
11.5 network in Japan. BCA JCB products target upper middle
class customers whose lifestyles involve frequent trips,
especially to Japan, which is a popular tourist destination.
Another new co-branding card is the BCA Singapore
!IRLINES +RISmYER )NlNITE THE THIRD OF THE "ANKS CO
2017 2018 2019
branding product with Singapore Airlines. Not only do
we affiliate with international credit card networks, we
All BCA savings products come with debit card facilities are also the only bank in Indonesia with a private label
that can be used across our extensive banking network. credit card or proprietary card – the BCA Card – which
The Bank supports Indonesia’s central bank policy on the can be widely used in Indonesia and at several outlets in
National Payment Gateway (NPG) by adding the NPG Singapore.
debit card into our range of debit card offerings. To serve
customers traveling overseas, the Bank collaborated with Overall, BCA recorded a 12.7% increase in credit
MasterCard to launch the BCA Debit MasterCard, which card transaction value during 2019, supported by
can be used for transactions at all MasterCard merchants approximately four million credit cards.
and ATMs worldwide. This service is aligned with the
National Standard Indonesian Chip Card Specification To reach a broader customer base, and to strengthen
(NSICCS). customer loyalty, BCA collaborates with strategic partners,
amongst others are Starbucks, Haagen Dazs, McDonald’s,
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TRANSACTION BANKING
3INGAPORE !IRLINES 'OJEK /6/ $ANA AND OTHERS )N In addition to debit and credit cards, BCA offers the
response to the growing demand for online shopping, &LAZZ CARD WHICH IS AN E MONEY PRODUCT FOR SMALL VALUE
the Bank also has promotional partnership programs PAYMENTS FOR TOLL ROADS COMMUTER LINES 4RANSJAKARTA
with e-commerce players such as Tokopedia, Blibli.com, parking facilities, as well as transactions at food courts
Shopee, Tiket.com, Traveloka, as well as other e-commerce AND MINIMARTS )N &LAZZ TRANSACTIONS GREW BY
companies in various programs such as ‘BCA 12.12’, and had a total transaction value of Rp7.0 trillion. To
/N LINE 3HOPPING &ESTIVAL AND REGULAR PROGRAMS SUCH AS SUPPORT &LAZZ CARD GROWTH THE "ANK CONTINUES TO WIDEN
the Monday e-promotion. the coverage of its top up facilities, and develop more
card acceptance at various sectors and strategic partners
BCA also participated in various events such as Asia’s along with attractive card designs. BCA also offers Sakuku,
biggest book exhibition Big Bad Wolf, Jakarta Sneakers application-based electronic money that can be stored
$AY AND THE "OBA &ESTIVAL AND HOSTED THE "#! in a smartphone (e-wallet) and used to pay merchants,
%XPOVERSARY AND "#! 4RAVEL &AIR 4O STRENGTHEN THE LOYALTY top up prepaid mobile phone vouchers, and make other
of our EDC customers, the Bank also held a lucky draw for transactions. Sakuku Plus has additional features such as
merchants that use our EDC. transfers, cash withdrawals at our ATMs, and a split bill
facility to share the bill payment with other Sakuku Plus
holders.
Number of Distribution Channels (unit)
2019 2018 2017
Number of Branches (including cash offices) 1,256 1,249 1,235
Number of ATMs 17,928 17,778 17,658
Delivery Channels Transactions
2019 2018 2017 Increase / (decrease) 2019 Increase / (decrease) 2018
Total Composition Total Composition Total Composition Jumlah % Jumlah %
Branch
Number of Transactions (in million) 152 1.8% 156 2.4% 160 3.0% (4) -2.6% (4) -2.5%
Transaction Value (in trillion Rupiah) 14,585 49.1% 14,866 53.8% 14,131 56.6% (281) -1.9% 735 5.2%
ATM
Number of Transactions (in million) 2,075 24.2% 2,030 31.8% 1,911 36.3% 45 2.2% 119 6.2%
Transaction Value (in trillion Rupiah) 2,322 7.8% 2,303 8.3% 2,178 8.7% 19 0.8% 125 5.7%
Mobile Banking
Number of Transactions (in million) 3,848 44.8% 1,932 30.3% 1,161 22.0% 1,916 99.2% 771 66.4%
Transaction Value (in trillion Rupiah) 2,089 7.1% 1,389 5.0% 970 3.9% 700 50.4% 419 43.2%
Internet Banking
Number of Transactions (in million) 2,508 29.2% 2,264 35.5% 2,040 38.7% 244 10.8% 224 11.0%
Transaction Value (in trillion Rupiah) 10,701 36.0% 9,107 32.9% 7,694 30.8% 1,594 17.5% 1,413 18.4%
Total
Number of Transactions (in million) 8,583 100.0% 6,382 100.0% 5,272 100.0% 2,201 34.5% 1,110 21.1%
Transaction Value (in trillion Rupiah) 29,697 100.0% 27,665 100.0% 24,973 100.0% 2,032 7.3% 2,692 10.8%
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Integrated Multi-channel Network cash transactions. The expansion of the branch network
BCA is aware that easy access to transaction banking is focused on big cities and areas with high growth
services enhances the convenience of customer potential as a result of better infrastructure. It is focused
transactions. Therefore, the Bank continues to expand its on a more compact and efficient format combining digital
integrated multi-channel network by building synergies technology and limited human support, such as the cash
between the physical network of its branch offices, ATMs, office and BCA Express (non-permanent bank counter).
and EDCs, and various connectivity such as Application Branch banking remains important to the Bank as 49.1%
Programming Interface (API) to support the financial of total transaction value is performed in branches.
needs and services that cover all customer segments.
In the past two years, BCA has introduced a new digital
In 2019, BCA reached a significant growth in customer branch concept called BCA Express. It allows us to get
base by 14.7% YoY, the highest growth in the past 3 years, closer to customers at populous places such as commercial
thanks to online account opening via mobile banking and district buildings, public transport stations, and campuses.
API. API has allowed BCA to connect with all players in At the end of the year, we had 1,256 branch offices
the marketplace and to reach many market customers at consisting of 139 main branch offices, 873 sub-branch
any location in real time. offices, and 244 cash offices. In addition to the branch
offices, 57 BCA Express and 22 functional offices are also
Transactions through the internet and mobile banking part of our network.
network continued to post significant growth, particularly
in the mobile banking channel. This was consistent with The expansion of the Bank’s ATM network focuses
the Bank’s initiatives to strengthen the capabilities of on investment in CRMs, which facilitate both cash
these two digital channels. The number of transactions withdrawals and cash deposits. In 2019, the number of
through internet and mobile banking in the last two years CRMs grew by 1.345 units to 6.940, making up 38.7% of
experienced remarkable growth of 10.9% and 82.1% BCA’s total ATM machines. CRMs have been proven to
(CAGR Dec 2017-Dec 2019), respectively. Almost 75% of improve operational efficiency and reduce cash handling
customer transactions are conducted through internet costs.
banking and mobile banking, while 24,2% through ATM
and Cash Recycling Machines (CRM). BCA is developing a more efficient future branch
model by utilizing technology and digital equipment
BCA believes that the integration of its physical and that can be used independently by customers, such as
digital networks remains essential to quality customer Customer Service (CS) digital machines that provide
service. The Bank continues to expand its branch (bricks card replacement services, e-service machines that print
and mortar) and ATM networks in a measured and bank books, and STAR teller machines that help tellers
selective way. The branch network will be oriented toward perform cash deposits and withdrawals. Once installed,
building closer customer relationships and handling large the independent service machines will be equipped with
digital-based support applications to further operational
efficiency at branch offices.
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TRANSACTION BANKING
Continuing Digital Banking Innovations the Bank’s customer base and the number of transactions
As digital technology advances, customers are increasingly via BCA Mobile. Since its launch, it has received positive
demanding convenient and easy to use transaction FEEDBACK AS REmECTED BY THE NUMBER OF NEW ACCOUNT
banking services. The Bank continues to develop its openings through BCA Mobile. Today, we approved the
+LIK"#! INTERNET BANKING SERVICE "#! -OBILE BANKING highest reached more than 3,000 new customers per day.
and other digital-based services.
"#!S /NE+LIK FACILITATES ONLINE SHOPPING BY REDUCING
The Bank has developed various innovations in its mobile the number of steps in the payment process to only one
banking network over the past few years, including the click. After first registering the source of funds from a
LAUNCH OF THE "#! +EYBOARD THAT ENABLES CUSTOMERS TO "#! ACCOUNT /NE+LIK CAN BE USED FOR SHOPPING PAYMENT
access banking services through a smartphone and can be transactions with our merchant partners. The Bank has
used on various chat platforms. Thus, customers are able also introduced Welma, a mobile-based application that
to conduct transactions without leaving a chat platform. fulfills customer needs for investment and insurance
BCA Mobile also enables customers to make cash products. Welma makes it easy for customers to conduct
withdrawals and deposits without using a card (cardless transactions and monitor their investment products, such
transaction) at various BCA ATM networks. as mutual funds and bonds, as well as obtain information
about insurance products.
We continue to enhance Virtual Assistant (VIRA)
capabilities to provide many financial services and Integration and Collaboration
information using chatbot technology and machine In the age of rapid and dynamic advances in digitalization,
learning. VIRA allows our customers to access interactive integration and collaboration with strategic partners
and real time information about the Bank’s products has become increasingly more important to providing
and services, the latest promotions, as well as financial banking services that are faster, and more efficient and
services, such as balance inquiry, loan installment and convenient for customers.
account transaction details, and credit card registration.
In line with its development of products and services,
Another innovation for easier transaction is a transfer BCA promotes its digital banking products via a variety
feature between BCA customers using Quick Response of media. The Bank also provides customer assistance, as
(QR) codes through the BCA Mobile and Sakuku well as receiving customer suggestions and complaints
applications. The Bank has gradually implemented the use through the HaloBCA call center. HaloBCA has been
of QR Indonesia Standard (QRIS) for merchant payment. transformed into a digital service center that integrates
contact centers with various digital applications such as
Innovations in digital banking continued in 2019 with the MyBCA services (long distance communication through
launch of an online account opening facility through BCA video calls at a MyBCA counter), BCA Express, online
Mobile. This enables customers to open a savings account account opening, digital relationship officers, chatting
and make direct cash deposits or withdrawals without facility with BCA’s CSO through our website, as well as
the need to visit a branch office. This service has increased solution assistant (SOLA) services.
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To leverage online-based business growth, BCA has change, and promotes an innovative culture across the
strengthened its online payment capabilities and built company, as well as collaborate with other transaction
a cashless ecosystem through collaboration with several banking businesses. These steps are expected to result
merchants, including e-commerce and fintech companies. in BCA transaction banking services that are increasingly
The Bank was one of the first to utilize Application safe, convenient, reliable, and easy to access.
Programming Interface (API) technology to build
connectivity through a payment system for e-commerce Amid the growing digital platforms offered by fintech
and fintech players. companies, BCA is developing an integrated mobile
platform-based application to serve customer needs.
More than 1,600 partners have utilized BCA’s API services, This application will enable the Bank to provide
and this number will continue to increase in line with comprehensive product and service solutions through
the development of our API products and customer base one digital channel. This will further enhance the ease
growth. Partners utilizing the Bank’s virtual accounts are and convenience of customer transactions.
leading fintech and e-commerce players as well as SME
and education institutions. BCA will continue building BCA is committed to fostering the creation of a cashless
partnerships and collaborating with e-commerce and society through cooperation and collaboration with both
fintech players to support their business growth in the private institutions and the government, to provide quality
future. payment system solutions for various customer segments.
As part of a broader payment ecosystem, the Bank
Future Development Plans continues to strengthen its payment services ecosystem
Going forward, BCA will continue expanding its customer by promoting collaboration with other payment service
base to maintain its position as one of the largest providers, including fintech and e-commerce companies.
transaction banking providers in Indonesia. We put
continued efforts to capture growing younger generation
prosperity in the next 3-5 years that allows us to grow
with them to become prospective customers in the upper
MASS AFmUENT AND (IGH .ET 7ORTH )NDIVIDUAL (.7)
segment.
Serving a large customer base inspires BCA to continue
developing the capability of its transaction banking
services. Quality improvement is carried out through
enhancing various features and services, developing
product and service solutions that meet customer needs,
and strengthening our payment service ecosystem. To
support this, the Bank optimizes the application of the
LATEST DIGITAL TECHNOLOGY ADJUSTS THE WAY IT RESPONDS TO
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CORPORATE
BANKING
We are committed to be a reliable partner in providing
Throughout 2019, corporate banking solutions to support our quality customers and
banking was one of main drivers their long term business growth. Throughout 2019,
of the Bank’s overall credit corporate banking was one of main drivers of the Bank’s
growth, as corporate loans overall credit growth, as corporate loans grew 11.8% to
Rp238.5 trillion, contributing 40.5% of total loans.
grew 11.8% to Rp238.5 trillion,
contributing 40.5% of total loans. In order to sustain corporate loan growth, we continue to
explore business opportunities and deepen penetration by
targeting high quality customers in prospective industries.
We participated in providing credit for the infrastructure
industry along with other banks and financial companies.
In seeking lending opportunities, we always pay close
attention to debtor’s business performance and seek
prospective sectors with commendable growth amongst
other including power plants, transportation and logistic,
which showed strong growth in 2019.
Corporate Banking Corporate Loan Portfolio
in 2019 (in trillion Rupiah)
Corporate Loan Portfolio
238.5
Rp 238.5 trillion 177.3
23.4
213.4
26.7
26.2
212.3
186,7
Corporate Loan growth 153.9
9O9
11.8 % 2017
Rupiah
2018 2019
&OREIGN #URRENCIES
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Corporate Lending To comprehend the expanding needs in corporate
In performing intermediary roles across industries, lending, we group our relationship managers based on
we prioritize the implementation of prudent lending specific expertise and experience in certain sectors. This is
principles to maintain our loan quality. We emphasize to ensure relationship managers have deeper knowledge
corporate lending to potential debtors with good of the customers related to their business and particular
business prospects and proven track records within the needs, and hence are able to provide suitable financial
industry. Over the time, we observe its business dynamics services.
within the market, without losing focus on the quality of
each debtor. In 2019, corporate loans booked solid growth of 11.8%,
supported by various initiatives throughout the year.
The BCA corporate banking team continues to explore new Corporate loan growth was mainly driven by 17.6%
prospective industries, participate in viable infrastructure growth of investment loans to Rp114.7 trillion. Working
PROJECTS AND BUILD SYNERGY WITH OTHER WORKING UNITS TO capital loans grew 6.8% from last year to Rp123.8 trillion,
deliver comprehensive financial solutions for customers. mostly due to loan growth in the financial services and
We develop synergy across corporate, commercial and consumer financing sector.
SMEs through the value chain financing approach
(distributor financing and supplier financing) with a focus
on companies in growing industries.
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CORPORATE BANKING
Through continuous efforts to maintain the quality of In order to enhance credit services quality, we continue to
corporate loans, we managed a non-performing loan develop the competencies of employees who are directly
(NPL) level of 1.4%, slightly higher than last year’s 1.3%. involved in credit review and approval, equipped them
Allowance for impaired loans is adequate to cover with deeper knowledge about the sector, risks and overall
potential losses from non-performing loans. Moreover, debtors exposure management as well as the capability
the NPL ratio is well within the Bank’s risk appetite. to utilize data analytics to enhance portfolio analysis.
To minimize concentration risk, we provided lending Syndicated Loans
to diversified economic sectors. In 2019, the 10 largest BCA plays an active role in expanding syndicated loans to
economic sectors in the corporate segment contributed support overall corporate loan growth. We may take roles
66.7% of total corporate loans. Some 89.0% of the as underwriter, mandated lead arranger and bookrunner,
corporate loans were denominated in Rupiah, in line facility agent, security agent as well as escrow account
with the profile of the Bank’s third party funds that are agent in syndicated loans. These roles generate fee-
mostly in Rupiah. BCA also set a maximum limit of foreign based income for the Bank, aside from interest income
currency credit exposure to manage its foreign exchange on the Bank’s loan participation. Our role as an agency of
risk. Corporate lending in foreign currencies is given to syndication loans or club deals has widened, whereas we
debtors whose primary revenue is in US Dollars or other expanded the service to non-debtor customers.
foreign currencies.
We disbursed syndicated loans, a large portion of which
Corporate Loan by Facilities were provided to infrastructure sector, as the Bank is
(in trillion Rupiah) committed to support the development of Indonesia’s
infrastructure. In 2019, BCA participated in syndicated
238.5 LOAN PROJECTS WORTH 2P TRILLION WITH THE PORTION
213.4 bank’s participation as participant at Rp23.6 trillion.
177.3 Our outstanding syndication portfolio includes loans for
114.7
97.5
GOVERNMENT PROJECTS ACROSS SECTORS SUCH AS ELECTRICITY
80.9
ports, airports, toll roads and cement. Syndicated loans
123.8 were also given to the private sector such as the electricity
115.9
96.4 sector (sustainable power plant and mini hydro power
plant), farms, property and other financial services.
2017 2018 2019
Investment Working Capital
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Total Solutions for Customers Given the advancement of technology and growing
To provide an integrated and diverse customer needs, we business needs, transaction payment methods for
continue to develop comprehensive corporate banking corporate customers continue to evolve. In complementing
products and services that suit customer profiles and corporate lending, we focus on developing corporate
needs. Our corporate banking collaborates with other transaction banking services to meet our corporate
business units to cross sale various financial solutions such customer needs in business transactions. These services
as treasury, trade finance, remittance, cash management, are increasingly important for us to strengthen BCA’s
corporate transaction banking and money market position as a payment bank, and to sustain the solidity of
funding. current account and savings account (CASA) growth, as
well as fee-based income.
Top 10 Corporate Loan Portfolios by Industry Sectors (based on the Bank’s internal classification)
Industry Sector 2019 2018 2017
&INANCIAL 3ERVICES 14.4% 14.8% 10.6%
Plantation and Agriculture 11.6% 11.8% 12.6%
Power Generation 7.8% 6.8% 7.3%
Telecommunications 5.5% 5.9% 5.5%
Property and Construction 5.5% 4.9% 4.9%
Infrastructure for Transportation 4.9% 4.0% 3.2%
#ONSUMER &INANCING 4.6% 4.3% 6.3%
Building Material and Other Construction Related 4.4% 4.6% 4.8%
Edible Oil 4.3% 4.8% 3.6%
Chemicals and Plastics 3.7% 3.9% 4.3%
Total
* Including credit facilities to other banks
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CORPORATE BANKING
In managing corporate transaction services, we focus In the digital era, there is a wide opportunity to reach
on a community-based approach as a means to connect new customers including from the younger generation.
the customer’s business along the business chain, from The young-age business people will carry over the role
suppliers to distributors (value chain financing). We look of the senior generation that has been active in business
for opportunities in potential fast-growing sectors such as for decades. The broadening and deepening customer
E COMMERCE AND lNTECH &URTHERMORE 7E OFFER SOLUTIONS network is expected to strengthen our payment ecosystem.
in payment and collection, both business-to-business We also continuously hold business matchings, referrals,
(B2B) and business-to-customer (B2C). These activities gatherings and seminars for corporate customers within
are supported by leveraging the use of Application related sectors to enhance relationships with customers,
Programming Interface (API) and host-to-host systems and promote stronger business connection among
that enable e-commerce and fintech customers to be themselves.
directly connected to our banking services. Strategic
collaborations with various company partners have been We gain trust from the public through our various banking
developed, for example cooperation in facilitating top products and services offered. Innovation in banking
up activities for e-wallet services with several big fintech products and services across segments continues to be
companies. developed, to deliver better experience and convenience
for customers while performing their transactions. All
these initiatives supported our positive performance in
2019, in the midst of a higher competitive environment.
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Future Development Plans With the fast-changing customer preference and needs,
Corporate banking will continue to be one of the main BCA continues to develop comprehensive products and
pillars for BCA’s loan growth in the future. We will services, and improves corporate banking infrastructure
continue to explore new prospective industries to support by leveraging the latest technology. BCA will continue to
loan growth. encourage the development of API technology to deliver
convenience for company partners using our banking
We focus on strengthening relationships with customers facilities, and strengthen our payment ecosystem.
to better understand their financial needs and in turn we
are able to provide suitable banking solutions to support Corporate banking will continue to collaborate with
their business activities. In this regard, we will always other working units, subsidiaries and strategic partners
enhance the competencies of our corporate banking to explore opportunities for cross selling and creating
relationship managers in exploring and offering suitable innovative developments of financial solutions, to make
banking solutions. BCA a one stop financial solution for the community.
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COMMERCIAL AND
SME BANKING
Despite weaker loan demand in 2019, BCA recorded solid
The commercial and SME segment
loan growth of 12.8% to Rp214.2 trillion in the commercial
achieved solid loan growth of 12.8% and SME segment, supported by the optimization of the
to Rp214.2 trillion in 2019. This was role of the commercial business centers at the regional
supported by the optimization of offices, and the development of SME centers at branches.
the role of the commercial business
centers at the regional offices, and In its efforts to grow the loan portfolio, the Bank set a
thorough work plan including the use of data analytics
the development of SME centers at
to explore business opportunities, improvement credit
branches.
infrastructure and processes, and increase the capability
of human resources in credit services.
Commercial and SME Banking Commercial and SME Loan Portfolio
in 2019 (in trillion Rupiah)
Commercial and SME Loan Portfolio 125.7
112.1
Rp 214.2 trillion
98.7
65.9
77.9
88.5
Commercial and SME Loan growth
9O9
12.8 %
2017 2018 2019
Commercial
2017 2018 2019
Small and Medium Enterprise (SME)
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BCA is committed to providing comprehensive banking Commercial and SME Lending
solutions to its customers. In recent years, the Bank Indonesian banking sector loan growth decelerated
has raised collaboration between lending and cash in the midst of a slow economic recovery. Customers
management services. Through the provision of cash tended to be cautious in expanding their businesses and
management services, the Bank connects business utilizing bank credit facilities. Despite the challenging
customers with its payment ecosystem. outlook, BCA set a work plan and programs to grow its
loan portfolio in the commercial and small and medium-
As the competition for third party funds intensifies, sized enterprises (SME) segment. Loans from these two
we believe the role of cash management services is segments grew 12.8% to Rp214.2 trillion, contributing
increasingly important to support the growth of CASA 36.4% of the Bank’s total loans in 2019.
funds in addition to fee-based income.
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COMMERCIAL AND SME BANKING
The Bank sets loan limits on commercial and SME by Credit infrastructure and process improvement is another
considering the size of the customers’ business and their key driver to support loan growth. It enables the Bank
business prospect. The commercial loan limit ranges from to improve service levels, develop support tools for credit
Rp15 billion to Rp500 billion, while SME loan nominal processing and marketing, and perform data analytics in
value is set up to Rp15 billion. Commercial loans grew exploring opportunities by utilizing technology such as
12.2% to Rp125.7 trillion while SME loans increased machine learning and propensity models.
13.6% to Rp88.5 trillion. During the year, the Bank saw
working capital needs supporting both segments’ loan Nurturing close relationships with customers is
growth. fundamental to maintain loan growth. BCA is
transforming its customer segmentation to refine its
To reinforce the growth of commercial loans, BCA relationship model. Each segment is managed by a
strengthened the role of commercial business centers dedicated relationship unit and supported by a suitable
across Indonesia, including Jakarta, Semarang, Bandung, new service model.
3URABAYA -ALANG AND MAJOR CITIES OUTSIDE *AVA )N THE
SME segment, the loan portfolio managed by SME centers Relationship banking is inseparable from the contribution
ACROSS MAJOR CITIES SHOWED INCREASING PERFORMANCE 4HE of reliable relationship managers and account officers.
centers contributed significantly at 45% of the growth The Bank pays attention to the quantity and quality of
of SME loans, complementing the loan origination from relationship managers and account officers, and builds
the Bank’s established branch network. SME centers their competencies in business knowledge, products and
take a strategic role in centralizing credit processing and technology utilization to support their performance.
customer acquisition based on data analytics.
We expect stronger customer engagement will enlarge
In line with increasingly diverse customer needs, BCA has the customer base and constantly support credit growth.
developed various credit programs and schemes, such as Deepening customer relations are also carried out through
the trade area credit program, warehouse ownership, activities such as workshops, business gatherings, and
and special schemes to encourage facilities utilization. other customized events. These activities are expected
In supporting the government’s efforts and initiatives, to bring closer relationships among customers in the
BCA collaborates with rural banks (BPR) and corporations same line of business or community, and simultaneously
to pursue loan channeling to micro segment. The strengthen the BCA business ecosystem.
Bank also began partnering with fintech companies in
providing loans to their potential business partners. Our
loan products, schemes, and programs are offered at
competitive interest rates.
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The Bank constantly exercises prudence in its lending. BCA markets its cash management through close
The commercial and SME loan portfolio grew with relationships with business communities, including
sound credit quality. Loan disbursements were focused groups of companies related to one another through
on quality debtors with a strong track record and their business chain from suppliers to distributors.
good business prospects. The credit process adheres to Business communities managed by our cash management
disciplined risk management principles. The NPL level for include the capital market, futures market, oil and gas,
commercial and SME loans was 1.4%, compared to 1.6% e-commerce and telecommunications.
the previous year.
In the capital market community, BCA manages
Integrated Cash Management Service relationship with 93 securities companies, representing
Cash management services are an important part of BCA’s almost 50% market share of capital market funds. In
robust integrated transaction banking platform. The Bank 2019, we developed electronic account opening which
continuously improves its cash management solutions in accelerated the number of investor fund accounts (RDN)
payment, collection, liquidity and account management. in our portfolio, and provided value added to securities
The number of commercial and SME customers that use companies as our partners and the Indonesian Central
the Bank’s cash management solution continues to grow, 3ECURITIES $EPOSITORY +3%)
and reached more than 180,000 companies by the end
of 2019, with the number of transactions exceeding 300
million, valued at more than Rp5,000 trillion.
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COMMERCIAL AND SME BANKING
In the community of oil and gas stations, we are MADE "0*3 +ETENAGAKERJAAN PAYMENTS THROUGH THE "ANK
partnering with market leader Pertamina. More than with total transaction value of more than Rp10 trillion.
80% of Pertamina’s outlets in Jakarta are BCA merchants. !S FOR "0*3 +ESEHATAN "#! FACILITATED MORE THAN
These stations use our network for processing payment CUSTOMERS TO MAKE "0*3 +ESEHATAN PAYMENTS WITH TOTAL
to their principals. In the same community, the Bank transaction value of more than Rp2 trillion. In 2019, BCA
PROVIDES mEET CARDS AS A CASH SUBSTITUTE TO SERVE MICRO developed a payment channel through m-BCA mobile
payment needs during the distribution of fuel (BBM) from BANKING FOR "0*3 +ESEHATAN
Pertamina storage to the gas stations (SPBU). The Bank
recently developed application programming interface BCA’s API services have been utilized by more than 1,600
(API) and virtual accounts (VA) for Pertamina’s customers customers, more than double compared with 2018. We
to make payment using MyPertamina business apps. expect the number will continue to increase along with
the development of our API services and the growing
BCA is exploring the possibility of partnering with number of technology-based users. Through the API
EduTech (education technology) institutions and its platform, fintech and e-commerce companies are able
communities, including teachers, lecturers, students and to connect directly with our banking services. Combined
parents. This is in line with the Indonesia Payment System with our virtual account facility, the API platform is
(IPS) 2025 designed by Bank Indonesia, whereby banks expected to strengthen BCA’s payment franchise.
are encouraged to collaborate with fintech companies.
We see that the role of cash management services will
In the public service sector, BCA cooperates with the be even more important to support the growth of
Social Security Administering Body of Employment (BPJS CASA funds and fee-based income in the future. Cash
+ETENAGAKERJAAN AND 3OCIAL 3ECURITY !DMINISTERING "ODY management services are essential to support the Bank’s
OF (EALTH "0*3 +ESEHATAN -ORE THAN CUSTOMERS comprehensive banking transaction services, especially in
the commercial and SME segments.
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Future Development Plans In cash management services, BCA seeks to acquire
Commercial and SME lending will focus on prospective customers through tapping potential communities and
sectors and customers with strong track records. We will expanding API collaborations, including with fintech
continue to pursue data optimization to explore new and industry aggregators. We encourage customers to
business potential, the implementation of segment-based transform their manual-base transactions into electronic
service models, and credit infrastructure improvement. transactions leveraging on a wide range of our products
and services.
BCA seeks to strengthen relationships with customers
through comprehensive banking services. Particularly in
the commercial and SME segment, the Bank is increasing
synergy between lending and cash management services.
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INDIVIDUAL
BANKING
Supported by a large customer Rapid technological developments have brought forth
base, BCA is well-positioned to changes in customer lifestyles and preferences, as well as
the demand for financial services. To remain competitive,
expand its products and services banks need to offer comprehensive individual banking
to cater to the needs of today’s services tailored to each specific customer segment.
customers. Digital account opening Supported by a large customer base, BCA is well-
positioned to expand its products and services to cater
which was launched in April 2019
to the needs of today’s customers. The growth of the
recruited 450,000 new customer individual banking segment continues to show promise,
in line with the growing income of Indonesia’s middle
to the Bank’s customer accounts class.
growth of 14.2% in 2019. Quality Individual Banking Solutions and
Services
BCA has always been the top of mind among the country’s
middle income segment for individual banking products
and services. Individual banking remains one of BCA’s
main pillars in maintaining customer trust and loyalty.
Individual Banking Consumer Loans Portfolio
in 2019 (in trillion Rupiah)
Consumer Loan Portfolio 82.1
78.8
Rp 132.6 trillion
73.0
38.3 40.0
36.5
Number of Accounts
9O9 12.9 14.1
11.5
14.2 % 2017 2018 2019 2017
Mortgage
2018
Vehicle Loans
2019 2017
+ARTU +REDIT
2018 2019
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BCA focuses on enhancing its product offerings to marketing activities has allowed BCA to recruit 450,000
individual customers, including, among others: mortgage new customer accounts through this online facility,
loans, vehicle loans, credit cards, savings accounts, and contributing significantly to the Bank’s customer accounts
wealth management products such as bancassurance growth of 14.2% in 2019.
and investments. The Bank maintains a reliable and
convenient payment platform for individual customers Priority and Solitaire Banking
BY PROVIDING DIGITAL CHANNELS SUCH AS +LIK "#! )NDIVIDU Since 1996, BCA has offered Priority banking for premium
(internet banking) and BCA Mobile (mobile banking), as customers, and in 2009 launched BCA Solitaire for High
well as through the branch network. Moreover, the Bank Net-Worth Individual (HNWI) customers. Both services
has developed a customer relationship management carry premium benefits such as exclusive banking
system to improve its understanding of the dynamic products and services, communication platforms, and
needs of our loyal customers special, dedicated branches and lounges.
BCA launched an online account opening facility through BCA offers 175 Prioritas branches throughout Indonesia,
BCA Mobile in April 2019. This strategic initiative has with specially-trained staff to provide convenient banking
proven effective in increasing our individual customer services for Prioritas customers. Customers also get special
base. The combination of convenience and effective access to a premium 24-hour call center, HaloBCA Prioritas.
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INDIVIDUAL BANKING
As for Solitaire customers, the Bank has prepared two Quality Consumer Credit Financing
Solitaire lounges for business and transaction banking During the past decade, BCA’s consumer loans have
NECESSITIES LOCATED IN 4HAMRIN AND +ELAPA 'ADING BOTH grown at a compounded annual growth rate (CAGR) of
premium areas of Jakarta. In 2019, BCA increased the 17.0%. Throughout 2019, they grew by 0.7% to Rp132.6
number and competency of its relationship officers/ trillion. This was mainly supported by the mortgages and
personal bankers to provide higher quality services to credit cards loan portfolio, while automotive financing
customers. This capacity development was carried out slowed down as the car and motor cycle industry has
through the provision of interaction skills, products and faced greater challenges in recent years.
services knowledge, and a deeper understanding of
customer needs. Mortgages (KPR BCA)
In the past, mortgage financing was primarily a product
BCA also collaborates with reliable business partners for customers who needed financing to purchase a
to offer exclusive programs in healthcare, education, house or apartment. Over time, mortgage products have
business networking, travel, and lifestyle. The Bank been developed not only to provide financing for home
also provides communication and interactive channels purchases, but also to finance business expansion in
THROUGH THE /NLINE "USINESS &ORUM SERVICE WHICH IS the form of home equity financing. As of today, home
available on the Prioritas Website. equity financing contributes almost 45% of BCA’s total
mortgage portfolio.
Periodically, the Bank holds the BCA Young Community
(BYC) forum to reach out to the upper segment’s younger BCA remains optimistic about the long term prospects of
generation. The forum can be utilized to exchange the property sector, despite the currently weak property
information and ideas related to business development, market. We believe mortgages will continue to grow
technology, and leadership, as well as to expand business as housing remains a primary need, and mortgage
relationships.
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penetration in Indonesia is still relatively low. Also, the Vehicle Loans (KKB)
Bank’s large customer base provides a huge opportunity 4HE "ANK MANAGES TWO SUBSIDIARIES "#! &INANCE "#!&
to offer mortgages to quality customers. Additionally, AND "#! -ULTI &INANCE "#!-& THAT PROVIDE VEHICLE
mortgages have a relatively longer credit term, therefore lNANCING 4HIS IS DONE THROUGH JOINT lNANCING ALLOWING
creating an opportunity for the Bank to provide other the subsidiaries to maintain stable funding structures and
financial products to these customers. offer competitive pricing. The Bank and its subsidiaries
ALSO DEVELOPED A JOINT MARKETING STRATEGY TO SUPPORT
In 2019, BCA booked mortgage growth of Rp3.3 trillion, vehicle financing loan bookings and expand the customer
a 4.2% increase from the previous year. The mortgage base.
portfolio made up 61.9% of the Bank’s total consumer
loans. Sustained loan growth has propelled the Bank Over the past few years, the automotive industry has
to become one of the largest mortgage providers in experienced stagnant growth, and started to decline. In
Indonesia, with a market share of 18.0% of overall 2019, sales of four-wheelers totaled 1.0 million units, a
mortgages in the country. 10.5% decrease from 2018. The same occurred with the
sales of two-wheelers, which were stable at 6.5 million
The achievements above are supported by BCA’s units.
promotional programs with attractive interest rates and
SPECIAL EVENTS &OR THE "ANKS nd anniversary, it held a Amid the challenges faced by the automotive industry,
BCA Expoversary which offered various promotions on BCA’s vehicle financing performance was relatively tepid.
individual banking products, ranging from mortgages and By the end of the year, the Bank’s four-wheeler credit
vehicle loans to savings products such as Tahapan Xpresi PORTFOLIO JOINT lNANCING OF "#! AND "#!& REACHED
AND 4AHAPAN "ERJANGKA 4AHAKA 4HE EVENT WAS HELD IN Rp45.4 trillion, relatively stable from the previous year,
THE MAJOR CITIES OF )NDONESIA INCLUDING 'REATER *AKARTA WHILE TWO WHEELER lNANCING JOINT lNANCING OF "#!
Surabaya, and Palembang. During the event, the Bank AND "#!-& DECLINED TO 2P TRILLION A DECREASE
offered special mortgage rates starting from 5.62% fixed from 2018.
rate for one year to 7.62% fixed rate for five years, as well
as other special rates. Our mortgage products were also BCA continues to manage loan quality through
offered in other events in Medan and Denpasar. These implementing various policies, including high down
events have been successful in attracting strong demand payments, prioritizing financing for the most popular and
for mortgages and other individual banking products. successful vehicle brands, and enhancing the effectiveness
of its collection process. The NPL ratio for four-wheeler
BCA continues to improve its loan infrastructure by and two-wheeler financing was higher than last year,
leveraging data-based analysis and process automation. standing at 1.1% and 3.6% respectively.
These initiatives aim to improve the speed and quality of
the Bank’s services, which is one of the most important Given the high NPL booked by two-wheeler financing,
factors in business growth. The growth in mortgages "#!-& CONTINUES TO REVIEW ITS BUSINESS MODEL ON TWO
was driven by our large customer base, and facilitated wheeler financing, while starting to offer financing for
by our extensive branch network and consumer loan used cars because of the relatively large market potential
CENTERS IN MAJOR CITIES IN )NDONESIA -OST OF THE MORTGAGE and possible market expansion outside the Greater
applications were processed from branch referrals, Jakarta area.
and the rest supported by collaboration with property
developers and agents. In order to ensure loan quality, To support the growth of vehicle financing, BCA and
BCA maintains its mortgage disbursement to quality its subsidiaries strive to improve the quality of the loan
customers. In 2019, the Bank’s NPL ratio for mortgages approval process, and foster good relationships with
was 1.0%, relatively low compared to that of the industry. automotive dealers and showrooms. The Bank develops
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INDIVIDUAL BANKING
products and services that are tailored to customer needs, Wealth Management Products and Services
along with attractive promotional programs. The need for investment products, such as insurance
and other wealth management services, has grown
&URTHERMORE "#!& HAS DEVELOPED A MOBILE PLATFORM significantly along with the growth of Indonesia’s middle
based application to support the financing process, class. BCA utilizes this opportunity by providing valuable
interact with partners and provide information about wealth management products and services by developing
PRODUCTS "#!-& CONTINUES TO EXPAND ITS MARKETING its own products through subsidiary companies or by
coverage, and use media promotions, as well as its mobile collaborating with other partners.
app to ensure more efficient loan processing.
BCA collaborates with many credible insurance providers,
BCA provides a weekend banking service that can be including AIA and Prudential. The Bank also creates
accessed by customers on non-workdays to meet their synergy with its insurance subsidiaries, BCA Insurance
vehicle financing needs. Customers wishing to inquire and BCA Life. Currently, the Bank has formed a strategic
about information on vehicle financing products can partnership with AIA in providing life insurance products
access the HaloBCA call center service. To facilitate the such as retirement plans for individuals and protection
payment of installments for four-wheeler financing, products for corporate and commercial customers.
we offer payment channels such as auto debit, virtual
accounts, and ATM services. BCA collaborates with 9 leading investment managers
in Indonesia to offer mutual fund investment solutions.
BCA Credit Card The Bank markets these investment products through
BCA is one of the leading credit card providers in attractive promotional activities, and has launched
Indonesia. The credit card business made a positive auto-subscription and product switching features
contribution to banking transactions in 2019, and is one digitally. BCA is one of the leading banks supporting
of the main contributors to the Bank’s fee-based income. government programs by becoming a main dealer for
One of its well-known credit card products is the BCA retail government bonds (ORI), Islamic retail bonds (SR),
Card, which is the only proprietary card or local private retail savings bonds (SBR), and Islamic savings bonds (ST).
label in Indonesia that is not affiliated with other local or
international networks. In 2019, BCA had total assets under management
of Rp40.5 trillion, a 37.7% increase from 2018. The
In 2019, BCA had 4.0 million credit cards in circulation, a Bank strengthened its wealth management service
11.6% increase from the end of 2018, with transaction infrastructure by recruiting more wealth specialists
value reaching Rp78.5 trillion and a market share of to provide information about investment products
22.9% as at year-end. The outstanding amount of the at branches. Additionally, the Bank focused on the
Bank’s credit card portfolio was Rp14.1 trillion, a 9.4% development of data analytics and digital-based
increase from the previous year, with sound loan quality supporting service applications.
AS REmECTED BY A .0, RATIO OF
BCA introduced the Welma application in October 2019,
The credit card business was supported by the growth of allowing customers to have easy access to investment
the middle-income segment in Indonesia. Our extensive products such as mutual funds, bonds and bancassurance.
network, including a large electronic data capture (EDC) The application enables customers to buy or sell
network, has contributed significantly to the expansion investment products, monitor investment portfolios, and
of BCA’s card business. search for information about insurance products. BCA
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
believes Welma’s investment options can accelerate the BCA will enhance the capabilities of its relationship
expansion of its wealth management business, which is managers and leverage information technology to
one of the sources of its fee-based income growth. provide suitable service solutions that fit customer profiles
and needs. This will involve leveraging its data processing
Future Development Plans capability using analytic tools, both for quantitative and
BCA continues to focus on maintaining its current qualitative data.
relationships and expanding the individual banking
products portfolio of its existing customers. At the same The Bank will further strengthen its transaction banking
time the Bank will actively acquire new customers. The engine to serve individual customers, as reliable and
next developments of its individual banking infrastructure convenient banking services are important to support
and business initiatives are to be carried out in line with consistent CASA growth in the individual segment.
evolving customer needs.
BCA believes that the need for individual banking
products and services will grow significantly in line with
Indonesia’s growing middle and professional classes.
Therefore, the demand for mortgages, vehicle loans,
bancassurance, wealth management services, and other
financial products is expected to grow healthily over the
next few years.
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TREASURY AND
INTERNATIONAL BANKING
42%!3529
BCA Treasury manages liquidity
As a leading transaction bank and reliable loan provider,
prudently by always maintaining a
BCA always maintains its solid liquidity position to meet
balance between tenors, returns customer needs at all time. BCA Treasury manages liquidity
and risk levels for each investment prudently by always maintaining a balance between
opportunity. tenors, returns and risk levels for each investment
opportunity.
BCA provides international banking
In 2019, placement of the Bank’s treasury assets is
services, covering cross border
balanced between liquidity management and target of
return. BCA invested its excess liquidity both in shorter
are developing these services in
and longer tenor instruments. Treasury constantly adheres
line with customer needs and their to prudent principles and disciplined risk management in
business growth. accordance with the Bank’s risk appetite.
Treasury and International Banking Treasury Portfolio
in 2019 (in trillion Rupiah)
Investment funds managed by 189.3
Treasury (Treasury Portfolio) 162.4
147.1 41.2
Rp 189.3 trillion
37.8
70.6
42.0
79.6
58.3
Treasury Portfolio growth
9O9 54.0
68.5
46.8
28.7 %
2017
Bank Indonesia
2018
Government
2019
Other Marketable
Instruments Bonds Securities
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Prudent Liquidity Management Against this backdrop, Bank Indonesia lowered its seven-
In managing its liquidity, BCA Treasury always pays day reverse repo rate by 100 basis points (bps) during
attention to macroeconomic changes, both global 4HIS WAS SUPPORTED BY BENIGN INmATION OF
and domestic, as well as the outlook of the Indonesian compared with 3.1% in 2018, and the relatively stable
banking sector. In 2019, the global economy experienced Rupiah. The rate cuts were tied in with a lower bank
decelerating growth which saw several central banks cut reserve requirement ratio from 6.5% to 5.5% and two-
their policy rates. This reversed the trend of 2018 where sided monetary operations by carrying out repo and
INTEREST RATES TENDED TO INCREASE #APITAL OUTmOW FROM reverse repo auctions. Along with moderate loan growth
Indonesia was not as high as the previous year thanks in the banking sector, these monetary measures brought
to international rating agency upgraded Indonesia’s an improvement in sector liquidity throughout 2019.
investment rating from BBB-/ Outlook Stable to BBB/
Outlook Stable.
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TREASURY AND INTERNATIONAL BANKING
Treasury regularly reviews appropriate pricing for the Bank Indonesia term deposits and certificates, and reverse
time deposit portfolio, taking into account the growth repo securities. Longer-term investments are placed in
rate of core CASA funds. The Bank’s CASA grew 9.8% in government bonds, corporate marketable securities, and
2019, outpacing its loan growth of 9.1%. BCA gradually QUALITY MUTUAL FUNDS THE MAJORITY OF WHICH HAVE A TENOR
reduced its time deposit rates, responding to an ample below five years.
internal liquidity position and the latest interest rate
environment. In managing investment in government bonds, purchase
time is essential to optimize portfolio yield. As the market
Investments managed by BCA Treasury amounted to saw signs of declining rates at the beginning of 2019, BCA
Rp189.3 trillion at the end of 2019, an increase of 28.7% proactively purchased fixed-rate government bonds with
compared to Rp147.1 trillion the previous year, a sizeable a relatively high return.
portfolio which accounted for 20.6% of BCA’s total assets.
BCA also placed its foreign exchange liquidity at Bank
The Bank’s excess liquid funds are invested primarily in Indonesia while conducting swap transactions to
risk-free instruments issued by the government and Bank mitigate foreign exchange risk. Revenue from swap
)NDONESIA &OR SHORT TERM INVESTMENT WITH LESS THAN ONE premium is recorded as trading income under account
year tenor, BCA placed most of its excess liquidity with of realized gains from spot and derivative transactions,
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
and unrealized gains from the fair value of financial distributor and won AsiaMoney’s award as a leading
assets held from trading. This investment arrangement bank in the Indonesian financial market trade. In 2019,
was taken on the back of the Bank’s solid rupiah liquidity the Bank facilitated total sales of IDR 10.7 trillions in the
position, and in line with the growing demand in the primary market which consists of Indonesian retail bonds
foreign exchange hedging market. Overall revenue from (ORI), retail saving bonds (SBR), retail sukuk (SR) and
trading income grew by 14.2% to Rp2.4 trillion. sukuk savings (ST). BCA now offers an alternative sales
channel through internet banking for a higher level of
Supported by loan growth and higher earning asset yield, service and convenience for customers.
BCA recorded a net interest margin (NIM) of 6.2% in 2019,
slightly higher than 6.1% in 2018. To complement its capital market products, BCA
Custodian offers securities safekeeping and mutual
Treasury Banking Solutions fund administration for both institutional and
BCA continues to be a reliable provider of treasury individual customers. Custodian ensures the assets
products and services to fulfil customer needs including under management will be administered properly and
foreign exchange transactions, capital markets and safely, as well as ensuring all rights of the owner of the
custodian services. Treasury works closely with other assets are delivered, such as receiving dividends or bond
business units and branch front liners to render high coupon payments. Custodian recorded total assets under
quality services. management of Rp132.8 trillion and total securities
accounts of more than 94 thousands in 2019. The type
Leveraging on information technology, BCA proactively of securities it manages include shares, government
educates customers to use digital channels such as bonds, corporate bonds, deposits, mutual funds and
internet and mobile banking by offering an e-rate facility fund management contracts. It also provides securities
for online foreign exchange transactions at a competitive safekeeping services in foreign currencies.
EXCHANGE RATE &OR CORPORATE CUSTOMERS THE "ANK
provides foreign exchange transaction facilities through INTERNATIONAL BANKING
ITS INTERNET BASED BUSINESS BANKING +LIK"#! "ISNIS BCA provides international banking services, covering
including direct access to Treasury sales desk as well as cross border remittance and trade finance. We are
application programming interface (API) to connect developing these services in line with customer needs and
business to business (B2B) with e-commerce and fintech their business growth.
companies, utilize latest technology to manage foreign
exchange transaction services and operational efficiency. BCA International Banking actively develops strategic
collaborations with banks across the globe including with
To support the government fundraising, BCA facilitates ASEAN banks (AEC Market) along with the increasing
the sale of government bonds to retail investors, at mOW OF TRADE IN THE REGION AND BANKS IN THE 3OUTH 3OUTH
the same time offering a broader range of investment corridor (emerging countries). Under the collaboration,
products to customer. BCA received acknowledgement BCA taps opportunities to offer banking solutions for
FROM THE -INISTRY OF &INANCE FOR BEST MAIN DEALER AND foreign investors entering Indonesia.
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TREASURY AND INTERNATIONAL BANKING
Trade Finance Services Remittance Service
BCA provides a wide array of trade finance products BCA International Banking developed various initiatives
and services, including letters of credit (LC), document to provide suitable solutions to fulfil the needs for
collection and bank guarantee/standby LC, where each remittance services. In this regard, the Bank leverages
product has various facilities according to customer needs on its extensive correspondent bank network, improved
remittance products and services, and utilized latest
Lower commodity prices and reduced business activities technological developments.
among Indonesia’s business partners, put pressure on
Indonesia’s trading activities. Despite these challenges, The Bank has proactively established partnerships
BCA strives to maintain positive growth in trade finance with various correspondent banks globally to improve
volume by deepening relationships with customers, customer experience by providing multicurrency
while exploring broader opportunities and pursuing remittance services in 124 foreign currencies around the
a community based approach within the value chain. world. As value added, BCA offers same-day remittance
On the domestic trade side, we saw increasing volumes services to Australia in Australian Dollar and to China
particularly in the steel, coal and forestry industries. in USD or Yuan, and remittance in Euro can be received
in the full amount. The Bank also continues to build
Last year BCA, Bank Negara Malaysia and Bank of Thailand partnerships with money transfer operators and leading
implemented local currency settlement cooperation and international fintech companies to improve the capability
obtained the role as a member of the Appointed Cross of its remittance services.
Currency Dealer (ACCD). As part of this program, BCA
facilitates international trade transactions with Malaysia &OR INWARD REMITTANCES THE "ANK DEVELOPED &IRE #ASH
and Thailand using respective local currencies. A number "#! &INANCIAL )NSTITUTION 2EMITTANCE #ASH "#! A WEB
of corporate customers in Indonesia and those countries based remittance service connected by an extensive
have used the local currency settlement services. correspondent banks’ network. The disbursement of
INWARD REMITTANCE FUNDS SENT THROUGH &IRE #ASH "#! IS
&URTHERMORE IMPROVING PROCESS EFlCIENCY IS ALWAYS served through various channels in Indonesia including
on our agenda. This was carried out by leveraging the Bank’s branch network and in collaboration with
artificial intelligence (AI) technology for the document domestic partners such as post offices and convenience
investigation process, and robotic process automation stores. It also serves disbursement of fund remittance by
(RPA) to reduce manual processes. BCA also continues to overseas partners such as MoneyGram, Xpress Money and
improve the capabilities of its human resources to adapt 4RANS&AST
in the changing business environment. Supported by a
large customer base and internal collaboration with other
business units, the trade finance business is expected to
continue contributing to the Bank’s fee-based income in
the future.
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Future Development Plans
Moving into 2020, we maintain cautious on liquidity
outlook, therefore the Bank’s liquidity position will be
MANAGED PRUDENTLY TAKING INTO ACCOUNT LIQUIDITY mOW
and interest rate trends in the country and globally.
BCA Treasury and International Banking monitor global
macroeconomic developments and changes in market
trends along with the latest technological advances. BCA
will always seek new product and service development
such as hedging and new investment products, and
target raising the level of services to match international
standards in order to increase its level of competitiveness
and capture business opportunities. We are determined
to stay relevant and meet growing customer needs for
foreign exchange transactions, capital markets, trade
finance, remittances and custodian services. The Bank will
also improve its services and internal processes leveraging
on information technology.
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Business Support
RISK
MANAGEMENT
RISK MANAGEMENT FOCUS IN 2019
BCA always pays close attention to the business landscape
dynamics to set strategy for long term business growth.
BCA continues to promote
Along with this, BCA constantly adopts prudent
discipline in risk management banking principles by following the ground rules in risk
in response to the changes management and complying with banking regulations.
in organizational, regulatory, In 2019, the Bank’s risk management focus was on
information technology and credit quality and liquidity, and operational risk as the
transaction banking landscape started to evolve due
environmental conditions, in order to the entrance of e-commerce and fintech. In the
to provide added value to the anticipation of Rupiah fluctuations due to the dynamics
of the economy, BCA took precautionary steps to manage
company.
foreign currency exposure in alignment with its risk
appetite limits.
BCA conducts periodical stress tests to evaluate the
BCA acknowledges the inherent risks in the banking impact of adverse changes in macroeconomy conditions
business as operational practices become more complex. on capital, liquidity, asset quality and earnings based
To manage these risks, BCA applies an integrated risk on adverse scenarios. The stress test results suggested
management system covering the risks that BCA and its the Bank has adequate capital and liquidity under
subsidiaries are exposed to. BCA has implemented an unfavorable scenarios.
Integrated Risk Management Framework, comprising a
strategy, organizational structure, a set of policies and The Bank uses risk parameter modeling such as probability
procedures, and all relevant infrastructure to ensure of default (PD), lost given default (LGD) and exposure at
potential risks are properly identified, measured, default (EAD) components to calculate the allowance
monitored, controlled, reported and resolved. of impairment losses (CKPN), according to the Financial
Accounting Standards Guidelines (PSAK) 71 that will be
In response to organizational development, regulatory implemented on January 1, 2020 replacing PSAK 55. PSAK
changes, and the business environment, BCA adjusts 71 is calculated on an expected loss basis, which requires
its internal risk management policies to adhere to the the booking of allowance of impairment losses from the
regulations and international best practice. BCA also beginning of the credit period, including unused loans.
promotes risk awareness to its employees through risk The application of PSAK 71 generates a higher amount
management training for all working units. of CKPN compared to the PSAK 55, since new reserves are
made right after any payment delay.
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Credit Quality To address the risk of deterioration in asset quality, BCA
Given moderate economic growth, BCA continues to also implements an early warning system that monitors
review debtors’ business resilience and the possible changes in debtor repayment ability and enables the
impact on credit quality. BCA implements disciplined risk Bank to take preventive measures in minimizing potential
management by balancing loan growth and quality. By NPLs. The assessment of debtors’ repayment capability
the end of the year, BCA’s NPL ratio stood at 1.3%, lower involves reviewing their financial and business conditions
than the industry average and still within the Bank’s risk to identify any difficulties in their operations.
appetite limits.
In 2019, the loan provisions expenses were IDR 4.6 trillion
higher than the IDR 2.7 trillion in the previous year, in
line with the increase in non-performing loans. The ratio
of loan loss reserve to non-performing loans is adequate
at 189.2%.
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Restructured Loan Outstanding (non consolidated, in billions Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Performing Loan 6,506 5,650 4,371 856 15.2% 1,279 29.3%
Current 3,145 2,903 3,141 242 8.3% (238) -7.6%
Special Mention 3,361 2,747 1,230 614 22.4% 1,517 123.3%
NPL 2,642 2,336 2,197 306 13.1% 139 6.3%
Substandard 895 1,168 726 (273) -23.4% 442 60.9%
Doubtful 208 173 274 35 20.2% (101) -36.9%
Loss 1,539 995 1,197 544 54.7% (202) -16.9%
Total Restructured Loan 9,148 7,986 6,568 1,162 14.6% 1,418 21.6%
Total Loan Portfolio 588,251 537,914 467,620 50,337 9.4% 70,294 15.0%
% Restructured Loans to Total Loans Portfolio 1.6% 1.5% 1.4% na na na na
As part of prudential banking practice, BCA proactively approaches debtors that experience payment difficulties yet
have promising business prospects by way of loan restructuring. The restructured loan portfolio in 2019 saw an increase
mainly in the performing loans category (collectability 1 and 2).
BCA diversifies lending across potential sectors to manage concentration risk. The table below shows the loan distribution
to the top 10 industry sectors whereby each of them was below 10% of total credit.
Top 10 Industry Sectors in Corporate, Commercial and SME Segment (based on the Bank’s internal classification)*
2019 2018 2017
Financial Services 7.8% 8.0% 5.6%
Plantation and Agriculture 7.4% 7.5% 7.9%
Building Material and Other Construction Related 6.7% 6.7% 6.8%
Distributor, Wholesaler and Retailer 6.2% 6.6% 7.6%
Properties and Construction 5.4% 5.2% 5.0%
Automotive and Transportation 5.1% 5.0% 5.7%
Food and Beverages 4.4% 4.5% 4.9%
Textile and Garment 4.3% 4.5% 4.5%
Power Generation 4.3% 3.7% 4.0%
Chemicals and Plastics 4.2% 4.2% 4.4%
Total 55.8% 55.9% 56.4%
* Excluded consumer and employee loans
Note: The above loan categories are based on industry sectors used internally by BCA, different to the loan groupings in the Commercial Bank Report which is based on
regulator’s criteria.
BCA’s loans are dominated in Rupiah currency, in line The Bank continues to look at specific sectors as
with the Bank’s majority source of funding (third party opportunities for lending, while at the same time
deposits). Foreign currency loan facilities are only remaining cautious about sectors that are likely to come
available to customers with foreign currency as their under pressure. Over the past few years there have been
primary income. pressures on automotive industry, however this sector did
not affect BCA’s overall performance as the Bank was able
In terms of infrastructure loans, BCA continues to to maintain relatively a stable auto financing portfolio.
focus on projects with good credit worthiness and at In addition, BCA has developed a used car financing to
the same time applies prudent risk management. BCA support its consumer lending.
provides syndicated loans with other banks to finance
infrastructure projects.
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Liquidity and Capital Position Operational Risk
BCA maintains an adequate liquidity position and With transaction banking as the Bank’s core business,
monitors the balance between short-term obligations operational risk becomes a crucial part of risk management.
and the availability of short-term funds. BCA ensures Operational risks arise from human errors, inadequate
the adequacy of liquid and low-risk short-term funds, internal processes, system failures, and/or external
especially in the placement of Bank Indonesia risk-free events. BCA implements operational risk management
securities. through Operational Risk Management Information
System (ORMIS), a web based application that consists
Most of the liquidity comes from solid current and savings of risk control self-assessment, loss event database, and
account (CASA) funds with lower interest. In 2019, CASA key risk indicators. BCA is also building an Integrated Risk
grew 9.8% to Rp530.6 trillion and contributed 75.9% of Management Information System (IRMIS) application, a
BCA’s total third party funds. technology-based information system which generates a
risk profile report (BCA LPR), integrated risk profile report
BCA’s loan to deposit ratio was healthy at 80.5% and (LPRT) and integrated capital adequacy report (LKPT).
below the industry average. The liquidity coverage ratio
(LCR) and net stable funding ratio (NSFR) were solid at BCA always strives to improve coordination amongst
276.3% and 157.7%, respectively. To maintain the overall working units to develop and improve working processes.
position of third party funds, BCA proactively reviews Through such coordination, BCA enhances its control and
the appropriate deposit fund interest rate according to mitigation over operational risks both internally and
liquidity conditions. externally. The Bank conducts socialization of operational
risk management implementation to employees across all
Capital Position working units to promote a culture of risk management.
BCA maintains adequate capital for the sustainable
growth of its business and that of its subsidiaries. BCA Going forward, the use of information technology has
booked a strong capital adequacy ratio (CAR) of 23.8% in an important role in managing operational risk. In line
2019, on the back of healthy profitability that supported with the OJK regulation on the implementation of risk
organic capital growth. management in using information technology, BCA
has an internal IT policy taking into account reliability,
In compliance with POJK No.14/POJK.03/2017 concerning security, availability and timeliness in serving customers.
Recovery Plan for Systemic Banks, BCA issued Rp500 Operational risk management aims to prevent losses and
billion of subordinated bonds with capital characteristics protect the Bank from cybercrime.
in 2018.
To support the sustainability of the business, BCA runs
Exchange Rate Risk two parallel data centers to maintain the security and
In the midst of Rupiah volatility due to global economic reliability of transaction banking operations. BCA also
challenges, BCA successfully managed the exposure established a disaster recovery center (DRC) in one of
of foreign currency risks as reflected in the net open the data center locations as an integral part of business
position (NOP) ratio of 0.9% by year end, or well below continuity management. The DRC is designed to be a
the regulator’s maximum limit of 20%. crisis and command center in the event of a disruption or
natural disaster.
BCA constantly monitors foreign exchange transactions
to comply with internal policies and regulations imposed
by BI and OJK. All transactions through branches are
closely monitored, recorded and reported to the Bank’s
treasury division, which oversees all foreign exchange
transactions. Each branch is required to cover its foreign
exchange risk on a daily basis in accordance with the
agreed NOP tolerance limit.
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INTEGRATED RISK MANAGEMENT In accordance with Financial Services Authority Regulation
As the main entity of the BCA financial conglomerate, No.26/POJK.03/2015, at the holding level, BCA and its
BCA has an integrated risk management protocol to subsidiaries have an adequate minimum integrated
mitigate the risks in BCA as well as in its subsidiaries. BCA capital (minimum capital adequacy ratio - KPMM) ratio
monitors and manages 10 types of risks in accordance of 248.5%, above the specified minimum requirement of
with the Financial Services Authority. These consist of 100%.
eight previously managed: credit, market, liquidity,
operational, legal, reputation, strategic and compliance BCA carefully observes that the risk exposure of financial
risks, plus two others - intra transaction risk insurance conglomeration can be well mitigated and managed. The
groups and risks. implementation of of integrated risk management in
BCA refers to , four main pillars outlined in the following
table.
Four Pillars of Integrated Risk Management
1. Active supervision of BCA financial conglomerate by the s %NSURING THE IMPLEMENTATION OF
Board of Directors and Board of Commissioners of the - Integrated risk management in accordance with the
main entity characteristics and complexity of the BCA financial
conglomerate
- Risk management at each of the subsidiaries
2. Adequacy policies, procedures, and determination of s &ORMULATE POLICIES AND PROCEDURES AND LIMIT DETERMINATION
integrated risk management limits of integrated risk management, according to the Bank’s risk
appetite and risk tolerance
3. Adequacy of identification, measurement, monitoring s )MPLEMENT AN INTEGRATED RISK MANAGEMENT SYSTEM THAT
and control of integrated risks, as well as the integrated generates reports or information concerning:
risk management information systems - Risk exposure;
- Compliance with the implementation of integrated risk
management and comparison to the existing policies
and procedures
- Compliance with regard to limit determination
4. Comprehensive internal control system concerning the s )MPLEMENT AN INTERNAL CONTROL SYSTEM TO ENSURE
implementation of integrated risk management - Compliance with internal policies and regulations,
including prevailing legislation
- Availability of financial and management information
that is complete, accurate, useful and timely
- Effectiveness of risk culture at the overall financial
conglomerate organization
Further information about integrated risk management implementation can be found on page 168 – 169.
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INTERNAL CONTROL I.A. Active Supervision by the Board of
The implementation of BCA’s internal control system Commissioners and the Board of Directors
complies with circular letter of Financial Services 1. In carrying out its risk management
Authority No.35/SEOJK.03/2017 dated 7 July 2017 function, the Board of Commissioners
regarding Guidelines for Internal Control System has defined duties and responsibilities,
Standards for Commercial Banks. The implementation including:
of risk management and internal control systems is the s !PPROVING RISK MANAGEMENT POLICIES
responsibility of allmanagement and employee of BCA. including risk management strategy
Risk awareness continues to embedded at every level of and frameworks, implemented in
the organization and is an integral part of BCA’s culture. accordance with BCA’s risk appetite
and risk tolerance
BCA applies the concept of three lines of defenses for s %NSURING THE EFFECTIVE IMPLEMENTATION
risk management is conducted across all organizational and integration of the overall risk
lines and overseen, t by the Board of Commissioners and management policies and processes
the Board of Directors. The concept of the three lines of s %VALUATING
defenses is as follows: - Risk management policies and
s !LL BUSINESS UNITS AND OPERATIONAL UNITS SERVE AS THE strategies at least once a year,
first line of defense, which manages the risks related or on more frequent occasion if
to the work units . there are significant changes in
s 4HE 2ISK -ANAGEMENT 7ORK 5NIT 3+-2 AND THE factors affecting BCA’s business
compliance unit serve as the second line of defense, activities
monitoring the implementation of corporate risk - The responsibility of the Board
management policies and guidelines of Directors to ensures the
s 4HE )NTERNAL !UDIT $IVISION $!) AS THE THIRD LINE effective management of BCA’s
of defense, assigned to provide independent activities and risks and to ensure
assurance to the adequacy and effectiveness of risk the provision of guidance by the
management implementation at BCA. board of directors on improving
the implementation of risk
RISK ASSESSMENT OF BCA RISK PROFILE AND management policies on regular
SUBSIDIARIES basis.
Based on the self-assessment results in 2019 BCA’s risk - Requests from the Board of
profile individually and integrated with subsidiaries was Directors related to transactions
“low to moderate”. The risk profile level is the result require the approval of
of an assessment of the inherently “low to moderate” Commissioners and making
risk rating and a “satisfactory” implementation of risk decisions on such requests
management. 2. In carrying out the risk management
function, the Board of Directors has
DISCLOSURE OF RISK MANAGEMENT defined duties and responsibilities:
The disclosure of BCA’s risk management principles s ESTABLISHING COMPREHENSIVE AND FULLY
and risk exposure, including capital, refers to OJK documented d risk management
Circular No.43/SEOJK.03/2016 dated 28 September 2016 policy, strategy and framework,
regarding Transparency and Publication of Reporting for including overall or by-type risk limits,
Conventional Commercial Bank Reports. taking into account the BCA’s risk
I. BCA’s Application of Risk Management appetite and risk tolerance according
Guidelines for implementing BCA risk management to the condition of BCA and the
policies are based on POJK No.18/POJK.03/2016 impact of risk on capital adequacy.
dated 16 March 2016 on the Implementation of Risk After obtaining approval from the
Management for Commercial Banks, as follows: Board of Commissioners, the Board of
Directors sets the policy, strategy and
risk management framework
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s /RGANIZING ASSIGNING AND UPDATING between the risk management
- Procedures and tools for unit, which identifies, measures,
identifying, measuring, monitors and controls risks
monitoring and controlling risks with work units that conduct
- Transaction approval mechanisms, and complete the transactions,
including those that exceed limits measurement, monitoring and
and authority for each level of risk control, from the work units
position that carry out and complete
s %VALUATING ANDOR UPDATING transactions
the policies, strategies and risk s $EVELOP A RISK MANAGEMENT CULTURE
management framework at least once including risk awareness across all
a year, or at more frequent occasion levels of the organization, including
as necessary, if there any significant adequate communication to all
changes in factors affecting BCA’s levels of the organization regarding
business activities, risk exposure, and/ the importance of effective internal
or risk profile control
s %STABLISH AN ORGANIZATIONAL STRUCTURE s %VALUATING AND DECIDING ON
including clear authority and transactions that require the approval
responsibility at each level of position of the Board of Directors
related to the implementation of risk s #ONDUCTING PERIODIC REVIEWS TO ENSURE
management - Accuracy of the risk assessment
s 2ESPONSIBLE FOR IMPLEMENTATION OF RISK methodology
management policies, strategies and - Adequacy of implementation of
frameworks approved by the Board risk management information
of Commissioners and evaluating and system
providing guidance based on reports - Accuracy s of risk management
SUBMITTED BY 2ISK -ANAGEMENT 5NIT policies and procedures and risk
including risk profile reports limits
s %NSURING s $ECLARING WHEN "#! IS IN AN
- All material risks and impacts emergency condition and, if necessary,
from such risks have been the Board of Directors can request
followed up and have been the opinion of the risk management
submitted regularly to the Board committee (KMR), the assets and
of Commissioners, including liabilities committee (ALCO) or other
reports on progresses and issues related committee. underemergency
related of material risks-related conditions, control of authorities is
with corrective actions that have under the direct coordination of the
been, are and will be carried out. Board of Directors.
- Implementation of corrective 3. The active supervision of the Board of
actions towards problems or Commissioners and the Board of Directors
irregularities in BCA’s business (management) includes the following
activities identified by internal mechanism:
audit division. s 3UPERVISION BY THE "OARD OF
- Adequacy of human resource Commissioners is conducted in
support to manage and of accordance with their duties and
resources to manage and control responsibilities as stipulated in the
risk. articles of association and relevant
- Independent implementation regulations.
of risk management functions, s 4HE AUDIT #OMMITTEE THE RISK OVERSIGHT
which is reflectedamong others, committee, the remuneration and
in the separation of functions nomination committee, and the
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
integrated corporate governance of business development. BCA’s strategy
assist in the supervisory duties of the takes into account its impact on its capital,
boar of commissioner projected capital and the minimum capital
s 4HE "OARD OF #OMMISSIONERS MAINTAINS requirement (KPMM).
constructive communication with the
Board of Directors. I.C. Adequacy of the Risk Identification,
s 4HE "OARD OF #OMMISSIONERS ACTIVELY Measurement, Monitoring and Mitigation
provides recommendations to the Processes and Risk Management Information
Board of Directors in determining System
strategic actions that they believed 1. BCA has identified, measured, monitored
should be implemented and controlled risk as part of the process of
s 4HE SUPERVISORY DUTIES OF THE "OARD implementing risk management.
of Directors are assisted by the assets 2. risk exposure is monitored regularly by
liabilities (ALCO), credit policy, credit, SKMR by comparing the actual risk with
risk management, information the set risk limits.
technology steering, employment 3. Reports on risk trends, including BCA risk
case consideration, and integrated risk profile report, integrated risk profile,
management committees. and credit portfolio reports, and business
s 4HE "OARD OF $IRECTORS ACTIVELY plan progress are reported to the Board
engages in discussion, provides input of Directors regularly, accurately and in a
and monitors the internal conditions timely manner.
and the development of external
factors that directly or indirectly affect I.D. Comprehensive Internal Control System
BCA’s business strategy. The implementation of BCA’s internal control
system refers to Financial Services Authority
I.B. Adequacy of Risk Management Policies and (OJK) Circular Letter No.35/SEOJK.03/2017 dated
Procedures and Determination of Risk Limits 7 July 2017 on Guidelines for Internal Control
1. BCA has an adequate organizational System for Commercial Banks.
structure to support the implementation
of sound risk management and internal 1. BCA’s internal control systems guideline
control that consists of the internal audit consists of five components:
division, including DAI, SKMR, SKK, s -ANAGEMENT SUPERVISION AND RISK
risk management and integrated risk control culture
management committees. s 2ISK IDENTIlCATION AND ASSESSMENT
2. BCA’s risk management policy, as detailed s #ONTROL ACTIVITIES AND SEGREGATION OF
in the BCA’s plan and the annual budget duties
and work plan, is in line with the vision, s !CCOUNTING INFORMATION AND
mission, business strategy, capital adequacy, communication system
human resources competencies, and risk s -ONITORING AND CORRECTIVE ACTIONS
appetite of the bank. This policy is reviewed against
regularly and adjusted in line with both 2. BCA applies the concept of three lines of
internal and external development defense in the internal control system and
3. Policies, procedures and determination of risk management, involving all lines of the
risk management limits have been fully organization, with oversight by the Board
documented in writingand are regularly of Commissioners and Board of Directors.
reviewed and updated. The application of the concept is as follows:
4. In conducting its business activities, - The internal control are embedded in
BCA has developed a bank business each business or operational unit and
plan and annual budget and work plan are considered the first line of defense
that addresses BCA’s overall strategy its for risk management. These units are
overall strategy, including the direction charged with risk monitoring by their
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
internal control units at the branches, - The assessment and evaluation of
regional, offices and headquarters. the adequacy and effectiveness
- To support the implementation of of the internal control system is
internal control system, BCA has fully periodically reviewed by Internal
documented risk management policy Audit Division which is the third
(organizational structure, segregation line of risk management defense, to
of duties, risk limits, and others). BCA ensure that internal control has been
strongly encourages a risk culture and implemented adequately.
culture of compliance with regard to 3. All management and employees of
the applicable regulations that are BCA have the role and responsibility to
conducted and monitored by the Risk implement, adhere to and enhance the
-ANAGEMENT 5NIT AND #OMPLIANCE quality of BCA’s internal control system to
5NIT WHICH TOGETHER FORM THE SECOND be reliable and affective
line of risk management defense
Risk Management and Internal Control Organizational Structure
GENERAL MEETING OF SHAREHOLDERS
BOARD OF
COMMISSIONERS
BOARD OF DIRECTORS Remuneration and
Nomination
Asset & Liability
Committee (ALCO)
Committee
Credit Policy Anti Risk Oversight
Committee PRESIDENT DIRECTOR Fraud
Committee
Credit Committee
Risk Management Audit
Committee Internal
Committee
Audit1
Information
Technology
Steering Committee Integrated Corporate
Governance
Employee Relations
Committee
$%0549 02%3)$%.4 $%0549 02%3)$%.4 Committee
Integrated DIRECTOR2 DIRECTOR
Risk Management
Committee reporting lines
monitoring lines
communication lines
COMPLIANCE
35"3)$)!2)%3 CREDIT &
& RISK coordination lines
LEGAL
Central Capital MANAGEMENT
DIRECTOR
Ventura DIRECTOR3
BCA Sekuritas
Note:
1. Oversee internal audit/risk
BCA Finance Ltd. management/ compliance function
Hong Kong of subsidiaries in association with
Credit Credit Risk Enterprise
Legal Compliance1
Analysis Recovery Management1 Security integrated corporate governance
BCA Syariah
and integrated risk management
Asuransi application.
5MUM "#!
Credit Risk Market Risk Operational Business
Enterprise Risk 2. Deputy President Director oversees
Asuransi Jiwa Management Management Risk Continuity & Crisis
Management
BCA Management Management and coordinates management of
Bank Royal subsidiaries.
Indonesia
3. Compliance, Legal & Risk
BCA Multi
Finance Management Director oversees
subsidiaries risks as part of
BCA Finance integrated risk management.
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EFFECTIVENESS OF BANK RISK MANAGEMENT Risk Appetite
SYSTEMS The Bank defines risk appetite as the level and type of
In evaluating the effectiveness of the BCA risk risk which are willing to be taken in order to achieve
management system, the Board of Commissioners and its business objectives. The risk appetite set by BCA is
Board of Directors are assisted by committees under the reflected in the Bank’s business strategies and objectives.
Board of Commissioners and the Board of Directors.
Stress Test
These committees meet regularly to discuss and BCA regularly performed stress testing for a variety
provide input and recommendations to the Board of scenarios and deepening the factors and parameters
Commissioners and Board of Directors. in the tests. Scenarios in the implementation of stress
BCA also conducts regular evaluations on the following: tests consider macroeconomic variables such as interest
s !PPLICABLE POLICIES AND METHODOLOGIES FOR RISK rates, inflation rates, gross domestic product (GDP),
assessments exchange rates, fuel prices and others. The methodology
s !DEQUACY OF POLICIES PROCEDURES AND DETERMINATION used in conducting the stress test, in addition to using
of risk limits statistical models based on historical data, the stress
s !DEQUACY OF IDENTIlCATION MEASUREMENT test methodology also employs judgment methods
monitoring and mitigation of risks by considering qualitative risk factors. Stress testing
s %FFECTIVENESS OF A COMPREHENSIVE INTERNAL CONTROL is carried out in order to see the impact of changes
system. in macroeconomic factors on various key indicators,
including the NPL, profitability, liquidity and capital.
Evaluation and updates of policies, procedures and
methodologies are conducted regularly to ensure its BCA also conducts integrated stress tests with its
compliance to the applicable regulations and operational subsidiaries. The results of stress testing conducted for
conditions. Evaluation of the effectiveness of risk credit, market and liquidity risk have been satisfactory;
management is also conducted through regular reports and based on the scenarios built, the capital and liquidity
submitted to the Board of Commissioners and the board of the Bank are sufficient to anticipate the estimated
of directors. These reports include, among others,risk potential losses.
management policy implementation report, risk profile
report, risk update and other related reports. II. BCA Capital
Implementation of Basel Accords Capital Structure
The Bank continues to prepare for implementing the Basel BCA’s capital structure consists of:
III framework on bank capital and liquidity standards. BCA s "#!S CAPITAL STRUCTURE IS MOSTLY CORE CAPITAL OF
supports Basel III implementation in Indonesia, by taking Rp170.8 trillion, contributing 96.0% to BCA’s total
part in Quantitative impact study (QIS) exercise that capital
require the bank to calculate capital position, leverage s 3UPPLEMENTARY CAPITAL 4IER IS MAINLY A REQUIRED
ratio, NSFR, credit risk, market risk and operational risk. general allowance for productive assets (maximum
of 1.25% RWA credit risk). Supplementary capital
In 2017, BCA has been in compliance with the Net Stable was Rp7.1 trillion or 4.0% of total capital.
Funding Ratio (NSFR) regulation implemented by the OJK,
with regard to both reporting and the minimum ratio.
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Capital Components (in billion Rupiah)
2019 2018 2017
Total Capital 177,888 156,052 134,608
Tier 1 Capital 170,750 149,413 129,240
Tier 2 Capital 7,138 6,639 5,368
Risk Weighted Assets 721,917 651,532 570,459
(Credit, Operational and Market Risk)
Capital Adequacy Ratio (CAR) - consolidated 24.6% 24.0% 23.6%
Capital Adequacy Ratio (CAR) - non consolidated 23.8% 23.4% 23.1%
Management Policy on Capital Structure Basis for Management Policy on Capital Structure
BCA ensure an adequate capital position at into support BCA capital policies are dynamically adjusted in response
business development of the Bank and its subsidiaries. to business potential, while observing the prudence
BCA’s capital adequacy is calculated using the capital PRINCIPLE 5NDER /*+ PROVISIONS THE "OARD OF $IRECTORS
adequacy ratio (CAR) indicator. BCA has an adequate prepares capital plans as part of the Bank’s business plan
capital level with a CAR of 23.8%, above the minimum and obtains approval from the Board of Commissioners.
requirement according to the risk profile and inclusive The capital structure policy refers to OJK Regulation
of additional capital as a buffer. BCA has formed a No.11/POJK.03/2016 dated 2 February 2016 and No.34/
buffer in accordance with Bank Indonesia regulation POJK.03/2016 dated 26 September 2016 on the Minimum
provisions regarding systemic bank compliance to fulfill Capital Requirement for Commercial Banks.
a conservation buffer, a countercyclical buffer and capital
surcharge, with a total buffer of 5.0%. III. Disclosure of Risk Exposure and Implementation
of Risk Management
The Bank and all its subsidiaries have carried out The risk exposure faced by BCA and the
integrated stress tests using various scenarios, resulted in implementation of risk management strategies
changes to the level of NPLs and their effects on income, to minimize the impacts of the risks faced can be
liquidity position and capital position. In general, the summarized as follows.
stress test results show that the liquidity and capital
positions of BCA and subsidiaries. The results indicate the III.A. Disclosure of Credit Risk Exposures and
liquidity and capital position of BCA and its subsidiaries Implementation of Credit Risk Management
is adequate in anticipating losses from potential risks,
based on the scenarios prepared. Credit Risk Management Organization
BCA has developed a structured credit risk
BCA capital requirements can be fully met from the management process to support strong credit
growth of a healthy its financial performance. Most of principles with strong internal controls.
BCA’s net profit is retained to increase its capital each 1. The Board of Commissioners, approves
year. BCA for the first time issued debt securities in 2018 the Bank’s credit plans and oversees its
in the form of subordinated bonds, as part of a recovery implementation, approves its basic credit policy
plan to fulfill its obligations as a systemic bank based on and requests an explanation from the Board of
POJK No.14/POJK.03/2017. The issuance of Rp500 billion Directors should there be any deviations in loan
in subordinated bonds was recorded as supplementary disbursement from the stipulated policies.
capital (Tier 2). 2. The Board of Directors is responsible for the
preparation of credit plans and the formulation
of , ensures the Bank’s compliance with prevailing
credit and credit policy laws and regulations,
and reports to the Board of Commissioners
on matters such as the implementation of
credit plans, anomalies in credit disbursement,
loan portfolio quality and credit in the special
mention or non-performing loan category.
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3. The chief risk officer, a member of BCA’s Board Risk Management Strategies for Activities with
of Directors, is responsible for the management Significant Credit Risk Exposures
of credit, market, operational and other risks BCA formulates a risk management strategies in
within the Bank’s organization (hereinafter accordance with the Bank’s overall business strategy
referred to as the director of compliance and based on the Bank’s risk appetite and risk tolerance.
risk management). Risk management strategies are designed to ensure
4. Work units that perform functions related to that the Bank’s risk exposure is carefully managed
credit risk management (the business lending in line with the credit policy, the Bank’s internal
development and credit risk analysis units), are procedures, laws and regulations and other applicable
risk owners responsible for the management of provision.
credit risk.
Structured risk management strategies are based on
The Bank has dedicated committees assisting the the following general principles:
Board of Directors in the lending process: s 2ISK MANAGEMENT STRATEGY SHOULD BE LONG TERM
1. The Credit Policy Committee’s has principal oriented for the sustainability of the business by
function of assisting the Board of Directors in considering economic conditions and cycles;
formulating credit policies, especially those s #OMPREHENSIVE RISK MANAGEMENT STRATEGY MUST
relating to the principle of prudence in lending, be able to control and manage the risks of BCA
monitoring and evaluating the implementation and its subsidiaries
of credit policies, conducting periodic reviews s %XPECTED CAPITAL ADEQUACY SHOULD BE MAINTAINED
on the Bank’s basic credit policy (KDPB), and adequate resources need allocated to
monitoring the credit portfolio’s progress support the implementation risk management.
and condition, and providing suggestions and
corrective measures based on the results of The risk management strategies are prepared by
evaluations carried out. considering the following factors:
2. The Credit Committee’s has the principal s %CONOMIC AND BUSINESS DEVELOPMENT AND THE
function of providing guidance should a more impact that may occur as a result of the risks
in-depth and comprehensive credit analysis faced by BCA
need to be performed, suggesting decisions or s 4HE ORGANIZATION STRUCTURE OF "#! INCLUDING THE
recommendations on the draft of credit decisions adequacy of human resources and supporting
related to key debtors, specific industries or on infrastructure
the specific request of the Board of Directors, s 4HE lNANCIAL CONDITION OF "#! INCLUDING THE
as well as coordinating with the assets and ability to generate earnings and the ability to
liabilities committee (ALCO) in terms of funding manage the risks arising from both external and
for credit and adjustment of corporate lending internal factors
rates. s 4HE COMPOSITION AND DIVERSIlCATION OF THE "#!S
3. The Risk Management Committee has portfolio
the main function of developing policies,
strategies and gudelines for risk management Credit Concentration Risk Management Policy
implementation; determining matters related Portfolio management addresses credit risk by
to irregular business decisions and enhancing determining risk concentration limits for, among
the implementation of risk management based others, industrial sector exposure, foreign exchange,
on evaluation of the implementation of an and certin types of loan as well as both individual
effetctive risk management process and system and business group exposure. Along with monitoring
the development of ratings database, technology,
human resources, the Bank complexity level , as well
as the market and regulations, the Bank’s portfolio
management unit actively works serves to optimize
the allocation of the Bank’s capital to achieve an
acceptable risk level in line with risk appetite and risk
tolerance parameters.
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Credit Risk Measurement and Control Impairment evaluation is performed individually and
BCA measures credit risk using a standardized collectively. The approach to calculating impairment
method based on guidelines in accordance with on an individual loan is by comparing the contract
OJK Circular Letter No.42/SEOJK.03/2016 regarding value of expected cash flows from a loan, between
Guidelines for Calculating Risk Weighted Assets for its expected impaired value based on an estimate
#REDIT 2ISKS BY 5SING THE 3TANDARDIZED !PPROACH of discounted cash flows from the loan using an
that requires all banks to use risk weighted asset Effective Interest Rate (EIR) and the amortized cost
calculations for credit risk by using the standardized of the loan at the time the impairment event occurs.
approach. BCA uses internal rating as a supporting Collective impairment is calculated statistically using
tool in the credit decision-making process. the following statistical parameters:
a. Probability of Default (PD) is the debtor’s
Credit risk management is executed through the probability of failure to meet obligations as
establishment of an independent rating system measured by Migration Analysis and Roll Rates
for the effective implementation of the credit risk reviews;
management process, comprising: b. Loss Given Default (LGD) is the level of losses
s %VALUATION OF THE CREDIT ADMINISTRATION PROCESS resulting from the debtor’s failure to meet
s !SSESSMENT OF THE ACCURACY IN THE obligations. Calculating a reasonable LGD
implementation of internal risk rating and the percentage requires an analysis of historical
use of other monitoring tools; data.
s 0ERFORMANCE EFFECTIVENESS OF WORK UNITS
and Bank officers which are responsible for Standardized Approach to the Implementation of
monitoring individual credit quality. Credit Risk Measurement
In the calculation of Risk Weighted Assets (RWA)
BCA exercises early detection systems to identify for credit risk, the Bank refers to OJK Circular Letter
possible non-performing or potential problematic No.42/ SEOJK.03/2016 regarding Guidelines for
loans and takes proactive steps to manage the loan Calculation of Risk Weighted Assets by using the
portfolio in order to minimize the impact of non- Standardized Approach for credit risk, OJK Circular
performing loans on the overall portfolio. Letter No.48/SEOJK.03/2017 and OJK Circular Letter
No.11/SEOJK.03/2018.
Overdue and Impaired Receivables
Past due loans and receivables are defines as any Through the Basel II standardized approach, the
loan or receivable that is more that 90 days overdue credit RWA is calculated based on the ratings issued
for payment for either principal and/or interest. by rating agencies recognized by OJK as stipulated in
Impaired loans and receivables are those financial OJK Circular Letter No.37/SEOJK.03/2016 regarding
assets of significant individual value that have Rating Agencies and Ratings recognized by OJK.
objective evidence of impairment occurring after
initial recognition of the financial asset. The use of external party ratings in the calculation of
RWA credit risk is only for claims on Governments of
Approaches Used for Establishing Allowances for Other Countries, Public Sector Entities, Multilateral
Impairment Development Banks and particular International
Allowance for impairment losses is an allowance Institutions, Banks, and Corporates.
established if the carrying amount of the financial
asset after impairment is less than the initial Counterparty credit risk arises from Over The
carrying amount. The Allowance for Impairment Counter (OTC) derivative transactions and repo/
losses is adjusted on the basis of impairment under reserve repo transactions, both on the trading book
the implementation of Statement of Financial and the banking book. The standardized Approach
Accounting Standards (SFAS) No. 50/55. used to calculate credit risk of capital adequacy ratio
for any exposures that caused credit risk as a result of
counterparty failure (counterparty credit risk).
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Determination of credit limits related to counterparty When processing credit, the main guarantors/
credit risks can be adjusted according to the needs of warrant providers are analyzed as a risk mitigant to
the counterparty, the Bank’s risk appetite, and any the overall credit risk. Creditworthiness and security
other applicable regulation such as Bank Indonesia analysis is determined by applying the Four Eyes
Regulation No. 8/13/PBI/2006 related to Legal Principle, where credit decisions are determined by
Lending Limits. two independent parties, the business development
unit and the credit risk analysis unit
Credit Risk Mitigation
The preferred type of collateral accepted to mitigate The credit mitigation method is focused on strong
credit risk is solid collateral defined as cash or collateral coverage. collateral coverage. To further
land and buildings. These types of collateral have mitigate bank-wide potential credit risks, the Bank’s
relatively high liquidity value and/or can be legally loan portfolio is well diversified with regard to loan
attached so that the Bank is able to liquidate category and industrial and economic sectors.
collateral immediately if the debtor’s/debtor group’s
loan becomes delinquent. III.B. Disclosure of Market Risk Exposures and
Implementation of Market Risk Management
Collateral assessment for loans is performed by an
independent appraiser. In remote areas where no Market Risk Management Organization
independent appraiser is available, the appraisal will The Board of Commissioners and the Board of
be conducted by internal staff who is not involved Directors are responsible for ensuring that the
in the loan processing. To monitor the physical implementation of risk management with regard
collateral pledged to BCA by the debtor, site visits to exchange rates and interest rates is in line
are conducted periodically to review the status of with the Bank’s strategic direction, scale, business
the collateral. characteristics as well as exchange rate and interest
rate risk profiles. This includes ensuring the
integration of exchange rate and interest rate risk
management with other risks that may affect the
Bank’s risk position.
The Board of Directors delegates its authority and responsibility to the parties listed below
Party Authority and Responsibility
ALCO Determines policies and strategies regarding foreign exchange and interest rate
4HE 2ISK -ANAGEMENT 5NIT Supports ALCO in monitoring and measuring foreign exchange and interest rate
risks.
Treasury Division Manages the Bank’s overall operations in foreign currency transactions, and interest
rates on the trading book:
- Responsible for maintaining foreign currency Net Open Position (NOP) and
mitigating interest rate on the trading book and ensuring the Bank’s compliance
with Bank Indonesia regulations regarding NOP;
- Responsible for managing trading marketable securities and foreign currency
transactions in line with customer needs and/or income considerations.
Regional Offices and Branches Responsible for managing foreign currency transactions in the respective regional
offices/ branches in accordance with predetermined limits. All regional/branch
foreign currency transactions are covered by the Treasury Division. Limits for each
region/branch are determined in accordance with operational needs.
The calculation of market risk to determine BCA’s capital requirement uses the standardized methods as defined by
OJK.
Trading Book and Banking Book Portfolio Management
Management of portfolios exposed to interest rate risk (on the trading book) and to foreign exchange risk is
conducted by setting and monitoring the use of Nominal Limits (Net Open Position), Value at Risk Limits, and Stop
Loss Limits.
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The valuation method is based on closeout prices or interest rate sensitive in nature to be mapped within
market price quotations from independent sources, a certain period. Mapping is conducted based on the
including the following: remaining maturity date for any instrument with
s )NDONESIA "OND 0RICING !GENCY )"0! a fixed interest rate and is based on the remaining
s "LOOMBERG 'ENERIC 6ALUE "'. 6!, time up to the next interest rate adjustment for
s %XCHANGE PRICES any instrument with a floating rate. The Bank uses
s $EALER SCREEN PRICES an earning approach and economic value approach
s 4HE MOST CONSERVATIVE QUOTES GIVEN BY AT LEAST to measure interest rate risk. Monitoring and
two brokers and/or market makers measurement of interest rate risk exposure on the
s )N THE EVENT MARKET PRICES FROM INDEPENDENT banking book is submitted to the Board of Directors/
sources are not available, pricing is derived from ALCO on a monthly basis.
the yield curve.
Anticipation of Market Risks on Foreign Currency
Market Risk Measurement and Securities Transactions
For the purpose of monitoring market risk, In order to anticipate market risk in transactions
exchange rate and interest rate risk, Value at Risk associated with exchange rate and interest rate risks,
measurements are taken on a daily basis based on a the Bank has established and managed market risk
full historical valuation method using 250 days data limits, including Value at Risk Limit, Nominal and
at 99% confidence level. Stop Loss Limit, as well as conducting stress tests to
quantify the risk. BCA conducts an assessment on the
For the calculation of minimum Capital Adequacy risk management and preparation of the policies as
Ratio (CAR), market risk is calculated based on the well as a procedures system for the development of
standardized method as adopted by OJK. any transactions as a support to Bank Indonesia’s
program on Financial Market Deepening.
Scope of Trading and Banking Book Portfolios
Accounted for in Capital Adequacy Ratio III.C. Disclosure of Operational Risk Exposures
Following is the scope of the portfolio coverage and Implementation of Operational Risk
included in the CAR calculations: Management
s %XCHANGE RATE RISK COVERS TRADING AND BANKING
book. Exchange rate risks can arise from foreign Operational Risk Management Organization
exchange transactions today (TOD), tomorrow The implementation of operational risk management
(TOM), SPOT, forward, SWAP and domestic non- on a bank-wide basis includes:
delivery forward (DNDF) 1. The Board of Commissioners and Board of
s )NTEREST RATE RISK COVERS THE TRADING BOOK )T Directors, ensure adequate risk management
can arise from securities, forward and SWAP implementation according to the characteristics,
transactions complexity and risk profile of Bank as well as a
s %QUITY RISK FOR SUBSIDIARIES CONSIDERS THE good understanding of the type and level of risk
trading book. It can arise from equity trading inherent in the business activities of the Bank.
transactions that may be carried out by 2. The Risk Management Committee, ensures
subsidiaries. that the risk management framework provides
adequate protection against risks faced by the
Interest Rate Risk in Banking Book (IRRBB) Bank.
Interest rate risk in banking book (IRRBB) occurs as 3. The Risk Management Unit (SKMR), ensures
a result of movements in the market interest rate risks faced by the Bank are identified, measured,
that are against the Bank’s position or transactions, monitored, controlled and reported correctly
which may affect both the Bank’s interest income through the application of an appropriate
and the economic capital value. In performing IRRBB risk management framework. SKMR also has
measurement, the Bank uses a gap report (repricing the authority to provide input to the Board
gap) that measures assets and liabilities that are of Directors in formulating risk management
policies, strategies and framework.
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4. The Enterprise Security Work Unit, protects In addition to RSCA, BCA has implemented a Loss
and secures information assets of the Bank, Event Database (LED) and Key Risk Indicator (KRI)
develop the Bank’s ability to deal with system. KRI is a method used to provide an early
emergency situations that threaten the warning signal in the event there is the possibility
business as an ongoing concern, and ensure of increase operational risk within a specific work
that the application of information technology unit. KRI has been implemented in all regional
governance is in accordance with the Bank’s offices, branches and head office work units that
policy. are considered having fairly significant operational
5. The Internal Audit Division, tasked to examine risks. The KRI system was further developed into a
and assess the adequacy and effectiveness of the Predictive Risk Management tools that support unit
risk management processes, internal controls business to detect and respond to an increased risks
and corporate governance. within area of business unit.
6. The Operating Strategy and Development,
assists SKMR in implementing operational risk LED is designed to assist in recording and analyzing
management programs and provides support to cases or events that could lead to an operational loss
all work units related to SKMR programs. so that corrective action can be taken to avoid similar
7. The Work units (business and support units) events from occurring in the future. The purpose
are risk owners responsible for managing risk of the LED is to identify the source and minimize
management in daily operations, and reporting the possible risk of operational losses. LED is also a
operational risk problems and events to the means of operational risk loss data collection used
SKMR. by the Bank to determine the allocation of capital
charges and for monitoring of event that could
Measurement and Identification of Operational Risk lead to further operational losses. LED has been
Implemented in 2002, BCA applies a Risk Self- implemented in all regional offices, branches and at
Assessment (RSA) methodology to identify and the head office.
quantify operational risks across all work units in the
Bank. The main function of the RSA is to cultivate The application of the RCSA, LED and KRI is
a strong risk culture an increase risk awareness supported by the Operational Risk Management
as an important element of risk management. Information System (ORMIS). Currently all branches
Developing a stronger risk is expected to improve and head office units used ORMIS which has been
risk control implementation amongst all employees implemented in all branches and work units of head
in performing their daily activities and subsequently office.
reduce overall risk.
Operational Risk Mitigation
The RSA methodology is further refined into a Risk To mitigate operational risk, the Bank uses the
and Control Self-Assessment (RCSA) model, which following tools:
has been implemented in all branches and head s 0OLICIES PROCEDURES AND LIMITS TO MONITOR
office work units identified as having significant measure and mitigate operational risks;
operational risks. In RCSA methodology, branches s /RGANIZING 2ISK !WARENESS 0ROGRAMS ON A
and work units identify and measure operational regular basis to promote and to increase the risk
risks inherent to their respective work or business awareness culture for all BCA;
units. Based on this process, the work unit determine s #ONSISTENTLY UPDATES POLICIES AND PROCEDURES IN
the controls that must be implemented in order accordance with organizational dynamics and
to mitigate the identified risks. The RCSA model is changes in laws and regulations;
under the coordination of SKMR. s )NTEGRATED AND COMPREHENSIVE "USINESS
Continuity Management Plans to ensure
operational continuity in running the business
and serving customers;
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s )NTERNAL CONTROL SYSTEM WHICH IN PRACTICE APPLIES s %VERY DEVELOPMENT PLAN OF NEW PRODUCTS
the segregation of duties principle, the four eyes activities must be approved by the Board
principle, and operates on a rotation system to of Directors and reported to the Board
avoid potential self-dealing and concealment of of Commissioners. This is a part of active
document or possible fraudulent transactions. supervision conducted by the Board of Directors
and the Board of Commissioners;
New Product and Activity Risk Management s 4HE IDENTIlCATION OF RISKS WILL BE CONDUCTED
As the largest private bank in Indonesia, BCA on every product/activity development plan so
provides a wide range of product and/or banking that BCA is able to implement adequate risk
activities to fulfill the needs of customers. In line with mitigation;
recent technological advancements, BCA continues s %VERY NEW PRODUCTACTIVITY SHOULD PASS SEVERAL
to develop new digital products and activities. stages including, planning, development,
implementation, and evaluation;
In managing the risk for new products/activities, s 4HE PRODUCTACTIVITY THAT HAS BEEN IMPLEMENTED
BCA has implemented a system to help ensure will be evaluated to ensure that the product/
the development of new products/activities will activity has reached its target and to be able to
not significantly affect BCA’s risk profile. Risk develop the product/activity further.
management is implemented based on internal
regulations that were compiled in accordance with III.D. Disclosure of Liquidity Risk Exposure and
regulatory requirements. Implementation of Liquidity Risk Management
Management of BCA’s new products/activities Liquidity Risk Management Organization
includes several important aspects as follows: The Board of Commissioners and the Board of
s .EW PRODUCTSACTIVITIES ARE LAUNCHED WITH Directors are responsible for ensuring that liquidity
an objective to fulfill customer needs and risk management is conducted in accordance with
are expected to enable BCA to accomplish its the strategic objectives, scale, business characteristics
predetermined business targets; and liquidity risk profile of the Bank. This includes
the integration of liquidity risk management with
other risks that may impact on the Bank’s liquidity
position.
The authority and responsibility of Board of Directors are delegated to parties below:
Party Authority and Obligations
ALCO Determines policies and strategies regarding liquidity
4HE 2ISK -ANAGEMENT 5NIT Support ALCO in monitoring and calculating liquidity risk
Treasury Division Treasury Division Manage overall operational liquidity of the Bank:
- Responsible for monitoring statutory reserves and ensuring the Bank’s compliance
- Responsible for managing secondary reserves in order to maintain liquidity and
provide income generating opportunities.
Regional Offices and Branche Responsible for managing liquidity risk at the respective regional offices and
branches.
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Funding Strategy - Daily monitoring of the liquidity position
Funding strategy consists of strategies to tap in respect to Minimum Statutory Reserves
diversified sources of funds and to secure a funding Requirement, secondary reserves, and
duration profile that is linked to the Bank’s liquidity ratio.
characteristics and business plan. The Bank identifies
and reviews the primary factors that affect the ability III.E. Disclosure of Legal Risk Exposure and
of the Bank to obtain funds, including identifying Implementation of Legal Risk Management
and monitoring funding alternatives to strengthen Legal risk is the risk due to lawsuits and/or
the Bank’s capacity to sustain business operations in vulnerabilities in juridical aspects due to weak
a crisis condition. commitments made by the Bank, the absence and/
or alterations in laws that cause a Bank transaction
Liquidity Risk Mitigation to be incompatible with current provisions in due
In order to mitigate liquidity risk, BCA established time, and the occurrence of lawsuits in the litigation
guidelines to measure and mitigate liquidity risk, process arising from third party claims against the
including limits on Secondary Reserves, Interbank Bank and the Bank against third parties.
Overnight Borrowing Limits, Liquidity Coverage
Ratios and Net Stable Funding Ratio. The Bank Organization of Legal Risk Management
has also identified and developed Early Warning In order to minimize legal risk, BCA has established
Indicators, and has implemented a multi-level a Legal Group at the head office and legal units in
Contingency Funding Plan to mitigate risk. regional offices to support the BCA in carrying out
banking activities and mitigating legal risk. The
Measurement and Control of Liquidity Risk Legal Group also has the duty and responsibility of
The measurement of the liquidity risk is conducted supporting and safeguarding the legal interests of
comprehensively on a regular basis by monitoring the Bank with respect to the prevailing laws and
cash flow projection, maturity profile reports, regulations as it carries out business activities.
liquidity ratios and stress test scenarios. Stress testing
is conducted based on bank specific stress scenarios Legal Risk Control
and general market stress scenarios. BCA mitigates legal risks through the following:
s ,EGAL 2ISK -ANAGEMENT 0OLICY HAVING INTERNAL
Monitoring liquidity risk has the objective of regulations to govern the organizational
facilitating timely mitigation or adjustments to the structure and job description for the Legal
liquidity risk management strategy as soon as any Group, standardizing legal documents;
increase in liquidity risk occurs. s /RGANIZE A LEGAL COMMUNICATION FORUM TO
leverage the competency of legal staff;
The following activities are included in the liquidity s 3OCIALIZING THE IMPACT OF NEW REGULATIONS
risk monitoring process: applicable to BCA’s banking activities and
s -ONITORING BOTH INTERNAL AND EXTERNAL the various modus operandi of criminal and
early warning indicators for events that can fraudulent banking crimes as well as the legal
potentially increase liquidity risk; guidelines for prosecuting such crimes to
s -ONITORING FUNDS AND LIQUIDITY POSITIONS THAT branches, regional offices, and related work
include: units in head office;
- Interest rate strategy, investment s 2AISE THE LEGAL DEFENSE OF CIVIL AND CRIMINAL
alternatives for fund owners, changes in proceedings involving the Bank in process in
the customer behavior, changes in foreign court and monitor the progress of the case;
exchange and interest rates offered by a s &ORMULATE A CREDIT SECURITY STRATEGY PLAN IN
primary competitor that could impact the collaboration with other work units, including
fund structure, fund volatility, and core the credit rescue work unit) in connection with
funds. Those changes should be monitored the problem of bad credit;
on a regular basis (daily, monthly and
annual basis);
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s 2EGISTERING INTELLECTUAL PROPERTY RIGHTS FOR THE s 3ET TARGETS ON BUSINESS ASPECTS WITH REGARD TO
Bank’s product and services as well as securing the current economic situation and forecasts for
ownership of the Bank’s assets, such as right to the coming year by emphasizing the principle of
land and building owned by the Bank, with the prudence, in respect to the capacity/capability
appropriate authority; of BCA and competition trends from banks and
s -ONITORING AN TAKING LEGAL ACTION ON VIOLATIONS non-banks
againts the Bank’s assets, including infringement
of intellectual property rights belonging to BCA; The Bank’s strategy is formulated with reference
s -ONITOR AND ANALYZE CASES BEING PROSECUTED OR to Bank Indonesia and OJK regulations and other
defended in court by BCA; relevant provisions, as well as the potensial impacts
s )DENTIFYING MONITORING ANALYZING AND of strategic risk on the Bank’s capital and the Capital
quantifying potential losses that may arise in Adequancy Ratio (CAR) based on risk appetite, risk
relation to legal cases. tolerance and consideration of BCA’s ability.
III.F. Disclosure of Strategic Risk Exposure and Measurement of Bank’s Business Plan Progress
Implementation of Strategic Risk Management To measure progress in achieving the business plan,
Strategic risk is caused by inaccurate decision making BCA conducts the following activities:
and/or implementation of a strategic plan, and s )DENTIFYING MEASURING AND MONITORING
the inability to anticipate changes in the business strategic risk, as well as compiling quarterly
environment. strategic risk profile reports;
s #OMPILING REPORTS ON THE REALIZATION OF THE
Organization of Strategic Risk Management Bank Business Plan, which includes financial
The Board of Directors provides direction in performance (actual vs. budgeted), realization
the preparation of strategic plans and business of corporate/divisional work program and the
initiatives, as outlined in the blueprint of the realization of branch network development.
three-year Bank Business Plan (RBB) to control the
direction of business activities and maintain the III.G. Disclosure of Reputation Risk Exposures
potential for strategic risk. Furthermore, the Board and Implementation of Reputation Risk
of Commissioners reviews and provides approval Management
of the RBB. The Corporate Strategy and Planning Reputation risk can occur as a result of reduced levels
Division supports the formulation/preparation of the of trust from stakeholders triggered by negative
RBB and monitors its implementation by compiling perceptions of the Bank.
realization reports comparing with business plans
and budgets on a regular basis, including reviewing Organization of Reputation Risk Management
business targets both financial and non-financial in BCA has a strong commitment to manage reputation
nature. risk. To this end, BCA has established the Digital
Services Division that specifically deals with customer
Policies to Identify and Respond to Changes in the complaints by phone, mail, email, and social media
Business Environment 24 hours a day, every day. In handling customer
In order to identify and respond to changes in the complaints, Digital Services Division coordinates
business environment, both external and internal, with other related units, including the Consumer
BCA conducts the following: #ARD $IVISION THE #ONSUMER #REDIT 7ORK 5NIT AND
s 2EGULAR REVIEWS OF THE "ANK "USINESS 0LAN IN the Electronic Banking Services Center, to respond to
accordance with business developments and the potential reputational risk events.
state of the Indonesian economy;
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Policies and Mechanisms of Reputation Risk Control s $EVELOPMENT OF BUSINESS CONTINUITY PLAN AND
In order to manage reputation risk, the Bank disaster recovery plan to minimize disruption
implements the following: and speed up the recovery process in the event
s %STABLISHMENT OF PROVISIONS FOR HANDLING of disaster
customer complaints that clearly set the policies, s $EVELOPMENTOF SECONDARY OPERATION CENTER
procedures, and work units that monitor and which is a backup workplace for critical work
report on customer complaints, including the units to maintain BCA’s business continuity (IT
format of reporting submitted to the regulator. Confirmation)
s -ONITORING OF CUSTOMER COMPLAINTS AND REGULAR s )NSTALLATION OF BACKUP SYSTEMS TO PREVENT HIGH
reporting of the results to the head of the risk business failures.
respective work units and specifically to the
Board of Directors. Customer complaint reports III.H. Disclosure of Compliance Risk Exposure
are analyzed and used to support developing a and Implementation of Compliance Risk
systematic complaint handling process. Management
s $EVELOPMENT OF INFRASTRUCTURE THAT INCLUDES Compliance risk arises from the Bank’s failure to
the implementation of appropriate software comply with and/or apply prevailing laws and
and hardware, development of procedures, regulations.
and improvement of work management. The
development of management information Organization of Compliance Risk Management
system infrastructure facilitates monitoring To minimize potential compliance risk, all lines of the
and supports the speed and quality of work organization are responsible for the management of
in monitoring and responding to customer compliance risk in all bank activities.
complaints.
The Compliance, Legal and Risk Management Director,
Reputation Risk Management in Times of Crisis ASSISTED BY THE #OMPLIANCE 5NIT IS RESPONSIBLE FOR
In managing reputation risk in times of crisis, BCA ensuring compliance and minimizing compliance
has performed the following: risk by formulating compliance risk management
s )MPLEMENTATION OF CRISIS MANAGEMENT WHICH policies and procedures as well as monitoring their
includes: IMPLEMENTATION 4HE #OMPLIANCE 5NIT IS INDEPENDENT
- Crisis management policy, which is a from other working units. The Compliance, Legal
strategy to manage crises or events and Risk Management Director reports the results
that disturb service operations and/or to the President Director, which will be presented to
deteriorate BCA’s reputation the Board of Commissioners.
- Crisis management team, which is
responsible for coordinating the crisis 4HE #OMPLIANCE 5NIT IS ALSO RESPONSIBLE FOR THE
management process, including the implementation of the Bank’s Anti-Money Laundering
recovery process AND #OMBATING THE &INANCING OF 4ERRORISM !05 AND
- Crisis communication management 004 PROGRAMS INCLUDING ASSESSING THE RISK OF !05
coordinates crisis communication to BCA and PPT program implementation in accordance
internal and external parties, including with prevailing regulations from the regulators.
the mass media. At all stages of the crisis,
the flow of communication protocols and Business units at head office and branches are the
person in charge for communication have front-line in ensuring all business activities are carried
been set out in accordance with the relevant regulations.
- Crisis management guidelines, which
include emergency response, customer
transaction services during crisis and
emergency conditions
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Risk Management Strategies Associated with In order to improve the effectiveness of internal
Compliance Risk control, coordination is maintained between the
BCA has a strong commitment to comply with 2ISK -ANAGEMENT 5NIT THE )NTERNAL !UDIT $IVISION
prevailing laws and regulations and actively takes AND THE #OMPLIANCE 5NIT THROUGH REGULAR MEETINGS
steps to correct any weaknesses. This is in line with and intensive communication. Problems associated
BCA’s compliance risk management strategy, which with internal compliance control, particularly
contains policies to always comply with the applicable in addressing potential compliance risks, are
regulations, foremost through proactive prevention comprehensively assessed, allowing the formulation
(ex-ante) in order to minimize any occurrence of of effective measures.
violations and through curative action (ex-post) as
corrective measures. Implementation of Integrated Risk Management
In accordance with POJK No. 17/POJK.03/2014 dated
Compliance Risk Monitoring and Control 18 November 2014 and OJK Circular Letter No. 14/
To control and minimize compliance risks, BCA has SEOJK.03/2015 of 25 May 2015 on the Implementation
taken the following steps: of Integrated Risk Management for Financial
s )DENTIFYING SOURCES OF COMPLIANCE RISK Conglomerations, BCA has developed Integrated
s #ONDUCTING GAP ANALYSIS ANALYZING THE IMPACT OF Risk Management for Financial Conglomerates.
new regulations on operations, and proposing
adjustments of manuals, internal policies and The implementation of integrated risk management
procedures includes:
s -EASURING AND MONITORING COMPLIANCE RISK 1. Active supervision of BCA financial
regularly and submitting the report to the risk conglomeration by the Board of Directors and
management work unit (SKMR) Board of Commissioners of the main entity
s 3OCIALIZATION OF REGULATIONS AND CONSULTATION ON 2. Adequacy of policies, procedures, and
their implementation determination of integrated risk management
s #ONDUCTING COMPLIANCE TESTS ON THE limits
implementation of provisions 3. Adequacy of the integrated risk identification,
s $EVELOPING A COMPLIANCE MATRIX DIARY AS A measurement, monitoring and control processes
monitoring tool to comply with reporting as well as the integrated risk management
obligations to regulators information system
s -ONITORING SUSPICIOUS lNANCIAL TRANSACTIONS 4. Comprehensive internal control system for the
by using the STIM (suspicious transaction implementation of integrated risk management.
identification model) web-based application,
and developing a system of applications by using BCA has implemented Integrated Risk Management
the latest technology and updated parameters by
to detect suspicious transactions 1. Delegating a director to oversee the integrated
s 3CREENING CUSTOMER DATA AND TRANSACTIONS risk management function
related to the list of terrorist and terrorist 2. Establishing an integrated risk management
organizations (DTTOT) and the list of funding for committee
the proliferation of mass destruction weapons 3. Adjusting the organizational structure of the
(DPPSP) issued by the relevant authority when risk management work unit, including an
opening an account, when the bank conducts integrated risk management function
business relations, and when there is any change 4. Reporting the main entity and members of the
in the abovementioned list. BCA financial conglomeration to the OJK
5. Conducting socialization and coordination with
BCA Financial Conglomerate as a group
6. Delivering the Integrated Risk Profile Report on
a semester basis.
7. Delivering the Integrated Capital Adequacy
Report on a semester basis.
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BCA is building the integrated risk management Inter-Group Transaction Risk
information system (IRMIS), a technology-based BCA Financial Conglomeration conducts inter-
information system for the preparation of: group transactions in accordance with the
s "#! 2ISK 0ROlLE 2EPORT ,02 "#! principles of fairness and on an arms-length basis
s )NTEGRATED 2ISK 0ROlLE 2EPORT ,024 in adherence with prevailing regulations. All inter-
s )NTEGRATED #APITAL !DEQUACY 2EPORT ,+04 group transactions are documented appropriately.
Intergroup transactions currently do not have a
The integrated risk management committee held material impact on the overall financial performance
regular meetings in 2019, with the first on May 27, of the Group.
2019, discussing:
s 2EVIEW OF THE IMPLEMENTATION OF THE INTEGRATED Insurance Risk
risk management of the BCA financial BCA Financial Conglomeration also manages
conglomeration Insurance Risk through the Bank’s subsidiaries
s 3USTAINABLE lNANCE active in the insurance industry. Referring to
the measurement results, insurance risk did not
The second integrated risk management committee significantly affect BCA Financial Conglomeration.
meeting on September 2, discussed:
s /*+ INPUT RELATED TO INTEGRATED RISK MANAGEMENT Based on integrated risk assessment, BCA Financial
s )2-)3 DEVELOPMENT UPDATE Conglomeration’s capital is considered sufficient to
s 2EPORT ON THE INTEGRATED RISK PROlLE OF "#! anticipate potential losses that may arise or be faced
financial conglomeration for semester I - 2019. by BCA Financial Conglomeration in conducting the
integrated businesses.
The third integrated risk management committee
meeting December 2, discussed: BCA subsidiaries included in the implementation of
s INTEGRATED STRESS TEST ON "#! lNANCIAL the integrated risk management are: PT BCA Finance,
conglomeration BCA Finance Limited, PT Bank BCA Syariah, PT BCA
s 0ROPOSED CONCEPT OF "#! lNANCIAL 3EKURITAS 04 "#! !SURANSI 5MUM "#! )NSURANCE
conglomeration circuit breaker PT Central Santosa Finance, PT Asuransi Jiwa BCA
s )2-)3 DEVELOPMENT UPDATE (BCA Life), PT Central Capital Ventura and PT Bank
Royal Indonesia.
BCA Financial Conglomeration manages 10 (ten) types
of integrated risks as identified by the regulators.
These risks include the 8 (eight) types of risks: credit
risk, market risk, liquidity risk, operational risk, legal
risk, reputation risk, strategic risk and compliance
risk, with the addition of inter-group transaction risk
and insurance risk.
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A summary of the implementation of risk management within each subsidiary is as follows:
PT BCA FINANCE
Active supervision by the board Active supervision is conducted by the Board of Commissioners and the Board of
of Commissioners and the board Directors through the following:
of directors s %STABLISHMENT OF !UDIT #OMMITTEE AT THE LEVEL OF THE "OARD OF #OMMISSIONERS
s %STABLISHMENT OF 2ISK -ANAGEMENT #OMMITTEE AND !SSET ,IABILITY #OMMITTEE
(ALCO) at the level of the Board of Directors, and through the Regular Meeting
Management and Consumer Meeting;
s 4HE "OARD OF $IRECTORS ENSURES THE PROVISION OF THE IMPLEMENTATION OF POLICIES AND
evaluations, transaction agreements, risk management culture development, policy
regarding independence of risk-taking work units on internal controls, and risk
management within the company;
s 4HE "OARD OF #OMMISSIONERS ACTIVELY OVERSEES THE PERFORMANCE OF THE DIRECTORS
Adequacy of policies and s "ASIC 2ISK -ANAGEMENT 0OLICY
procedures, and determination s 2ISK MANAGEMENT POLICY AND IMPLEMENTATION GUIDELINES FOR VARIOUS RISKS AS DESCRIBED
of limits in Decision Letters;
s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND SOCIALIZED TO
all employees and regularly reviewed.
Identification, measurement, s 4HE IDENTIlCATION PROCESS IS CARRIED OUT ON ALL PRODUCTSTRANSACTIONS THAT CONTAIN
monitoring and mitigation risks. Risks are measured according to the type, characteristic, and complexity of
processes and risk management each product/transaction by the risk-taking unit and Corporate Risk Management.
Information system Risks are controlled according the risk exposure and within risk appetite;
s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN AMONG OTHERS RISK PROlLE REPORTS
monitoring reports and regular limit reviews;
s 2ISK MANAGEMENT OF INFORMATION TECHNOLOGY SYSTEMS IS USED TO IDENTIFY AND
detect watchlist customers, mitigate fraud through certain parameters as alerts,
reporting on risk events at the branches or headquarters through operation risk
event management (OREM) application, risk and control self assessment, and
implementation of multiple scoring both internally developed and in coperation
with Credit Bureau for a more prudent lending process;
s 2ISK PROlLING REPORT WILL BE INTEGRATED TO MAIN ENTITY THROUGH )2-)3 APPLICATION
Comprehensive internal control Internal Audit Division has the function of evaluating the effectiveness and efficiency
systems of work processes and their suitability to the needs of the business. Evaluations are
conducted by way of active and passive inspection throughout all work units.
BCA FINANCE LIMITED
Active supervision by the board Active supervision by the Board of Directors is conducted through discussions on
of Commissioners and the board business and operational activities between the Board of Directors and management
of directors staff through regular reports.
Adequacy of policies and s "ASIC 2ISK -ANAGEMENT 0OLICY AND 'UIDELINES
procedures, and determination s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND REGULARLY
of limits reviewed.
Identification, measurement, s 2ISK MANAGEMENT PROCESSES ARE CONDUCTED AND OUTLINED IN RISK PROlLE REPORTS ON A
monitoring and mitigation quarterly basis;
processes and risk management s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN AMONG OTHERS THE MONITORING OF LIMITS
Information system and regular limit reviews.
Comprehensive internal control Internal control is conducted by Compliance and Internal Audit division.
systems
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PT BANK BCA SYARIAH
Active supervision by the board Active supervision by the Board of Commissioners and the Board of Directors is
of Commissioners and the board conducted through the establishment of the following:
of directors s 2ISK /VERSIGHT #OMMITTEE !UDIT #OMMITTEE AND 2EMUNERATION AND .OMINATION
Committee at the level of the Board of Commissioners; and
s 2ISK -ANAGEMENT #OMMITTEE #REDIT #OMMITTEE #REDIT 0OLICY #OMMITTEE (UMAN
Resources Committee, Information Technology Steering Committee, and Assets
and Liabilities Committee (ALCO) at the level of the Board of Directors.
Adequacy of policies and s "ASIC 2ISK -ANAGEMENT 0OLICY
procedures, and determination s 2ISK MANAGEMENT POLICY FOR VARIOUS RISKS AS DElNED IN *OB 0ROCEDURES AND 'UIDELINES
of limits s &INANCING 0OLICY RELATED TO CREDIT RISK
s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND REGULARLY
reviewed.
Identification, measurement, s 2ISK MANAGEMENT PROCESSES ARE CONDUCTED AND OUTLINED IN RISK PROlLE REPORTS ON A
monitoring and mitigation quarterly basis;
processes and risk management s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN AMONG OTHERS THE MONITORING OF LIMITS
Information system and regular limit reviews.
Comprehensive internal control 4HE EFFECTIVENESS OF INTERNAL CONTROL IS TESTED BY THE )NTERNAL !UDIT 7ORK 5NIT
systems
PT BCA SEKURITAS
Active supervision by the board Active supervision by the Board of Commissioners and the Board of Directors is
of Commissioners and the board conducted through the following activities:
of directors s 2EGULAR MEETINGS OF THE "OARD OF #OMMISSIONERS AND THE "OARD OF $IRECTORS
s %STABLISHMENT OF ORGANIZATIONS WITH REFERENCE TO THE $ECREE OF THE #APITAL
Market and Financial Institution Supervisory Agency Number Kep-548/BL/2010
(Bapepam-LK/OJK) Regulation Number V.D.3 concerning Internal Control of
Securities Companies Conducting Business Activities as A Broker-Dealer, comprising:
− Marketing Functions;
− Risk Management Functions;
− Bookkeeping Functions;
− Custodian Functions;
− Information Technology Functions; and
− Compliance Function;
as well as Research Functions outside of the six functions listed above;
s %STABLISHMENT OF THE )NTERNAL !UDIT &UNCTION IN ACCORDANCE WITH /*+ 2EGULATION
POJK.04/2017 of September 26, 2017 on Implementation of Corporate Governance
FOR 3ECURITIES &IRMS !CTING AS 5NDERWRITERS AND "ROKERS
s 4HE "OARD OF #OMMISSIONERS GIVES APPROVAL REGARDING CREDIT FACILITIES ACCEPTED BY
BCA Sekuritas from third parties;
s 4HE "OARD OF #OMMISSIONERS ENSURES MATTERS ON -ONEY ,AUNDERING AND 4ERRORISM
Financing are discussed at Board of the Directors and the Board of Commissioners
meetings;
s 4HE "OARD OF $IRECTORS MAKES DECISIONS REGARDING INTERNAL POLICY
s 4HE "OARD OF $IRECTORS SIGNS ALL REPORTS IN ACCORDANCE WITH #APITAL -ARKET
regulations.
Adequacy of policies and s 0OLICY AND 0ROCEDURES THAT ARE IN LINE WITH #APITAL -ARKET REGULATIONS AND ARE USED
procedures, and determination as basis for developing guidelines for BCA Sekuritas’ business activities;
of limits s "ASIC 2ISK -ANAGEMENT 0OLICY
s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND REGULARLY
reviewed;
s 0OLICIES DERIVED FROM BASIC RISK MANAGEMENT POLICY
Identification, measurement, s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN REGULAR MONITORING OF THE HAIRCUT
monitoring and mitigation effects, customer limits, and customer daily transactions, all of which are reported
processes and risk management regularly;
Information system s 2ISK MANAGEMENT PROCESSES ARE CONDUCTED AND RECORDED IN RISK PROlLE REPORTS EVERY
semester.
Comprehensive internal control )NTERNAL CONTROL OF ALL BUSINESS ACTIVITIES IS CONDUCTED BY )NTERNAL !UDIT 7ORK 5NIT IN
systems accordance with Capital Market regulations.
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PT ASURANSI UMUM BCA
Active supervision by the board Active supervision is conducted by the Board of Commissioners and the Board of
of Commissioners and the board Directors through the establishment of the following committees:
of directors s !UDIT #OMMITTEE AND 2ISK /VERSIGHT #OMMITTEE AT THE LEVEL OF THE "OARD OF
Commissioners; and
s )NVESTMENT #OMMITTEE )NSURANCE #LOSURE !CCEPTANCE #OMMITTEE AND )NSURANCE
Claim Finalization Committee at the level of the Board of Directors.
Adequacy of policies and s 6ARIOUS POLICIES INCLUDING THE FOLLOWING
procedures, and determination - Guidelines of the implementation of risk management;
of limits - Authority for Claim Approval, Acceptance and Insurance Policy/Cover Note
Signing;
5NDERWRITING 'UIDELINES
- IT Operation Guidelines;
- Manual Disaster Recovery Plan (DRP);
- Reinsurance policy guidelines;
- Corporate Investment Policy;
- Operations Cost Approval Authority, Fixed Asset Purchasing, Office/
Building Renovations;
)MPLEMENTATION 'UIDELINES FOR !05 AND 004
- Manual Business Continuity Plan;
- Anti Fraud Guidelines;
- Financial Crisis Business Continuity Plan Policy;
- Loss Event Database (LED) administrative Guidelines
s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND REGULARLY
reviewed.
Identification, measurement, s 2ISK MANAGEMENT PROCESSES ARE CONDUCTED AND RECORDED IN RISK PROlLE REPORTS
monitoring and mitigation s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN AMONG OTHERS RISK PROlLE REPORTS
processes and risk management monitoring reports and regular limit reviews, company stress test simulation report,
Information system and business continuity plan testing result evalution report.
Comprehensive internal control )NTERNAL SUPERVISION IS CONDUCTED BY THE )NTERNAL !UDIT 7ORK 5NIT WHICH ASSISTS
systems management in monitoring the effectiveness of the implementation of all policies/
procedures established.
PT BCA MULTI FINANCE
Active supervision by the board Active supervision by the Board of Commissioners and the Board of Directors is
of Commissioners and the board conducted in the following forms:
of directors s 2OUTINE MEETINGS OF THE "OARD OF #OMMISSIONERS AND THE "OARD OF $IRECTORS
s 4HE "OARD OF $IRECTORS ACKNOWLEDGES AND SIGNS ALL REPORTS FOR THE AUTHORITIES
s 4HE "OARD OF #OMMISSIONERS HAS ESTABLISHED THE 2ISK /VERSIGHT #OMMITTEE WHICH IS
attached to the Audit Committee.
Adequacy of policies and s "ASIC 2ISK -ANAGEMENT 0OLICY
procedures, and determination s #OMPANYS ACTIVITIES ARE REGULATED IN POLICIES AND INTERNAL PROCEDURES WHICH
of limits continue to be evaluated in accordance with company objectives.
s -AINTAINING PERFORMANCES APPROPRIATE WITH THE LIMITS SET BY THE REGULATOR
Determination of risk limits is contained in the authority of business and operational
decision making in accordance with the organizational hierarchy
s 0OLICIES AND PROCEDURES AND DETERMINATION LIMITS ARE ADEQUATE AND REGULARLY
reviewed.
Identification, measurement, s 0ROCESS OF )DENTIlCATION MEASUREMENT MONITORING AND CONTROL OF RISKS ESTABLISHED
monitoring and mitigation in the application of risk management. In practice, the company agreed to this
processes and risk management implementation in order to reach properly running process in risk management.
Information system s 4HE RISK MANAGEMENT PROCESS HAS BEEN REPORTED IN PROlLE REPORTS EVERY SEMESTER
and annually
s 4HE INFORMATION SYSTEM CONTINUES TO BE IMPROVED TO PROVIDE FAST AND ACCURATE DATA
to support the risk management process
Comprehensive internal control s )NTERNAL SUPERVISION IS CONDUCTED BY THE INTERNAL AUDIT DIVISION
systems s $OCUMENTING THE RESULTS OF THE AUDIT AND THE FOLLOW UP IS THE COMPREHENSIVE
internal control system
s 4HE COMPLIANCE AND INTERNAL AUDIT FUNCTION IS INDEPENDENT OF THE WORK UNITS THAT
carry out business processes. The compliance function ensures that every policy and
operational activity complies regarding regulatory requirements
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PT ASURANSI JIWA BCA
Active supervision by the board Active supervision is conducted by the Board of Commissioners and the Board of
of Commissioners and the board Directors through the establishment of the following:
of directors s 2ISK /VERSIGHT #OMMITTEE AND !UDIT #OMMITTEE AT THE LEVEL OF THE "OARD OF
Commissioners; and
s 0RODUCT $EVELOPMENT #OMMITTEE )NVESTMENT #OMMITTEE AND 2ISK -ANAGEMENT
Committee at the level of the Board of Directors.
Adequacy of policies and s "ASIC 2ISK -ANAGEMENT 0OLICY AND ITS )MPLEMENTATION 'UIDELINES FOR EACH TYPE OF
procedures, and determination risks, as defined in the job procedures and guidelines;
of limits s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND REGULARLY
reviewed.
Identification, measurement, s 2ISK MANAGEMENT PROCESSES ARE CONDUCTED AND OUTLINED IN RISK PROlLE REPORTS
monitoring and mitigation s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN AMONG OTHERS RISK PROlLE REPORTS
processes and risk management monitoring reports and regular limit reviews.
Information system
Comprehensive internal control Internal Audit Division has been established which reviews the effectiveness and
systems efficiency of each operational procedure independently and periodically according to
the scope of each work unit.
PT CENTRAL CAPITAL VENTURA
Active supervision by the board Active supervision is conducted by the Board of Commissioners and the Board of
of Commissioners and the board Directors through the establishment of the following:
of directors s 2EGULAR MEETINGS OF THE "OARD OF #OMMISSIONERS AND THE "OARD OF $IRECTORS
(minimum once in three months, based on OJK regulation No. 36/POJK.05/2015);
s %STABLISHMENT OF ORGANIZATION STRUCTURE BASED ON /*+ REGULATION .O
POJK.05/2015;
s 4HE "OARD OF #OMMISSIONERS APPROVAL ON THE "OARD OF $IRECTORS REQUEST ON THE
CAPITAL INJECTION TO 005
s 4HE "OARD OF $IRECTORS APPROVAL ON INTERNAL POLICIES
s 2EGULAR MEETING OF "OARD OF $IRECTORS A MINIMUM OF ONCE A MONTH BASED ON /*+
Regulation No. 36/POJK.05/2015;
s 4HE "OARD OF $IRECTORS AUTHORIZATION AND RESPONSIBILITIES OF ALL REPORTS INCLUDING RISK
profile reports to the regulator.
Adequacy of policies and s 0OLICIES AND PROCEDURES ARE IN COMPLIANCE WITH PREVAILING REGULATIONS AND ARE
procedures, and determination outlined in BCA’s guidelines and procedures and guidelines for the sustainability
of limits business;
s 0OLICIES AND PROCEDURES AND DETERMINATION OF LIMITS ARE ADEQUATE AND REGULARLY
reviewed.
Identification, measurement, s 2ISK MANAGEMENT PROCESSES ARE CONDUCTED AND OUTLINED IN RISK PROlLE REPORTS EACH
monitoring and mitigation semester;
processes and risk management s 2ISK MANAGEMENT PROCESSES ARE REmECTED IN AMONG OTHERS RISK PROlLE REPORTS
Information system monitoring reports and regular limit reviews.
Comprehensive internal control s (AVE POLICIES PROCEDURES AND DETERMINATION OF LIMITS RELATED TO CORPORATE
systems investment;
s )NTERNAL CONTROL PROCESS HAS BEEN CARRIED OUT IN THE IMPLEMENTATION OF OPERATIONAL
activities.
PT BANK ROYAL INDONESIA
Active supervision by the board Active supervision by the Board of Commissioners and Board of Directors is conducted
of Commissioners and the board through the following form:
of directors s 2ISK -ONITORING #OMMITTEE !UDIT #OMMITTEE AND 2EMUNERATION AND .OMINATION
Committee at the Commissioner level
s 2ISK -ANAGEMENT #OMMITTEE #REDIT #OMMITTEE )4 3TEERING #OMMITTEE AND !SSET
Liability Committee (ALCO) at the Directors level
Adequacy of policies and s 'ENERAL RISK MANAGEMENT POLICY WITH THE APPLICATION GUIDELINES FOR EACH TYPE OF
procedures, and determination risk, which are explained in the implementation procedures and instructions
of limits s 0OLICIES PROCEDURES AND DETERMINATION OF LIMIT ARE ADEUQATE AND REGULARLY REVIEWED
Identification, measurement, s 2ISK MANAGEMENT PROCESSES HAS BEEN CARRIED OUT AND OUTLINED IN THE RISK PROlLE
monitoring and mitigation report quarterly,
processes and risk management s 2ISK MANAGEMENT PROCESSES IS REmECTED IN AMONG OTHERS RISK PROlLE REPORTS AND
Information system monitoring reports and regular limit reviews
Comprehensive internal control The internal control function is inherent of all work units. The implementation is
systems MONITORED BY THE #OMPLIANCE 2ISK -ANAGEMENT 5NIT AND )NTERNAL !UDIT 7ORK 5NIT
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Risk Management Table*
Table A. Disclosure of the Capital Structure
Disclosure of the Bank’s capital structure (on standalone basis and consolidated) is presented in the audited Consolidated Financial Statements,
note No. 45.
Table B.1.a.1. Disclosure of Net Receivables by Region - Bank Only
(in million Rupiah)
Period of December 31, 2019
Net Receivables by Region
No. Portfolio Category
Eastern
Sumatera Jawa Kalimantan Total
Indonesia
(1) (2) (3) (4) (5) (6) (7)
1 Receivables on sovereigns - 192,586,061 - - 192,586,061
2 Receivables on public sector entities 30,750 33,543,389 - - 33,574,139
3 Receivables on multilateral development - - - - -
banks and international institutions
4 Receivables on banks 95,078 61,845,380 12,347 24,137 61,976,942
5 Loans secured by residential property 2,536,253 47,063,493 864,810 2,710,560 53,175,116
6 Loans secured by commercial real estate 1,379,701 18,528,430 187,624 685,713 20,781,468
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 2,932,959 61,408,666 818,170 1,571,147 66,730,942
retail portfolio
9 Receivables on corporate 26,676,729 438,695,164 9,362,943 17,034,009 491,768,845
10 Past due receivables 146,241 2,192,352 32,349 122,656 2,493,598
11 Other assets 3,621,371 48,803,920 1,027,608 2,522,908 55,975,807
Total 37,419,082 904,666,855 12,305,851 24,671,130 979,062,918
(in million Rupiah)
Period of December 31, 2018
Net Receivables by Region
No. Portfolio Category
Eastern
Sumatera Jawa Kalimantan Total
Indonesia
(1) (2) (3) (4) (5) (6) (7)
1 Receivables on sovereigns - 151,206,893 - - 151,206,893
2 Receivables on public sector entities 26,541 36,284,517 - - 36,311,058
3 Receivables on multilateral development - - - - -
banks and international institutions
4 Receivables on banks 88,332 67,042,218 2,540 35,022 67,168,112
5 Loans secured by residential property 2,103,089 40,430,355 826,332 2,236,183 45,595,959
6 Loans secured by commercial real estate 870,732 15,402,633 204,565 680,450 17,158,380
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 2,867,308 63,801,148 756,106 1,538,289 68,962,851
retail portfolio
9 Receivables on corporate 24,200,166 376,571,085 7,708,958 14,963,416 423,443,625
10 Past due receivables 123,342 1,395,429 38,495 142,119 1,699,385
11 Other assets 2,769,330 45,235,542 820,481 1,956,327 50,781,680
Total 33,048,840 797,369,820 10,357,477 21,551,806 862,327,943
* The information is presented in accordance with Indonesia’s Financial Services Authority Circular Letter No. 43/SEOJK.03/2016 dated September 28, 2016 regarding Transparency and
Publication of Reporting for Conventional Commercial Banks. If the Bank has no transactions of the particular type defined in the Circular, the table is not presented.
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Table B.1.a.2. Disclosure of Net Receivables by Region - Consolidated
(in million Rupiah)
Period of December 31, 2019
Net Receivables by Region
No. Portfolio Category
Eastern Foreign
Sumatera Jawa Kalimantan Total
Indonesia Operation
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables on sovereigns - 196,953,390 - - 329,204 197,282,594
2 Receivables on public sector entities 30,750 34,006,419 - - - 34,037,169
3 Receivables on multilateral development - - - - - -
banks and international institutions
4 Receivables on banks 95,078 62,225,471 12,347 24,137 73,384 62,430,417
5 Loans secured by residential property 2,537,828 47,115,233 864,810 2,710,560 - 53,228,431
6 Loans secured by commercial real estate 1,380,148 18,969,488 187,624 685,713 - 21,222,973
7 Employee/retired loans - 375,597 - - - 375,597
8 Receivables on micro, small business & 2,938,180 72,426,573 818,170 1,571,147 - 77,754,070
retail portfolio
9 Receivables on corporate 26,919,482 442,112,779 9,362,943 17,034,009 351,066 495,780,279
10 Past due receivables 146,241 2,269,478 32,349 122,656 - 2,570,724
11 Other assets 3,621,371 49,071,412 1,027,608 2,522,908 15,920 56,259,219
Total 37,669,078 925,525,840 12,305,851 24,671,130 769,574 1,000,941,473
(in million Rupiah)
Period of December 31, 2018
Net Receivables by Region
No. Portfolio Category
Eastern Foreign
Sumatera Jawa Kalimantan Total
Indonesia Operation
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables on sovereigns - 152,379,771 - - 342,980 152,722,751
2 Receivables on public sector entities 26,541 36,384,517 - - - 36,411,058
3 Receivables on multilateral development - - - - - -
banks and international institutions
4 Receivables on banks 88,332 67,117,917 2,540 35,022 135,662 67,379,473
5 Loans secured by residential property 2,104,037 40,483,215 826,332 2,236,183 - 45,649,767
6 Loans secured by commercial real estate 870,732 15,713,157 204,565 680,450 - 17,468,904
7 Employee/retired loans - 418,428 - - - 418,428
8 Receivables on micro, small business & 2,867,521 71,974,863 756,106 1,538,289 - 77,136,779
retail portfolio
9 Receivables on corporate 24,370,793 381,303,188 7,708,958 14,963,416 269,359 428,615,714
10 Past due receivables 123,342 1,472,192 38,495 142,119 - 1,776,148
11 Other assets 2,769,330 46,179,367 820,481 1,956,327 8,357 51,733,862
Total 33,220,628 813,426,615 10,357,477 21,551,806 756,358 879,312,884
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Table B.2.a.1. Disclosure of Net Receivables by Contractual Maturity - Bank Only
(in million Rupiah)
Period of December 31, 2019
Net Receivables by Contractual Maturity
No. Portfolio Category
>1 year to >3 year to Non-
≤ 1 year > 5 years Total
3 years 5 years Contractual
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables on sovereigns 132,250,329 25,060,079 32,904,476 612,340 1,758,837 192,586,061
2 Receivables on public sector entities 5,646,988 3,097,006 6,503,357 9,899,402 8,427,386 33,574,139
3 Receivables on multilateral development - - - - - -
banks and international institutions
4 Receivables on banks 27,757,522 5,517,263 1,912,715 5,652 26,783,790 61,976,942
5 Loans secured by residential property 609,349 8,261,667 12,110,465 32,133,379 60,256 53,175,116
6 Loans secured by commercial real estate 3,264,587 2,333,964 2,669,033 10,695,154 1,818,730 20,781,468
7 Employee/retired loans - - - - - -
8 Receivables on micro, small business & 8,968,382 25,644,508 22,303,229 7,893,897 1,920,926 66,730,942
retail portfolio
9 Receivables on corporate 267,774,756 50,533,293 58,504,404 83,145,405 31,810,987 491,768,845
10 Past due receivables 509,807 191,165 208,238 293,220 1,291,168 2,493,598
11 Other assets - - - - 55,975,807 55,975,807
Total 446,781,720 120,638,945 137,115,917 144,678,449 129,847,887 979,062,918
(in million Rupiah)
Period of December 31, 2018
Net Receivables by Contractual Maturity
No. Portfolio Category
>1 year to >3 year to Non-
≤ 1 year > 5 years Total
3 years 5 years Contractual
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables on sovereigns 105,463,559 32,575,851 10,384,234 250,772 2,532,477 151,206,893
2 Receivables on public sector entities 10,458,785 1,681,252 6,623,447 9,566,993 7,980,581 36,311,058
3 Receivables on multilateral development - - - - - -
banks and international institutions
4 Receivables on banks 36,321,919 3,894,477 2,664,159 6,306 24,281,251 67,168,112
5 Loans secured by residential property 469,767 4,652,736 13,208,099 27,188,217 77,140 45,595,959
6 Loans secured by commercial real estate 2,901,665 1,615,522 3,982,031 6,667,130 1,992,032 17,158,380
7 Employee/retired loans - - - - - -
8 Receivables on micro, small business & 7,884,146 29,078,877 21,434,255 8,732,685 1,832,888 68,962,851
retail portfolio
9 Receivables on corporate 224,235,358 42,578,522 52,209,859 75,455,323 28,964,563 423,443,625
10 Past due receivables 324,213 127,753 158,011 397,101 692,307 1,699,385
11 Other assets - - - - 50,781,680 50,781,680
Total 388,059,412 116,204,990 110,664,095 128,264,527 119,134,919 862,327,943
176 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.2.a.2. Disclosure of Net Receivables by Contractual Maturity - Consolidated
(in million Rupiah)
Period of December 31, 2019
Net Receivables by Contractual Maturity
No. Portfolio Category
>1 year to >3 year to Non-
≤ 1 year > 5 years Total
3 years 5 years Contractual
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables on sovereigns 134,296,865 27,476,539 33,035,091 655,464 1,818,635 197,282,594
2 Receivables on public sector entities 5,701,217 3,165,535 6,743,629 9,999,402 8,427,386 34,037,169
3 Receivables on multilateral development - - - - - -
banks and international institutions
4 Receivables on banks 28,210,693 5,517,263 1,912,722 5,652 26,784,087 62,430,417
5 Loans secured by residential property 609,868 8,264,154 12,135,418 32,158,735 60,256 53,228,431
6 Loans secured by commercial real estate 3,313,941 2,334,741 2,776,702 10,978,859 1,818,730 21,222,973
7 Employee/retired loans 13,148 82,609 107,542 172,298 - 375,597
8 Receivables on micro, small business & 11,260,724 32,166,312 24,642,961 8,058,790 1,625,283 77,754,070
retail portfolio
9 Receivables on corporate 271,028,131 49,984,415 59,107,638 83,849,108 31,810,987 495,780,279
10 Past due receivables 537,592 224,383 223,959 293,622 1,291,168 2,570,724
11 Other assets 3,056 119 - - 56,256,044 56,259,219
Total 454,975,235 129,216,070 140,685,662 146,171,930 129,892,576 1,000,941,473
(in million Rupiah)
Period of December 31, 2018
Net Receivables by Contractual Maturity
No. Portfolio Category
>1 year to >3 year to Non-
≤ 1 year > 5 years Total
3 years 5 years Contractual
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables on sovereigns 106,636,438 32,737,595 10,520,646 295,595 2,532,477 152,722,751
2 Receivables on public sector entities 10,458,785 1,681,253 6,723,447 9,566,992 7,980,581 36,411,058
3 Receivables on multilateral development - - - - - -
banks and international institutions
4 Receivables on banks 36,533,094 3,894,656 2,664,166 6,306 24,281,251 67,379,473
5 Loans secured by residential property 469,874 4,654,406 13,228,766 27,219,581 77,140 45,649,767
6 Loans secured by commercial real estate 2,953,808 1,620,531 4,077,247 6,825,286 1,992,032 17,468,904
7 Employee/retired loans 11,229 99,690 121,090 186,419 - 418,428
8 Receivables on micro, small business & 11,251,407 33,164,203 22,526,804 8,758,095 1,436,270 77,136,779
retail portfolio
9 Receivables on corporate 227,279,686 43,393,719 52,788,135 76,189,611 28,964,563 428,615,714
10 Past due receivables 359,982 157,888 167,408 398,563 692,307 1,776,148
11 Other assets 3,603 164 - - 51,730,095 51,733,862
Total 395,957,906 121,404,105 112,817,709 129,446,448 119,686,716 879,312,884
2019 Annual Report | PT Bank Central Asia Tbk 177
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.3.a.1. Disclosure of Net Receivables by Economic Sectors - Bank Only
Receivables on
Multilateral
Receivables on Loans Secured
Receivables on Development Receivables on
No. Economic Sectors Public Sector by Residential
Sovereigns Banks and Banks
Entities Property
International
Institutions
(1) (2) (3) (4) (5) (6) (7)
Period of December 31, 2019
1 Agriculture, hunting and forestry - 1,267,689 - - -
2 Fishery - - - - -
3 Mining and quarrying - 1,866,471 - - -
4 Manufacturing - 112,389 - - -
5 Electricity, gas and water - 15,807,991 - - -
6 Construction - 802,501 - - -
7 Wholesale and retail trading - 17 - - -
8 Hotel and food & beverage - - - - -
9 Transportation, warehousing and - 2,622,530 - - -
communications
10 Financial intermediary 1,797,622 6,385,074 - 61,976,942 -
11 Real estate, rental and business services - - - - -
12 Public administration, defense and 190,782,802 - - - -
compulsory social security
13 Education services - - - - -
14 Human health and social work activities - - - - -
15 Public, socio-culture, entertainment and - - - - -
other personal services
16 Activities of households as employers - - - - -
17 International institution and other extra - - - - -
international agencies
18 5NDElNED ACTIVITIES - - - - -
19 Non business field - - - - 53,175,116
20 Others 5,637 4,709,477 - - -
Total 192,586,061 33,574,139 - 61,976,942 53,175,116
178 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Receivables on
Loans Secured by Exposures at Sharia
Employee / Retired Micro, Small Receivables on Past Due
Commercial Real Other Assets Based Business
Loans Business & Retail Corporate Portfolio Receivables
Estate !CTIVITY 5NIT IF ANY
Portfolio
(8) (9) (10) (11) (12) (13) (14)
- - 190,085 33,835,660 10,686 - -
- - 43,125 950,739 16,300 - -
- - 26,895 1,344,921 43 - -
- - 947,538 137,383,288 328,761 - -
- - 12,788 6,117,090 342 - -
302,370 - 282,505 20,599,692 30,165 - -
- - 5,592,828 150,049,637 645,224 - -
- - 242,241 13,556,455 822,815 - -
- - 357,300 27,373,946 29,813 80 -
- - 42,572 17,617,970 2,121 526,444 -
20,479,098 - 422,366 7,867,500 34,893 - -
- - 1,272 - - - -
- - 48,648 1,062,421 810 - -
- - 98,302 3,315,741 30 - -
- - 394,590 6,665,866 23,557 - -
- - - - - - -
- - 119 - - - -
- - 7,808 3,146 66 - -
- - 44,994,221 22,492,904 498,229 - -
- - 13,025,739 41,531,869 49,743 55,449,283 -
20,781,468 - 66,730,942 491,768,845 2,493,598 55,975,807 -
2019 Annual Report | PT Bank Central Asia Tbk 179
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.3.a.1. Disclosure of Net Receivables by Economic Sectors - Bank Only
Receivables on
Multilateral
Receivables on Loans Secured
Receivables on Development Receivables on
No. Economic Sectors Public Sector by Residential
Sovereigns Banks and Banks
Entities Property
International
Institutions
(1) (2) (3) (4) (5) (6) (7)
Period of December 31, 2018
1 Agriculture, hunting and forestry - 1,306,409 - - -
2 Fishery - - - - -
3 Mining and quarrying - 2,650,651 - - -
4 Manufacturing - 1,081,512 - - -
5 Electricity, gas and water - 13,883,567 - - -
6 Construction - - - - -
7 Wholesale and retail trading - 13 - - -
8 Hotel and food & beverage - - - - -
9 Transportation, warehousing and - 4,051,483 - - -
communications
10 Financial intermediary 2,536,274 5,015,424 - 67,168,112 -
11 Real estate, rental and business services - - - - -
12 Public administration, defense and 148,665,384 - - - -
compulsory social security
13 Education services - - - - -
14 Human health and social work activities - - - - -
15 Public, socio-culture, entertainment and - - - - -
other personal services
16 Activities of households as employers - - - - -
17 International institution and other extra - - - - -
international agencies
18 5NDElNED ACTIVITIES - - - - -
19 Non business field - - - - 45,595,959
20 Others 5,235 8,321,999 - - -
Total 151,206,893 36,311,058 - 67,168,112 45,595,959
180 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Receivables on
Loans Secured by Exposures at Sharia
Employee / Retired Micro, Small Receivables on Past Due
Commercial Real Other Assets Based Business
Loans Business & Retail Corporate Portfolio Receivables
Estate !CTIVITY 5NIT IF ANY
Portfolio
(8) (9) (10) (11) (12) (13) (14)
- - 151,990 30,942,776 5,770 - -
- - 36,867 831,267 63 - -
- - 28,978 1,205,967 4,419 - -
- - 799,723 119,265,815 106,053 - -
- - 7,449 3,124,998 1,436 - -
224,629 - 237,691 17,548,877 16,209 - -
- - 4,580,050 125,490,221 506,220 - -
- - 187,141 13,220,926 353,417 - -
- - 308,335 23,549,860 23,222 80 -
- - 35,521 13,492,721 3,706 526,445 -
16,933,751 - 370,193 5,969,462 48,998 - -
- - - - - - -
- - 40,830 946,018 5,441 - -
- - 83,614 2,636,837 1,360 - -
- - 320,983 4,561,113 6,661 - -
- - - - - - -
- - 23 - - - -
- - 7,708 3,345 87 - -
- - 49,896,164 25,342,047 558,020 - -
- - 11,869,591 35,311,375 58,303 50,255,155 -
17,158,380 - 68,962,851 423,443,625 1,699,385 50,781,680 -
2019 Annual Report | PT Bank Central Asia Tbk 181
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.3.a.2. Disclosure of Net Receivables by Economic Sectors - Consolidated
Receivables on
Multilateral
Receivables on Loans Secured
Receivables on Development Receivables on
No. Economic Sectors Public Sector by Residential
Sovereigns Banks and Banks
Entities Property
International
Institutions
(1) (2) (3) (4) (5) (6) (7)
Period of December 31, 2019
1 Agriculture, hunting and forestry - 1,289,235 - - -
2 Fishery - - - - -
3 Mining and quarrying - 1,866,471 - - -
4 Manufacturing - 112,389 - - -
5 Electricity, gas and water - 16,007,991 - - -
6 Construction - 855,006 - - -
7 Wholesale and retail trading - 17 - - -
8 Hotel and food & beverage - - - - -
9 Transportation, warehousing and - 2,643,363 - - -
communications
10 Financial intermediary 1,797,622 6,553,220 - 62,430,417 -
11 Real estate, rental and business services - - - - -
12 Public administration, defense and 192,743,054 - - - -
compulsory social security
13 Education services - - - - -
14 Human health and social work activities - - - - -
15 Public, socio-culture, entertainment and - - - - -
other personal services
16 Activities of households as employers - - - - -
17 International institution and other extra - - - - -
international agencies
18 5NDElNED ACTIVITIES - - - - -
19 Non business field - - - - 53,175,116
20 Others 2,741,918 4,709,477 - - 53,315
Total 197,282,594 34,037,169 - 62,430,417 53,228,431
182 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Receivables on
Loans Secured by Exposures at Sharia
Employee / Retired Micro, Small Receivables on Past Due
Commercial Real Other Assets Based Business
Loans Business & Retail Corporate Portfolio Receivables
Estate !CTIVITY 5NIT IF ANY
Portfolio
(8) (9) (10) (11) (12) (13) (14)
- 326,305 717,987 34,101,290 13,377 - -
- - 160,881 1,042,838 16,861 - -
- - 334,697 1,377,205 1,244 - -
17,231 - 3,451,070 138,521,447 341,221 - -
- - 13,048 6,117,172 342 - -
350,354 - 302,645 20,889,476 33,127 - -
330 - 7,129,967 151,679,536 652,287 - -
132 - 429,118 13,557,913 823,509 - -
8,935 - 780,459 27,873,134 31,343 80 -
- - 627,053 17,122,398 3,133 975,795 -
20,844,953 - 1,152,365 8,315,253 38,654 - -
- - 611,946 - 2,158 - -
- - 585,096 1,088,445 2,475 - -
- - 461,117 3,325,565 774 - -
- - 1,129,269 6,674,645 28,321 - -
- - 1,221,597 1,399 30,741 - -
- - 119 - - - -
- - 889,598 13,505 3,185 - -
- - 44,994,221 22,492,904 498,229 - -
1,038 49,292 12,761,817 41,586,154 49,743 55,283,344 -
21,222,973 375,597 77,754,070 495,780,279 2,570,724 56,259,219 -
2019 Annual Report | PT Bank Central Asia Tbk 183
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.3.a.2. Disclosure of Net Receivables by Economic Sectors - Consolidated
Receivables on
Multilateral
Receivables on Loans Secured
Receivables on Development Receivables on
No. Economic Sectors Public Sector by Residential
Sovereigns Banks and Banks
Entities Property
International
Institutions
(1) (2) (3) (4) (5) (6) (7)
Period of December 31, 2018
1 Agriculture, hunting and forestry - 1,306,409 - - -
2 Fishery - - - - -
3 Mining and quarrying - 2,650,651 - - -
4 Manufacturing - 1,081,512 - - -
5 Electricity, gas and water - 13,983,567 - - -
6 Construction - - - - -
7 Wholesale and retail trading - 13 - - -
8 Hotel and food & beverage - - - - 249
9 Transportation, warehousing and - 4,051,483 - - -
communications
10 Financial intermediary 2,536,275 5,015,424 - 67,379,473 -
11 Real estate, rental and business services - - - - -
12 Public administration, defense and 150,181,242 - - - -
compulsory social security
13 Education services - - - - -
14 Human health and social work activities - - - - -
15 Public, socio-culture, entertainment and - - - - -
other personal services
16 Activities of households as employers - - - - -
17 International institution and other extra - - - - -
international agencies
18 5NDElNED ACTIVITIES - - - - -
19 Non business field - - - - 45,595,959
20 Others 5,234 8,321,999 - - 53,559
Total 152,722,751 36,411,058 - 67,379,473 45,649,767
184 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Receivables on
Loans Secured by Exposures at Sharia
Employee / Retired Micro, Small Receivables on Past Due
Commercial Real Other Assets Based Business
Loans Business & Retail Corporate Portfolio Receivables
Estate !CTIVITY 5NIT IF ANY
Portfolio
(8) (9) (10) (11) (12) (13) (14)
- 342,624 501,637 31,146,152 7,059 - -
- - 116,091 956,923 623 - -
- - 264,053 1,211,588 5,205 - -
294 - 2,563,282 120,251,831 111,296 - -
- - 7,983 3,125,054 1,436 - -
273,360 - 254,789 17,818,286 19,158 - -
492 - 5,791,353 126,880,262 509,695 - -
- - 322,172 13,222,891 353,647 - -
4,663 - 643,310 24,083,713 23,841 80 -
- - 671,174 14,661,854 3,996 929,572 -
17,190,095 - 947,172 6,437,579 50,550 - -
- - 444,670 - 1,275 - -
- - 455,042 948,606 6,579 - -
- - 346,853 2,638,956 1,753 - -
- - 518,591 4,565,110 7,911 - -
- - 1,129,400 18 52,434 - -
- - 23 - - - -
- - 650,883 11,383 2,268 - -
- - 49,896,164 25,342,047 558,020 - -
- 75,804 11,612,137 35,313,461 59,402 50,804,210 -
17,468,904 418,428 77,136,779 428,615,714 1,776,148 51,733,862 -
2019 Annual Report | PT Bank Central Asia Tbk 185
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.4.a.1. Disclosure of Receivables and Provisioning by Region - Bank Only
(in million Rupiah)
Period of December 31, 2019
Net Receivables by Region
No. Portfolio Category
Eastern
Sumatera Jawa Kalimantan Total
Indonesia
(1) (2) (3) (4) (5) (6) (7)
1 Receivables 28,670,206 797,487,659 9,701,376 19,383,658 855,242,899
2 Impaired receivables 154,632 4,778,569 - 292,500 5,225,701
a. Non past due - 1,142,226 - 7,061 1,149,287
b. Past due 154,632 3,636,343 - 285,439 4,076,414
3 Allowance for impairment losses - 123,200 3,376,167 - 256,970 3,756,337
Individual
4 Allowance for impairment losses - 617,250 9,982,103 118,902 669,348 11,387,603
Collective
5 Written-off receivables 92,084 1,872,673 30,829 31,626 2,027,212
(in million Rupiah)
Period of December 31, 2018
Net Receivables by Region
No. Portfolio Category
Eastern
Sumatera Jawa Kalimantan Total
Indonesia
(1) (2) (3) (4) (5) (6) (7)
1 Receivables 27,081,533 714,990,474 8,779,709 18,051,853 768,903,569
2 Impaired receivables 291,892 4,342,313 54,859 340,221 5,029,285
a. Non past due 72,455 1,574,934 - 93,605 1,740,994
b. Past due 219,437 2,767,379 54,859 246,616 3,288,291
3 Allowance for impairment losses - 194,819 3,264,452 37,975 294,386 3,791,632
Individual
4 Allowance for impairment losses - 473,666 9,050,903 157,194 476,210 10,157,973
Collective
5 Written-off receivables 8,845 2,295,013 184,219 12,689 2,500,766
186 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.4.a.2. Disclosure of Receivables and Provisioning by Region - Consolidated
(in million Rupiah)
Period of December 31, 2019
Net Receivables by Region
No. Portfolio Category
Eastern Foreign
Sumatera Jawa Kalimantan Total
Indonesia Operation
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables 28,711,097 810,223,557 9,701,376 19,383,658 752,920 868,772,608
2 Impaired Receivables 154,632 4,789,475 - 292,500 2,821 5,239,428
a. Non Past Due - 1,153,132 - 7,061 2,821 1,163,014
b. Past Due 154,632 3,636,343 - 285,439 - 4,076,414
3 Allowance for Impairment Losses - 123,200 3,380,517 - 256,970 2,821 3,763,508
Individual
4 Allowance for Impairment Losses - 617,576 10,499,834 118,902 669,348 583 11,906,243
Collective
5 Written-off receivables 92,084 2,076,037 30,829 31,626 - 2,230,576
(in million Rupiah)
Period of December 31, 2018
Net Receivables by Region
No. Portfolio Category
Eastern Foreign
Sumatera Jawa Kalimantan Total
Indonesia Operation
(1) (2) (3) (4) (5) (6) (7) (8)
1 Receivables 27,253,320 728,001,032 8,779,709 18,051,853 788,500 782,874,414
2 Impaired Receivables 291,892 4,605,011 54,859 340,221 45,962 5,337,945
a. Non Past Due 72,455 1,835,833 - 93,605 45,962 2,047,855
b. Past Due 219,437 2,769,178 54,859 246,616 - 3,290,090
3 Allowance for Impairment Losses - 194,819 3,283,306 37,975 294,386 45,962 3,856,448
Individual
4 Allowance for Impairment Losses - 475,143 9,483,443 157,194 476,210 429 10,592,419
Collective
5 Written-off receivables 8,845 2,559,746 184,219 12,689 - 2,765,499
2019 Annual Report | PT Bank Central Asia Tbk 187
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.5.a.1. Disclosure of Receivables and Provisioning based on Economic Sectors - Bank Only
(in million Rupiah)
Impaired Receivables Allowance for Allowance for
Impairment Impairment Written-Off
No. Economic Sectors Receivables
Non Past Losses - Losses - Receivables
Past Due Individual Collective
Due
(1) (2) (3) (4) (5) (6) (7) (8)
Period of December 31, 2019
1 Agriculture, hunting and forestry 33,463,149 - - - 301,696 5,151
2 Fishery 931,471 50,593 51,343 81,935 20,012 343
3 Mining and quarrying 3,084,148 - 365 359 27,122 1,351
4 Manufacturing 122,429,905 692,443 697,684 1,076,099 2,858,337 100,267
5 Electricity, gas and water 20,302,035 - - - 72,557 17,303
6 Construction 17,985,394 - 240,417 240,416 357,464 37,083
7 Wholesale and retail trading 130,582,350 90,050 1,213,277 1,014,101 3,951,283 532,855
8 Hotel and food & beverage 14,655,135 43,389 1,810,610 1,026,650 307,600 960
9 Transportation, warehousing and 27,276,232 272,812 29,194 293,990 389,826 3,568
communications
10 Financial intermediary 86,137,998 - - - 141,602 222
11 Real estate, rental and business services 25,691,645 - 33,524 22,787 778,252 188,098
12 Public administration, defense and 185,313,351 - - - 5 -
compulsory social security
13 Education services 1,021,559 - - - 10,209 515
14 Human health and social work activities 3,019,385 - - - 42,233 1,731
15 Public, socio-culture, entertainment and 5,960,673 - - - 88,729 2,004
other personal services
16 Activities of households as employee - - - - - -
17 International and other extra 119 - - - - -
international institutions
18 5NDElNED ACTIVITIES 11,359 - - - 616 806
19 Non business field 121,954,230 - - - 1,365,658 708,781
20 Others 55,422,761 - - - 674,402 426,174
Total 855,242,899 1,149,287 4,076,414 3,756,337 11,387,603 2,027,212
188 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.5.a.1. Disclosure of Receivables and Provisioning based on Economic Sectors - Bank Only
(in million Rupiah)
Impaired Receivables Allowance for Allowance for
Impairment Impairment Written-Off
No. Economic Sectors Receivables
Non Past Losses - Losses - Receivables
Past Due Individual Collective
Due
(1) (2) (3) (4) (5) (6) (7) (8)
Period of December 31, 2018
1 Agriculture, hunting and forestry 30,435,410 - - - 231,492 125,166
2 Fishery 763,003 - - - 84,942 243
3 Mining and quarrying 3,823,903 - 13,377 9,969 31,650 80
4 Manufacturing 110,380,644 - 163,460 108,086 2,726,306 131,723
5 Electricity, gas and water 16,186,482 - 18,478 17,065 42,683 104
6 Construction 15,213,324 - 560,744 552,052 318,935 39,683
7 Wholesale and retail trading 118,916,000 471,166 926,776 1,001,599 2,779,252 721,020
8 Hotel and food & beverage 13,897,479 786,668 781,187 844,424 365,664 686
9 Transportation, warehousing and 24,008,120 473,441 553,889 1,003,367 343,934 339,000
communications
10 Financial intermediary 87,286,330 - - - 91,095 210,394
11 Real estate, rental and business services 20,861,800 - 270,380 248,260 704,471 2,227
12 Public administration, defense and 153,456,304 - - - - -
compulsory social security
13 Education services 874,465 - - - 9,057 370
14 Human health and social work activities 2,360,375 - - - 32,353 87
15 Public, socio-culture, entertainment and 4,608,049 - - - 84,274 10,836
other personal services
16 Activities of households as employee - - - - - -
17 International and other extra 24 - - - 1 -
international institutions
18 5NDElNED ACTIVITIES 11,561 - - - 719 618
19 Non business field 122,199,366 - - - 1,414,722 515,717
20 Others 43,620,930 9,719 - 6,810 896,423 402,812
Total 768,903,569 1,740,994 3,288,291 3,791,632 10,157,973 2,500,766
2019 Annual Report | PT Bank Central Asia Tbk 189
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.5.a.2. Disclosure of Receivables and Provisioning based on Economic Sectors - Consolidated
(in million Rupiah)
Impaired Receivables Allowance for Allowance for
Impairment Impairment Written-Off
No. Economic Sectors Receivables
Non Past Losses - Losses - Receivables
Past Due Individual Collective
Due
(1) (2) (3) (4) (5) (6) (7) (8)
Period of December 31, 2019
1 Agriculture, hunting and forestry 34,489,058 - - - 318,544 11,454
2 Fishery 1,051,238 50,593 51,343 81,935 22,442 2,230
3 Mining and quarrying 3,411,021 - 365 359 33,397 4,478
4 Manufacturing 125,203,000 692,443 697,684 1,076,099 2,920,887 135,958
5 Electricity, gas and water 20,302,377 - - - 72,576 17,303
6 Construction 18,125,286 - 240,417 240,417 359,895 37,083
7 Wholesale and retail trading 132,345,619 100,956 1,213,277 1,018,451 3,986,595 549,696
8 Hotel and food & beverage 14,845,489 43,389 1,810,610 1,026,650 311,056 2,958
9 Transportation, warehousing and 28,046,275 275,633 29,194 296,810 410,144 7,578
communications
10 Financial intermediary 81,567,578 - - - 152,979 1,581
11 Real estate, rental and business services 26,861,397 - 33,524 22,787 797,856 196,869
12 Public administration, defense and 187,877,391 - - - 15,224 5,741
compulsory social security
13 Education services 1,588,110 - - - 20,459 5,577
14 Human health and social work activities 3,394,154 - - - 48,371 4,226
15 Public, socio-culture, entertainment and 6,719,882 - - - 108,452 8,148
other personal services
16 Activities of households as employee 1,309,361 - - - 266,229 94,477
17 International and other extra 119 - - - - -
international institutions
18 5NDElNED ACTIVITIES 916,909 - - - 18,867 10,264
19 Non business field 121,954,230 - - - 1,365,658 708,781
20 Others 58,764,114 - - - 676,612 426,174
Total 868,772,608 1,163,014 4,076,414 3,763,508 11,906,243 2,230,576
190 2019 Annual Report | PT Bank Central Asia Tbk
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Table B.5.a.2. Disclosure of Receivables and Provisioning based on Economic Sectors - Consolidated
(in million Rupiah)
Impaired Receivables Allowance for Allowance for
Impairment Impairment Written-Off
No. Economic Sectors Receivables
Non Past Losses - Losses - Receivables
Past Due Individual Collective
Due
(1) (2) (3) (4) (5) (6) (7) (8)
Period of December 31, 2018
1 Agriculture, hunting and forestry 31,337,167 - - - 246,297 129,053
2 Fishery 974,317 115,583 - 4,981 86,868 1,341
3 Mining and quarrying 4,068,423 - 13,377 9,969 36,244 1,273
4 Manufacturing 113,193,817 - 163,460 108,086 2,774,578 148,976
5 Electricity, gas and water 16,287,071 - 18,478 17,064 43,698 148
6 Construction 15,552,230 - 560,744 552,052 322,880 39,781
7 Wholesale and retail trading 121,497,443 493,055 928,575 1,006,231 2,815,031 735,261
8 Hotel and food & beverage 14,036,434 786,668 781,187 844,424 369,183 1,461
9 Transportation, warehousing and 24,730,128 476,250 553,889 1,006,176 364,881 342,197
communications
10 Financial intermediary 88,084,542 64,314 - 3,216 104,066 211,421
11 Real estate, rental and business services 22,145,613 47,620 270,380 254,213 724,404 12,798
12 Public administration, defense and 154,251,078 - - - 14,052 1,638
compulsory social security
13 Education services 1,295,816 - - - 17,662 2,045
14 Human health and social work activities 2,628,124 - - - 37,074 1,045
15 Public, socio-culture, entertainment and 4,813,122 - - - 89,470 12,647
other personal services
16 Activities of households as employee 1,250,472 - - - 218,950 195,648
17 International and other extra 24 - - - 1 -
international institutions
18 5NDElNED ACTIVITIES 670,909 - - - 14,383 9,743
19 Non business field 122,199,366 - - - 1,414,722 515,736
20 Others 43,858,318 64,365 - 50,036 897,975 403,287
Total 782,874,414 2,047,855 3,290,090 3,856,448 10,592,419 2,765,499
2019 Annual Report | PT Bank Central Asia Tbk 191
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.6.a.1. Disclosure of Movements of Allowance for Impairment Losses - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Description Allowance for Impairment Allowance for Impairment
Losses - Individual Losses - Collective
(1) (2) (3) (4)
1 Beginning balance - allowance for impairment losses 3,791,632 10,157,973
2 Additional/reversal allowance for impairment losses during the year
(Net)
a. Additional allowance for impairment losses during the year 2,033,544 4,841,094
b. Reversal allowance for impairment losses during the year (798,460) (1,971,524)
3 Allowance for impairment losses used for written off receivables (1,267,368) (1,654,616)
during the year
4 Other additional (reversal) of allowance during the year (3,011) 14,676
Ending Balance - Allowance for Impairment Losses 3,756,337 11,387,603
(dalam jutaan Rupiah)
Period of December 31, 2018
No. Description Allowance for Impairment Allowance for Impairment
Losses - Individual Losses - Collective
(1) (2) (3) (4)
1 Beginning balance - allowance for impairment losses 4,022,773 10,094,698
2 Additional/reversal allowance for impairment losses during the year
(Net)
a. Additional allowance for impairment losses during the year 1,680,984 3,370,960
b. Reversal allowance for impairment losses during the year (337,267) (2,347,288)
3 Allowance for impairment losses used for written off receivables (1,639,851) (1,083,709)
during the year
4 Other additional (reversal) of allowance during the year 64,993 123,312
Ending Balance - Allowance for Impairment Losses 3,791,632 10,157,973
192 2019 Annual Report | PT Bank Central Asia Tbk
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Table B.6.a.2. Disclosure of Movements of Allowance for Impairment Losses - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Description Allowance for Impairment Allowance for Impairment
Losses - Individual Losses - Collective
(1) (2) (3) (4)
1 Beginning balance - allowance for impairment losses 3,856,448 10,592,418
2 Additional/reversal allowance for impairment losses during the year
(Net)
a. Additional allowance for impairment losses during the year 2,203,060 5,414,763
b. Reversal allowance for impairment losses during the year (965,739) (2,117,099)
3 Allowance for impairment losses used for written off receivables (1,307,590) (1,974,143)
during the year
4 Other additional (reversal) of allowance during the year (22,671) (9,696)
Ending Balance - Allowance for Impairment Losses 3,763,508 11,906,243
(in million Rupiah)
Period of December 31, 2018
No. Description Allowance for Impairment Allowance for Impairment
Losses - Individual Losses - Collective
(1) (2) (3) (4)
1 Beginning balance - allowance for impairment losses 4,097,143 10,537,025
2 Additional/reversal allowance for impairment losses during the year
(Net)
a. Additional allowance for impairment losses during the year 1,852,105 3,887,640
b. Reversal allowance for impairment losses during the year (493,267) (2,569,876)
3 Allowance for impairment losses used for written off receivables (1,665,820) (1,385,423)
during the year
4 Other additional (reversal) of allowance during the year 66,287 123,053
Ending Balance - Allowance for Impairment Losses 3,856,448 10,592,419
2019 Annual Report | PT Bank Central Asia Tbk 193
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.7.a.1. Disclosure of Net Receivables by Portfolio and Rating Category - Bank Only
Rating
Long-Term Rating
Company
Standard and
AAA AA+ to AA- A+ to A- BBB+ to BBB-
Poor’s
Fitch Rating AAA AA+ to AA- A+ to A- BBB+ to BBB-
No. Portfolio Category
Moody’s Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3
PT Fitch Ratings AA+(idn) to A+(idn) to BBB+(idn) to
AAA (idn)
Indonesia AA-(idn) A-(idn) BBB-(idn)
PT ICRA [Idr]AA+ to [Idr]A+ to [Idr]BBB+ to
[Idr]AAA
Indonesia [Idr]AA- [Idr]A- [Idr]BBB-
PT Pemeringkat id BBB+ to
idAAA idAA+ to idAA- idA+ to idA-
Efek Indonesia idBBB-
(1) (2) (3) (4) (5) (6) (7)
1 Receivables on sovereigns 2,624,643 - - 30,764,111
2 Receivables on public sector entities 25,085,832 1,247,984 2,439,121 101,584
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 10,190,722 16,320,002 5,146,120 1,502,135
5 Loans secured by residential property
6 Loans secured by commercial real estate
7 Employee/retired loans
8 Receivables on micro, small business &
retail portfolio
9 Receivables on corporate 16,385,171 14,014,072 5,124,542 1,256,236
10 Past due receivables
11 Other assets -
Total 54,286,368 31,582,058 12,709,783 33,624,066
194 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2019
Net Receivables
Short-Term Rating
BB+ to BB- B+ to B- Lower than B- A-1 A-2 A-3 Lower than A-3
BB+ to BB- B+ to B- Lower than B- F1+ to F1 F2 F3 Lower than F3
Lower than
Ba1 to Ba3 B1 to B3 Lower than B3 P-1 P-2 P-3 Unrated Total
P-3
BB+(idn) to B+(idn) to Lower than F1+(idn) to Lower than
F2(idn) F3(idn)
BB-(idn) B-(idn) B-(idn) F1(idn) F3(idn)
[Idr]BB+ to [Idr]B+ to Lower than [Idr]A1+ to [Idr]A2+ to [Idr]A3+ to Lower than
[Idr]BB- [Idr]B- [Idr]B- [Idr]A1 [Idr]A2 [Idr] A3 [Idr]A3
idBB+ to Lower than Lower than
idB+ to idB- idA1 idA2 idA3 to idA4
idBB- idB- idA4
(8) (9) (10) (11) (12) (13) (14) (15) (16)
- - - - - - - 159,197,307 192,586,061
- - - - - - - 4,699,618 33,574,139
- - - - - - - - -
209,424 - - - - - - 28,608,539 61,976,942
53,175,116 53,175,116
20,781,468 20,781,468
- -
66,730,942 66,730,942
124,470 - - - - - - 454,864,354 491,768,845
2,493,598 2,493,598
55,975,807 55,975,807
333,894 - - - - - - 846,526,749 979,062,918
2019 Annual Report | PT Bank Central Asia Tbk 195
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Table B.7.a.1. Disclosure of Net Receivables by Portfolio and Rating Category - Bank Only
Rating
Long-Term Rating
Company
Standard and
AAA AA+ to AA- A+ to A- BBB+ to BBB-
Poor’s
Fitch Rating AAA AA+ to AA- A+ to A- BBB+ to BBB-
No. Portfolio Category
Moody’s Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3
PT Fitch Ratings AA+(idn) to A+(idn) to BBB+(idn) to
AAA (idn)
Indonesia AA-(idn) A-(idn) BBB-(idn)
PT ICRA [Idr]AA+ to [Idr]A+ to [Idr]BBB+ to
[Idr]AAA
Indonesia [Idr]AA- [Idr]A- [Idr]BBB-
PT Pemeringkat id BBB+ to
idAAA idAA+ to idAA- idA+ to idA-
Efek Indonesia idBBB-
(1) (2) (3) (4) (5) (6) (7)
1 Receivables on sovereigns 3,462,978 144,282 - 12,865,942
2 Receivables on public sector entities 22,040,960 91,874 1,428,063 1,820,757
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 18,366,503 17,441,908 6,273,222 662,672
5 Loans secured by residential property
6 Loans secured by commercial real estate
7 Employee/retired loans
8 Receivables on micro, small business &
retail portfolio
9 Receivables on corporate 9,027,616 4,724,949 5,933,877 1,115,189
10 Past due receivables
11 Other assets -
Total 52,898,057 22,403,013 13,635,162 16,464,560
196 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2018
Net Receivables
Short-Term Rating
BB+ to BB- B+ to B- Lower than B- A-1 A-2 A-3 Lower than A-3
BB+ to BB- B+ to B- Lower than B- F1+ to F1 F2 F3 Lower than F3
Lower than
Ba1 to Ba3 B1 to B3 Lower than B3 P-1 P-2 P-3 Unrated Total
P-3
BB+(idn) to B+(idn) to Lower than F1+(idn) to Lower than
F2(idn) F3(idn)
BB-(idn) B-(idn) B-(idn) F1(idn) F3(idn)
[Idr]BB+ to [Idr]B+ to Lower than [Idr]A1+ to [Idr]A2+ to [Idr]A3+ to Lower than
[Idr]BB- [Idr]B- [Idr]B- [Idr]A1 [Idr]A2 [Idr] A3 [Idr]A3
idBB+ to Lower than Lower than
idB+ to idB- idA1 idA2 idA3 to idA4
idBB- idB- idA4
(8) (9) (10) (11) (12) (13) (14) (15) (16)
- - - - - - - 134,733,691 151,206,893
- - - - - - - 10,929,404 36,311,058
- - - - - - - - -
354,589 - - - - - - 24,069,218 67,168,112
45,595,959 45,595,959
17,158,380 17,158,380
- -
68,962,851 68,962,851
- 342,080 - - - - - 402,299,914 423,443,625
1,699,385 1,699,385
50,781,680 50,781,680
354,589 342,080 - - - - - 756,230,482 862,327,943
2019 Annual Report | PT Bank Central Asia Tbk 197
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Table B.7.a.2. Disclosure of Net Receivables by Portfolio and Rating Category - Consolidated
Rating
Long-Term Rating
Company
Standard and
AAA AA+ to AA- A+ to A- BBB+ to BBB-
Poor’s
Fitch Rating AAA AA+ to AA- A+ to A- BBB+ to BBB-
No. Portfolio Category
Moody’s Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3
PT Fitch Ratings AA+(idn) to A+(idn) to BBB+(idn) to
AAA (idn)
Indonesia AA-(idn) A-(idn) BBB-(idn)
PT ICRA [Idr]AA+ to [Idr]A+ to [Idr]BBB+ to
[Idr]AAA
Indonesia [Idr]AA- [Idr]A- [Idr]BBB-
PT Pemeringkat id BBB+ to
idAAA idAA+ to idAA- idA+ to idA-
Efek Indonesia idBBB-
(1) (2) (3) (4) (5) (6) (7)
1 Receivables on sovereigns 2,624,643 - - 30,764,111
2 Receivables on public sector entities 25,332,814 1,300,489 2,602,664 101,584
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 10,203,186 16,628,430 5,277,466 1,503,202
5 Loans secured by residential property
6 Loans secured by commercial real estate
7 Employee/retired loans
8 Receivables on micro, small business &
retail portfolio
9 Receivables on corporate 16,490,200 14,144,250 5,349,232 1,357,028
10 Past due receivables
11 Other assets -
Total 54,650,843 32,073,169 13,229,362 33,725,925
198 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2019
Net Receivables
Short-Term Rating
BB+ to BB- B+ to B- Lower than B- A-1 A-2 A-3 Lower than A-3
BB+ to BB- B+ to B- Lower than B- F1+ to F1 F2 F3 Lower than F3
Lower than
Ba1 to Ba3 B1 to B3 Lower than B3 P-1 P-2 P-3 Unrated Total
P-3
BB+(idn) to B+(idn) to Lower than F1+(idn) to Lower than
F2(idn) F3(idn)
BB-(idn) B-(idn) B-(idn) F1(idn) F3(idn)
[Idr]BB+ to [Idr]B+ to Lower than [Idr]A1+ to [Idr]A2+ to [Idr]A3+ to Lower than
[Idr]BB- [Idr]B- [Idr]B- [Idr]A1 [Idr]A2 [Idr] A3 [Idr]A3
idBB+ to Lower than Lower than
idB+ to idB- idA1 idA2 idA3 to idA4
idBB- idB- idA4
(8) (9) (10) (11) (12) (13) (14) (15) (16)
- - - - - - - 163,893,840 197,282,594
- - - - - - - 4,699,618 34,037,169
- - - - - - - - -
209,424 - - - - - - 28,608,709 62,430,417
53,228,431 53,228,431
21,222,973 21,222,973
375,597 375,597
77,754,070 77,754,070
124,470 - - - - - - 458,315,099 495,780,279
2,570,724 2,570,724
56,259,219 56,259,219
333,894 - - - - - - 866,928,280 1,000,941,473
2019 Annual Report | PT Bank Central Asia Tbk 199
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Table B.7.a.2. Disclosure of Net Receivables by Portfolio and Rating Category - Consolidated
Rating
Long-Term Rating
Company
Standard and
AAA AA+ to AA- A+ to A- BBB+ to BBB-
Poor’s
Fitch Rating AAA AA+ to AA- A+ to A- BBB+ to BBB-
No. Portfolio Category
Moody’s Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3
PT Fitch Ratings AA+(idn) to A+(idn) to BBB+(idn) to
AAA (idn)
Indonesia AA-(idn) A-(idn) BBB-(idn)
PT ICRA [Idr]AA+ to [Idr]A+ to [Idr]BBB+ to
[Idr]AAA
Indonesia [Idr]AA- [Idr]A- [Idr]BBB-
PT Pemeringkat id BBB+ to
idAAA idAA+ to idAA- idA+ to idA-
Efek Indonesia idBBB-
(1) (2) (3) (4) (5) (6) (7)
1 Receivables on sovereigns 3,462,978 144,282 - 12,865,942
2 Receivables on public sector entities 22,140,960 91,874 1,428,063 1,820,757
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 18,355,785 17,454,007 6,289,804 884,591
5 Loans secured by residential property
6 Loans secured by commercial real estate
7 Employee/retired loans
8 Receivables on micro, small business &
retail portfolio
9 Receivables on corporate 9,286,081 4,746,504 6,116,532 1,115,189
10 Past due receivables
11 Other assets -
Total 53,245,804 22,436,667 13,834,399 16,686,479
200 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2018
Net Receivables
Short-Term Rating
BB+ to BB- B+ to B- Lower than B- A-1 A-2 A-3 Lower than A-3
BB+ to BB- B+ to B- Lower than B- F1+ to F1 F2 F3 Lower than F3
Lower than
Ba1 to Ba3 B1 to B3 Lower than B3 P-1 P-2 P-3 Unrated Total
P-3
BB+(idn) to B+(idn) to Lower than F1+(idn) to Lower than
F2(idn) F3(idn)
BB-(idn) B-(idn) B-(idn) F1(idn) F3(idn)
[Idr]BB+ to [Idr]B+ to Lower than [Idr]A1+ to [Idr]A2+ to [Idr]A3+ to Lower than
[Idr]BB- [Idr]B- [Idr]B- [Idr]A1 [Idr]A2 [Idr] A3 [Idr]A3
idBB+ to Lower than Lower than
idB+ to idB- idA1 idA2 idA3 to idA4
idBB- idB- idA4
(8) (9) (10) (11) (12) (13) (14) (15) (16)
- - - - - - - 136,249,549 152,722,751
- - - - - - - 10,929,404 36,411,058
- - - - - - - - -
355,390 - - - - - - 24,039,896 67,379,473
45,649,767 45,649,767
17,468,904 17,468,904
418,428 418,428
77,136,779 77,136,779
- 342,080 - - - - - 407,009,328 428,615,714
1,776,148 1,776,148
51,733,862 51,733,862
355,390 342,080 - - - - - 772,412,065 879,312,884
2019 Annual Report | PT Bank Central Asia Tbk 201
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.8.a.1.a. Disclosure of Counterparty Credit Risk : Derivative Over the Counter Transaction - Bank Only
(in million Rupiah)
Period of December 31, 2019
Notional Amount Net Net
No. 5NDERLYING 6ARIABLES Derivative Derivative Receivables Receivables
9EAR CRM
≤ 9EAR 9EARS Receivables Liabilities before after
≤ 9EARS CRM CRM
1 Interest rate - - - - - - - -
2 Foreign exchange 79,215,299 - - 1,935,596 106,260 4,840,622 - 4,840,622
3 Other - - - - - - - -
Total 79,215,299 - - 1,935,596 106,260 4,840,622 - 4,840,622
(in million Rupiah)
Period of December 31, 2018
Notional Amount Net Net
No. 5NDERLYING 6ARIABLES Derivative Derivative Receivables Receivables
9EAR CRM
≤ 9EAR 9EARS Receivables Liabilities before after
≤ 9EARS CRM CRM
1 Interest rate - - - - - - - -
2 Foreign exchange 49,463,713 - - 1,039,955 188,934 2,621,208 - 2,621,208
3 Other - - - - - - - -
Total 49,463,713 - - 1,039,955 188,934 2,621,208 - 2,621,208
Table B.8.a.1.c. Disclosure of Counterparty Credit Risk: Reverse Repo Transaction – Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category Net Receivables Risk Weighted Asset
Net Receivables CRM Value
after CRM after CRM
(1) (2) (3) (4) (5) (6)
1 Receivables on sovereigns 8,978,455 7,311,919 1,666,536 -
2 Receivables on public sector entities - - - -
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 290,447 255,288 35,159 7,032
5 Receivables on micro, small business & - - - -
retail portfolio
6 Receivables on corporate - - - -
Total 9,268,902 7,567,207 1,701,695 7,032
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category Net Receivables Risk Weighted Asset
Net Receivables CRM Value
after CRM after CRM
(1) (2) (3) (4) (5) (6)
1 Receivables on sovereigns 3,986,380 3,240,032 746,348 -
2 Receivables on public sector entities - - - -
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 5,195,638 4,613,458 582,180 116,436
5 Receivables on micro, small business & - - - -
retail portfolio
6 Receivables on corporate - - - -
Total 9,182,018 7,853,490 1,328,528 116,436
202 2019 Annual Report | PT Bank Central Asia Tbk
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Table B.8.a.2.a. Disclosure of Counterparty Credit Risk: : Derivative Over the Counter Transaction - Consolidated
(in million Rupiah)
Period of December 31, 2019
Notional Amount Net Net
No. 5NDERLYING 6ARIABLES Derivative Derivative Receivable Receivable
9EAR CRM
≤ 9EAR 9EARS Receivable Liabilities before after
≤ 9EARS CRM CRM
1 Interest Rate - - - - - - - -
2 Foreign Exchange 79,215,299 - - 1,935,596 106,260 4,840,622 - 4,840,622
3 Equity - - - - - - - -
4 Gold - - - - - - - -
5 Metals other than Gold - - - - - - - -
6 Others - - - - - - - -
Total 79,215,299 - - 1,935,596 106,260 4,840,622 - 4,840,622
(in million Rupiah)
Period of December 31, 2018
Notional Amount Net Net
No. 5NDERLYING 6ARIABLES Derivative Derivative Receivable Receivable
9EAR CRM
≤ 9EAR 9EARS Receivable Liabilities before after
≤ 9EARS CRM CRM
1 Interest Rate - - - - - - - -
2 Foreign Exchange 49,463,713 - - 1,039,955 188,934 2,621,208 - 2,621,208
3 Equity - - - - - - - -
4 Gold - - - - - - - -
5 Metals other than Gold - - - - - - - -
6 Others - - - - - - - -
Total 49,463,713 - - 1,039,955 188,934 2,621,208 - 2,621,208
2019 Annual Report | PT Bank Central Asia Tbk 203
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.8.a.2.b. Disclosure of Counterparty Credit Risk: Repo Transaction – Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category Net Receivables Risk Weighted Asset
Net Receivables CRM Value
after CRM after CRM
(1) (2) (3) (4) (5) (6)
1 Receivables on sovereigns - -
2 Receivables on public sector entities - -
3 Receivables on multilateral development - -
banks and international institutions
4 Receivables on banks 120,174 113,249 6,925 1,385
5 Receivables on micro, small business & - - -
retail portfolio
6 Receivables on corporate - - - -
Total 120,174 113,249 6,925 1,385
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category Net Receivables Risk Weighted Asset
Net Receivables CRM Value
after CRM after CRM
(1) (2) (3) (4) (5) (6)
1 Receivables on sovereigns - -
2 Receivables on public sector entities - -
3 Receivables on multilateral development - -
banks and international institutions
4 Receivables on banks 52,542 48,111 4,431 886
5 Receivables on micro, small business & - - -
retail portfolio
6 Receivables on corporate - - - -
Total 52,542 48,111 4,431 886
204 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Tabel B.8.a.2.c. Disclosure of Counterparty Credit Risk: Reverse Repo Transactions - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category Net Receivables Risk Weighted Asset
Net Receivables CRM Value
after CRM after CRM
(1) (2) (3) (4) (5) (6)
1 Receivables on sovereigns 9.147.128 7.480.592 1.666.536 -
2 Receivables on public sector entities - - - -
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 290.447 255.288 35.159 7.032
5 Receivables on micro, small business & - - - -
retail portfolio
6 Receivables on corporate 139.723 - 139.723 54.832
Total 9.577.298 7.735.880 1.841.418 61.864
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category Net Receivables Risk Weighted Asset
Net Receivables CRM Value
after CRM after CRM
(1) (2) (3) (4) (5) (6)
1 Receivables on sovereigns 3,986,380 3,240,032 746,348 -
2 Receivables on public sector entities - - - -
3 Receivables on multilateral development - - - -
banks and international institutions
4 Receivables on banks 5,195,638 4,613,458 582,180 116,436
5 Receivables on micro, small business & - - - -
retail portfolio
6 Receivables on corporate 30,667 - 30,667 30,667
Total 9,212,685 7,853,490 1,359,195 147,103
2019 Annual Report | PT Bank Central Asia Tbk 205
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.9.a.1. Disclosure of Net Receivables by Risk Weight after Credit Risk Mitigation - Bank Only
No. Portfolio Category
0% 20% 35%
(1) (2) (3) (4) (5)
A Balance Sheet Exposures
1 Receivables on sovereigns 183,352,323 - -
2 Receivables on public sector entities - 24,697,890 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 8,791 36,964,250 -
5 Loans secured by residential property - - 53,029,496
6 Loans secured by commercial real estate 1,129,710 250 -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 544,440 151,050 -
9 Receivables on corporate 11,833,685 25,887,870 -
10 Past due receivable 258 2,148 -
11 Other assets 25,402,713 - -
Total Exposures - Balance Sheet 222,271,919 87,703,459 53,029,496
B Off Balance Sheet Commitment/Contingency Receivables Exposures
1 Receivables on sovereigns 250,000 - -
2 Receivables on public sector entities - 1,635,926 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 15,522 507,575 -
5 Loans secured by residential property - - 145,620
6 Loans secured by commercial real estate 61,846 - -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 242,034 - -
9 Receivables on corporate 2,743,832 4,456,823 -
10 Past due receivable - - -
Total Exposures - Off Balance Sheet 3,313,235 6,600,324 145,620
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 1,666,536 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks - 35,159 -
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - - -
Total Exposures - Counterparty Credit Risk 1,666,536 35,159 -
D Derivative Credit Risk Exposures
1 Receivables on sovereigns 5,283 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks - 183,765 -
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - - -
7 Credit Valuation Adjustment (CVA risk weighted assets)
Total Exposures - Derivative Credit Risk 5,283 183,765 -
206 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2019
Capital
Net Receivables after Calculation of Credit Risk Mitigation Impact RWA
Charge
40% 45% 50% 75% 100% 150% Others
(6) (7) (8) (9) (10) (11) (12) (13) (14)
- - - - - - - -
- - 7,064,962 - - - 8,472,059 677,765
- - - - - - - -
- - 18,716,119 - - - 16,750,909 1,340,073
- - - - - - 15,023,120 1,201,850
- - - - 17,331,545 - 17,331,595 1,386,528
- - - - - - - -
- - 261 64,793,453 - - 48,625,430 3,890,034
- - 5,798,263 - 374,293,244 - 382,369,950 30,589,596
- - - - 309,003 2,178,495 3,577,175 286,174
- - - - 29,550,801 1,022,294 31,084,242 2,486,739
- - 31,579,605 64,793,453 421,484,593 3,200,789 - 523,234,480 41,858,759
- - - - - - - -
- - 175,360 - - - 414,865 33,189
- - - - - - - -
- - 1,040,400 - - - 621,715 49,737
- - - - - - 30,047 2,404
- - - - 2,258,116 - 2,258,116 180,649
- - - - - - - -
- - 9 999,696 - - 749,776 59,982
- - 937,591 - 65,416,035 - 66,776,195 5,342,096
- - - - - 3,694 5,541 443
- - 2,153,360 999,696 67,674,151 3,694 - 70,856,257 5,668,500
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - 7,032 563
- - - - - - - - -
- - - - - - - - -
- - - - - - - 7,032 563
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 4,248,934 - 1,139 - 2,162,359 172,989
- - - - - - - - -
- - - - 401,502 - 401,502 32,120
- - 324,349 25,948
- - 4,248,934 - 402,640 - - 2,888,209 231,057
2019 Annual Report | PT Bank Central Asia Tbk 207
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.9.a.1. Disclosure of Net Receivables by Risk Weight after Credit Risk Mitigation - Bank Only
No. Portfolio Category
0% 20% 35%
(1) (2) (3) (4) (5)
A Balance Sheet Exposures
1 Receivables on sovereigns 147,217,803 - -
2 Receivables on public sector entities - 20,275,791 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 18,679 43,564,609 -
5 Loans secured by residential property - - 45,440,492
6 Loans secured by commercial real estate 816,337 368 -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 518,904 130,707 -
9 Receivables on corporate 10,439,310 11,831,679 -
10 Past due receivable 5,401 1,023 -
11 Other assets 21,677,576 - -
Total Exposures - Balance Sheet 180,694,010 75,804,177 45,440,492
B Off Balance Sheet Commitment/Contingency Receivables Exposures
1 Receivables on sovereigns - - -
2 Receivables on public sector entities - 1,857,044 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 4,621 25,772 -
5 Loans secured by residential property - - 155,467
6 Loans secured by commercial real estate 34,981 - -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 143,874 - -
9 Receivables on corporate 1,570,996 1,870,934 -
10 Past due receivable - - -
Total Exposures - Off Balance Sheet 1,754,472 3,753,750 155,467
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 749,058 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks - 716,416 -
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - 27,301 -
7 Credit Valuation Adjustment (CVA risk weighted assets)
Total Exposures - Counterparty Credit Risk 749,058 743,717 -
208 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2018
Capital
Net Receivables after Calculation of Credit Risk Mitigation Impact RWA
Charge
40% 45% 50% 75% 100% 150% Others
(6) (7) (8) (9) (10) (11) (12) (13) (14)
- - - - - - - -
- - 12,504,478 - - - 10,307,397 824,592
- - - - - - - -
- - 15,281,614 - - - 16,353,729 1,308,298
- - - - - - 13,093,605 1,047,488
- - - - 14,067,840 - 14,067,914 1,125,433
- - - - - - - -
- - 288 67,678,338 - - 50,785,039 4,062,803
- - 5,531,690 - 347,055,148 226,365 352,526,877 28,202,150
- - - - 360,501 1,332,301 2,359,157 188,733
- - - - 28,486,907 617,197 29,412,703 2,353,016
- - 33,318,070 67,678,338 389,970,396 2,175,863 - 488,906,421 39,112,513
- - - - - - - -
- - 1,671,658 - - - 1,207,238 96,579
- - - - - - - -
- - 861,209 - - - 435,759 34,861
- - - - - - 31,647 2,532
- - - - 2,238,854 - 2,238,854 179,108
- - - - - - - -
- - 284 490,456 - - 367,984 29,439
- - 2,159,260 - 42,249,943 107,859 43,865,549 3,509,244
- - - - - 159 239 19
- - 4,692,411 490,456 44,488,797 108,018 - 48,147,270 3,851,782
- - - - - - - -
- - 2,087 - - - 1,044 84
- - - - - - - -
- - 1,877,704 - 204,030 - - 1,286,166 102,893
- - - - - - - - -
- - - - 365,285 7,855 - 382,528 30,602
- - - 149,464 11,957
- - 1,879,791 - 569,315 7,855 - 1,819,202 145,536
2019 Annual Report | PT Bank Central Asia Tbk 209
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.9.a.2. Disclosure of Net Receivables by Risk Weight after Credit Risk Mitigation - Consolidated
No. Portfolio Category
0% 20% 35%
(1) (2) (3) (4) (5)
A Balance Sheet Exposures
1 Receivables on sovereigns 187,880,183 - -
2 Receivables on public sector entities - 24,997,377 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 8,791 37,410,719 -
5 Loans secured by residential property - 32,216 53,040,988
6 Loans secured by commercial real estate 1,129,710 250 -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 558,059 151,050 -
9 Receivables on corporate 12,065,456 26,204,669 -
10 Past due receivables 258 2,148 -
11 Other assets 25,421,339 - -
Total Exposures - Balance Sheets 227,063,796 88,798,429 53,040,988
B Off Balance Sheet Commitment/Contingency Receivables Exposures
1 Receivables on sovereigns 250,000 - -
2 Receivables on public sector entities - 1,635,926 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 15,522 507,575 -
5 Loans secured by residential property - - 145,620
6 Loans secured by commercial real estate 61,846 - -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 242,034 - -
9 Receivables on corporate 2,743,832 4,456,823 -
10 Past due receivables - - -
Total Exposures - Off Balance Sheets 3,313,235 6,600,324 145,620
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 1,666,536 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks - 42,084 -
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - 106,112 -
Total Exposures - Counterparty Credit Risk 1,666,536 148,196 -
D Derivative Credit Risk Exposures
1 Receivables on sovereigns 5,283 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks - 183,765 -
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - - -
7 Credit Valuation Adjustment (CVA risk weighted assets)
Total Exposures - Derivative Credit Risk 5,283 183,765 -
210 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2019
Capital
Net Receivables after Calculation of Credit Risk Mitigation Impact RWA
Charge
40% 45% 50% 75% 100% 150% Others
(6) (7) (8) (9) (10) (11) (12) (13) (14)
- - - - - - - -
- - 7,228,505 - - - 8,613,728 689,098
- - - - - - - -
- - 18,716,201 - - - 16,840,244 1,347,221
- - - - - - 15,035,987 1,202,879
- - - - 17,773,040 - 17,773,090 1,421,847
- - 375,597 - - - 187,799 15,024
- - 261 75,802,912 - - 56,882,524 4,550,602
- - 6,022,953 - 377,395,677 - 385,648,088 30,851,847
- - - - 309,026 2,255,598 3,692,852 295,428
- - - - 29,615,708 1,222,172 31,448,966 2,515,917
- - 32,343,517 75,802,912 425,093,451 3,477,770 - 536,123,279 42,889,863
- - - - - - - -
- - 175,360 - - - 414,865 33,189
- - - - - - - -
- - 1,040,400 - - - 621,715 49,737
- - - - - - 30,047 2,404
- - - - 2,258,126 - 2,258,126 180,650
- - - - - - - -
- - 9 999,746 - - 749,813 59,985
- - 937,591 - 65,412,053 - 66,772,213 5,341,777
- - - - - 3,694 5,541 443
- - 2,153,360 999,746 67,670,179 3,694 - 70,852,321 5,668,185
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - 8,417 673
- - - - - - - - -
- - - - 33,610 - - 54,833 4,387
- - - - 33,610 - - 63,249 5,060
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 4,248,934 - 1,139 - 2,162,359 172,989
- - - - - - - - -
- - - - 401,502 - 401,502 32,120
- - 324,349 25,948
- - 4,248,934 - 402,640 - - 2,888,209 231,057
2019 Annual Report | PT Bank Central Asia Tbk 211
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.9.a.2. Disclosure of Net Receivables by Risk Weight after Credit Risk Mitigation - Consolidated
No. Portfolio Category
0% 20% 35%
(1) (2) (3) (4) (5)
A Balance Sheet Exposures
1 Receivables on sovereigns 148,733,661 - -
2 Receivables on public sector entities - 20,375,791 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 18,679 43,667,076 -
5 Loans secured by residential property 1,338 26,493 45,455,889
6 Loans secured by commercial real estate 816,337 368 -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 531,908 130,707 -
9 Receivables on corporate 10,715,274 12,203,442 -
10 Past due receivables 5,401 1,023 -
11 Other assets 21,691,383 - -
Total Exposures - Balance Sheets 182,513,981 76,404,900 45,455,889
B Off Balance Sheet Commitment/Contingency Receivables Exposures
1 Receivables on sovereigns - - -
2 Receivables on public sector entities - 1,857,044 -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks 4,621 25,772 -
5 Loans secured by residential property - - 155,467
6 Loans secured by commercial real estate 34,981 - -
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 143,874 - -
9 Receivables on corporate 1,570,996 1,870,934 -
10 Past due receivables - - -
Total Exposures - Off Balance Sheets 1,754,472 3,753,750 155,467
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 749,058 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and international institutions - - -
4 Receivables on banks - 720,847 -
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - 27,301 -
7 Exposures at Sharia based business activity unit (if any)
Total Exposures - Counterparty Credit Risk 749,058 748,148 -
212 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
(in million Rupiah)
Period of December 31, 2018
Capital
Net Receivables after Calculation of Credit Risk Mitigation Impact RWA
Charge
40% 45% 50% 75% 100% 150% Others
(6) (7) (8) (9) (10) (11) (12) (13) (14)
- - - - - - - -
- - 12,504,478 - - - 10,327,397 826,192
- - - - - - - -
- - 15,386,077 - - - 16,426,454 1,314,116
- - - - - - 13,106,937 1,048,555
- - - - 14,378,364 - 14,378,438 1,150,275
- - 418,428 - - - 209,214 16,737
- - 288 75,839,263 - - 56,905,732 4,552,458
- - 5,714,344 - 351,377,261 226,365 357,014,670 28,561,174
- - - - 361,143 1,408,422 2,473,735 197,899
- - - - 29,312,895 729,584 30,407,271 2,432,582
- - 34,023,615 75,839,263 395,429,663 2,364,371 - 501,249,848 40,099,988
- - - - - - - -
- - 1,671,658 - - - 1,207,238 96,579
- - - - - - - -
- - 861,209 - - - 435,759 34,861
- - - - - - 31,647 2,532
- - - - 2,238,854 - 2,238,854 179,108
- - - - - - - -
- - 284 490,456 - - 367,984 29,439
- - 2,159,260 - 42,238,870 107,859 43,854,476 3,508,358
- - - - - 159 239 19
- - 4,692,411 490,456 44,477,724 108,018 - 48,136,197 3,850,896
- - - - - - - -
- - 2,087 - - - 1,044 84
- - - - - - - -
- - 1,877,704 - 204,030 - 1,287,052 102,964
- - - - - - - -
- - - - 395,952 7,855 413,195 33,055
149,464 11,957
- - 1,879,791 - 599,982 7,855 - 1,850,755 148,060
2019 Annual Report | PT Bank Central Asia Tbk 213
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.10.a.1. Disclosure of Net Receivables and Credit Risk Mitigation Techniques - Bank Only
(in million Rupiah)
Period of December 31, 2019
Portion Secured By
No. Portfolio Category Net 5NSECURED
Receivables Credit Portion
Collateral Garansi Others
Insurance
(8) = (3)-
(1) (2) (3) (4) (5) (6) (7)
[(4)+(5)+(6)+(7)]
A Balance Sheet Exposures
1 Receivables on sovereigns 183,352,323 - - - 183,352,323
2 Receivables on public sector entities 31,762,853 - - - 31,762,853
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 55,689,160 8,791 - - 55,680,369
5 Loans secured by residential property 53,029,496 - - - 53,029,496
6 Loans secured by commercial real 18,461,505 1,129,960 - - 17,331,545
estate
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 65,489,203 695,750 - - 64,793,453
retail portfolio
9 Receivables on corporate 417,813,062 13,380,060 - - 404,433,002
10 Past due receivables 2,489,904 2,406 - - 2,487,498
11 Other assets 55,975,807 - - - 55,975,807
Total Exposures - Balance Sheet 884,063,314 15,216,967 - - - 868,846,346
B Off Balance Sheet Commitment/Contingency Receivables Exposures
1 Receivables on sovereigns 250,000 - - - 250,000
2 Receivables on public sector entities 1,811,286 - - - 1,811,286
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 1,563,497 15,522 - - 1,547,975
5 Loans secured by residential property 145,620 - - - 145,620
6 Loans secured by commercial real 2,319,962 61,846 - - 2,258,116
estate
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 1,241,739 242,043 - - 999,696
retail portfolio
9 Receivables on corporate 73,554,282 2,812,812 - - 70,741,469
10 Past due receivables 3,694 - - - 3,694
Total Exposures - Off Balance Sheets 80,890,080 3,132,224 - - - 77,757,856
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 8,978,455 7,311,919 - - 1,666,536
2 Receivables on public sector entities - - - - -
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 290,447 255,288 - - 35,159
5 Receivables on micro, small business & - - - - -
retail portfolio
6 Receivables on corporate - - - - -
Total Exposures - 9,268,902 7,567,207 - - - 1,701,695
Counterparty Credit Risk
D Derivative Credit Risk Exposures
1 Receivables on sovereigns 5.283 - - - 5.283
2 Receivables on public sector entities - - - - -
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 4.433.837 - - - 4.433.837
5 Receivables on micro, small business & - - - - -
retail portfolio
6 Receivables on corporate 401.502 - - - 401.502
Total Exposures - Derivative Credit Risk 4.840.622 - - - - 4.840.622
Total (A+B+C+D) 979.062.918 25.916.398 - - - 953.146.520
214 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.10.a.1. Disclosure of Net Receivables and Credit Risk Mitigation Techniques - Bank Only
(in million Rupiah)
Period of December 31, 2018
Portion Secured By
No. Portfolio Category Net 5NSECURED
Receivables Credit Portion
Collateral Garansi Others
Insurance
(8) = (3)-
(1) (2) (3) (4) (5) (6) (7)
[(4)+(5)+(6)+(7)]
A Balance Sheet Exposures
1 Receivables on sovereigns 147,217,803 - - - 147,217,803
2 Receivables on public sector entities 32,780,269 - - - 32,780,269
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 58,864,902 18,679 - - 58,846,223
5 Loans secured by residential property 45,440,492 - - 45,440,492
6 Loans secured by commercial real 14,884,545 816,705 - - 14,067,840
estate
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 68,328,237 649,899 - - 67,678,338
retail portfolio
9 Receivables on corporate 375,084,192 12,191,515 - - 362,892,677
10 Past due receivables 1,699,226 6,424 - - 1,692,802
11 Other assets 50,781,680 - - - 50,781,680
Total Exposures - Balance Sheet 795,081,346 13,683,222 - - - 781,398,124
B Off Balance Sheet Commitment/
Contingency Receivables Exposures
1 Receivables on sovereigns - - - - -
2 Receivables on public sector entities 3,528,702 - - - 3,528,702
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 891,602 4,621 - - 886,981
5 Loans secured by residential property 155,467 - - - 155,467
6 Loans secured by commercial real 2,273,835 34,981 - - 2,238,854
estate
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 634,614 144,158 - - 490,456
retail portfolio
9 Receivables on corporate 47,958,992 1,609,991 - - 46,349,001
10 Past due receivables 159 - - - 159
Total Exposures - Off Balance Sheets 55,443,371 1,793,751 - - - 53,649,620
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 3,989,090 3,240,032 - - 749,058
2 Receivables on public sector entities 2,087 - - - 2,087
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 7,411,608 4,613,458 - - 2,798,150
5 Receivables on micro, small business & - - - - -
retail portfolio
6 Receivables on corporate 400,441 - - - 400,441
Total Exposures - 11,803,226 7,853,490 - - - 3,949,736
Counterparty Credit Risk
Total (A+B+C) 862,327,943 23,330,463 - - - 838,997,480
2019 Annual Report | PT Bank Central Asia Tbk 215
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.10.a.2. Disclosure of Net Receivables and Credit Risk Mitigation Techniques - Consolidated
(in million Rupiah)
Period of December 31, 2019
Portion Secured By
No. Portfolio Category Net 5NSECURED
Receivables Credit Portion
Collateral Guarantee Others
Insurance
(8) = (3)-
(1) (2) (3) (4) (5) (6) (7)
[(4)+(5)+(6)+(7)]
A Balance Sheet Exposures
1 Receivables on sovereigns 187,880,183 - - - 187,880,183
2 Receivables on public sector entities 32,225,883 - - - 32,225,883
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 56,135,711 8,791 - - 56,126,920
5 Loans secured by residential property 53,082,811 - - - 53,082,811
6 Loans secured by commercial real 18,903,000 1,129,960 - - 17,773,040
estate
7 Employee/retired loans 375,597 - - - 375,597
8 Receivables on micro, small business & 76,512,281 709,369 - - 75,802,912
retail portfolio
9 Receivables on corporate 421,688,755 13,611,831 - - 408,076,924
10 Past due receivables 2,567,029 2,406 - - 2,564,624
11 Other assets 56,259,219 - - - 56,259,219
Total Exposures - Balance Sheet 905,630,471 15,462,357 - - - 890,168,114
B Off Balance Sheet Commitment/
Contingency Receivables Exposures
1 Receivables on sovereigns 250,000 - - - 250,000
2 Receivables on public sector entities 1,811,286 - - - 1,811,286
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 1,563,497 15,522 - - 1,547,975
5 Loans secured by residential property 145,620 - - - 145,620
6 Loans secured by commercial real 2,319,972 61,846 - - 2,258,126
estate
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 1,241,789 242,043 - - 999,746
retail portfolio
9 Receivables on corporate 73,550,299 2,812,812 - - 70,737,487
10 Past due receivables 3,694 - - - 3,694
Total Exposures - Off Balance Sheets 80,886,158 3,132,224 - - - 77,753,934
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 9,147,128 7,480,592 - - 1,666,536
2 Receivables on public sector entities - - - - -
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 297,372 255,288 - - 42,084
5 Receivables on micro, small business & - - - - -
retail portfolio
6 Receivables on corporate 139,723 - - - 139,723
Total Exposures - 9,584,222 7,735,880 - - - 1,848,342
Counterparty Credit Risk
D Derivative Credit Risk Exposures
1 Receivables on sovereigns 5,283 - - - 5,283
2 Receivables on public sector entities - - - - -
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 4,433,837 - - - 4,433,837
5 Receivables on micro, small business & - - - - -
retail portfolio
6 Receivables on corporate 401,502 - - - 401,502
Total Exposures - Derivative Credit Risk 4,840,622 - - - - 4,840,622
Total (A+B+C+D) 1,000,941,473 26,330,461 - - - 974,611,012
216 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.10.a.2. Disclosure of Net Receivables and Credit Risk Mitigation Techniques - Consolidated
(in million Rupiah)
Period of December 31, 2018
Portion Secured By
No. Portfolio Category Net 5NSECURED
Receivables Credit Portion
Collateral Guarantee Others
Insurance
(8) = (3)-
(1) (2) (3) (4) (5) (6) (7)
[(4)+(5)+(6)+(7)]
A Balance Sheet Exposures
1 Receivables on sovereigns 148,733,661 - - - 148,733,661
2 Receivables on public sector entities 32,880,269 - - - 32,880,269
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 59,071,832 18,679 - - 59,053,153
5 Loans secured by residential property 45,494,300 1,338 - - 45,492,962
6 Loans secured by commercial real 15,195,069 816,705 - - 14,378,364
estate
7 Employee/retired loans 418,428 - - - 418,428
8 Receivables on micro, small business & 76,502,165 662,903 - - 75,839,262
retail portfolio
9 Receivables on corporate 380,236,687 12,467,479 - - 367,769,208
10 Past due receivables 1,775,989 6,424 - - 1,769,565
11 Other assets 51,733,862 - - - 51,733,862
Total Exposures - Balance Sheet 812,042,262 13,973,528 - - - 798,068,734
B Off Balance Sheet Commitment/
Contingency Receivables Exposures
1 Receivables on sovereigns - - - - -
2 Receivables on public sector entities 3,528,702 - - - 3,528,702
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 891,602 4,621 - - 886,981
5 Loans secured by residential property 155,467 - - - 155,467
6 Loans secured by commercial real 2,273,835 34,981 - - 2,238,854
estate
7 Employee/retired loans - - - - -
8 Receivables on micro, small business & 634,614 144,158 - - 490,456
retail portfolio
9 Receivables on corporate 47,947,919 1,609,991 - - 46,337,928
10 Past due receivables 159 - - - 159
Total Exposures - Off Balance Sheets 55,432,298 1,793,751 - - - 53,638,547
C Counterparty Credit Risk Exposures
1 Receivables on sovereigns 3,989,090 3,240,032 - - 749,058
2 Receivables on public sector entities 2,087 - - - 2,087
3 Receivables on multilateral - - - - -
development banks and international
institutions
4 Receivables on banks 7,416,039 4,613,458 - - 2,802,581
5 Receivables on micro, small business & - - - - -
retail portfolio
6 Receivables on corporate 431,108 - - - 431,108
Total Exposures - 11,838,324 7,853,490 - - - 3,984,834
Counterparty Credit Risk
Total (A+B+C) 879,312,884 23,620,769 - - - 855,692,115
2019 Annual Report | PT Bank Central Asia Tbk 217
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.11.a.1. Disclosure of Securitization Exposure - Bank Only
(in million Rupiah)
Periode 31 Desember 2019
Assets Value Profit/
No. Securitization Exposure Assets
being securitized Loss from Capital
Value being RWA
securitization Deduction
securitized Past Due Current activity
(1) (2) (3) (4) (5) (6) (7) (8)
1 Bank acts as Originating Creditor
- -
- Example of exposure type: Claim
2 Bank acts as Provider of Credit - - - - - -
Enhancements
a. First loss facility
- Example of exposure type: Claim - - - - - -
secured by residential property
b. Second loss facility
- Example of exposure type: Claim - - - - -
secured by residential property
3 Bank acts as Provider of Liquidity
- Example of exposure type: Claim - - - - -
secured by residential property
4 Bank acts as Service Provider
- Example of exposure type: Claim -
secured by residential property
5 Bank acts as Custodian Bank -
- Example of exposure type: Claim
secured by residential property
6 Bank acts as Investor
a. Senior tranche
74,884 - - - 12,920 -
- Example of exposure type: Claim
secured by residential property
b. Junior tranche - - - - -
- Example of exposure type: Claim
secured by residential property
Total 74,884 - - - 12,920 -
218 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.11.a.2. Disclosure of Securitization Exposure - Consolidated
(in million Rupiah)
Periode 31 Desember 2019
Assets Value Profit/
No. Securitization Exposure Assets
being securitized Loss from Capital
Value being RWA
securitization Deduction
securitized Past Due Current activity
(1) (2) (3) (4) (5) (6) (7) (8)
1 Bank acts as Originating Creditor
- -
- Example of exposure type: Claim
2 Bank acts as Provider of Credit - - - - - -
Enhancements
a. First loss facility
- Example of exposure type: Claim - - - - - -
secured by residential property
b. Second loss facility
- Example of exposure type: Claim - - - - -
secured by residential property
3 Bank acts as Provider of Liquidity
- Example of exposure type: Claim - - - - -
secured by residential property
4 Bank acts as Service Provider
- Example of exposure type: Claim -
secured by residential property
5 Bank acts as Custodian Bank -
- Example of exposure type: Claim
secured by residential property
6 Bank acts as Investor
a. Senior tranche
74,884 - - - 12,920 -
- Example of exposure type: Claim
secured by residential property
b. Junior tranche - - - - -
- Example of exposure type: Claim
secured by residential property
Total 74,884 - - - 12,920 -
2019 Annual Report | PT Bank Central Asia Tbk 219
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.13.a.1.a. Disclosure of On Balance Sheet Assets Exposures - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 183,352,323 - -
2 Receivables on public sector entities 31,762,853 8,472,059 8,472,059
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 55,689,160 16,755,305 16,750,909
5 Loans secured by residential property 53,029,496 15,023,120 15,023,120
6 Loans secured by commercial real estate 18,461,505 18,461,505 17,331,595
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 65,489,203 49,116,902 48,625,430
9 Receivables on corporate 417,813,062 394,978,035 382,369,950
10 Past due receivable 2,489,904 3,580,354 3,577,175
11 Other assets 55,975,807 31,084,242
Aset lainnya 884,063,314 506,387,281 523,234,480
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 147,217,803 - -
2 Receivables on public sector entities 32,780,269 10,307,397 10,307,397
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 58,864,902 16,363,069 16,353,729
5 Loans secured by residential property 45,440,492 13,093,605 13,093,605
6 Loans secured by commercial real estate 14,884,545 14,884,545 14,067,914
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 68,328,237 51,246,178 50,785,039
9 Receivables on corporate 375,084,192 363,843,395 352,526,877
10 Past due receivable 1,699,226 2,368,589 2,359,157
11 Other assets 50,781,680 - 29,412,703
Total 795,081,346 472,106,778 488,906,421
220 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.13.a.1.b. Disclosure of On Balance Sheet Assets Exposures - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 250,000 - -
2 Receivables on public sector entities 1,811,286 414,865 414,865
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 1,563,497 629,476 621,715
5 Loans secured by residential property 145,620 30,047 30,047
6 Loans secured by commercial real estate 2,319,962 2,319,962 2,258,116
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 1,241,739 931,304 749,776
9 Receivables on corporate 73,554,282 69,507,643 66,776,195
10 Past due receivable 3,694 5,541 5,541
Total 80,890,080 73,838,839 70,856,257
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns - - -
2 Receivables on public sector entities 3,528,702 1,207,238 1,207,238
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 891,602 438,041 435,759
5 Loans secured by residential property 155,467 31,647 31,647
6 Loans secured by commercial real estate 2,273,835 2,273,835 2,238,854
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 634,614 475,961 367,984
9 Receivables on corporate 47,958,992 45,419,750 43,865,549
10 Past due receivable 159 239 239
Total 55,443,371 49,846,711 48,147,270
2019 Annual Report | PT Bank Central Asia Tbk 221
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.13.a.1.c. Disclosure of Counterparty Credit Risk Exposures - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 8,978,455 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 290,447 58,089 7,032
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate - - -
Total 9,268,902 58,089 7,032
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 3,989,090 - -
2 Receivables on public sector entities 2,087 1,044 1,044
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 7,411,608 2,208,857 1,286,166
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate 400,441 382,528 382,528
7 Credit Valuation Adjustment (CVA risk weighted assets) 149,464
Total 11,803,226 2,592,429 1,819,202
222 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.13.a.1.e. Disclosure of Securitization Exposures - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Type of Transaction
Capital Charge Factor RWA
(1) (2) (3) (4)
1 RWA Securitization Exposures calculated by the External Rating Base Approach (ERBA) 12,920
Method
2 RWA Securitization Exposures calculated by Standardized Approach (SA) Method
3 Deduction from Common Equity of Exposure Securitization -
Total - 12,920
Table B.13.a.1.f. Disclosure of Credit Derivative Exposures - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA
(1) (2) (3) (4)
1 Receivables on sovereigns 5,283 -
2 Receivables on public sector entities - -
3 Receivables on multilateral development banks and international institutions - -
4 Receivables on banks 4,433,837 2,162,359
5 Receivables on micro, small business & retail portfolio - -
6 Receivables on corporate 401,502 401,502
7 Credit Valuation Adjustment (CVA risk weighted assets) 324,349
Total 4,840,622 2,888,209
Table B.13.a.1.g. Disclosure of Total Credit Risk Measurement - Bank Only
(in million Rupiah)
Period of December 31, 2019
TOTAL RISK WEIGHTED ASSETS CREDIT RISK 596,998,897
TOTAL CAPITAL CHARGE FACTOR -
(in million Rupiah)
Period of December 31, 2018
TOTAL RISK WEIGHTED ASSETS CREDIT RISK 538.872.893
TOTAL CAPITAL CHARGE FACTOR -
2019 Annual Report | PT Bank Central Asia Tbk 223
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Table B.13.a.2.a Disclosure of On Balance Sheet Assets Exposures - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 187,880,183 - -
2 Receivables on public sector entities 32,225,883 8,613,728 8,613,728
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 56,135,711 16,844,640 16,840,244
5 Loans secured by residential property 53,082,811 15,035,987 15,035,987
6 Loans secured by commercial real estate 18,903,000 18,903,000 17,773,090
7 Employee/retired loans 375,597 187,799 187,799
8 Receivables on micro, small business & retail portfolio 76,512,281 57,384,211 56,882,524
9 Receivables on corporate 421,688,755 398,487,944 385,648,088
10 Past due receivables 2,567,029 3,696,031 3,692,852
11 Other assets 56,259,219 31,448,966
Total 905,630,471 519,153,341 536,123,279
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 148,733,661 - -
2 Receivables on public sector entities 32,880,269 10,327,397 10,327,397
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 59,071,832 16,435,794 16,426,454
5 Loans secured by residential property 45,494,300 13,107,406 13,106,937
6 Loans secured by commercial real estate 15,195,069 15,195,069 14,378,438
7 Employee/retired loans 418,428 209,214 209,214
8 Receivables on micro, small business & retail portfolio 76,502,165 57,376,624 56,905,732
9 Receivables on corporate 380,236,687 368,607,152 357,014,670
10 Past due receivables 1,775,989 2,483,167 2,473,735
11 Other assets 51,733,862 30,407,271
Total 812,042,262 483,741,823 501,249,848
224 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.13.a.2.b. Disclosure of Off Balance Sheets Commitment/Contingency Receivables Exposures - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 250,000 - -
2 Receivables on public sector entities 1,811,286 414,865 414,865
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 1,563,497 629,476 621,715
5 Loans secured by residential property 145,620 30,047 30,047
6 Loans secured by commercial real estate 2,319,972 2,319,972 2,258,126
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 1,241,789 931,341 749,813
9 Receivables on corporate 73,550,299 69,503,660 66,772,213
10 Past due receivables 3,694 5,541 5,541
Total 80,886,158 73,834,904 70,852,321
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns - - -
2 Receivables on public sector entities 3,528,702 1,207,238 1,207,238
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 891,602 438,041 435,759
5 Loans secured by residential property 155,467 31,647 31,647
6 Loans secured by commercial real estate 2,273,835 2,273,835 2,238,854
7 Employee/retired loans - - -
8 Receivables on micro, small business & retail portfolio 634,614 475,961 367,984
9 Receivables on corporate 47,947,919 45,408,677 43,854,476
10 Past due receivables 159 239 239
Total 55,432,298 49,835,638 48,136,197
2019 Annual Report | PT Bank Central Asia Tbk 225
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table B.13.a.2.c. Disclosure of Counterparty Credit Risk Exposures - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 9,147,128 - -
2 Receivables on public sector entities - - -
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 297,372 59,474 8,417
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate 139,723 54,833 54,833
Total 9,584,222 114,307 63,249
(in million Rupiah)
Period of December 31, 2018
No. Portfolio Category
Net Receivables RWA before CRM RWA after CRM
(1) (2) (3) (4) (5)
1 Receivables on sovereigns 3,989,090 - -
2 Receivables on public sector entities 2,087 1,044 1,044
3 Receivables on multilateral development banks and - - -
international institutions
4 Receivables on banks 7,416,039 2,209,743 1,287,052
5 Receivables on micro, small business & retail portfolio - - -
6 Receivables on corporate 431,108 413,195 413,195
7 Credit Valuation Adjustment (CVA risk weighted assets) 149,464
Total 11,838,324 2,623,982 1,850,755
226 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table B.13.a.2.e. Disclosure of Securitization Exposures - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Type of Transaction
Capital Charge Factor RWA
(1) (2) (3) (4)
1 RWA Securitization Exposures calculated by the External Rating Base Approach (ERBA) 12,920
Method
2 RWA Securitization Exposures calculated by Standardized Approach (SA) Method
3 Deduction from Common Equity of Exposure Securitization -
Total - 12,920
Table B.13.a.2.f. Disclosure of Credit Derivative Exposures - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Portfolio Category
Net Receivables RWA
(1) (2) (3) (4)
1 Receivables on sovereigns 5,283 -
2 Receivables on public sector entities - -
3 Receivables on multilateral development banks and international institutions - -
4 Receivables on banks 4,433,837 2,162,359
5 Receivables on micro, small business & retail portfolio - -
6 Receivables on corporate 401,502 401,502
7 Credit Valuation Adjustment (CVA risk weighted assets) 324,349
Total 4,840,622 2,888,209
Table B.13.a.2.g. Disclosure of Total Credit Risk Measurement - Consolidated
(in million Rupiah)
Period of December 31, 2019
TOTAL RISK WEIGHTED ASSETS CREDIT RISK 609,939,978
TOTAL CAPITAL CHARGE FACTOR -
(in million Rupiah)
Period of December 31, 2018
TOTAL RISK WEIGHTED ASSETS CREDIT RISK 551,236,800
TOTAL CAPITAL CHARGE FACTOR -
2019 Annual Report | PT Bank Central Asia Tbk 227
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table C.1. Disclosure of Market Risk Using Standardized Method
(in million Rupiah)
Period of December 31, 2019
No. Type of Risk Bank Consolidated
Capital Charge RWA Capital Charge RWA
(1) (2) (3) (4) (5) (6)
1 Interest rate risk
a. Specific risk 25,776 322,199 25,776 322,199
b. General risk 404,496 5,056,204 404,491 5,056,139
2 Foreign exchange risk 125,161 1,564,513 84,036 1,050,444
3 Equity risk
a. Specific risk 5,490 68,619
b. General risk 5,490 68,619
4 Commodity risk - -
5 Option risk - - - -
Total 555,433 6,942,916 525,282 6,566,020
(in million Rupiah)
Period of December 31, 2018
No. Type of Risk Bank Consolidated
Capital Charge RWA Capital Charge RWA
(1) (2) (3) (4) (5) (6)
1 Interest rate risk
a. Specific risk 791,04 9,888,00 2,421,00 30,262,50
b. General risk 209,330,70 2,616,633,75 210,044,00 2,625,550,00
2 Foreign exchange risk 64,214,16 802,677,00 30,742,00 384,275,00
3 Equity risk
a. Specific risk 1,946,00 24,325,00
b. General risk 1,946,00 24,325,00
4 Commodity risk - -
5 Option risk - - - -
Total 274,335,90 3,429,199,00 247,099,00 3,088,737,50
228 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table C.2.a. Disclosure of Interest Rate Risk in Banking Book Exposure (IRRBB) - Bank Only
(Currency: Rupiah)
Period of December 31, 2019
No. (in million Rupiah)
EVE NII
Period T T-1 T T-1
1 Parallel up (4,658,887) (5,491,085) (1,608,313) (1,721,276)
2 Parallel down 3,573,489 3,954,607 1,484,465 1,597,372
3 Steepener 1,586,662 1,629,126
4 Flattener (2,374,332) (2,754,206)
5 Short rate up (4,072,862) (4,694,204)
6 Short rate down 3,345,899 3,658,921
7 Negative Maximum Value (absolute) 4,658,887 5,491,085 1,608,313 1,721,276
8 Tier 1 Capital (to EVE) or Projected Income 160,432,968 149,295,560 49,948,238 46,904,879
(to NII)
9 Maximum Value dividend by Tier 1 Capital 2.90% 3.68% 3.22% 3.67%
(to EVE) or Projected Income (to NII)
Table C.2.a. Disclosure of Interest Rate Risk in Banking Book Exposure (IRRBB) - Bank Only
#URRENCY 53$
Period of December 31, 2019
No. (in million Rupiah)
EVE NII
Period T T-1 T T-1
1 Parallel up 514,642 462,458 1,101,626 1,011,363
2 Parallel down (420,562) (413,816) (1,101,672) (1,011,410)
3 Steepener 79,411 18,673
4 Flattener 38,269 86,890
5 Short rate up 246,010 268,281
6 Short rate down (331,452) (310,789)
7 Negative Maximum Value (absolute) 420,562 413,816 1,101,672 1,011,410
8 Tier 1 Capital (to EVE) or Projected Income 160,432,968 149,295,560 49,948,238 46,904,879
(to NII)
9 Maximum Value dividend by Tier 1 Capital 0.26% 0.28% 2.21% 2.16%
(to EVE) or Projected Income (to NII)
2019 Annual Report | PT Bank Central Asia Tbk 229
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table C.2.a. Disclosure of Interest Rate Risk in Banking Book (IRRBB) Exposure - Bank as Individual
No. Qualitative Analysis
1. Interest rate risk in the banking book (IRRBB) is risk from the movement of market interest rates opposite to that of the banking
book position, potentially impacting the Bank’s capital and earnings in the short and long term. The IRRBB calculation employs two
perspectives: economic value perspective, and earnings. This is so the Bank can identify risks more accurately and perform appropriate
corrective actions.
2. Currently the Bank does not have sufficient source of funds with long-term contractual maturities to finance fixed rate loans and
banking book securities. In addressing this, the component of source of funds to finance interest-bearing loans and banking book
securities is calculated from the core deposit.
To mitigate risk, the Bank has set nominal limits for fixed rate loans and banking book securities, IRRBB limits and pricing strategies.
3. The measurement of individual IRRBB is performed monthly using two methods:
a. Measurement based on the changes in the economic value of equity, which measures the impact of changes in interest rates on the
economic value of Bank equity
b. Measurement based on the changes in net interest income, which measures the impact of changes in interest rates on the Bank’s
earnings.
4. The interest rate shock scenario used by the Bank in measuring IRRBB is in accordance with the standard interest rate shock scenario
specified in the Financial Services Authority Circular Letter No. 12/SEOJK.03/2018 concerning the Implementation of Risk Management
and Standard Approach for Risk Measurement of Interest Rate Risk in the Banking Book for Commercial Banks.
The economic value of equity (EVE) method uses six interest rate shock scenarios:
1) Parallel shock up
2) Parallel shock down
3) Steepener shock with a mix of short rates down and long rates up
4) Flattener shock with a mix of short rates up and long rates down
5) Short rates shock up
6) Short rates shock down.
The net Interest Income (NII) method uses two interest rate shock scenarios:
1) Parallel shock up
2) Parallel shock down.
5. The EVE method calculates all cash flow from the principal and interest payments on interest rate sensitive balance sheet positions and
then discounts them with the relevant interest rates.
The Bank does not calculate commercial margins and spread components in the cash flow. EVE is calculated from notional cash flow
multiplied by the base rate when the transaction is discounted at the risk-free rate at the reporting date.
The IRRBB calculation uses the core deposit, which is part of a stable non maturity deposit with a very small change in interest rates
despite significant changes of interest rates in the market.
The Bank identifies the core deposit and non-core deposit of each stable deposit of transactional retail, non-transactional retail and
wholesale.
The placement of core deposit cash flow is carried out by using uniform slotting on time-buckets above one year with the longest
time period for each category of stable deposits, referring to SE OJK No. 12/SEOJK.03/2018 concerning the Implementation of Risk
Management and Standard Approach for Risk Measurement of Interest Rate Risk in the Banking Book for Commercial Banks.
The methodology used by the Bank to estimate the prepayment rate of loans and early withdrawal rates for time deposits employs
historical data from early repayments for fixed interest loans and early redemption deposits in the past year.
The Bank performs add-on calculations for automatic interest rate options on floating-rate mortgage products with the caps feature and
fixed-rate loan commitments by using the Black-Scholes Model.
4HE "ANK MEASURES )22"" FOR SIGNIlCANT CURRENCIES )$2 AND 53$ )N TOTAL )22"" THE MAXIMUM NEGATIVE ABSOLUTE VALUE OF THE TWO
currencies is aggregated
6. The IRRBB calculation result from the EVE method individually as of December 31, 2019 decreased by 0.79% compared to June 30, 2019 -
FROM TO 5NDER THE .)) METHOD AS OF $ECEMBER IT DECREASED BY COMPARED TO *UNE FROM TO
5.43%. This decrease was caused by a tier 1 capital increase by 7.46%, and an increase in core deposits above one year by 12.01%, which
was greater than the increase in reprice assets above one year by 1.66%.
No. Quantitative Analysis
1. Average repricing maturity applied for NMD is 2.9 years.
2. The longest repricing maturity applied for NMD is five years.
230 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table C.2.b. Disclosure of Interest Rate Risk in Banking Book Exposure (IRRBB) - Consolidated
(Currency: Rupiah)
Period of December 31, 2019
No. (in million Rupiah)
EVE NII
Period T T-1 T T-1
1 Parallel up (5,386,682) (6,199,384) (1,644,472) (1,800,899)
2 Parallel down 4,421,786 4,780,114 1,520,624 1,676,995
3 Steepener 1,559,936 1,611,278
4 Flattener (2,509,808) (2,892,078)
5 Short rate up (4,513,832) (5,128,611)
6 Short rate down 3,810,954 4,117,338
7 Negative Maximum Value (absolute) 5,386,682 6,199,384 1,644,472 1,800,899
8 Tier 1 Capital (to EVE) or Projected Income 170,750,375 157,509,816 51,682,814 48,093,308
(to NII)
9 Maximum Value dividend by Tier 1 Capital 3.15% 3.94% 3.18% 3.74%
(to EVE) or Projected Income (to NII)
Table C.2.b. Disclosure of Interest Rate Risk in Banking Book Exposure (IRRBB) - Consolidated
#URRENCY 53$
Period of December 31, 2019
No. (in million Rupiah)
EVE NII
Period T T-1 T T-1
1 Parallel up 499,724 442,734 1,105,684 1,014,236
2 Parallel down (406,905) (394,565) (1,105,730) (1,014,283)
3 Steepener 80,511 19,590
4 Flattener 33,709 81,440
5 Short rate up 235,687 255,127
6 Short rate down (321,868) (298,190)
7 Negative Maximum Value (absolute) 406,905 394,565 1,105,730 1,014,283
8 Tier 1 Capital (to EVE) or Projected Income 170,750,375 157,509,816 51,682,814 48,093,308
(to NII)
9 Maximum Value dividend by Tier 1 Capital 0.24% 0.25% 2.14% 2.11%
(to EVE) or Projected Income (to NII)
2019 Annual Report | PT Bank Central Asia Tbk 231
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table C.2.b. Disclosure of Interest Rate Risk in Banking Book (IRRBB) Exposure - Bank as Consolidation
No. Qualitative Analysis
1. Interest rate risk in the banking book (IRRBB) is risk from the movement of market interest rates that are opposite to that of the banking
book position, potentially impacting the Bank’s capital and earnings in the short and long term. The IRRBB calculation employs two
perspectives: economic value, and earnings. This is so the Bank can identify risks more accurately, and perform appropriate corrective
actions.
2. Currently, the Bank does not have sufficient source of funds with long-term contractual maturities to finance fixed rate loans and
banking book securities. In addressing this, the component of source of funds to finance interest-bearing loans and banking book
securities is calculated from the core deposit.
To mitigate risk, the Bank has set nominal limits for fixed rate loans and banking book securities, IRRBB limits and pricing strategies.
3. The measurement of individual IRRBB is performed quarterly by using two methods:
a. Measurement based on the changes in the economic value of equity, which measures the impact of changes in interest rates on the
economic value of Bank equity
b. Measurement based on the changes in net interest income, which measures the impact of changes in interest rates on the Bank’s
earnings.
4. The interest rate shock scenario used by the Bank in measuring IRRBB is in accordance with the standard interest rate shock scenario
specified in the Financial Services Authority Circular Letter No. 12/SEOJK.03/2018 concerning the Implementation of Risk Management
and Standard Approach for Risk Measurement of Interest Rate Risk in the Banking Book for Commercial Banks.
1) Parallel shock up
2) Parallel shock down
3) Steepener shock with a mix of short rates down and long rates up
4) Flattener shock with a mix of short rates up and long rates down
5) Short rates shock u
6) Short rates shock down.
The net interest income (NII) method uses two interest rate shock scenarios:
1) Parallel shock up
2) Parallel shock down.
5. The EVE method calculates all cash flow from the principal and interest payments on interest rate sensitive balance sheet positions and
then discounts them with the relevant interest rates.
The Bank does not calculate commercial margins and spread components in the cash flow. EVE is calculated from notional cash flow
multiplied by the base rate when the transaction is discounted at the risk-free rate at the reporting date.
The IRRBB calculation uses the core deposit, which is part of the stable non maturity deposit with a very small change in interest rates
despite significant changes in market interest rates.
The Bank identifies the core deposit and non-core deposit of each stable deposit of transactional retail, non-transactional retail and
wholesale.
The placement of core deposit cash flow is carried out by using uniform slotting on time-buckets above one year, with the longest
time period for each category of stable deposits, referring to SE OJK No. 12/SEOJK.03/2018 concerning the Implementation of Risk
Management and Standard Approach for Risk Measurement of Interest Rate Risk in the Banking Book for Commercial Banks.
The methodology used by the Bank to estimate the prepayment rate of loans and early withdrawal rates for time deposits employs
historical data from early repayments for fixed interest loans and early redemption deposits in the past year.
The Bank performs add-on calculations for automatic interest rate options on floating-rate mortgage products with a caps feature and
fixed-rate loan commitments by using the Black-Scholes Model.
4HE "ANK MEASURES )22"" FOR SIGNIlCANT CURRENCIES WHICH ARE )$2 AND 53$ )N TOTAL )22"" THE MAXIMUM NEGATIVE ABSOLUTE VALUE OF
the two currencies is aggregated.
6. The IRRBB calculation result from the EVE method for consolidation as of December 31, 2019 decreased by 0.80% compared to that of
*UNE FROM TO 5NDER THE .)) METHOD AS OF $ECEMBER IT DECREASED BY COMPARED TO *UNE
from 5.85% to 5.32%. This decrease was caused by a tier 1 capital increase by 8.41%, and an increase in core deposits above one year by
12.97%, which was greater than the increase in reprice assets above one year by 2.57%.
No. Quantitative Analysis
1. Average repricing maturity applied for NMD is 2.9 years.
2. The longest repricing maturity applied for NMD is five years.
232 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table C.3. Disclosure of Interest Rate Risk in Banking Book (IRRBB) Exposures
(in million Rupiah)
Period of December 31, 2018
Economic Value
Earning Approach
Approach
(1) (2) (3)
Decrease in net interest income growth due to interest rate increase of 1% (251,285) (3,185)
Increase in net interest income growth due to interest rate decrease of 1% 251,285 3,185
2019 Annual Report | PT Bank Central Asia Tbk 233
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table D.1.a.1.a. Disclosure of Rupiah Maturity Profile - Bank Only
(in million Rupiah)
Period of December 31, 2019
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1. Cash 23,911,206 23,911,206 - - - -
2. Placement with Bank Indonesia 49,081,006 46,819,175 1,753,653 24,078 484,100 -
3. Placement with other banks 3,393,810 1,375,263 646,415 432,630 382,252 557,250
4. Marketable securities 110,981,489 15,760,880 5,086,944 3,135,581 18,382,950 68,615,134
5. Loans 557,185,061 17,493,467 49,805,047 55,462,897 124,470,960 309,952,690
6. Other receivables 13,696,038 6,233,915 1,547,026 1,035,231 4,799,101 80,765
7. Others 12,926,658 12,924,465 - 2,193 - -
Total Asset 771,175,268 124,518,371 58,839,085 60,092,610 148,519,363 379,205,839
B Liabilities
1. Deposits from customer 650,162,181 85,894,518 7,385,860 1,548,622 1,781,880 553,551,301
2. Liabilities with Bank Indonesia 577 - - - - 577
3. Liabilities with other banks 4,886,119 4,850,019 36,000 100 - -
4. Securities issued 500,000 - - - - 500,000
5. Borrowings - - - - - -
6. Other liabilities 1,072,049 507,611 408,877 148,794 1,622 5,145
7. Others 19,249,912 19,249,912 - - - -
Total Liabilities 675,870,838 110,502,060 7,830,737 1,697,516 1,783,502 554,057,023
On Balance Sheet Asset and
95,304,431 14,016,312 51,008,348 58,395,094 146,735,861 (174,851,184)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment - - - - - -
2. Contingency - - - - - -
Total Administrative Account
- - - - - -
Receivable
B. Off Balance Sheet Liabilities
1. Commitment 201,897,304 12,052,901 29,903,273 29,557,358 68,326,906 62,056,866
2. Contingency - - - - - -
Total Off Balance Sheet Liabilities 201,897,304 12,052,901 29,903,273 29,557,358 68,326,906 62,056,866
Off Balance Sheet Asset and
(201,897,304) (12,052,901) (29,903,273) (29,557,358) (68,326,906) (62,056,866)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (106,592,873) 1,963,411 21,105,075 28,837,736 78,408,955 (236,908,050)
Cumulative Differences - 1,963,411 23,068,486 51,906,222 130,315,177 (106,592,873)
234 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table D.1.a.1.a. Disclosure of Rupiah Maturity Profile - Bank Only
(in million Rupiah)
Period of December 31, 2018
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1. Cash 20,855,831 20,855,831 - - - -
2. Placement with Bank Indonesia 53,644,651 53,644,651 - - - -
3. Placement with other banks 8,362,356 6,060,313 259,776 505,815 1,475,923 60,529
4. Marketable securities 92,252,413 15,155,167 7,611,770 16,045,578 2,850,935 50,588,963
5. Loans 505,979,878 23,552,255 38,334,336 49,830,049 97,160,107 297,103,131
6. Other receivables 13,921,448 6,724,756 5,565,352 1,225,212 390,901 15,227
7. Others 12,641,099 12,617,106 - 23,993 - -
Total Asset 707,657,676 138,610,079 51,771,234 67,630,647 101,877,866 347,767,850
B Liabilities
1. Deposits from customer 582,000,403 58,837,955 4,298,119 1,291,990 437,821 517,134,518
2. Liabilities with Bank Indonesia 577 - - - - 577
3. Liabilities with other banks 4,664,541 4,616,292 48,149 100 - -
4. Securities issued 500,000 - - - - 500,000
5. Borrowings - - - - - -
6. Other liabilities 1,160,300 493,935 431,675 191,080 11,445 32,165
7. Others 18,783,183 18,783,183 - - - -
Total Liabilities 607,109,004 82,731,365 4,777,943 1,483,170 449,266 517,667,260
On Balance Sheet Asset and
100,548,671 55,878,713 46,993,291 66,147,477 101,428,600 (169,899,410)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment - - - - - -
2. Contingency - - - - - -
Total Administrative Account
- - - - - -
Receivable
B. Off Balance Sheet Liabilities
1. Commitment 188,791,739 18,687,633 32,466,031 28,756,180 54,813,487 54,068,408
2. Contingency - - - - - -
Total Off Balance Sheet Liabilities 188,791,739 18,687,633 32,466,031 28,756,180 54,813,487 54,068,408
Off Balance Sheet Asset and
(188,791,739) (18,687,633) (32,466,031) (28,756,180) (54,813,487) (54,068,408)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (88,243,068) 37,191,080 14,527,260 37,391,297 46,615,113 (223,967,818)
Cumulative Differences - 37,191,080 51,718,340 89,109,637 135,724,750 (88,243,068)
2019 Annual Report | PT Bank Central Asia Tbk 235
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table D.1.a.1.b. Disclosure of Foreign Exchange Maturity Profile - Bank Only
(in million Rupiah)
Period of December 31, 2019
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1. Cash 1,491,507 1,491,507 - - - -
2. Placement with Bank Indonesia 56,847,011 23,378,483 14,985,354 6,409,661 12,073,513 -
3. Placement with other banks 11,399,966 11,399,966 - - - -
4. Marketable securities 4,141,411 882,999 1,610,458 364,051 - 1,283,903
5. Loans 31,065,889 826,498 5,994,949 3,060,750 3,927,305 17,256,386
6. Other receivables 7,177,837 1,865,660 3,248,496 1,740,853 248,713 74,116
7. Others 340,904 306,178 29,720 5,006 - -
Total Asset 112,464,525 40,151,291 25,868,977 11,580,322 16,249,530 18,614,405
B Liabilities
1. Deposits from customer 49,142,405 5,814,098 137,776 59,526 125,126 43,005,879
2. Liabilities with Bank Indonesia - - - - - -
3. Liabilities with other banks 1,840,568 1,840,568 - - - -
4. Securities issued - - - - - -
5. Borrowings 398 398 - - - -
6. Other liabilities 4,543,957 1,467,563 2,005,587 789,617 207,075 74,116
7. Others 691,210 691,210 - - - -
Total Liabilities 56,218,539 9,813,837 2,143,363 849,143 332,201 43,079,995
On Balance Sheet Asset and
56,245,987 30,337,454 23,725,614 10,731,179 15,917,330 (24,465,590)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment 11,822,675 7,720,979 3,278,208 749,448 27,765 46,275
2. Contingency - - - - - -
Total Administrative Account
11,822,675 7,720,979 3,278,208 749,448 27,765 46,275
Receivable
B. Off Balance Sheet Liabilities
1. Commitment 92,286,609 19,551,407 22,546,141 25,157,846 20,903,268 4,127,947
2. Contingency - - - - - -
Total Administrative Account
92,286,609 19,551,407 22,546,141 25,157,846 20,903,268 4,127,947
Payable
Off Balance Sheet Asset and
(80,463,934) (11,830,428) (19,267,933) (24,408,397) (20,875,503) (4,081,672)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (24,217,947) 18,507,026 4,457,681 (13,677,218) (4,958,174) (28,547,263)
Cumulative Differences 18,507,026 22,964,707 9,287,489 4,329,315 (24,217,947)
236 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table D.1.a.1.b. Disclosure of Foreign Exchange Maturity Profile - Bank Only
(in million Rupiah)
Period of December 31, 2018
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1. Cash 821,745 821,745 - - - -
2. Placement with Bank Indonesia 31,567,232 22,697,856 3,257,933 5,611,443 - -
3. Placement with other banks 10,011,208 9,723,608 287,600 - - -
4. Marketable securities 5,612,382 999,975 2,290,162 336,494 28,859 1,956,893
5. Loans 31,934,556 1,588,243 5,383,181 4,907,604 7,496,169 12,559,359
6. Other receivables 8,218,661 1,934,084 2,833,887 2,970,540 368,003 112,147
7. Others 309,258 243,000 63,833 2,425 - -
Total Asset 88,475,042 38,008,511 14,116,596 13,828,505 7,893,031 14,628,398
B Liabilities
1. Deposits from customer 48,094,548 3,241,993 101,292 11,039 21,355 44,718,869
2. Liabilities with Bank Indonesia - - - - - -
3. Liabilities with other banks 1,839,460 1,839,460 - - - -
4. Securities issued - - - - - -
5. Borrowings 409 409 - - - -
6. Other liabilities 5,047,687 1,546,264 2,294,935 737,742 356,599 112,147
7. Others 637,545 637,545 - - - -
Total Liabilities 55,619,650 7,265,672 2,396,227 748,781 377,954 44,831,016
On Balance Sheet Asset and
32,855,392 30,742,840 11,720,369 13,079,724 7,515,077 (30,202,617)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment 8,575,998 6,060,217 1,215,470 1,156,512 71,900 71,900
2. Contingency - - - - - -
Total Administrative Account
8,575,998 6,060,217 1,215,470 1,156,512 71,900 71,900
Receivable
B. Off Balance Sheet Liabilities
1. Commitment 64,575,169 17,847,753 13,108,855 14,138,320 16,424,370 3,055,870
2. Contingency - - - - - -
Total Administrative Account
64,575,169 17,847,753 13,108,855 14,138,320 16,424,370 3,055,870
Payable
Off Balance Sheet Asset and
(55,999,171) (11,787,536) (11,893,386) (12,981,809) (16,352,470) (2,983,970)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (23,143,779) 18,955,304 (173,017) 97,915 (8,837,394) (33,186,587)
Cumulative Differences - 18,955,304 18,782,287 18,880,202 10,042,809 (23,143,779)
2019 Annual Report | PT Bank Central Asia Tbk 237
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Table D.1.a.2.a. Disclosure of Rupiah Maturity Profile - Consolidated
(in million Rupiah)
Period of December 31, 2019
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1. Cash 23,928,010 23,928,010 - - - -
2. Placement with Bank Indonesia 50,732,004 48,195,173 1,753,653 84,078 699,100 -
3. Placement with other banks 4,072,718 1,666,622 946,364 520,230 382,252 557,250
4. Marketable securities 116,010,606 16,328,102 5,183,119 3,177,581 18,842,394 72,479,410
5. Loans 555,524,664 17,492,636 49,805,619 55,345,417 124,428,561 308,452,431
6. Other receivables 30,807,948 6,762,849 2,251,298 2,800,552 6,623,769 12,369,480
7. Others 13,302,332 13,300,139 - 2,193 - -
Total Asset 794,378,282 127,673,531 59,940,053 61,930,051 150,976,076 393,858,571
B Liabilities
1. Deposits from customer 655,651,603 91,000,204 7,741,238 1,627,139 1,731,720 553,551,301
2. Liabilities with Bank Indonesia 577 - - - - 577
3. Liabilities with other banks 4,880,218 4,844,118 36,000 100 -
4. Securities issued 1,847,523 - - - 758,006 1,089,517
5. Borrowings 2,262,496 - 148,286 775,000 1,089,397 249,813
6. Other liabilities 1,072,249 507,811 408,877 148,794 1,622 5,145
7. Others 22,717,533 22,717,533 - - - -
Total Liabilities 688,432,200 119,069,667 8,334,401 2,551,033 3,580,745 554,896,353
On Balance Sheet Asset and
105,946,082 8,603,864 51,605,652 59,379,017 147,395,331 (161,037,782)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment 3,023,194 3,023,194 - - - -
2. Contingency - - - - - -
Total Administrative Account
3,023,194 3,023,194 - - - -
Receivable
B. Administrative Account Payable
1. Commitment 202,113,964 12,269,561 29,903,273 29,557,358 68,326,906 62,056,866
2. Contingency - - - - - -
Total Administrative Account
202,113,964 12,269,561 29,903,273 29,557,358 68,326,906 62,056,866
Payable
Off Balance Sheet Asset and
(199,090,770) (9,246,367) (29,903,273) (29,557,358) (68,326,906) (62,056,866)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (93,144,687) (642,502) 21,702,379 29,821,659 79,068,425 (223,094,648)
Cumulative Differences - (642,502) 21,059,877 50,881,536 129,949,961 (93,144,687)
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Table D.1.a.2.a. Disclosure of Rupiah Maturity Profile - Consolidated
(in million Rupiah)
Period of December 31, 2018
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1. Cash 20,864,362 20,864,362 - - - -
2. Placement with Bank Indonesia 54,726,569 54,556,569 70,000 60,000 40,000 -
3. Placement with other banks 8,943,482 6,532,239 343,976 530,815 1,475,923 60,529
4. Marketable securities 94,279,739 15,626,417 7,611,770 16,083,617 3,309,817 51,648,118
5. Loans 505,898,567 23,552,672 38,271,089 49,812,895 97,160,107 297,101,804
6. Other receivables 27,007,427 7,109,094 6,146,531 2,500,466 1,516,267 9,735,069
7. Others 13,868,926 13,844,933 - 23,993 - -
Total Asset 725,589,072 142,086,286 52,443,366 69,011,786 103,502,114 358,545,520
B Liabilities
1. Deposits from customer 586,836,754 63,488,681 4,590,542 1,174,555 448,458 517,134,518
2. Liabilities with Bank Indonesia 577 - - - - 577
3. Liabilities with other banks 4,655,795 4,618,195 37,500 100 -
4. Securities issued 839,735 100,000 - 239,735 - 500,000
5. Borrowings 1,948,645 175,000 122,500 1,220,000 200,000 231,145
6. Other liabilities 1,160,499 494,134 431,675 191,080 11,445 32,165
7. Others 21,767,534 21,767,534 - - - -
Total Liabilities 617,209,540 90,643,545 5,182,217 2,825,470 659,903 517,898,405
On Balance Sheet Asset and
108,379,532 51,442,741 47,261,149 66,186,316 102,842,211 (159,352,885)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment 2,595,000 2,595,000 - - - -
2. Contingency - - - - - -
Total Administrative Account
2,595,000 2,595,000 - - - -
Receivable
B. Administrative Account Payable
1. Commitment 189,127,765 19,023,659 32,466,031 28,756,180 54,813,487 54,068,408
2. Contingency - - - - - -
Total Administrative Account
189,127,765 19,023,659 32,466,031 28,756,180 54,813,487 54,068,408
Payable
Off Balance Sheet Asset and
(16,428,659) (32,466,031) (28,756,180) (54,813,487) (54,068,408)
Liabilities Differences (186,532,765)
Differences [(IA - IB)+(IIA-IIB)] (78,153,233) 35,014,082 14,795,118 37,430,136 48,028,724 (213,421,293)
Cumulative Differences - 35,014,082 49,809,200 87,239,336 135,268,060 (78,153,233)
2019 Annual Report | PT Bank Central Asia Tbk 239
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Table D.1.a.2.b. Disclosure of Foreign Exchange Maturity Profile - Consolidated
(in million Rupiah)
Period of December 31, 2019
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1, Cash 1,493,396 1,493,396 - - - -
2, Placement with Bank Indonesia 56,847,011 23,378,483 14,985,354 6,409,661 12,073,513 -
3, Placement with other banks 11,478,148 11,473,329 - 4,820 - -
4, Marketable securities 4,468,582 882,999 1,766,086 364,051 - 1,455,446
5, Loans 31,414,919 829,274 5,994,949 3,268,946 3,927,305 17,394,444
6, Other receivables 7,177,837 1,865,660 3,248,496 1,740,853 248,713 74,116
7, Others 323,146 288,420 29,720 5,006 - -
Total Asset 113,203,039 40,211,560 26,024,605 11,793,338 16,249,530 18,924,006
B Liabilities
1, Deposits from customer 49,139,708 5,811,401 137,776 59,526 125,126 43,005,879
2, Liabilities with Bank Indonesia - - - - - -
3, Liabilities with other banks 1,840,568 1,840,568 - - - -
4, Securities issued - - - - - -
5, Borrowings 69,797 69,797 - - - -
6, Other liabilities 4,657,206 1,580,812 2,005,587 789,617 207,075 74,116
7, Others 706,678 706,678 - - - -
Total Liabilities 56,413,957 10,009,256 2,143,363 849,143 332,201 43,079,995
On Balance Sheet Asset and
56,789,082 30,202,304 23,881,242 10,944,195 15,917,330 (24,155,989)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1. Commitment 13,494,127 9,392,431 3,278,208 749,448 27,765 46,275
2. Contingency - - - - - -
Total Administrative Account
13,494,127 9,392,431 3,278,208 749,448 27,765 46,275
Receivable
B. Off Balance Sheet Liabilities
1. Commitment 92,286,609 19,551,407 22,546,141 25,157,846 20,903,268 4,127,947
2. Contingency - - - - - -
Total Administrative Account
92,286,609 19,551,407 22,546,141 25,157,846 20,903,268 4,127,947
Payable
Off Balance Sheet Asset and
(78,792,482) (10,158,976) (19,267,933) (24,408,397) (20,875,503) (4,081,672)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (22,003,400) 20,043,328 4,613,309 (13,464,202) (4,958,174) (28,237,662)
Cumulative Differences - 20,043,328 24,656,637 11,192,435 6,234,261 (22,003,400)
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Table D.1.a.2.b. Disclosure of Foreign Exchange Maturity Profile - Consolidated
(in million Rupiah)
Period of December 31, 2018
Maturity
No. Account Balance
> 1 to > 3 to > 6 to
≤ 1 month > 12 months
3 months 6 months 12 months
(1) (2) (3) (4) (5) (6) (7) (8)
I. BALANCE SHEET
A. Assets
1, Cash 827,081 827,081 - - - -
2, Placement with Bank Indonesia 31,567,232 22,697,856 3,257,933 5,611,443 - -
3, Placement with other banks 10,086,690 9,794,199 287,600 4,891 - -
4, Marketable securities 6,059,661 1,017,040 2,339,283 336,494 28,859 2,337,986
5, Loans 32,200,881 1,660,164 5,383,181 5,051,447 7,496,169 12,609,920
6, Other receivables 8,218,661 1,934,084 2,833,887 2,970,540 368,003 112,147
7, Others 304,321 238,063 63,833 2,425 - -
Total Asset 89,264,526 38,168,487 14,165,717 13,977,239 7,893,031 15,060,052
B Liabilities
1, Deposits from customer 48,091,550 3,238,995 101,292 11,039 21,355 44,718,869
2, Liabilities with Bank Indonesia - - - - - -
3, Liabilities with other banks 1,839,460 1,839,460 - - - -
4, Securities issued - - - - - -
5, Borrowings 144,252 72,330 - - 71,922 -
6, Other liabilities 5,095,798 1,594,375 2,294,935 737,742 356,599 112,147
7, Others 653,914 653,914 - - - -
Total Liabilities 55,824,974 7,399,074 2,396,227 748,781 449,876 44,831,016
On Balance Sheet Asset and
33,439,552 30,769,413 11,769,490 13,228,458 7,443,155 (29,770,963)
Liabilities Differences
II. Off Balance Sheet
A. Off Balance Sheet Receivables
1, Commitment 10,301,598 7,785,817 1,215,470 1,156,512 71,900 71,900
2, Contingency - - - - - -
Total Administrative Account
10,301,598 7,785,817 1,215,470 1,156,512 71,900 71,900
Receivable
B. Off Balance Sheet Liabilities
1, Commitment 64,575,169 17,847,753 13,108,855 14,138,320 16,424,370 3,055,870
2, Contingency - - - - - -
Total Administrative Account
64,575,169 17,847,753 13,108,855 14,138,320 16,424,370 3,055,870
Payable
Off Balance Sheet Asset and
(54,273,571) (10,061,936) (11,893,386) (12,981,809) (16,352,470) (2,983,970)
Liabilities Differences
Differences [(IA - IB)+(IIA-IIB)] (20,834,019) 20,707,477 (123,896) 246,649 (8,909,316) (32,754,933)
Cumulative Differences - 20,707,477 20,583,581 20,830,230 11,920,914 (20,834,019)
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Table D.2.a. Disclosure of Liquidity Coverage Ratio (LCR)
Liquidity Coverage Ratio (%)
Quarter I Quarter II Quarter III Quarter IV
(1) (2) (3) (4) (5)
Period of 2019
Bank Only 275,74 275,96 272,03 276,29
Consolidated 274,87 275,18 271,17 275,76
Liquidity Coverage Ratio (%)
Quarter I Quarter II Quarter III Quarter IV
(1) (2) (3) (4) (5)
Period of 2018
Bank Only 343 323 301 278
Consolidated 334 317 299 277
Tabel D.2.a. Disclosure of Net Stable Funding Ratio (NSFR)
NSFR (%)
Quarter I Quarter II Quarter III Quarter IV
(1) (2) (3) (4) (5)
Period of 2019
Bank Only 157.87 158.33 155.09 157.71
Consolidated 156.80 157.76 155.05 157.39
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Table E.1.a. Quantitative Disclosure of Operational Risk - Bank Only
(in million Rupiah)
Period of December 31, 2019
No. Indicator Approach Average Gross Income in
Capital Charge RWA
the past 3 years
(1) (2) (3) (4) (5)
1 Basic Indicator Approach 52,791,193 7,918,679 98,983,486
Total 52,791,193 7,918,679 98,983,486
(in million Rupiah)
Period of December 31, 2018
No. Indicator Approach Average Gross Income in
Capital Charge RWA
the past 3 years
(1) (2) (3) (4) (5)
1 Basic Indicator Approach 48,710,261 7,306,539 91,331,739
Total 48,710,261 7,306,539 91,331,739
Table E.1.b. Quantitative Disclosure of Operational Risk - Consolidated
(in million Rupiah)
Period of December 31, 2019
No. Indicator Approach Average Gross Income in
Capital Charge RWA
the past 3 years
(1) (2) (3) (4) (5)
1 Basic Indicator Approach 56,219,239 8,432,886 105,411,073
Total 56,219,239 8,432,886 105,411,073
(in million Rupiah)
Period of December 31, 2018
No. Indicator Approach Average Gross Income in
Capital Charge RWA
the past 3 years
(1) (2) (3) (4) (5)
1 Basic Indicator Approach 51,843,201 7,776,480 97,206,002
Total 51,843,201 7,776,480 97,206,002
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Business Support
HUMAN
RESOURCES
The development of mindset, Qualified Human Resources and Preparing
Future Leaders
competence, and governance
To ensure the availability of a competent workforce
of human resources plays an over the long term, BCA has prepared a comprehensive
important role in building an action plan. The plan starts with recruiting the best
agile organization. talent, providing adequate training & development, and
preparing for future leadership. The Bank emphasizes its
efforts to instill an agile mindset and approach among
its employees in order to respond to changing business
environment and technology today and in the future.
In today’s digital era, fast technology development and Recruitment Initiative with Focus on Quality
changes in customer behavior influence many aspects of To recruit the best talent, BCA undertakes recruitment
the organization, including human resource that play initiatives such as holding campus hiring or creating
an important roles in sustaining the Bank’s business job fairs to search for the best graduates from various
performance. BCA is committed to develop highly universities in Indonesia and overseas. We actively
competent and agile human resources in line with today’s introduce our corporate profile and share working
dynamic business environment. experience with students at different universities.
Additionally, the bank accepts student visits and provides
In accordance with its long term strategy, BCA has opportunities for students to undertake internship
taken several strategic initiatives in human resource programs.
management, amongst other to develop a high quality
workforce, prepare succession planning, strengthen Face-to-face interaction with university students are
competencies based on the Bank’s needs, and implement conducted from time to time. One example is through
good governance. BCA constantly instills corporate the SAPA BCA program (BCA fun and smart sharing),
culture and values at all levels of employees as a which provides an overview about the Bank’s working
foundation to build a stronger organization. We wish to atmosphere. The program allows participants to
continue to become the employer of choice among other learning the process of making digital applications for
best companies in Indonesia. banking products, gaining knowledge about the use of
information technology, and experiencing to work as a
business analyst.
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BCA has used an online recruitment system that provides Training and Development for Competent Human
information relating to career opportunities in the bank, Resources
process of job application, and the result of early stage Suitable training and development programs are
of selection process. Furthermore, the Bank continues developed to promote highly capable human resources
to strengthen its branding through social media to that match the organization’s needs. BCA formulated
attract interests from people who are searching for job its HR development program, covering the trainee,
opportunity in the banking sector. Starting in the second onboarding, and specialized programs that provide
semester of 2019, BCA started to roll out a referral relevant technical skill, and behavioral aspect. These
program by internal employees. The Bank recruited a initiatives are designed to optimize job performance
total of 1,483 new employees during the year. by employees and to prepare them for higher career
development.
In addition, the Bank offers ‘Bakti BCA’ internship
program to high school, diploma and undergraduate
students to be trained as tellers and customer services in
the branches.
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Business Support
HUMAN RESOURCES
Through its comprehensive trainee development Learning activities are mostly carried out at the BCA
program, BCA builds the competencies of its prospective Learning Institute, which is equipped with various facilities
employees, among others, in the areas of relationship and infrastructure, classrooms, galleries, and an educative
officers, credit analysts, operations and IT. The Bank’s HR library. We create a dynamic, fun and comfortable
trainee program pays attention to nurturing a culture environment in our learning facilities. The Bank also has
of innovation and engagement as a foundation to regional learning centers in eight major cities outside
collaborate and perform their duties and responsibilities the Greater Jakarta area, which are integrated with the
for fulfilling customer needs. Learning Institute.
During the onboarding period, new employees will have Career Development and Preparing Future
to participate in an induction program. It elaborates BCA’s Leaders
values, culture, organizational structure, regulations and Sustainable leadership through smooth succession plan
other related matters. The Bank upholds the importance is essential in preserving corporate performance and
of corporate values and culture through mentoring business growth. Therefore, BCA has designed a special
programs for future generation. The objective is to program targeted key talents within the bank. During
share knowledge, values, and experiences from senior 2019 its implementation was:
individuals to junior employees.
1. Career development program, which is a prerequisite
In designing and preparing effective training modules, program designed for employees who are in the
BCA adopts the ADDIE (analysis, design, development, process of being promoted to a higher level
implementation and evaluation) model. The training 2. Leadership development program, is an accelerated
modules can be delivered to participants through in-class program for key talents to develop leadership
training or e-learning base such as video learning, podcasts and technical skill. We designed a comprehensive
and e-books. BCA also uses the gamification model, an curriculum learning method, combining in-class
innovative approach to promote creativity among the materials, on-the-job training, coaching and sharing
participants. In 2019, the Bank held 2,272 classes for experience from best practices and top leaders.
248,738 training days with a total of 67,548 participants, 3. Executive education program are developed with
supported by 10,535 internal instructors. BCA’s e-learning reputable local or foreign universities to provide
had 280 modules divided into 12 categories and 36,641 best practices, learning experiences and enhance
users. personal networking.
4. Master degree scholarships, are provided for
selected employees to study for magister degree in
collaboration with various leading universities.
246 2019 Annual Report | PT Bank Central Asia Tbk
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The Preparation for Future Leaders is one of many BCA has created community platforms to share various
initiatives carried out in 2019. To fulfill short term needs information regarding latest innovations internally or
including succession plan of retired managers, BCA outside the organization through BCA open source (BOS),
conducted enrichment and acceleration programs for Innovtalk and Data Community. BOS is a knowledge
a group of selected assistant and deputy managers. For sharing forum for employees at managerial level aiming
the longer term, the Bank performed various career to broaden strategic knowledge about leadership and
development programs to prepare prospective successors related matters. Carried out in a relaxed and pleasant
for managerial positions. atmosphere through face-to-face forum or media
streaming or video conferencing, Innovtalk shares many
In 2019, as much as 1,727 employees have completed topics about innovations. Lastly, the Data Community
the BCA career development program. These potential is a knowledge sharing forum regarding data analytics,
candidates were identified through a robust panel involving internal and external speakers.
assessment system. Furthermore, the selected individuals
had to take special designed education program and To stimulate an innovation culture within the
continued with ongoing self-development courses to organization, BCA convenes the annual event of BCA
prepare themself for higher career path. Innovation Award. Since 2014, the program has been held
as an event where employees can express ideas and as a
To ensure the availability of highly competent employees, training ground for competing in the area of innovation.
BCA performs various educational courses such as the BCA also participates in many national and international
bankers and the Management Development Program competitions related to innovation and improvement,
(MDP). High standards of qualification are set for such as TKMPN (Temu Karya Mutu dan Produktivitas
the employees who will participate in a combined of Indonesia), IQC (Indonesia Quality Convention) dan
classroom training, on the job training, and real work ICQCC (International Convention on QC Cycle). The Bank
assignment within BCA. received several gold and platinum awards, the highest
price for these events.
Developing Digital Competencies and an Innovative
Culture As a reflection of our commitment to share knowledge
In the era of digitalization, human resources need to and insights for the benefits of business community
be prepared and equipped with competencies in line and Indonesian people in general, BCA Learning Service
with current business developments. During 2019, BCA (Bakti BCA Foundation) again conducted the Indonesia
conducted number of trainings in the area of design Knowledge Forum (IKF). It was the eighth IKF event
thinking, UI/UX, data analytics, machine learning, optimum which promoted the theme of Nurturing Mindset
work approach and agile leadership. Additionally, for The Next Era of Capital Culture. The event was
equipped with proper trainings, the leaders are expected attended by more than 38 inspirational speakers, and
to adopt and implement the scrum methodology, which was also supported by a series of exhibitions promoting
emphasizes on agility and collaboration. knowledge and technology development. The event is
expected to provide valuable insights and become one
stop knowledge solution for the attendees to apply in
their organizations.
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Business Support
HUMAN RESOURCES
HR Governance for Productivity Remuneration Policy
BCA is committed to a competitive remuneration policy
Conducive Working Environment that promote good performance and welfare. The Bank
Conducive working environment is utmost important renewed its Collective Labor Agreement for the period
in BCA to make employees comfortable to work and to 2019-2021 as a manifestation of its commitment to
deliver best performance and achievements. Furthermore, develop conducive and productive industrial relations.
the Bank organizes work-life balance programs to Endorsed by BCA and its labor unions, the Collective Labor
maintain a healthy relationship between work, social Agreement covers employee remuneration standards that
engagement and family. The work-life balance includes factors in inflation, economic growth, and other aspects
financial planning, healthy lifestyle, smart parenting of employment affairs.
and supporting community activities based on specific
interests and hobbies. BCA regularly conducts comparative studies through
independent surveys to compare the remuneration,
During 2019, the bank reviewed the idea of working to ensure BCA compensation and remuneration
from hub for selected work units. This initiative will allow remain competitive in the market. The development of
employees to work remotely at BCA hubs closer to their remuneration policy is also based on philosophy of “sense
homes. The program is carefully designed and planned of belonging” between employees and employer that
for implementation starting in 2020. allow everyone works optimal and grow together with
the Bank. Since 2012, BCA has consistently distributed
BCA believes that strong team engagement is essential extra bonuses in the form of BCA’s shares to promote
to support conducive working environment. A motto employees’ sense of belonging. The share was purchased
introduced in 2018, “ONE BCA” signifies the work spirit by BCA through open stock market and employees need
of BCA employees. Programs and activities were held in to hold the share for 3 years prior to sell or continuing
2019 to promote the spirit of ONE BCA, with the tagline keep the shares as personal investments.
‘One Goal, One Soul, One Joy’. Much of these efforts
are done to strengthen the culture of collaboration and
alignment, which are essential in today’s workplace.
In appreciation of the Bank’s commitment to support a
conducive working environment, BCA received several
prestigious awards in 2019, including ‘Best Companies
to Work For In Asia’ from HR Asia, and ‘Indonesia’s Most
Admired Companies’ from Frontier Consulting Group and
Marketing Magazine.
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Future Development Plans On going effort to manage employee demographics, BCA
Planning activities relating to the performance and continues to focus on human resources recruitment and
productivity of BCA’s work force will continuously be succession plan. The Bank also continuously promoting a
reviewed and updated in accordance with business conducive and productive work environment to maintain
development and expansion. The planning aspect employee’s loyalty and to attract new joiners. Last but not
becoming more important as the bank faces increasingly least, BCA continue to strengthen employee branding by
number of employees entering the retirement age and promoting the employer value proposition.
automation processes across organization in line with
updated business model. BCA will implement strategy
in monitoring the potential and performance of human
resources, and develop competencies.
BCA will also design training and development programs
to up-skill and re-deployed employees to take different
roles to build innovation culture within the bank.
HR continues to optimize employee’s capability
adaptation to digital technology and data analysis, to
support understanding customer needs and support
innovation in digital banking services.
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Business Support
HUMAN RESOURCES
Employee by Organization Level
2019 2018 2017
Non Staff 1,304 1,181 1,187
Staff 18,884 19,330 19,994
Managers 4,511 4,346 4,176
Senior Officers (Including the Board of Commissioners and Directors) 90 84 82
Total 24,789 24,941 25,439
Employee by Seniority
2019 2018 2017
≤ 1 Year 1,842 1,177 1,712
> 1 – 5 Year 5,985 6,967 7,048
> 5 – 10 Years 3,864 2,626 1,802
> 10 – 15 Years 841 773 621
> 15 – 20 Years 1,436 1,712 1,936
> 20 Years 10,821 11,686 12,320
Total 24,789 24,941 25,439
Employee by Age
2019 2018 2017
≤ 25 Years 2,812 2,740 3,387
> 25 – 30 Years old 6,121 6,128 5,706
> 30 – 35 Years old 2,762 2,060 1,629
> 35 – 40 Years old 1,007 1,203 1,595
> 40 – 45 Years old 3,167 3,712 4,278
> 45 – 50 Years old 5,078 5,375 5,429
> 50 Years old 3,842 3,723 3,415
Total 24,789 24,941 25,439
Employee by Education Level
2019 2018 2017
Up to Senior High School 4,016 4,357 4,868
Diploma and Undergraduate 19,885 19,741 19,771
Graduate and Doctorate 888 843 800
Total 24,789 24,941 25,439
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Employee by Status
2019 2018 2017
Permanent 23,211 23,833 24,343
Non Permanent* 1,578 1,108 1,096
Total 24,789 24,941 25,439
* including contract employee, probationary and trainee
Employee Training
2019 2018 2017
Number Number Number of Number Number Number of Number Number Number of
of Classes of Days Participants of Classes of Days Participants of Classes of Days Participants
Managerial Leadership &
642 63,968 19,923 706 58,656 22,973 617 43,598 18,082
Personal Development
Credit Management 200 30,788 5,261 179 22,721 4,111 115 7,240 2,624
Risk Management
40 822 481 39 831 511 21 635 437
Certification Program
Sales 189 9,841 6,372 123 7,443 3,840 118 6,730 4,004
Service 144 8,619 6,429 93 5,812 4,129 25 1,718 1,350
Operations & Information
861 123,706 21,285 835 110,200 24,152 904 122,056 22,404
Technology
Other 196 10,994 7,797 30 1,850 732 168 10,448 7,929
Total 2,272 248,738 67,548 2,005 207,513 60,448 1,968 192,425 56,830
Employee Training Expenses (in million Rupiah)
2019 2018 2017
Total Employee Training Expenses 395,659 335,991 297,826
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Business Support
NETWORK AND
OPERATION
BCA is supported by more than Reliable Digital Banking Network
1,200 branches, 17,000 ATMs, Incorporating the latest digital technology, BCA has
further strengthened its digital banking network
hundreds of thousands of EDC capabilities, in line with customer preferences. The Bank
machines throughout Indonesia, continues to innovate and develop features and facilities
as well as reliable internet on the digital channels, such as internet banking and
mobile banking, to provide ease and convenience for
banking and mobile banking
customers when performing transactions.
channels to provide transaction
banking services to more than In recent years, BCA has prioritized the enhancement of
21 million customer accounts. mobile-based service innovations such as VIRA, the virtual
chatbot assistant for banking services, QRku, a transfer
feature between customers using a QR code, and card-
less transactions through BCA Mobile. In 2019, the Bank
added a BCA Keyboard feature that allows customers to
BCA’s leading position in transaction banking is supported access banking services on various online chat platforms.
by an integrated multi-channel network and reliable
transaction banking operations. The Bank is committed BCA has also developed an online account opening feature
to enhance the capacity and capabilities of its physical through BCA Mobile. Furthermore, in late 2019, the Bank
and digital networks. launched the Welma (wealth management) application
to meet the investment and insurance information needs
Rapid technological developments have driven changes of individual customers.
in customer behavior. Customer transactions continue to
shift toward the digital network, where it is easier, faster To improve operational efficiency through automation,
and more flexible to perform transactions. The trend is BCA has supported branch offices with digital equipment
evident through the declining number of branch banking which includes the e-Branch mobile app for customer
transactions. Currently, 98% of customer transactions are service, STAR Teller (a machine that supports the teller
done through the digital network, particularly mobile during withdrawals and deposits), e-service (for the
banking, which has experienced significant growth. Tahapan savings book printing service), Flazz machine (for
issuing and topping up Flazz cards) and video banking/
The decline in branch banking transactions is being calls (for account opening and interacting with the call
experienced by banks across the globe, including those center). These services were developed to meet increasing
in Indonesia. The phenomenon has led banks to be customer needs for faster and more accessible banking
more selective in developing their branch networks. In services. BCA was one of the first local banks to utilize
response, BCA continues to explore different approaches application programming interface (API) technology,
to come up an optimal strategy to developing its network to build connectivity through a payment system for
in line with these changes in customer behavior. e-commerce and fintech players.
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Extensive Branch and ATM Network Branch expansion is carried out primarily in locations with
BCA’s operation throughout Indonesia is supported by high business activities and in fast growing regions, and
more than 1,200 branches, 17,000 ATMs, hundreds of the Bank continues abiding to the zoning regulations for
thousands of EDC, as well as reliable internet banking branch openings. At the end of the year we had 1,256
and mobile banking channels. The Bank’s comprehensive branch offices consisting of 139 main branch offices, 837
network provides transaction banking services to more sub-branch offices, and 244 cash offices. In addition to
than 21 million customer accounts. the branch offices, 57 BCA Express and 22 functional
offices also form part of our network.
BCA’s branch network remains essential in building
relationships with customers and serving large value BCA also operates a few hybrid offices, a combination
transactions. Although the number of branch transactions of conventional branches and digital “MyBCA” outlets.
is relatively small, they still capture about 50% of total With the combined operation, customers can still access
transaction value. Therefore, the Bank continues to be banking services even after the office hours of the branch.
selective in branch expansion, and prioritizes a more In 2019, MyBCA outlets could be found in 10 locations in
efficient format such as BCA Express which is a new malls throughout Jakarta, Serpong and Yogyakarta.
digital banking concept that combines digital services
with a limited number of bank officers.
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Business Support
NETWORK AND OPERATION
Our most recent branches have been designed in more Through the HaloBCA call center, the Bank provides
compact and efficient format such as cash offices and customer assistance and receives customer suggestions
BCA Express outlets. This allows the Bank to get closer to and complaints. Recently HaloBCA has been transformed
customers at populous places such as commercial areas, into a digital banking service center to integrate the
public transport stations, and campuses. contact center with a set of digital touch points. These
include: MyBCA services (video calls), BCA Express network
BCA is gradually replacing conventional ATM machines (compact & portable branch), an online account opening
with cash recycling machines (CRM) that allow customers service, a chat service through website and social media,
to deposit and withdraw cash at the same machine. In and SOLA (online solution assistant service agents).
2019, the number of CRM ATMs grew by 1,345 units to SOLA consists of a group of trained agents who perform
6,940, making up 38.7% of BCA’s total ATM machines. their services through various communication facilities
CRMs have been demonstrated to improve operational including phone calls, emails, chat platforms, and social
efficiency and reduce cash handling costs. media.
Quality Services For Customers In 2019, SOLA supported the Service Model
BCA is committed to providing quality customer service Implementation (SMILE) project, a new service model
and instilling a service culture through the SMART whereby dedicated staff are assigned to specific
SOLUTION program. The program has been running customer segments. SOLA agents serve mass market
consistently since 2010 and is a development of its segments. SOLA agents are focused on building customer
predecessor, SMART, which was first introduced in 2001. relationships, performing customer acquisitions and
SMART stands for Sigap (active), Menarik (attractive), deepening engagement, as well as solving customers’
Antusias (enthusiastic), Ramah (friendly), and Teliti problems. Products offered by SOLA include mortgage
(thorough), and focuses on service excellence. The loans (KPR), working capital loans (KMK), vehicle loans
SOLUTION component was later introduced to add the (KKB), e-channel facilities, current accounts, priority
principles of Simak (attentiveness), Open-mindedness, banking, credit cards, and payroll.
Lengkap (completeness), Utamakan kebutuhan nasabah
(prioritization of customers), Telling-solutions, Initiative, BCA has developed digital relationship officers (DRO) for
and ON-time follow-up. customers who open accounts through digital channels
(BCA Mobile and MyBCA through video banking). The
These new additions emphasize the importance of DRO will contact customers regularly under the 222
meeting customer needs and providing high quality concept (two days, two weeks and two months) to keep
financial solutions that help the Bank build close close contact with customers to gain trust and build
relationships with customers as well as strengthening better relationships. BCA has 51 DRO agents and this will
customer engagement. continue to grow in line with the increasing number of
online accounts being opened in 2020.
BCA constantly improves the quality and competencies
of its relationship officers, tellers and customer officers
through various training and skill development
programs related to product and service knowledge, and
relationship building capabilities. This is to enable the
provision of total solutions to customers, not only solving
their problems, but also increasing engagement with
them, ultimately building customer loyalty.
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Future Development Plan BCA is enhancing digitally-based services through the
Responsing to ongoing technological developments, the development of initiatives, such as voice biometrics in the
Bank will develop digitally-based services, and continue customer verification process to speed up handling time
the integration of its digital channels into one platform at our digital service center. The Bank is also increasing
(omni-channel) to increase the ease and convenience of the capacity and capabilities of its contact center in
customer transactions. Semarang, which aims to be the best in Indonesia.
BCA pays attention to the importance of the customer BCA is always improving the competence of its human
experience, through service offerings that meet customer resources, providing them with devices and tools that
needs. As more banking transactions are performed utilize the latest technological developments, to support
through digital channels, the Bank is committed to the provision of suitable financial solutions in line with
strengthen the capacity and capabilities of contact center customers’ needs.
services in offering banking solutions, handling customer
complaints, and providing customers with information on
its facilities, products, and services.
BCA is still investing in its banking network in a measured
way, especially in the development of branch and ATM
networks, in line with changing customer behavior in
banking transactions. The role of the branch office as
a solution center will be further strengthened to foster
relationships with customers, and the capabilities of BCA’s
digital banking services will be further developed.
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Business Support
INFORMATION
TECHNOLOGY
High quality transaction Enhancing Innovation and Productivity with
banking services require a Technology
The rapid advancement of technology has encouraged
versatile IT infrastructure. innovation of products and services in the banking
BCA has developed a series industry, particularly in the area of transaction banking.
of initiatives to strengthen the
Customers now have higher expectations of the products
capacity and capability of IT
and services offered by banks and fin-tech companies.
infrastructure to meet business They must be easy to access and use, fast, secure and
and operational needs. convenient. BCA embraces these changes in customer
behavior and fosters innovations and enhancements,
especially for its internet banking (KlikBCA) and mobile
banking platforms (BCA Mobile).
The use of technology is bringing a major change to the
way the banking and financial sectors operate. Fintech BCA has launched a variety of initiatives as part of its
and e-commerce vendors present more competitive digital journey, centered around three pillars: new
challenges for banks, and at the same time opportunities acquisitions through digital channels, customer retention
for collaboration to broaden banks’ customer reach. and experience enrichment, and process efficiency.
In line with this trend, BCA strives to optimize the use
of technology to serve customers and improve internal With the exponential growth of smartphone use, BCA
processes. Transaction security within our digital ecosystem took the opportunity to launch an online account
is our top priority. Security guidelines and measures are in opening feature through BCA Mobile in April 2019
place to allow hassle-free transactions without the need to boost customer acquisitions. This feature allows
to worry about data safety and confidentiality. customers to open accounts in a comfortable and flexible
way, as the validation process (know your customer/KYC)
IT infrastructure capacity and capability are increasingly is performed through a video-call. The Bank also launched
seen as important factors affecting a bank’s competitive Welma, a mobile-based wealth management application
performance. BCA’s continuous investment in IT to serve customer requirements for investment and
development is aimed at staying relevant in today’s insurance products.
digital world and for its long term business success.
Leveraging on growing e-commerce and fintech-based
In collaboration with other business units, the IT division businesses, BCA is developing open platforms by building
acts as a business enabler, creating synergies to cater to connectivity through application programming interface
evolving customer needs, improving internal processes (API) technology. The Bank is confident that this strategic
and suggesting new business opportunities for the Bank. initiative will deliver a better customer experience and
expand its payment services ecosystem to support the
growth of BCA’s transaction banking business.
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Investment in technology is also a way to improve The IT department collaborates with business units to
operational efficiency through automation. In stages, develop automation to simplify and speed up business
BCA is developing a future branch concept with self- processes. One of the major projects in this area is
service capabilities and an automated/centralized back the building of an integrated and end-to-end loan
office, allowing customers to perform faster banking management system. This covers: loan applications, risk
transactions. The future branch offers various services assessment, collateral analysis, credit process monitoring,
such as self-service cash deposits/withdrawals, mobile or performance monitoring and loan repayment.
internet banking registration, credit card applications
and inquiries of transaction/account details. Tellers The integrated loan system is being built in stages and
and customer service officers (CSOs) are equipped with designed to operate in a paperless, automated and
machine assistance, tools and digital applications to centralized manner. Optical character recognition,
increase efficiency. artificial intelligence, and robotic process automation
(RPA) are among the latest technologies to be adopted
for this strategic initiative.
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Business Support
INFORMATION TECHNOLOGY
The Bank expects the system will improve the turnaround The Bank strengthens its capabilities to protect data and
time of loan origination and improve customer service maintains hygiene on its IT systems, including prevention
levels. of fraud and cyber-crime threats. BCA is ISO 27001
certified for data security management systems across its
Strengthening IT Infrastructure Capabilities network and data centers.
High quality transaction banking services require a
versatile IT infrastructure. BCA has developed a series of The implementation of IT security policies in all
initiatives to strengthen the capacity and capability of IT branches and head office is regularly assessed to ensure
infrastructure to meet business and operational needs. the application of IT security practices are within the
agreed framework. Moreover, BCA has a special security
In 2019, BCA undertook several IT system upgrade projects monitoring center dedicated to surveillance of potential
to increase service speed, reliability, security and flexibility. threats and attacks on the Bank’s IT system, both internally
The projects are linked to the implementation of the agile and externally.
organization concept and the Scrum framework. These
projects were performed through collaboration between With the fast-growing number of digital channel
software developers and IT operations. transactions, BCA is strengthening the security of these
platforms by leveraging machine learning and artificial
Development projects adopt an integrated and automated intelligence technology that can trigger early detection
process from development through to execution. This is of anomalies in data traffic. BCA also equips the internet
to ensure that the system upgrade is built, tested and banking channel KlikBCA with a system that is capable
operated in a faster, more reliable way. of detecting malware originating from customer access
points.
During the year, BCA refined its IT organization structure,
held human resources skill improvement programs, BCA operates data loss prevention (DLP) tools and
and instilled an innovative and agile culture. The IT processes to ensure sensitive data is not lost, misused or
department is continuously empowered through a variety accessed by unauthorized users. In ensuring secure access
of training activities in Indonesia and overseas, as well for applications with direct exposure to the internet,
as by attending technology related events. In 2019, the strong security systems are in place by way of applying a
Bank continued to roll out the Scrum training program to two-factor authentication procedure. For employee email
promote an agile working culture in response to business access through mobile devices, a new security system has
dynamics. Selected staff hold professional licenses as been in place since 2019 by installing secured email apps
Scrum masters. on employee’s mobile devices.
Strengthening Transaction Banking System HR competencies in IT security are enhanced and
Security upgraded through learning classes and training programs
Given BCA’s multiple customer touchpoints and in light of in anticipation of cyber-attacks. BCA conducts ongoing
the risks evolving from a fast-changing digital landscape, communications to increase security awareness within
ongoing IT security enhancements are crucial to preserve its internal and external environments through the
customer trust when using the Bank’s transaction banking company’s website and socialization program on cyber
platforms. security. The Bank also collaborates with IT consultants
to expand knowledge and gain updates on the latest
developments in IT security.
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Future Development Plans One strategic plan for BCA IT is to use of big data analytics
BCA has witnessed an exponential increase in the when developing product and service innovations to
number of transactions through digital channels, and this stay relevant to evolving customer needs. The bank also
trend is expected to continue in line with technological aims to increase productivity and reduce human errors
developments and shifts in customer behavior. With in business processes by encouraging automation for
these dynamics, there are opportunities for business manual or repetitive work.
and operational process improvements focusing on
automation, integration and data-driven analysis to Fostering sensitive data security will be another focus
sustain business growth in the long run. for BCA in 2020. The Bank will enhance the use of
machine learning and artificial intelligence technology to
Given increasing ecosystem interconnectivity, BCA uses protect network exposure and customer and transaction
API to integrate services with business partners; in line information through detecting data pattern anomalies.
with its open platform strategy. This initiative enables For further IT security defense, BCA will develop antivirus
the Bank to collaborate with partners in e-commerce and software for mobile devices and an algorithm-based next
fintech to tap into potential business opportunities. API generation antivirus tool specifically designed for its
also provides connectivity with the regulators for various branches.
compliance purposes.
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OVERVIEW OF MACROECONOMICS
AND THE BANKING SECTOR
Amid the vulnerable global lighter version of Quantitative Easing (QE-lite), to ease
economic condition in 2019, the liquidity condition. China’s central bank (PBoC) eased
its reserve requirement ratio (RR) by 150 bps, while the
Indonesia reported GDP European Central Bank (ECB) lowered its deposit facility
growth of 5.0%, relatively rate by 10bps.
higher than most countries. INDONESIAN ECONOMY
Amid the vulnerable global economic condition in 2019,
Indonesia reported GDP growth of 5.0%, relatively
higher than most countries. This growth was supported
by private consumption, which made up 56.6% of GDP,
along with significant investment and spending activities
by the Indonesian government.
Growth in Indonesia Gross Domestic Product (GDP) (%)
6.3 6.4 6.2
6.0 6.0
5.6 5.5 5.6
5.1 5.0 4.9 5.0 5.1 5.2 5.0
4.4 4.7 4.6
GLOBAL ECONOMY 3.5
2019 was marked by moderate economic growth due
to the prolonged trade war between the US and China,
which adversely impacted demand for raw materials and 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
manufacturing products. This uncertainty was further Source: Central Bureau of Statistics
intensified by the deteriorating business sentiment in
Europe over Brexit. Investors took cautious steps weighing Indonesia’s sound macroeconomic development has
the possibility of a global recession, particularly after the been recognized by global rating agencies which
US Treasury yield curve inverted in the middle of the year. reiterated investment grade level for the country. This
The IMF projected global economic growth of 3.2% for achievement reflects Indonesia’s ability to maintain a
the year, lower than 3.7% the previous year. stable macroeconomic performance amid a challenging
global economic environment.
With these settings, most central banks across the globe
adopted more accommodative policies to stimulate
growth. The US central bank (the Fed) cut its Fed Fund
Rate by 75 bps, and re-intervened in the monetary market
through permanent open market operations (POMO), a
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Inflation and BI 7-day (Reverse) Repo Rate (%) Indonesia’s stable economic growth came as a result
of the sound monetary and fiscal policies adopted by
7%
the government and regulators in 2019. Fiscally, the
BI 7-day (Reverse) Repo Rate 6.00 6.00
6%
5.50
5.75 5.50 government ensured the level of private consumption
5.25 5.25
5.25
5% 4.75 4.75 4.75 could be maintained through the provision of a subsidy
5.00
4.17
4.37 4.25 4.25 and social spending support for the low income segment.
3.60 3.88 Inflation
4% 3.58
3.21
3.58 3.41
3.12 3.13 3.28
3.49 On the monetary front, Bank Indonesia (BI) was actively
3.61 3.13
3%
3.02
3.30 3.25
2.83
involved in efforts to control inflation and to preserve
2.79 2.88 2.72
2.57 Rupiah stability. The Financial Services Authority (OJK)
2%
Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Sep-19 Dec-19
played an important role in maintaining the country’s
Source: Central Bureau of Statistics and Bank Indonesia
economy and financial industry stability by launching
several policies and regulations, amongst others to
strengthen the banking and property sectors.
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By the end of the year, the inflation was contained at a Banks remained cautious on the sector liquidity, as
rate of 2.7%, and the Rupiah closed at Rp13,866/USD. suggested by a LDR of 94.4% as of December 2019.
Meanwhile, BI lowered its 7-Day Reverse Repo Rate Competition for funding persistently arises not only from
gradually to 5.00% at end of year, a 100 bps decrease banks, but also from government bonds issuances that
from 2018. This was consistent with the decline in Fed offer attractive returns.
rates, and in anticipation of the slowdown in economic
growth affected by the downturn in the global economy. Amid declining interest rates, Indonesian bank
profitability grew by 4.3% in 2019, a decrease from
BI also reduced the banking sector’s reserve requirement 14,3% in the previous year. Net interest margins dropped
twice during the year by a total of 100 bps to 5.5%. This by 20 bps to 4.9% on the back of a declining interest rate
is expected to ease the sector’s liquidity condition and environment, and NPL rose by 10 bps to 2.5%. Capital
stimulate economic growth. remained sound with a CAR ratio of 23.4%, relatively
stable when compared to 2018.
Banking Sector Overview
During 2019, Indonesia banking sector growth was Looking ahead to 2020, the Indonesian banking sector
relatively decent with concerns over asset quality. The is to remain optimistically cautious, given the trend of
sector’s assets grew by 6.1%, or Rp494.6 trillion, from the moderate worldwide economy growth. Domestically,
previous year, supported by growth in third party funding, similar challenges are projected to linger until the first
which rose by Rp368.2 trillion to Rp5,998.6 trillion. semester of 2020, such as tighter liquidity, declining
asset quality, intensified competition from fin-tech and
Time deposits increased 3.9% to Rp2,587.6 trillion, e-commerce players, and the latest being the global
contributed 43.1% to third party funds. Current accounts corona virus outbreak.
and savings accounts grew by 11.5% to Rp1,465.8 trillion
and 6.6% to Rp1,945.2 trillion, respectively. However, after witnessing a safe general election in 2019,
the completion of several strategic infrastructure projects,
On the other hand, banking sector loans recorded a modest in addition to the benefit of growing middle income and
increase of 6.1%. This was driven by the construction, young demography, BCA believes that Indonesia offers
household and manufacturing sectors. Working capital ample room for future economic growth.
loans represented 45.9% of total bank loans, while
investment loans and consumer loans contributed 26.4%
and 27.7%, respectively to this total.
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FINANCIAL PERFORMANCE OVERVIEW
BCA IN 2019
94.4%
BCA booked a solid performance in 2019, with asset
80.5%
growth of 11.4% to Rp919,0 trillion, in line with the
23.4% 23.8%
increasing third party funds. Supported by strong CASA
performance, overall third party funds increased 11.0% 2.5%
to Rp699.0 trillion. CASA as the main funding source
1.3%
increased 9.8% to Rp530.6 trillion, and contributed 75.9%
to the Bank’s total third party funds.
BCA in the Banking Industry in 2019 NPL LDR CAR
(in trillion Rupiah)
Industry BCA
5,998.6
5,617.0
Propelled by solid growth in third party funds, BCA
3,411.0
managed an adequate liquidity buffer to support high
quality lending. The Bank’s LDR ratio was 80.5% at the
699.0
530.6
586.9 end of 2019, a decrease from 81.6% in 2018.
BCA booked loan growth of Rp48.8 trillion, or 9.1%, to
Current Account & Third Party Funds Loans Rp586.9 trillion from Rp538.1 trillion the previous year.
Saving Account
This was predominantly supported by business sector
Industry BCA
growth, particularly in the infrastructure and financial
service sectors. It was followed by sound loan quality with
an NPL ratio of 1.3%, lower than the industry level of
We continue to innovate in enhancing our capabilities in 2.5%.
payment settlement services and growing our customer
base as the main drivers for sustainable CASA growth. The following is the BCA financial report for the year
A number of initiatives in digital banking features and ended December 31, 2019. The report was audited by
facilities have been developed, especially in the mobile the Kantor Akuntan Publik Tanudireja, Wibisana, Rintis
platform, such as online account opening through BCA & Rekan (a member of PwC Global Network). This
Mobile, API, and mobile app Welma to meet customer report was based on audit standards established by the
needs for investment products such as mutual funds, Indonesian Institute of Certified Public Accountants with
bonds and insurance information. consolidated financial information with an unmodified
opinion.
Throughout the year, we recorded a 14.2% increase in
customer accounts to more than 21 million, the highest
growth in the past three years. We also seized 15.6% of
Indonesia’s CASA market share at the end of the year.
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ASSETS
BCA had total assets of Rp919.0 trillion at end 2019, growing 11.4% from Rp824.8 trillion in 2018. Loans posted the
largest increase at Rp48.8 trillion or 9.1% and contributed 51.8% to total asset growth.
Total Assets (in billion Rupiah)
Increase / (decrease) Increase / (decrease)
2019 2018 2017
2019 2018
(%) (%) (%)
Nominal to Total Nominal to Total Nominal to Total Nominal % Nominal %
Assets Assets Assets
Cash and Current 73,326 8.0% 65,240 7.9% 60,227 8.0% 8,086 12.4% 5,013 8.3%
Accounts with Bank
Indonesia
Current Accounts with 10,522 1.1% 8,498 1.0% 9,094 1.2% 2,024 23.8% (596) -6.6%
Other Banks
Placement with Bank 30,948 3.4% 31,683 3.8% 18,969 2.5% (735) -2.3% 12,714 67.0%
Indonesia & Other
Banks
Securities 152,559 16.6% 118,294 14.3% 140,350 18.7% 34,265 29.0% (22,056) -15.7%
Investment Securities 142,983 15.6% 109,081 13.2% 131,091 17.5% 33,902 31.1% (22,010) -16.8%
Securities Purchased 9,576 1.0% 9,213 1.1% 9,259 1.2% 363 4.0% (46) -0.5%
under Agreements to
Resell
Loans - gross 586,940 63.9% 538,100 65.2% 467,509 62.3% 48,840 9.1% 70,591 15.1%
Allowance for 14,906 -1.6% 13,569 -1.6% 13,244 -1.8% 1,337 9.9% 325 2.5%
Impairment Losses on
Loans (-/-)
Fixed Assets gross 20,852 2.2% 19,337 2.4% 16,869 2.3% 1,515 7.8% 2,468 14.6%
Others 58,748 6.4% 57,205 7.0% 50,546 6.8% 1,543 2.7% 6,659 13.2%
Total Assets 918,989 100.0% 824,788 100.0% 750,320 100.0% 94,201 11.4% 74,468 9.9%
Most of the remaining assets were placed in marketable Current accounts at other banks were Rp10.5 trillion,
securities in the form of government bonds and short- growing by 23.8%, with the majority placed in reputable
term instruments, which are both liquid and low risk. banks overseas.
The earning assets portfolio represented 89.1% of total
assets, posting an increase of 11.5% to Rp818.7 trillion PLACEMENT WITH BANK INDONESIA AND OTHER
compared with a year before. BANKS
Placement at Bank Indonesia and other banks reached
CASH, CURRENT ACCOUNTS AT BANK INDONESIA Rp30.9 trillion, relatively stable compared with Rp31.7
AND CURRENT ACCOUNTS AT OTHER BANKS trillion in 2018. The majority of the placements was in
Cash and current accounts at Bank Indonesia were Rp73.3 Bank Indonesia term deposits as one of the short term
trillion at the end of 2019, expanding by 12.4% from the instruments available in the market (less than three
previous year. Cash grew 17.2% to Rp25.4 trillion and month placement).
triggered an increase in the ratio of cash to total third
party funds to 3.6%. Current accounts at Bank Indonesia
reached Rp47.9 trillion, an increase of 10.0%, equivalent
to Rp4.4 trillion from a year before, in line with the
growth in third party funds.
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SECURITIES
(in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Investment Securities 142,983 109,081 131,091 33,902 31.1% (22,010) -16.8%
SBBI, SDBI & SBI Sharia 30,287 20,153 35,587 10,134 50.3% (15,434) -43.4%
Government Bonds 80,174 58,327 70,426 21,847 37.5% (12,099) -17.2%
Other Securities 32,522 30,601 25,078 1,921 6.3% 5,523 22.0%
Securities Purchased under Agreements to 9,576 9,213 9,259 363 3.9% (46) -0.5%
Resell
Total 152,559 118,294 140,350 34,265 29.0% (22,056) -15.7%
BCA’s securities portfolio was Rp152.6 trillion, growing LOANS
Rp34.3 trillion or 29.0% from a year before, compared Loans were Rp586.9 trillion, growing by 9.1% compared
with a decline of 15.7% in 2018. Such expansion was with a year before. This was underpinned by the demand
consistent with the increase of excess liquidity resulting for investment and working capital loans from the
from slower credit demand. corporate, commercial and SME segments.
Growth of Loan Portfolio
The majority of securities at Rp143.0 trillion were in the
(in trillion Rupiah)
investment securities category, dominated by government
bonds with a less than five-year tenor amounting to
586.9
Rp80.2 trillion. Government bonds grew 37.5% from a 538.1
year before and accounted for 52.6% of total securities. 467.5
BCA always takes into account market conditions for
government bond placements. At the beginning of the
year, the Bank placed its excess liquidity in government
bonds to anticipate lower interest rates, and started to
gradually reinvest the matured bonds taking into account
2017 2018 2019
the bonds’ yield. All BCA’s government bonds carried
fixed interest rates.
Investment loans grew stronger than working capital
Securities Purchased under Agreements to Resell (reverse loans, by 16.7% and 9.0%, respectively. Investment loan
repo) was relatively stable at Rp9.6 trillion, increasing growth was particularly supported by infrastructure
by 4.0% from a year before. Placement in reverse repo loans, which increased by 33.9% compared with the
was short term in nature, mostly in instruments with previous year, thus representing 6.8% of BCA’s total loans.
government bonds as the underlying assets.
Whilst registering solid loan expansion in 2019, overall
loan growth was lower than in the previous year of
15.1%. This was in line with the moderate macroeconomic
conditions throughout the year. Consumer lending,
especially mortgage and vehicle loans, grew marginally
despite lower interest rates. The sluggish automotive
industry saw weaker demand, partly caused by lifestyle
changes and the increasing use of public transportation.
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Overall, BCA’s loan market share reached 10.4%, an increase from 10.2% in 2018. This was consistent with the Bank’s
higher loan growth compared to the industry average.
Loans Based on Segment
Loan Composition based on Segment (non consolidated, in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Corporate 238,471 213,356 177,277 25,115 11.8% 36.079 20.4%
Commercial & SME 214,203 189,960 164,661 24,243 12.8% 25.299 15.4%
Consumer 132,631 131,671 122,855 960 0.7% 8.816 7.2%
Mortgage 82,056 78,780 73,025 3,276 4.2% 5.755 7.9%
Vehicle 36,469 39,998 38,302 (3,529) -8.8% 1.696 4.4%
Credit Card 14,106 12,893 11,528 1,213 9.4% 1.365 11.8%
Employee 2,946 2,927 2,827 19 0.6% 100 3.5%
Total 588,251 537,914 467,620 50,337 9.4% 70.294 15.0%
The Bank recorded positive loan growth in all business the most affected by macro conditions. Mortgage
segments. The corporate segment accounted for 40.5% growth decelerated from 7.9% in 2018 to 4.2% in 2019,
of total BCA loans, with total exposure of Rp238.5 trillion, affected by low in new bookings for the past two years.
growing by 11.8% from Rp213.4 trillion in 2018. Vehicle loans decreased significantly by 8.8% compared
with positive growth of 4.4% the previous year. Lower
Corporate growth was particularly due to the increase in automotive sales put pressure on vehicle loan growth
loans for the financial service and infrastructure sectors during the year. BCA actively conducted various events
such as electricity, toll road and telecommunication such as BCA Expoversary, offering various attractive
projects. Loans in the commercial and SME segment promotions and competitive rates, as initiatives to
grew by 12.8% to Rp214.2 trillion, and represented support consumer loans.
36.4% of total loans. This was due to the optimization
of commercial business centers and SME centers in large Loans Based on Purpose
cities in Indonesia. The growth in working capital loans Working capital credit was the largest contributor to
was the largest contributor to growth in the commercial loans based on purpose at 47.4% of BCA’s total loans.
and SME segment, particularly, chemical materials & Investment and consumer loans accounted for 29.5% and
plastic, the building and construction and distribution 22.6% of total loans, respectively.
sector, retailers & department stores .
Consumer loans accounted for 22.5% of total loans at
Rp132.6 trillion, a slight increase from last year’s Rp131.7
trillion. Loan demand for vehicles and mortgages were
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Loan growth was particularly supported by rising investment loans, which increased by Rp24.8 trillion, growing by
16.7% from Rp148.2 trillion in 2018, particularly from the infrastructure sector in the industry of power plants and toll
roads. Loans to the infrastructure sector were a low proportion of 6.8% of total loans. Working capital loans expanded
by 9.0% to Rp278.4 trillion, particularly supported by the growth in financial service sector and consumer financing.
Loan Composition based on Type of Loan (in billion Rupiah)
Increase / (decrease) Increase / (decrease)
2019 2018 2017
2019 2018
Nominal Composition Nominal Composition Nominal Composition Nominal % Nominal %
Working Capital 278,378 47.4% 255,323 47.5% 220,604 47.2% 23,055 9.0% 34,719 15.7%
Investment 172,994 29.5% 148,179 27.5% 121,223 25.9% 24,815 16.7% 26,956 22.2%
Consumer 132,622 22.6% 131,671 24.5% 122,855 26.3% 951 0.7% 8,816 7.2%
(including Credit
Card)
Employee 2,946 0.5% 2,927 0.5% 2,827 0.6% 19 0.6% 100 3.5%
Total 586,940 100.0% 538,100 100.0% 467,509 100.0% 48,840 9.1% 70,591 15.1%
Loans Based on Industrial Sector In general, loan composition in 2019 was relatively stable
In managing concentration risk, BCA consistently compared with the previous year. The top 10 loans based
diversifies its loans to various sectors, particularly those on industrial sector accounted for 55.8% of total business
with strong growth prospects and performance. loans, whereas each industry had a maximum exposure of
less than 10% of total business loans.
Top 10 Industry Sectors in Corporate, Commercial and SME Segment (based on the Bank’s internal classification)*
2019 2018 2017
Financial Services 7.8% 8.0% 5.6%
Plantation and Agriculture 7.4% 7.5% 7.9%
Building Material and Other Construction Related 6.7% 6.7% 6.8%
Distributor, Wholesaler and Retailer 6.2% 6.6% 7.6%
Properties and Construction 5.4% 5.2% 5.0%
Automotive and Transportation 5.1% 5.0% 5.7%
Food and Beverages 4.4% 4.5% 4.9%
Textile and Garment 4.3% 4.5% 4.5%
Power Generation 4.3% 3.7% 4.0%
Chemicals and Plastics 4.2% 4.2% 4.4%
Total 55.8% 55.9% 56.4%
* Excluded consumer and employee loans
Note: The above loan categories are based on industry sectors used internally by BCA, different to the loan groupings in the Commercial Bank Report which is based on
regulator’s criteria.
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Loan Quality Special mention loans posted an increase of 19.9% from
BCA always prioritizes loan quality over growth by applying last year to Rp11.6 trillion. This particularly came from
disciplined risk management measures, particularly in the consumer segment, mostly caused by the delay in
response to recent macroeconomic developments. The payment for loans with day past due of less than 30 days.
Bank’s loan quality remained intact and outperformed
the industry average last year. Another loan quality indicator is Loan At Risk (LAR),
which consists of NPL, special mention and restructured
NPL loans were Rp7.9 trillion, or 1.3% of total loans. The loans under the current category. Total LAR were Rp22.6
NPL ratio declined by 10 bps compared with the previous trillion or 3.9% of total loans, an increase by Rp2.4 trillion
year of 1.4%. This was the reward of prudent initiatives or 12.1% compared with a year before, coming mainly
carried out in managing and anticipating asset quality from the business segment. Despite the increase, BCA’s
decline. NPL ratios booked by each segment were still LAR was the lowest amongst its peers with coverage to
within the Bank’s risk appetite. total allowance for impairment losses of 65.9%.
Loan Collectability* (non consolidated, in billion Rupiah)
2019 2018 2017
(%) to (%) to (%) to
Nominal Nominal Nominal
Total Loans Total Loans Total Loans
Performing Loan 580,374 98.7% 530,320 98.6% 460,675 98.5%
Current 568,788 96.7% 520,654 96.8% 453,953 97.1%
Special Mention 11,586 2.0% 9,666 1.8% 6,722 1.4%
NPL 7,877 1.3% 7,594 1.4% 6,945 1.5%
Substandard 1,307 0.2% 1,678 0.3% 1,987 0.4%
Doubtful 687 0.1% 1,185 0.2% 686 0.2%
Loss 5,883 1.0% 4,731 0.9% 4,272 0.9%
Total Loans 588,251 100.0% 537,914 100.0% 467,620 100.0%
NPL Ratio – gross 1.3% na 1.4% na 1.5% na
NPL Ratio – net 0.5% na 0.4% na 0.4% na
Provision / NPL 189.2% na 178.7% na 190.7% na
* Although allowance for impairment losses is not calculated based on collectability, the calculation remains necessary to determine the Capital Adequacy Ratio (CAR)
according to the regulator.
NPL Ratio by Segment NPL Ratio of Consumer Loans
(non consolidated) (non consolidated)
3.6%
3.1%
3.0%
1.9% 1.9%
1.8%
1.6%
1.4% 1.5%
1.4% 1.4%
1.3% 1.2%
1.1% 1.1% 1.1%
1.0% 1.0% 1.0%
0.9%
0.6%
Corporate Commercial & Consumer Mortgages 2 Wheeler 4 Wheeler Credit Card
SME
2017 2018 2019 2017 2018 2019
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In 2019, BCA wrote off Rp2.9 trillion in loans, an increase of Rp0.4 trillion from a year before. Some 47.9% or Rp1.4
trillion of the total write-offs came from the consumer segment, particularly credit card and vehicle loans. Write-offs in
the commercial segment were Rp0.7 trillion and contributed 25.4% to total written-off loans, particularly property and
construction loans.
Loans Written Off (non consolidated, in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Corporate 524 788 - (264) -33.5% 788 na
Commercial 743 626 378 117 18.7% 248 65.6%
SME 255 44 72 211 479.6% (28) -38.9%
Consumer 1,400 1,040 884 360 34.6% 156 17.6%
Mortgage 305 170 21 135 79.4% 149 709.5%
4 Wheeler 420 214 157 206 96.3% 57 36.3%
2 Wheeler 157 187 255 (30) -15.9% (68) -26.7%
Credit Card 518 469 451 49 10.4% 18 4.0%
Total 2,922 2,498 1,334 424 17.0% 1,164 87.3%
BCA allocated an additional allowance for impairment losses on loans of Rp4.3 trillion, bringing total loans impairment
allowance to Rp14.9 trillion. By year end, the allowance was 2.5% of total loans with an ample NPL coverage ratio at
189.2%.
Movement of Allowance for Impairment Losses on Loans Receivable (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Beginning Balance 13,569 13,244 12,505 325 2.5% 739 5.9%
Beginning balance of new acquired Subsidiary 5 - - 5 na - na
Addition of allowance during the year 4,269 2,645 1,832 1,624 61.4% 813 44.4%
Loans written-off during the year (-/-) 2,952 2,498 1,334 454 18.2% 1,164 87.3%
Recoveries on loans previously written-off 31 147 235 (116) -78.9% (88) -37.4%
Exchange rate differences (16) 31 6 (47) -151.6% 25 416.7%
Ending Balance 14,906 13,569 13,244 1,337 9.9% 325 2.5%
BCA proactively offers resolutions to customers with cash BCA always adopts prudential banking principles to keep
flow difficulties in meeting their due loans. Selective and the loan quality and repayment capacity of customers
customized restructuring plans are available for those amid challenges in business conditions. More than 70%
with positive business prospects in the long run. As of of restructured loans were categorized as current and
2019, restructured loans were Rp9.1 trillion, accounted special mention, particularly coming from the corporate
for 1.6% of total loans, relatively stable compared with and commercial segments engaged in basic metals and
a year before. related industries and property & construction.
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Restructured Loan Outstanding (non consolidated, in billions Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Performing Loan 6,506 5,650 4,371 856 15.2% 1,279 29.3%
Current 3,145 2,903 3,141 242 8.3% (238) -7.6%
Special Mention 3,361 2,747 1,230 614 22.4% 1,517 123.3%
NPL 2,642 2,336 2,197 306 13.1% 139 6.3%
Substandard 895 1,168 726 (273) -23.4% 442 60.9%
Doubtful 208 173 274 35 20.2% (101) -36.9%
Loss 1,539 995 1,197 544 54.7% (202) -16.9%
Total Restructured Loan 9,148 7,986 6,568 1,162 14.6% 1,418 21.6%
Total Loan Portfolio 588,251 537,914 467,620 50,337 9.4% 70,294 15.0%
% Restructured Loans to Total Loans Portfolio 1.6% 1.5% 1.4% na na na na
Fixed Assets BCA constantly invests in network and information
Fixed assets posted an increase of 7.8% compared with a technology infrastructure to ensure the reliability of its
year before to Rp20.9 trillion. The majority of the increase transaction banking services. In 2019, realization of capital
was contributed by land 70.2%. Fixed assets largely expenditure reached Rp3.0 trillion, with the highest
consisted of land and buildings, network investment expenditure allocated to IT infrastructure development
including ATM, EDC and information technology and branch network, including ATM and EDC machines.
investments and other supporting fixed assets booked
under office supplies and equipment.
LIABILITIES
Liabilities grew by 10.7%, increasing by Rp71.8 trillion from a year before to Rp744.8 trillion. Third party funds were the
largest component of liabilities at 93.8%.
Liabilities (in billion Rupiah)
Increase / (decrease) Increase / (decrease)
Composition
2019 2018 2017 2019 2018
Nominal % Nominal % 2019 2018 2017
Third Party Funds 698,980 629,812 581,115 69,168 11.0% 48,697 8,4% 93.8% 93.6% 93.9%
Current Accounts 184,918 166,822 151,250 18,096 10.8% 15,572 10,3% 24.8% 24.8% 24.4%
Savings Accounts 345,634 316,182 292,416 29,452 9.3% 23,766 8,1% 46.4% 47.0% 47.3%
Time Deposits 168,428 146,808 137,449 21,620 14.7% 9,359 6,8% 22.6% 21.8% 22.2%
Deposits from Other 6,717 6,495 5,758 222 3.4% 737 12,8% 0.9% 1.0% 0.9%
Banks
Acceptance Payables 5,321 5,843 5,800 (522) -8.9% 43 0,7% 0.7% 0.9% 0.9%
Debt Securities Issued 1,348 240 610 1,108 461.7% (370) -60,7% 0.2% 0.0% 0.1%
Borrowings 2,333 2,093 3,041 240 11.5% (948) -31,2% 0.3% 0.3% 0.5%
Accrued expenses and 14,022 15,026 10,929 (1,004) -6.7% 4,097 37,5% 1.9% 2.2% 1.8%
other liabilities
Post-employment 7,955 6,406 6,507 1,549 24.2% (101) -1,6% 1.1% 0.9% 1.1%
benefits obligation
Subordinated bonds 500 500 - - 0.0% 500 na 0.1% 0.1% 0.0%
Other Liabilities 7,670 6,620 5,158 1,050 15.9% 1,462 28,3% 1.0% 1.0% 0.8%
Total Liabilities 744,846 673,035 618,918 71,811 10.7% 54,117 8,7% 100.0% 100.0% 100.0%
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Third party funds recorded solid growth of 11.0%, Rp69.2 trillion to Rp699.0 trillion. This was especially supported by
current account and saving account (CASA), which remained strong growing at 9.8% and contributed 75.9% of total
third party funds. Time deposits also grew strongly at 14.7% compared to a year ago.
Third Party Funds
Third Party Funds (in billions Rupiah)
Increase / (decrease) Increase / (decrease)
2019 2018 2017 Average Interest Rate
2019 2018
Nominal Composition Nominal Composition Nominal Composition Nominal % Nominal % 2019 2018 2017
Current 184,918 26.5% 166,822 26.5% 151,250 26.0% 18,096 10.8% 15,572 10.3%
Accounts
Rupiah 163,319 23.4% 146,254 23.2% 132,751 22.8% 17,065 11.7% 13,503 10.2% 1.0% 0.9% 1.0%
Foreign 21,599 3.1% 20,568 3.3% 18,499 3.2% 1,031 5.0% 2,069 11.2% 0.1% 0.1% 0.1%
Currency
Saving 345,634 49.5% 316,182 50.2% 292,416 50.3% 29,452 9.3% 23,766 8.1%
Accounts
Rupiah 332,406 47.6% 302,006 48.0% 278,716 48.0% 30,400 10.1% 23,290 8.4% 0.6% 0.8% 1.0%
Foreign 13,228 1.9% 14,176 2.2% 13,700 2.3% (948) -6.7% 476 3.5% 0.2% 0.2% 0.2%
Currency
Total 530,552 75.9% 483,004 76.7% 443,666 76.3% 47,548 9.8% 39,338 8.9%
Transactional
Account
Balance
(CASA)
Time Deposits 168,428 24.0% 146,808 23.3% 137,449 23.7% 21,620 14.7% 9,359 6.8%
Rupiah 154,115 22.0% 133,461 21.2% 125,223 21.6% 20,654 15.5% 8,238 6.6% 5.5% 4.7% 5.2%
Foreign 14,313 2.0% 13,347 2.1% 12,226 2.1% 966 7.2% 1,121 9.2% 1.4% 0.9% 0.6%
Currency
Total Third 698,980 100.0% 629,812 100.0% 581,115 100.0% 69,168 11.0% 48,697 8.4%
Party Funds
Rupiah 649,840 93.0% 581,721 92.4% 536,690 92.4% 68,119 11.7% 45,031 8.4% 1.8% 1.7% 2.0%
Foreign 49,140 7.0% 48,091 7.6% 44,425 7.6% 1,049 2.2% 3,666 8.3% 0.5% 0.4% 0.3%
Currency
Current Account and Saving Account (CASA) CASA growth was also underpinned by the increase in
The two key factors that win customer trust and loyalty for the number of accounts, which grew by 14.3% in 2019.
transacting with BCA is the Bank’s consistent development This contributed to a substantial increase of 34.5% in the
of payment and settlement features, as well as relentless number of banking transactions, particularly from the
efforts to improve customer services. In return, this led internet and mobile banking networks.
to sustainable growth in the number of accounts and
CASA. By year end, CASA grew by 9.8% or Rp47.5 trillion CASA’s dominant contribution to total third party funds
from the previous year to Rp530.6 trillion, with saving enabled the Bank to enjoy lower funding costs. However,
accounts and current accounts rising by 9.3% to Rp345.6 achieving sustainable CASA growth means the need to
trillion and by 10.8% to Rp184.9 trillion, respectively. The monitor higher operational costs to support transaction
Bank’s CASA expansion has been well above the industry, banking infrastructure is of the essence. Endless
securing a higher market share of 15.6% in 2019, against investment in information technology, development
the prior year’s 15.4%. CASA contribution to total third of branch offices, installment of additional EDC and
party was 75.9%, the highest in the industry. upgrades of ATM machines have always been crucial in
the Bank’s expenditure plan.
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Time Deposits
Time Deposits based on Maturity Period (in billion Rupiah)
2019 2018 2017
Nominal Composition Nominal Composition Nominal Composition
1 Month 96,964 57.6% 86,611 59.0% 88.027 64.0%
3 Months 44,321 26.3% 41,195 28.1% 40.699 29.6%
6 Months 16,694 9.9% 14,888 10.1% 4.940 3.6%
12 Months 10,449 6.2% 4,114 2.8% 3.783 2.8%
Total 168,428 100.0% 146,808 100.0% 137.449 100.0%
Time deposits grew by 14.7% or Rp21.6 trillion to Rp168.4 In response to market conditions, BCA adjusted its time
trillion from Rp146.8 trillion last year. Those with one and deposit rate as part of liquidity management measures.
three-month tenors had the largest composition of 83.9% Maximum time deposit rates were reduced by 125 basis
at Rp141.3 trillion to total deposits. points in 2019, hence the average cost of funds for time
deposits IDR reached 5.5%.
EQUITY
BCA recorded total equity of Rp174.1 trillion, increasing by Rp22.4 trillion or 14.8% compared with last year. This was a
reflection of growth in the Bank’s profitability and the implementation of a prudent dividend policy.
Equity (in billion Rupiah)
Increase / (decrease) Increase / (decrease)
Composition
2019 2018 2017 2019 2018
Nominal % Nominal % 2019 2018 2017
Issued and fully paid-up 1,541 1,541 1,541 - 0.0% - 0.0% 0.9% 1.0% 1.2%
capital
Additional paid-in 5,549 5,549 5,549 - 0.0% - 0.0% 3.2% 3.6% 4.2%
capital
Revaluation surplus of 9,521 8,752 6,588 769 8.8% 2,164 32.8% 5.5% 5.8% 5.0%
fixed assets
Retained earnings 155,114 135,569 115,998 19,545 14.4% 19,571 16.9% 89.1% 89.3% 88.3%
Appropriated 1,956 1,697 1,464 259 15.2% 233 15.9% 1.1% 1.1% 1.1%
Unappropriated 153,158 133,872 114,534 19,286 14.4% 19,338 16.9% 87.9% 88.2% 87.2%
Other equity 2,318 248 1,628 2,070 834.7% (1,380) -84.8% 1.3% 0.2% 1.2%
components
Non-controlling interest 100 94 98 6 6.4% (4) -4.1% 0.1% 0.1% 0.1%
Total Equity 174,143 151,753 131,402 22,390 14.8% 20,351 15.5% 100.0% 100.0% 100.0%
BCA reported an increase in retained earnings by Rp19.5 trillion, growing 14.4% from Rp155.1 trillion last year. In 2019,
the Bank distributed a dividend of Rp340 per share, 32.4% of total net profit booked in 2018.
The positive growth in equity led to a healthy capital level with a minimum Capital Adequacy Ratio (CAR) of 23.8%.
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PROFIT AND LOSS STATEMENT
Income Statements (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Operating Income 71,622 63,034 56,982 8,588 13.6% 6,052 10.6%
Net Interest Income 50,477 45,291 41,827 5,186 11.5% 3,464 8.3%
Interest Income 63,838 56,767 53,768 7,071 12.5% 2,999 5.6%
Interest Expense (13,361) (11,476) (11,941) (1,885) 16.4% 465 -3.9%
Operating Income other than Interest 21,145 17,743 15,155 3,402 19.2% 2,588 17.1%
Impairment losses on assets (4,591) (2,676) (2,633) (1,915) 71.6% (43) 1.7%
Operating Expenses (30,742) (27,651) (25,190) (3,091) 11.2% (2,461) 9.8%
Income before Tax 36,289 32,707 29,159 3,582 11.0% 3,548 12.2%
Net Income 28,570 25,852 23,321 2,718 10.5% 2,531 10.9%
Income / (Expenses) Other Comprehensive 2,568 910 755 1,658 182.2% 155 20.5%
Total Comprehensive Income 31,138 26,762 24,076 4,376 16.4% 2,686 11.2%
Net Income attributable to:
Equity holders of parent entity 28,565 25,855 23,310 2,710 10.5% 2,545 10.9%
Non-controlling interest 5 (3) 11 8 na (14) na
Comprehensive Income attributable to:
Equity holders of parent entity 31,132 26,766 24,064 4,366 16.3% 2,702 11.2%
Non-controlling interest 6 (4) 12 10 na (16) na
BCA booked net profit of Rp28.6 trillion, growing by 10.5% and supported by solid operating income, efficiency initiatives
and sound asset quality. Operating income grew by 13.6% thanks to strong growth in net interest income of 11.5%, and
an increase in operating income other than interest of 19.2%, particularly income from fees and commissions.
Net Interest Income (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Interest Income 63,838 56,767 53,768 7,071 12.5% 2,999 5.6%
Loans 49,583 43,519 40,014 6,064 13.9% 3,505 8.8%
Placements with Bank Indonesia and Other 1,322 941 874 381 40.5% 67 7.7%
Banks
Securities 8,372 7,600 8,603 772 10.2% (1,003) -11.7%
Consumer Financing and Investment in 2,954 3,016 3,077 (62) -2.1% (61) -2.0%
Finance Leases
Others (Including Sharia revenue sharing) 1,607 1,691 1,200 (83) -4.9% 491 40.9%
Interest Expense 13,361 11,476 11,941 1,885 16.4% (465) -3.9%
Current Accounts 1,542 1,399 1,274 143 10.2% 125 9.8%
Savings Accounts 1,867 2,379 2,632 (512) -21.5% (253) -9.6%
Time Deposits 7,997 5,902 6,346 2,095 35.5% (444) -7.0%
Others (Including Sharia expenses) 1,955 1,796 1,689 159 8.9% 107 6.3%
Net Interest Income 50,477 45,291 41,827 5,186 11.5% 3,464 8.3%
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Interest Income
Interest income grew by 12.5% to Rp63.8 trillion, driven by solid loan growth and the impact of the adjustment in
interest rates. Interest income from loans contributed 77.7% to total interest income, while the remainder was from
government bonds and placement with the central bank.
Interest income from loans expanded by 13.9% to Rp49.6 trillion, triggered by growth in loans, particularly from the
corporate and commercial and SME segments. In 2019, loans grew by 9.1%, with corporate and commercial & SME loans
growing by 11.8% and 12.8%, respectively.
Composition of Interest Income
2019 2018 2017
2.1% 2.5% 1.6% 3.0% 1.6% 2.3%
4.6% 5.3% 5.7%
13.4% 16.0%
13.1%
77.7% 76.7% 74.4%
Rp63.8 trillion Rp56.8 trillion Rp53.8 trillion
Loans Securities Consumer Financing and Investment in Finance Leases
Placements with Bank Indonesia and Other Banks Others (Including Sharia revenue sharing)
In the second semester of 2018, BI’s 7-day reverse repo While interest increases took place in the second
rate trended up with a total increase of 75 bps to 6.0% semester of 2018, higher impact was seen in 2019. The
at the end of 2018, and maintained until the first half Bank recorded 15 bps higher loan yield in 2019 to 8.99%,
of 2019. In the second semester of 2019, BI’s policy rates despite lower lending rates in the second semester as BI’s
were reversed and declined to 5.0% at the end of the year, policy rates started to decrease.
lower by 100 bps compared with end of the previous year.
BCA adjusted its lending rate accordingly in response.
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Interest Expenses
Interest expenses posted an increase of 16.4% to Rp13.4 trillion in 2019. This was particularly due to the 35.5% or
Rp2.1 trilion increase in interest expenses from time deposits, in line with the growth in total time deposits. Interest
expenses from time deposits accounted for 59.9% of total interest expenses, an increase of 850 bps from 51.4% in 2018.
Composition of Interest Expense
2019 2018 2017
14.6% 11.5% 15.7% 12.2% 14.1% 10.7%
14.0% 20.7% 22.0%
59.9% 51.4% 53.2%
Rp13.4 trillion Rp11.5 trillion Rp11.9 trillion
Current Accounts Savings Accounts Time Deposits Others (Including Sharia expenses)
The increase in interest expenses was also caused by In line with the 7-day repo rate, BCA reduced its deposit
deposit volume and the adjustment in deposit rates in rate by 125 bps throughout the year. However, as the
the second semester of 2018, following several BI policy Bank’s third party funds composition was dominated by
rate hikes. The impact was also reflected in the interest CASA, its overall cost of funds was low at 1.9%.
expenses on time deposits in 2019.
Net Interest Income and Net Interest Margin
Net interest income was Rp50.5 trillion, an increase of 11.5% or Rp5.2 trillion compared with 2018. The net interest
margin slightly increased by 10 bps to 6.2%.
Net Interest Income Net Interest Margin - NIM
(in trillion Rupiah) (non consolidated)
Year on Year (YoY) Growth Earning Assets Yield
Cost of Funds
11.5%
8.3% Net Interest Margin (NIM)
4.1%
6.19% 6.13% 6.24%
41.8 45.3 50.5 7.87% 7.61% 7.92%
2.02% 1.81% 1.93%
2017 2018 2019 2017 2018 2019
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Operating Income other than Interest
Operating income other than interest grew by 19.2% to Rp21.1 trillion, attributed to the growth in income from fees
and commissions which contributed 64.4% to total operating income other than interest. Other operating income also
increased significantly by 38.8% to Rp4.1 trillion.
Operating Income other than Interest (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Net Fee and Commission Income 13,609 11,996 10,386 1.613 13.4% 1,610 15.5%
Net Trading Income 3,456 2,807 1,803 649 23.1% 1,004 55.7%
Other Operating Income 4,080 2,940 2,966 1.140 38.8% (26) -0.9%
Operating Income other than Interest 21,145 17,743 15,155 3.402 19.2% 2,588 17.1%
Income from fees and commissions (nett) grew by 13.4%, particularly from the growth in income from Customer’s
Deposits and credit cards. Income from these two components contributed 60.7% to total income from fees and
commissions.
Net Fee and Commission Income (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Deposits from customers 4,515 4,062 3,584 453 11.2% 478 13.3%
Credit cards 3,748 3,259 2,772 489 15.0% 487 17.6%
Payment settlement 1,995 1,560 1,472 435 27.9% 88 6.0%
Loans receivable 1,649 1,492 1,354 157 10.5% 138 10.2%
Remittances, clearings, and collections 332 317 300 15 4.7% 17 5.7%
Others 1,371 1,308 906 63 4.8% 402 44.4%
Total 13,610 11,998 10,388 1,612 13.4% 1,610 15.5%
Fee and commission expense (1) (2) (2) 1 -50.0% - 0.0%
Net Fee and Commission Income 13,609 11,996 10,386 1,613 13.4% 1,610 15.5%
Income from fees and commissions derived from deposits Income from credit cards grew by Rp489 billion at 15.0%,
from customers grew by 11.2%, with more than 75% consistent with the growth in credit card transactions
from the monthly administration income charged to and network switching activities. Income from payment
CASA accounts supported by number of customer growth. settlement grew by 27.9%, due to the substantial increase
Customer accounts grew by 14.2%, to more than 21 in virtual account transactions.
million. The launch of the online account opening facility
through BCA Mobile gained interest, contributing 16.1% BCA continuously carried out initiatives to improve
of the total new customer accounts. Overall, the bank its transaction banking franchise, to support growth
booked robust growth in the number of transactions of in the number of customers, as well as the number of
34.5% compared with the past three years, particularly transactions performed through its payment ecosystem.
underpinned by transactions through internet and mobile
banking networks.
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Income from trading transactions grew by 23.1% to Rp3.5 Other operating income at Rp4.1 trillion, grew remarkably
trillion, particularly due to the increase in unrealized gains by 38.8% at Rp1.1 trillion. This particularly came from the
from the fair value of financial assets held for trading, income received from the payment of written off loans of
which came from higher returns from swap transactions. Rp0.5 trillion. The growth was also due to the increase in
Amid Rupiah volatility, BCA placed its foreign exchange insurance premium income booked by BCA Life and BCA
liquidity in Bank Indonesia, and conducted hedging on Insurance of Rp0.3 trillion.
USD swap sell forward. The transaction mitigated foreign
exchange risk and at the same time provided non-interest
income.
Operating Expenses
BCA always manages its operating expenses efficiently and effectively to support business growth. In 2019, operating
expenses grew by 11.2% to Rp30.7 trillion, mostly caused by personnel expenses with its cost efficiency ratio remaining
at 43.7%, lower than last year of 44.3%. For the last five years, the growth in operating expenses had been consistently
with a five-year CAGR of 10.8%.
Operational Expenses (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % % %
General and Administrative Expenses 14,115 13,026 12,306 1,089 8.4% 720 5.9%
Personnel Expenses 13,337 12,143 11,335 1,194 9.8% 808 7.1%
Others 3,290 2,482 1,549 808 32.6% 933 60.2%
Total 30,742 27,651 25,190 3,091 11.2% 2,461 9.8%
General and Administrative Expenses (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Office supplies 4,659 4,315 4,015 344 8.0% 300 7.5%
Communication 1,734 1,467 1,230 267 18.2% 237 19.3%
Depreciation 1,694 1,667 1,645 27 1.6% 22 1.3%
Repair and Maintenance 1,517 1,285 1,427 232 18.1% (142) -10.0%
Rental 1,420 1,446 1,349 (26) -1.8% 97 7.2%
Promotion 1,118 1,109 998 9 0.8% 111 11.1%
Professional fees 526 448 545 78 17.4% (97) -17.8%
Amortisation of Intangible assets - software 322 414 176 (92) -22.2% 238 135.2%
Water, electricity and fuel 288 285 281 3 1.1% 4 1.4%
Computer and software 204 103 160 101 98.1% (57) -35.6%
Tax 156 121 112 35 28.9% 9 8.0%
Others 477 366 368 111 30.3% (2) -0.5%
Total 14,115 13,026 12,306 1,089 8.4% 720 5.9%
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General and administrative expenses grew by 8.4% to to principals such as Visa and Mastercard. Repair and
Rp14.1 trillion, in line with rising expenses allocated maintenance expenses rose by 18.1% due to software
to support daily operations, development of the office development and payment for software licenses, aligned
network and investment in information technology. with the development of various IT initiatives.
Office expenses consisting of daily operational expenses Employee expenses grew by 9.8% to Rp13.3 trillion
to support transaction banking services grew by 8.0% compared with Rp12.1 trillion in 2018. This was
to Rp4.7 trillion. A higher proportion of ATM cash particularly due to the annual adjustment in salary and
recycling machines (CRM) to total ATMs helped contain allowances, bonus expenses, and other allowances. In
the growth in daily operational expenses, particularly 2019, new employees recruited totaled 1,483, with 13.3%
related to outsource expenses for managing cash in ATM working in jobs related to information technology.
machines. The CRM machines are located in strategic
sites to facilitate both cash withdrawal and deposits. Allowance for Impairment Losses on Financial
This strategy reduces the need to replenish cash in ATM Assets
machines, which subsequently reduced costs. BCA allocated allowance for impairment losses on financial
assets (CKPN) in accordance with applicable accounting
For the past several years, BCA has developed standards, and based on the quality of financial assets.
digitalization and automation initiatives by leveraging on At the end of 2019, CKPN was Rp15.8 trillion, adequate
technology to improve efficiency. The Bank’s consistency to cover any losses arising from non performing financial
in strengthening its digital banking service capabilities assets.
has resulted in the shifting in transactions toward digital
channels, particularly internet and mobile banking. The allocation for CKPN was established with reference
The number of transactions through these two digital to the application of the PSAK 50 and 55 regulations,
channels represented 74.1% of total transactions. This is where loans were assessed individually or collectively.
in line with the shift in customer behavior and also helped Individual assessments are made of loans that have
contain the growth of branch offices and ATMs. significant value individually, namely the corporate and
commercial segments, which have objective evidence of
Communication expenses grew by 18.2% to Rp1.7 trillion, impairment. Collective assessment is made for SMEs and
primarily related to the growth in transaction volume consumers, as well as corporate and commercial loans
and frequency which increased the processing cost paid which individually have no evidence of impairment.
Movement of Allowance for Impairment Losses on Financial Assets (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Beginning Balance 14,449 14,634 13,915 (185) -1.3% 719 5.2%
Adjustment beginning balance of new 5 - - - na - na
acquired Subsidiary
Addition of Allowance During the Year 4,591 2,677 2,624 1,914 71.5% 53 2.0%
Assets Written-off During the Year (-/-) 3,283 3,054 2,149 229 7.5% 905 42.1%
Recoveries on Assets Previously Written-off 31 147 235 (116) -78.9% (88) -37.4%
Exchange Rate Differences & Others (20) 45 9 (65) -144.4% 36 400.0%
Ending Balance 15,773 14,449 14,634 1,324 9.2% (185) -1.3%
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Allowance for impairment losses on financial assets was Net Income
increased Rp1.3 trillion in 2019 amounting to Rp15.8 Net income grew by 10.5% to Rp28.6 trillion in 2019,
trillion at the end of the year. This increase particularly supporting the Earnings per Share (EPS) increase from
came from additional allowances during the year in Rp1,049 per share in 2018 to Rp1,159 per share in 2019.
line with the increase in non performing loans. The
allowance for impairment losses on loans contribution Return on Equity (ROE) reached 18.0% in 2019. BCA
reached 94.5% of total allowance for impairment losses always maintains a balance between the need for capital
on financial assets. With expenses on allowance for to support business growth and shareholder interest. For
impairment losses on loans reported during the year, cost the last five years, the Bank’s dividend payout ratio was
of credit was increased to at 0.8%, with a coverage ratio 21%-33% of net income.
of 189.2%
Net Income - Attributable to the Parent Entity
(in trillion Rupiah)
Income Before Tax Return on Equity (ROE) - non consolidated
Income before tax grew by 11.0% in 2019 from Rp32.7
19.2% 18.8% 18.0%
trillion to Rp36.3 trillion, supported by higher operating
income of 13.6% compared with a year ago.
The return on assets (ROA) was 4.0% at the end of the
28.6
year, stable compared with a year earlier.
25.9
23.3
Income Before Tax (in trillion Rupiah)
Return on Assets (ROA) - non consolidated
4.0% 4.0% 2017 2018 2019
3.9%
Statement of Comprehensive Income
The statement of comprehensive income records changes
36.3
in equity over a period of time which is not booked under
32.7
29.2 the traditional income statements, including transactions
with shareholders.
2017 2018 2019
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Comprehensive Income (in billion Rupiah)
2019 2018 2017
Net Income 28,570 25,852 23,321
Other Comprehensive Income:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit liability (341) 410 (850)
Income tax 70 (284) 213
Revaluation surplus of fixed assets 769 2,164 (4)
Items that will be reclassified to profit or loss
Unrealized (gains) losses for available-for-sale financial assets 2,605 (1,865) 1,875
Income tax (519) 457 (468)
Foreign exchange differences arising from translation of financial (16) 28 (2)
statements in foreign currency
Others - - (9)
Total Other Comprehensive Income 2,568 910 755
Total Comprehensive Income 31,138 26,762 24,076
Net Income attributable to:
Equity holders of parent entity 28,565 25,855 23,310
Non-controlling interest 5 (3) 11
Comprehensive Income attributable to:
Equity holders of parent entity 31,132 26,766 24,064
Non-controlling interest 6 (4) 12
Earning per Share attributable to Equity Holders of The Parent Entity 1,159 1,049 945
(in full amount of Rupiah)
BCA’s comprehensive income showed a solid performance. Total comprehensive income that can be attributed to the
equity holder of the parent entity increased by 16.3% to Rp31.1 trillion. This was driven by growth in net income of
10.5% to Rp28.6 trillion, in line with solid operating income from the interest income generated from loans and fee
based income.
CASH FLOW
Cash Flow (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Cash Flows from Operating Activities 51,942 4,913 9,659 47,029 957.2% (4,746) -49.1%
Cash Flows from Investing Activities (34,732) 20,628 (20,620) (55,360) -268.4% 41,248 200.0%
Cash Flows from Financing Activities (7,335) (7,298) (6,656) (37) -0.5% (642) -9.6%
Net (Decrease) Increase in Cash and Cash 9,875 18,243 (17,617) (8,368) -45.9% 35,860 203.6%
Equivalents
Cash and Cash Equivalents, Beginning of Year 103,312 83,377 100,320 19,935 23.9% (16,943) -16.9%
Effect of Foreign Exchange Rate Fluctuations (119) 1,692 674 (1,811) -107.0% 1,018 151.0%
on Cash and Cash Equivalents
Cash and Cash Equivalents, End of Year 113,068 103,312 83,377 9,756 9.4% 19,935 23.9%
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Liquidity management, from the funding aspect, loan Cash Flow from Investing Activities
distribursement and the provision of optimum cash were Considering the lower interest rate trend in 2019, BCA
taken into account thouroughly. During the year, BCA needed to carefully monitor and manage cash flow from
managed its cash flow optimally and booked cash and investing activities while still searching for an optimum
cash equivalent of Rp113.1 trillion compared with the yield. Cash flow from investing saw a deficit of Rp34.7
previous year’s Rp103.3 trillion. trillion, due to the purchase of marketable securities.
Cash Flow from Operating Activities Cash Flow from Financing Activities
Cash flow from operating activities reached Rp51.9 Cash flow from financing activities was Rp7.3 trillion
trillion, increased significantly by Rp47.0 trillion. This in 2019, particularly from the increase in the dividend
was particularly derived from third party funds of Rp24.4 payment to Rp8.8 trillion compared to Rp6.4 trillion in
trillion from Rp46.0 trillion a year ago to Rp70.4 trillion 2018.
in 2019 and declining loan disbursement throughout the
year to Rp52.8 trillion from Rp71.3 trillion the previous
year.
KEY FINANCIAL RATIOS
During the year, BCA booked solid business growth, as reflected by various major financial metrics as follows:
Financial Ratios (non consolidated)
2019 2018 2017 2016 2015
ROA 4.0% 4.0% 3.9% 4.0% 3.8%
ROE 18.0% 18.8% 19.2% 20.5% 21.9%
NIM 6.2% 6.1% 6.2% 6.8% 6.7%
LDR 80.5% 81.6% 78.2% 77.1% 81.1%
NPL 1.3% 1.4% 1.5% 1.3% 0.7%
CAR 23.8% 23.4% 23.1% 21.9% 18.7%
CER 43.7% 44.3% 44.4% 43.9% 46.5%
BOPO 59.1% 58.2% 58.6% 60.4% 63.2%
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SUBSIDIARY
PERFORMANCE OVERVIEW
BCA and its subsidiaries continuously form synergy to deliver comprehensive financial solutions to fulfill the growing
needs of customers. The subsidiaries’ lines of business offer various financial products and services in many fields including
vehicle financing, remittances, sharia banking, securities, general & life insurance, and venture capital.
BCA Group Structure and Subsidiaries Ownership
100% 99.576% 99.9999% 75% 75% 99.9997% 90% 90% 99.99997%
PT Central
BCA Finance 0.424% PT BCA 0.0001% PT Bank BCA 25% PT Asuransi 25% PT BCA Multi 0.0003% PT BCA PT Asuransi 0.00003% PT Bank Royal
Capital
Limited Finance Syariah Umum BCA Finance Sekuritas Jiwa BCA Indonesia
Ventura
100% 100% 100% 100% 100% 90% 90% 100%
100%
PT BCA Finance BCA Finance leverages on technology advancement to
BCA Finance effectively joined BCA Group in 2001 with improve efficiency and support the marketing process
100% ownership (direct and indirect). BCA Finance through the mobile platform. The application provides
consistently grows and has become one of the leading access to information anytime, anywhere with ease,
multifinance companies in Indonesia, engaging in vehicle speed and convenience. Customers are encouraged to
financing, particularly cars, both new and used. use the Bank’s network for payments and settlements
through BCA auto debit, virtual accounts, ATMs, etc.
BCA Finance adopts joint financing scheme with BCA. This
scheme enables it to maintain its solid funding structure In 2019, the total assets under management reached
as well as offer a competitive financing rate. It also fosters Rp52.1 trillion, relatively stable compared to last year’s
joint marketing activities with its parent to promote Rp51.6 trillion, and consistent with the slow sales
the company’s products through the Bank’s network. performance of the automotive industry. Amid this
BCA Finance has 72 branches to serve more than 550 challenge, BCA Finance booked a market share of 13%.
thousands customers. To improve customer convenience, Financing expansion always considers the implementation
we facilitate weekend services located at Wisma Pondok of prudent risk management, which leads to a sound
Indah and a service point at Mall Artha Gading. In running quality of financing with NPL recorded at 1.42%.
its business, BCA Finance collaborates with selected
dealers and showrooms for strategic business growth.
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BCA Finance’s net income for the year reached Rp1.7 BCA Multi Finance’s net income reached Rp46.3 billion
trillion, growth of 7.0% from Rp1.6 trillion in 2018. as of December 2019, higher than Rp39.5 billion in 2018,
thanks to various initiatives conducted to bring more cost
BCA Finance was awarded The Best Performing efficiency.
Multifinance Company at Bisnis Indonesia Financial
Awards 2019 and The Most Profitable Finance Company PT Bank BCA Syariah
at Infobank Multifinance Awards 2019. BCA Syariah is a subsidiary engaged in sharia banking,
with BCA’s effective ownership of 100%.
PT BCA Multi Finance
BCA Multi Finance (formerly PT Central Santosa Finance) At the end of 2019, BCA Syariah had 69 branches,
was established and started operations in 2010. BCA has including 40 sharia service units located in strategic cities
100% ownership (direct and indirect) in this subsidiary. in Indonesia. It collaborated with the Bank’s banking
system to offer value added services to customers by
The company focuses on vehicle financing, particularly providing access to transactions using BCA’s ATM and EDC
motorcycles. In response to the decline in the financing machines, as well as access to HALO BCA contact centers. It
quality, BCA Multi Finance has continuously improved also formed business-to-business collaboration with other
its business model for the past few years and has begun parties, such as marketplaces, online shops and start-ups.
providing used car financing with longer tenors.
BCA Syariah recorded solid growth in assets, financing
BCA Multi Finance established synergy with BCA in the receivables and third party funds. In 2019, its total assets
form of joint financing and joint marketing to promote grew by 22.2% to Rp8.6 trillion, and sharia financing
the company’s products through BCA’s networks. At end grew by 14.3% to Rp5.6 trillion with a non-performing
of 2019, it had 70 branches spread over several locations financing (NPF) nett ratio of 0.3%. Such growth was
in Java, Sumatera and Kalimantan. supported by a 12.7% increase in third party funds to
Rp6.2 trillion. Net income was Rp67.2 billion, growing by
In line with digital technology advancement, BCA Multi 15.1%, and higher than Rp58.4 billion in 2018.
Finance developed initiatives to expand its marketing
coverage by utilizing e-commerce media and digital In appreciation for its performance during the year, BCA
platforms. Improvement in the financing approval process Syariah was awarded the Golden Trophy for the fifth
was made by leveraging on technology optimization to consecutive year (2014-2018) by Info Bank Awards 2019,
enhance service levels. and the Top Bank 2019 Award by Top Business magazine.
Total assets under management for the year were Rp2.4 During 2019, BCA placed Rp1 trillion additional capital in
trillion. In the past few years, BCA Multi Finance saw some BCA Syariah to strengthen capital for business growth
asset quality deterioration for motor cycle refinancing.
During 2019, BCA Multi Finance also improved credit
processes and loan collection. At the end of the year,
NPLs stood at 2.9%, relatively stable compared with the
previous year.
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PT BCA Sekuritas In line with technological advancements, BCA Insurance
BCA Sekuritas is a subsidiary with BCA ownership of continuously improves its mobile app to support the needs
90%, engaging in brokerage and underwriting activities. for insurance claim reporting and information on nearest
It provides services to fulfill customer needs related to branch locations and workshop partners. It also develops
fund raising through the equity and bond markets. It online sales for travel insurance products through the
also offers advisory services covering strategic issues corporate website bcainsurance.co.id. It also developed
like mergers and acquisitions, restructuring, divestment, an Application Programming Interface (API), allowing
joint ventures, privatisation and other corporate strategy interaction with business partners through marketplaces
initiatives. when promoting its products.
To serve customers needs, BCA Sekuritas continously In 2019, BCA Insurance’s total assets grew by 16.7%
improves its service infrastructure, including its mobile to Rp2.1 trillion. Gross premium income increased by
based online trading application (BEST Mobile) to support 12.5% to Rp0.9 trillion from Rp0.8 trillion in 2018. Its
the growth of sustainable brokerage businesses. In order net income rose by 41.5% to Rp123.9 billion compared
to strengthen the marketing of its products and services, with the previous year. Such growth particularly stemmed
it also participated in several Bank marketing events, for from the increase in premium income from vehicle and
instance the BCA Expoversary, which was held in many property insurance.
large cities in Indonesia, and gathering events with
customers to expand the customer base. BCA Insurance was awarded the Golden Trophy for its
Very Good Financial Performance 2014-2018 by Infobank
At the end of 2019, BCA Sekuritas’ total assets were Magazine and Top General Insurance 2019, with category
Rp762.3 billion, a growth of 21.7% from Rp626.2 billion in assets of Rp1-2.5 trillion by Top Business magazine.
2018. Its net income reached Rp52.1 billion, an increase of
55.2% compared with Rp33.6 billion in 2018. Such growth PT Asuransi Jiwa BCA
was particularly supported by growth in brokerage PT Asuransi Jiwa BCA (BCA Life) is a subsidiary (with
commissions in line with the increase in the trading value effective ownership of 90%) which offers life insurance
of institutional customers. protection for customers, including the Bank’s mortgage
and vehicle loans customers. It collaborates with BCA
PT Asuransi Umum BCA in offering Tahaka, a regular savings product with life
PT Asuransi Umum BCA (BCA Insurance) is a subsidiary insurance protection. It also provides heritage planning
engaged in the provision of general insurance products products through heritage protection, particularly for
such as vehicle, fire, accident, travel and other types of Solitaire and Priority customers.
insurance. The Bank has 100% ownership (direct and
indirect) of this subsidiary. Benefiting from technology advancements, BCA Life
offers mobile app based facilities and services accessible
BCA Insurance established synergy with the Bank in to policy holders and the general public, which cover the
providing general insurance for the group’s consumer provision of policy information (individual and group
loan customers, and collaborates in various marketing health) and electronic claim facilities.
activities at branches and special events, for example BCA
Expo and BCA Travel Fair.
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In 2019, BCA Life’s total assets were Rp1.2 trillion, an CCV greatly emphasizes business synergy with BCA’s
increase of 27,9% from the year before. It booked net transaction banking services and subsidiaries. In 2019, it
loss of Rp2.9 billion, compared to the net loss recorded invested in four new companies with injected additional
in 2018 of Rp68.5 billion. Gross premium income grew by investment of Rp31.7 billion. Its total assets were Rp404.1
33.6% in 2019 to Rp840.1 million. billion, an increase from last year of Rp205.0 billion. The
company booked a net loss of Rp1.1 billion, higher than
In 2019, it was awarded The Best Contact Center the previous year Rp0.3 billion in 2018.
Indonesia 2019 for The Best Telesales Platinum category
by the Indonesia Contact Center Association (ICCA) and In 2019, BCA increased the capital of CCV by Rp200 billion
the Indonesia Best Insurance Award 2019: Enhancing to support its investment activities in selected startup and
Adaptation and Resilience category Best Innovation fintech companies.
Company by Warta Ekonomi magazine.
PT Bank Royal Indonesia
BCA Finance Limited PT Bank Royal Indonesia (Bank Royal) is a subsidiary
BCA Finance Limited is a wholly owned subsidiary of acquired on October 31, 2019, with BCA’s effective
BCA, which has an active role in facilitating the needs for ownership of 100% (direct and indirect). In December
remittance transaction services in Hong Kong, including 2019, Bank Royal booked total assets of Rp2.8 trillion
serving inward remittances from all Indonesians working with loans of Rp8.6 billion.
overseas. It also offers a strategic function in facilitating
trade finance services for the Bank’s customers in Hong BCA is currently refining Bank Royal’s business model and
Kong and China. It recorded total assets of Rp783.7 the necessary infrastructure for optimum synergy with
billion, growing by 1.5% from Rp772 billion in 2018. Net the Bank’s main businesses. Bank Royal will be focused on
income reached Rp15.5 billion grew by 33.9% from the digital banking services. To support Bank Royal’s future
previous year. growth, BCA extended a loan facility of Rp1.5 trillion in
December 2019.
PT Central Capital Ventura
PT Central Capital Ventura (CCV) is a subsidiary which
was established in 2017, with BCA’s effective ownership
of 100%. CCV engages in venture capital financing and
invests in start-up and fintech companies, particularly
those related to financial technology (fintech), with the
ultimate goal of supporting the Bank’s overall ecosystem.
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OTHER MATERIAL
INFORMATION
TARGET ACHIEVEMENT IN 2019 AND hand, total loans booked at Rp586.9 trillion, an increase
PROJECTION FOR 2020 of 9.1% from last year, higher than the target set of
BCA’s performance in 2019 exceeded the target set at 6%-8%.
the beginning of the year. Third party funds grew by
11.0% to Rp699.0 trillion, higher than the target of From the profitability standpoint, income after tax
8%-10%. This was supported by strong growth in CASA grew by 10.5% to Rp28.6 trillion with return on assets
of 9.8% to Rp530.6 trillion and contributed up to 75.9% (ROA) and return on equity (ROE) of 4.0% and 18.0%,
of the total third party funds. Growth in third party respectively. The Bank’s capital and liquidity position
funds was also triggered by a substantial increase in remained adequate, as reflected by CAR and LDR of
time deposits of 14.7% to Rp168.4 trillion. On the other 23.8% and 80.5%, respectively. Below is a summary of
BCA’s financial achievements compared to the set target.
Target vs Achievement
Achievement 2019 Target 2019
Loan growth 9.1% 6.0% - 8.0%
Third party funds growth 11.0% 8.0% - 10.0%
ROA 4.0% > 3.5%
ROE 18.0% > 17.0%
Capital Adequacy Ratio (CAR) 23.8% > 23.0%
Loan to Deposit Ratio (LDR) 80.5% < 83.0%
Going into 2020, BCA estimates a moderate expansion in banks are now even more cautious on the asset quality
lending and CASA of 5%-7%. In terms of ratios, BCA aims rather than on growth. In response to macroeconomic
to manage ROA above 3.5%, ROE within the target of developments, banks expect to grow moderately both in
16%-18%, and CAR will be relatively stable at 22%-24%. the lending and funding.
PROSPECT AND STRATEGIC PRIORITIES BCA’s third party funds and loans are projected to grow
moderately. Given the high LDR, banking sector liquidity
Macroeconomic and Banking Sector Prospects in is estimated to remain tight, which may lead to more
2020 competition for third party funds. We will remain focused
The Indonesian economy will continue to face external on maintaining adequate liquidity and prioritizing CASA
and internal challenges in 2020. It is estimated to grow at growth. We will continue to develop the numerous
a modest pace in line with a gradual economic recovery. features and facilities of digital banking products and
The corona-virus outbreak added challenges to the global services, expand the network and payment acceptance
and domestic economy, particularly in the first semester system for customers, and pursue customer base growth.
of 2020. Given such a backdrop, as a proxy to the economy
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Indonesian banks also face competition from fin-tech i. Development of transaction banking and digital
companies that leverage technology advancements banking services.
to provide financial services. While this is a threat to BCA prioritized strengthening transaction banking,
transaction banks, it also provides opportunities for reflected in its annual business plan and strategic
collaboration with the companies in a fast growing work programs. Reliable payment settlement services
payment ecosystem. We collaborate with numerous are the driving force behind customer trust in our
fintech and e-commerce companies leveraging on the services, leading to sticky and solid CASA growth.
Application Programming Interface (API) technology. The
collaborations provide convenient services and encourage The Bank’s initiatives to strengthen transaction
customers to perform banking transactions through banking capabilities were heavily focused on the
digital channels, providing strong grounds to widen the development of digital platform services, such as
customer base and grow the number of transactions. online account opening through BCA Mobile. Since
its launch early in the year, this facility has received
Indonesia’s business environment is expected to be positive feedback and contributed to customer
more favorable after the successful general elections, growth.
the inauguration of the president and the formation
of a new cabinet, serving as an investment catalyst for The Bank continued to strengthen collaboration
business expansion and supporting loan growth in 2020 with e-commerce and fin-tech companies to expand
and beyond. BCA will seek market opportunities to the coverage of its payment ecosystem. It utilized
expand its lending services in various segments, while application programming interface (API) technology
remaining cautious in regard to changes in loan quality. for integration of co-partner systems with its system.
The implementation of disciplined risk management is
key to maintaining sound asset quality. These initiatives were supported by a robust
information technology infrastructure and a reliable
BCA is committed to growing with its subsidiaries, security system.
and supporting capital needs in line with business
development. We are optimistic our subsidiaries will ii. Loan expansion
increase their contribution to our overall performance, We focused on disbursing loans to customers
either in interest or fee-based income. with positive track records and maintained loan
diversification to mitigate concentration risk. Loan
Strategy Priorities of BCA in 2020 growth is expected to be supported by the corporate
The Bank takes into account both internal and external segment. We continue to engage in loan syndication
factors to determine its strategic initiatives, while for prospective infrastructure projects related to toll
preserving strong liquidity and capital positions, and roads, electricity, telecommunications and airports.
promoting a balance between loan growth and asset
quality. Commercial and SME segments will be equipped with
optimization of the role of the commercial business
centers at the regional offices, and the development
of SME centers at branches. For consumer segment,
The Bank remained proactive by offering products
at competitive interest rates and holding various
promotional activities and special events, such as
BCA Expoversary, to optimize its consumer lending
growth.
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BCA improved its loan infrastructure, leveraging MARKETING ASPECT
technology to accelerate the approval process, The objectives of BCA’s marketing programs are to
while implementing prudent banking principles. We improve relationships with the existing customers, to
also focused on improving the competency of our acquire new customers, and to boost the utilization
credit employees (account and relationship officers) of products and services. Furthermore, the marketing
through training programs, both on-site and programs are launched to increase awareness of our new
e-learning through a digital application. Information product and services.
technology was utilized to manage data and debtor
information, which complemented credit analysis BCA leverages on digital technology and social media
and captured potential new debtors in various to carry out its marketing activities to reach wider
customer segments. communities, particularly the younger generation and
more tech-savvy customers. The Bank’s renowned call
iii. The development of comprehensive solutions and center namely Halo BCA is accessible through telephone,
services video call and media chat for 24/7 to offer solution and
BCA strives to provide comprehensive products and provide information on products and services.
services, improving coordination among business The following are the Bank’s initiatives to support its
units and synergy with subsidiaries, to meet growing marketing agenda:
customer needs. s *OINT PROMOTION AND MARKETING PROGRAMS WITH
strategic partners (for e.g. MAP Grup, Starbucks,
The Bank strengthened its business in foreign Alfamart, Indomaret, Gramedia, Pizza Hut,
exchange, cross border remittance, trade finance, Matahari Department Store and Singapore Airlines).
wealth management and bancassurance, and in the Collaboration with leading e-commerce platforms
business lines of its subsidiaries. We collaborated such as Gojek, Shopee, Tokopedia, Blibli and
with subsidiaries engaged in vehicle financing, sharia Bhinneka.
bank, securities, remittance, general insurance, s (ELD VARIOUS EVENTS OFFERING ATTRACTIVE PROMOTIONS
life insurance and venture capital investment in relating to consumer products such as mortgage,
technology. vehicle loans and products of our subsidiary
companies. Other joint promotion activities include
The provision of comprehensive financial products hosting travel fair events with Singapore Airlines,
and services complemented our core transaction participation in Big Bad Wolf Book Sale and Jakarta
banking and generated cross selling opportunities Sneaker Day.
to support overall performance. We are confident s 3TRENGTHENING DIGITAL MARKETING PROGRAMS THROUGH
our subsidiaries have room for growth by leveraging social media (Facebook, Twitter, Instagram), including
our wide customer base. Comprehensive financial improving digital command center. The center allows
services delivered in cooperation with subsidiaries close monitoring of social media activities and trends
will reinforce the relationship with our customers. which will supply the Bank’s with opportunities and
challenges.
We recently completed the acquisition of Bank
Royal, part of our business plan for the year, and
are in the process of formulating its business model,
which will focus on the provision of digital services in
collaboration with BCA. We also signed a conditional
sale and purchase agreement to acquire Rabobank
Indonesia which is expected to be completed in 2020.
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s 5PGRADING CORPORATE WEBSITE BCACOID INCLUDING In monitoring the liquidity condition, the Bank uses
the mobile version with a more user friendly and several liquidity metrics including Loan to Deposit Ratio
attractive display. These platforms are improved (LDR) and Macroprudential Intermediation Ratio (RIM).
and enhanced in terms of products and services By the end of the year, LDR stood at 80.5% and RIM at
information as well as through addition of new 81.6%. BCA always maintains intact liquidity position
features (e.g. online account opening and e-branch). resulted from stable CASA growth of CAGR 11.4% in the
s )MPROVING 6)2! CHAT PLATFORM AS DIGITAL CUSTOMER last 10 years. The Bank’s CASA to total third party funds
service and marketing tool, particularly to cater the stood at 75.9% in 2019.
millennials. VIRA also provides marketing support by
disseminating information on promotion programs. As part of liquidity management, BCA placed its excess
s %NCOURAGING EMPLOYEES TO UTILIZE "#! DIGITAL liquidity in risk-free short term instruments (including
services to increase digital awareness. placement with BI). Secondary reserve amounting to
Rp118.7 trillion or 17.0% of the total third party funds.
DEBT SERVICE ABILITY AND LOAN RECEIVABLES The majority of secondary reserve is placement with Bank
COLLECTABILITY Indonesia includes marketable securities with tenor of
BCA has a sound financial performance and ability to meet less than one year.
its long and short term obligations. Our profit increased
by CAGR 11.6% in the past 5 years and liquidity position The Bank’s Capital Adequacy Ratio (CAR) remained
remain solid reflected from LDR ratio of 80.5% in 2019. strong at 23.8% in 2019 (2018: 23.4%) and It is amongst
Furthermore, the bank receives positive assessments from the highest in the industry. The CAR ratio covers credit
external ratings agencies (Fitch Ratings) as stated below. risk, market risk and operational risk.
Fitch Ratings BCA records robust rentability as reflected by key ratios
that include Return on Assets (ROA), Return on Equity
(ROE) and Net Interest Margin (NIM) of 4.0%, 18.0% and
Outlook Stable 6.2%, respectively.
Local long term rating AAA (idn)
Issuer default - long term rating BBB Keeping a balance between loan growth and sound
Issuer default - short term rating F3 quality asset is very essential in a banking business.
Supporting rating 3
In 2019, BCA’s NPL ratio was 1.3%, slightly improved
compared with last year’s 1.4%, and better than the
BCA has an adequate liquidity position resulted from industry average of 2.5%.
prudent asset and liability management. The Asset
and Liability Committee (ALCO) regularly reviews the In extending loans, the Bank focuses on high quality
loan demand and estimated funding flow to manage a customers and top tier players in each potential industry
prudent and strong balance sheet position. ALCO also especially for a larger loan amount. BCA’s strength in
conducts periodical meetings with relevant business units transaction banking services allows close monitoring on
to address any issues or potential challenges affecting the customers’ payment activities which give an overview of
Bank’s liquidity. their ability to pay the loan.
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CAPITAL STRUCTURE AND MANAGEMENT POLICY
The capital structure
The capital structure of the bank is as follows:
s #ORE CAPITAL 4IER STOOD AT OF TOTAL CAPITAL EQUIVALENT TO 2P TRILLION
s 3OME WAS IN SECOND TIER CAPITAL 4IER AMOUNTED TO 2P TRILLION 4HE 4IER CAPITAL MOSTLY CONSISTS OF GENERAL
provision for earning assets.
Capital Components (consolidated - in billion Rupiah)
2019 2018 2017
Capital 177,888 156,052 134,608
Tier 1 Capital 170,750 149,413 129,240
Tier 2 Capital 7,138 6,639 5,368
Risk Weighted Assets 721,917 651,532 570,459
(Credit, Operational and Market Risk)
Capital Adequacy Ratio (CAR) - consolidated 24.6% 24.0% 23.6%
Capital Adequacy Ratio (CAR) - non consolidated 23.8% 23.4% 23.1%
Management Policy on Capital Structure Capital adequacy is essential for the bank and its
Capital adequacy ratio (CAR) is used as a metric to subsidiaries expansions in alignment with the promising
measure the capital sufficiency level covering credit risk, growth of Indonesian economy. To anticipate future
market risk and operational risk. BCA has adequate CAR business growth, BCA retained majority of the profit and
of 23.8%, exceeding the minimum risk profile-based contributed 32.4% of the net income (Rp340/share) as
capital. BCA’s capital base is sufficient for the conservation dividend.
buffer, countercyclical buffer and capital surcharge for a
domestic systemically important bank (D-SIB) as stipulated Basis Management Policy on Capital Structure
in BI and OJK regulations regarding the minimum capital The Board of Directors formulates capital management
requirements for commercial banks. strategies as part of the Bank’s business plan and
obtains approval from the Board of Commissioners
BCA, together with its subsidiaries, carried out integrated based on Financial Services Authority Regulation No.
stress testing using various scenarios including changes 11/POJK.03/2016 dated 2 February 2016 and No.34/
in the level of NPLs, liquidity and capital position. Based POJK.03/2016 dated 26 September 2016 concerning
on the stress testing results, BCA and its subsidiaries have Minimum Capital Requirements for Commercial Banks.
adequate balance sheet position to face these risks based
on scenarios being used.
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DIVIDEND POLICY MATERIAL COMMITMENTS FOR CAPITAL
BCA seeks approval from the shareholder to determine the EXPENDITURE
amount of dividends during the annual general meeting Purpose of Material Commitments for Capital
of shareholders. BCA regularly reviews the dividend Expenditure
policy in order to keep enough capital for growth, capital Material commitments for capital expenditure are
expenditure and new business development. allocated to strengthen the Bank’s business through
network expansion, information technology infrastructure
Dividend Payout Ratio development, and other investments in support of BCA’s
32.4%
operational activities.
27.0%
23.9%
22.1% 21.9%
20.8% Source of Funds for Capital Expenditure
BCA ensures the adequacy of its capital to support capital
expenditures. In a growing business environment, BCA
continues to invest mostly in the networks and information
technology related items using its accumulated profits.
2013 2014 2015 2016 2017 2018
Currency and Foreign Exchange Risk Mitigation
Related To Capital Expenditures
Based on the latest annual general meeting of BCA procures capital goods from both domestically
shareholders dated April 11, 2019, BCA shareholders and abroad depending on the availability. Invoices and
approved the allocation of net income from the year payments were mostly denominated in Rupiah, thus
2018 for a cash dividend amounting to Rp8.4 trillion or minimizing exchange rate risk.
Rp340 per shares (paid through an interim dividend of
Rp85 per share distributed on December 20, 2018, and a
final dividend of Rp255 per share distributed on April 30,
2019). This dividend payment is equivalent to a dividend
payout ratio of 32.4% of the net profit generated in 2018.
REALIZATION OF CAPITAL EXPENDITURE
During 2019, realization of capital expenditure reached Rp3.0 trillion, mostly in the category of office furnitures,
fixtures and equipment related to the network development of EDC, ATM networks and information technology. BCA is
committed to continuously invest in technology-based development to enhance the capability of its transaction banking
services.
Capital Expenditures Investment (in billion Rupiah)
Increase / (decrease) 2019 Increase / (decrease) 2018
2019 2018 2017
Nominal % Nominal %
Land 128 17 53 111 652.9% (36) -67.9%
Buildings 35 299 150 (264) -88.3% 149 99.3%
Office furnitures, fixtures and equipments 2,262 1,759 938 503 28.6% 821 87.5%
Motor vehicles 17 15 14 2 13.3% 1 7.1%
Construction in progress 584 505 580 79 15.6% (75) -12.9%
Total 3,026 2,595 1,735 431 16.6% 860 49.6%
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INFORMATION AND MATERIAL INFORMATION in January 2020. With this capital increase, Bank
AFTER THE DATE OF FINANCIAL REPORTING Royal has been upgraded to BUKU II category and is
There is no significant event, information or material eligible to provide digital banking services.
information occurring after the date of financing s "#! PLACED 2P TRILLION OF ADDITIONAL CAPITAL IN "#!
reporting. Syariah to strengthen capital for business growth.
s "#! INCREASED CAPITAL OF ##6 AMOUNTING TO 2P
MANAGEMENT AND/OR EMPLOYEE STOCK billion to support its investment activities in selected
OPTION PLAN (MSOP/ESOP) startup and fintech companies.
During 2019, BCA did not have a share option program s )N $ECEMBER "#! SIGNED A #ONDITIONAL 3ALE
for the Board of Directors, Board of Commissioner and and Purchase Agreement (CSPA) to acquire 100%
employees. stake in Rabobank Indonesia.
REALIZATION OF PUBLIC OFFERING FUNDS INFORMATION ON MATERIAL TRANSACTIONS
During 2019, BCA did not conduct any offering in the WITH CONFLICTS OF INTEREST
form of new share issuance. During 2019, there were no material transactions carried
out with conflicts of interest.
MATERIAL INFORMATION REGARDING
INVESTMENT, EXPANSION, DIVESTMENT AND DISCLOSURE OF TRANSACTIONS WITH
ACQUISITION RELATED PARTIES
During 2019, BCA did not have transactions or activities BCA conducts various transactions with related parties
with material value related to investment, expansion, in carrying out its business activities which did not cause
divestment and acquisition. any conflict of interest transactions. Such transactions
BCA conducted some corporate actions during 2019, as are carried out according to normal commercial terms as
follow: those conducted with non-related parties.
s "#! ACQUIRED "ANK 2OYAL AND THE ACQUISITION WAS
completed in October 31, 2019 with total acquisition Details of material transactions with related parties
cost of Rp988.05 billion. BCA is currently developing (amount, type of transaction and the nature of the
a new business model for Bank Royal which will be relationships with related parties) is available in the
focusing on the digital banking services. To support audited consolidated financial statements in Note No. 47
Bank Royal future growth, BCA extended a loan on pages 733-740 and under section “Good Corporate
facility amounting to Rp 1.5 trillion in December Governance” with “Affiliated Transactions and Conflict
2019 and injected Rp 1 trillion of additional capital of Interests” subsection.
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GROUP-WIDE FUNDING, COMMITMENTS AND OTHER FACILITIES TO SINGLE OUTSIDE DEBTORS
The combined loan facilities extended by the Bank and its subsidiaries to single debtors or groups of debtors were
Rp237.0 trillion or 40.4% of the Bank’s total outstanding loans. The majority of the facilities was in the form of car
financing (via BCA Finance) and sharia banking (via BCA Syariah). By year end, the NPL ratio for these portfolio was
0.3%.
Combined Lending Facilities provided by the Bank and its Subsidiaries (in billion Rupiah, except number of debtors)
Facilities at Subsidiaries
Number BCA BCA Facilities Total
Collectability BCA BCA
of Debtors Finance Multi in BCA Exposure
Finance Syariah
Limited Finance
Current 494,178 3,160 - 2,407 208 224,738 230,513
Special Mention 44,636 185 - 30 27 4,349 4,591
Substandard 1,917 7 - 116 1 213 336
Doubtful 2,125 2 - - 2 142 146
Loss 6,027 28 - - 2 1,360 1,390
Total 548,883 3,382 - 2,553 240 230,802 236,976
IMPACT OF CHANGES IN LAWS AND s ") 2EGULATION .O0") THIS REGULATION
REGULATIONS adjusts the limit for maximum exposure and reset
In 2019, there were several new regulations issued that the minimum down payment. BCA adjusts the
have impacts on the business activities of the Bank and its maximum limit of the LTV ratio for property loans
subsidiaries. The regulations are as follow: and minimum down payments for vehicle loans.
s ") REGULATION .O0!$' CONCERNING s "ANK )NDONESIAS "OARD OF 'OVERNORS 2EGULATION .O
Minimum Reserve Requirement in Rupiah and 21/5/PADG/2019 concerning the macroprudential
Foreign exchange for conventional banks, sharia intermediation ratio and macroprudential liquidity
bank and sharia unit. The minimum reserve buffer for commercial banks, sharia banks and sharia
requirement is reduced by 100 bps to 5.5% and units, manages the adjustment in the lower limit of
4.0%, with the average reserve requirement capped the RIM target from 80% to 84% and the upper limit
at 3%. This regulation aims at easing banking sector from 92% to 94%. BCA has maintained its lower and
liquidity. Subsequent to this regulation, BCA adjusted upper limits according to the regulation.
its reserve requirements both in Rupiah and foreign s -INISTER OF &INANCE 2EGULATION .O 0-+
currencies. (implemented on January 1, 2019) concerns the
s ") REGULATION .O0!$' CONCERNING THE calculation of income tax installments in the current
implementation of National Standard Quick Response tax year that must be self-remitted by new taxpayers,
Code for payment using Indonesia Standard (QRIS). banks, state owned enterprises, local government
The regulation stipulates the coverage of QR code owned enterprises, publicly listed taxpayers, and
application for payment, implementation and sets other taxpayers. BCA will follow the regulation and
the maximum nominal amount of Rp2 million per adjust the calculation of PPh25.
transaction. Applying this regulation, BCA intensely
promotes the use of QRIS for payment/settlement.
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BCA’s Management believes that the aforementioned BUSINESS CONTINUITY
new regulations will have positive impact to the In achieving business continuity, BCA maintains a balance
Indonesian banking sector and support the country’s amongst key elements such as strong financials, ample
economy growth. capital and liquidity, healthy asset quality in addition
to customer satisfaction. With today’s ever-changing
CHANGES IN ACCOUNTING POLICIES environment and more diverse customer needs, agility
The Financial Accounting Standard Board of the becomes an important feature to stay ahead. BCA
Indonesian Institute of Accountants (DSAK-IAI) issued responds these dynamics by offering a broad range of
the following relevant new standards, amendments and comprehensive financial solutions through reliable and
interpretations, effective on or after January 1, 2019: secure transaction platforms.
s )3&!3 h&OREIGN #URRENCY 4RANSACTIONS AND
Advance Consideration”; BCA performs periodical tests and updates for hardware,
s )3&!3 h5NCERTAINTY OVER )NCOME 4AX 4REATMENTv network core systems, software and operating systems.
s 4HE AMENDMENTS TO 3&!3 h%MPLOYEE "ENElTS BCA also manages a number of network infrastructures
Plan Amendment, Curtailment or Settlement”; that operates in real-time. To maintain business
s !NNUAL )MPROVEMENTS TO 3&!3 h"USINESS operations continuity, BCA runs two data centers in
Combination”; Jakarta on a mirroring principle and manages a fully
s !NNUAL )MPROVEMENTS TO 3&!3 h"ORROWING integrated disaster recovery facility.
Cost”;
s !NNUAL )MPROVEMENTS TO 3&!3 h)NCOME The Bank’s business continuity plan is designed to ensure
Taxes”; and seamless business activities under normal situation and in
s !NNUAL )MPROVEMENTS TO 3&!3 h*OINT the event of a significant disruption. The plan takes into
Arrangements”. account the possibility of natural disasters, such as large-
scale earthquakes and floods.
The implementation of the above amendments and
interpretations standards do not have substantial changes BCA took several strategic initiatives in human resource
to the accounting policies and have no material effect on management in line with its long term strategy and
the consolidated financial statements for the current or long term business prospects. The objectives are to
prior financial years. develop a high quality workforce, prepare for succession,
strengthen competencies based on the Bank’s needs, and
In 2019, DSAK-IAI also issued some new standards which implement sound governance. BCA constantly instills
will be effective starting January 1, 2020, such as SFAS corporate values and culture to employees at all levels as
71 Financial Instrument, SFAS 72 Revenue from Contracts a foundation of building a sustainable organization.
with Customers and SFAS 73 Leases. To accommodate
these changes, BCA has prepared the supporting system,
performed testing and made necessary adjustments in
the system’s modelling.
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PRIME LENDING RATE
In connection with Financial Services Regulation No.32/ POJK.03/2016 concerning Transparency and Publication of Bank
Reports, BCA implements transparency of its prime lending rate to the public through website publications, newspapers
and annual reports. This enhances corporate governance and encourages healthy competition in the banking industry.
The prime lending rate calculation is based on three components: the cost of loanable funds; overhead costs incurred by
the Bank in the lending process; and the profit margin determined for lending activities.
Detailed information on changes to the prime lending rate are available at branches, and can be accessed on BCA’s
website at www.bca.co.id and through national daily newspapers. Below is BCA’s quarterly prime lending rates during
2019.
Quarterly Prime Lending Rate (effective % p.a)
Prime Lending Rate Based on Loan Segment
End of Period Consumer Loan
Corporate Loan Retail Loan
Mortgage Non Mortgage
Quarter IV - 2018 9.75 9.90 9.90 8.33
Quarter I - 2019 9.75 9.90 9.90 8.98
Quarter II - 2019 9.75 9.90 9.90 8.98
Quarter III - 2019 9.75 9.90 9.90 8.98
Quarter IV - 2019 9.75 9.90 9.90 8.61
Note:
a. Prime lending rate is used as the basis for determining customer lending interest rates. The rate does not include the estimated individual credit risk
premium, which depends on the Bank’s risk assessment on each debtor or group of debtors. Therefore, the lending rate for each debtor might be
different from the prime lending rate.
b. Non-mortgage consumer loans do not include credit card and unsecured loans.
c. Non-mortgage consumer loan prime lending rate is the prime lending rate for vehicle loans through a joint financing scheme with PT BCA Finance.
d. The prime lending rate for mortgage is the variable rate (floating rate) in nature.
2019 Annual Report | PT Bank Central Asia Tbk 295
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GLOSSARY
No. Keywords/Terms Initials No. Keywords/Terms Initials
1. Accounting Education PPA 19. Financial Services Authority OJK Regulation
Program Regulation
2. Annual General Meeting of AGMS 20. Financial Services Institution FSI
Shareholders
21. Good Corporae Governance GCG
3. Annual Report AR
22. Indonesia Deposit Insurance IDIC
4. Asset & Liability Committee ALCO Corporation
5. ASEAN Corporate Governance ACGS 23. Indonesia Stock Exchange IDX
Scorecard
24. Informatics Engineering PPTI
6. Audit Committee AC Education Program
7. Bank Indonesia BI 25. Information Technology ITSC
Steering Committee
8. Bank Indonesia Circular Letter BI Circular Letter
26. Integrated Governance IGC
9. Bank Indonesia Regulation BI Regulation
Committee
10. Bank Sustainability Report Sustainability
27. Integrated Risk Management IRMC
Report
Committee
11. Corporate BCA
28. Number (for Regulation) No.
12. Corporate Social Responsibility CSR
29. Personnel Case Advisory PCAC
13. Credit Committee CC Committee
14. Credit Policy Committee CPC 30. PT Bank Central Asia Tbk BCA
15. Extraordinary General EGMS 31. Public Accountant PA
Meeting of Shareholders
32. Public Accounting Firm PAF
16. Financial Report FR
33. Remuneration and RNC
17. Financial Services Authority OJK Nomination Committee
18. Financial Services Authority OJK Circular Letter 34 Risk Management Committee RMC
Circular Letter
35. Risk Oversight Committee ROC
36. Small Medium Enterprises SME
37. Subsidiary Company of PT Subsidiary
Bank Central Asia Tbk
38 Value Added Tax VAT
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CONTENTS
INTRODUCTION 4. Authorities of the Board of Commissioners 359
1. Objective of Corporate Governance 304 5. Criteria for Members of the Board of 360
Implementation Commissioners
2. Roadmap 304 6. Nomination for Members of the Board of 361
Commissioners
3. References 306
7. Number and Composition of the Members of 362
4. Good Corporate Governance Framework and 307
the Board of Commissioners
Action Plan
8. Composition of Board of Commissioners 363
A. Corporate Governance Structure 309
Members During 2019
B. Implementation 310
9. Induction Program for New Board of 364
1) Internal Policies Related to Good 310 Commissioners Members
Corporate Governance
10. Training Programs to Enhance the Competence 364
2) Compliance with Good Corporate 313 of Members of the Board of Commissioners
Governance Principles
11. Share Ownership for Members of the Board of 366
3) Internalization 320 Commissioners that Amounts to 5% or More of
C. Assessment of Good Corporate Governance 323 Paid-Up Capital
Implementation 12. Dual Positions of Members of the Board of 368
1) Internal Assessment 323 Commissioners
2) External Assessment 324 13. Report on Task Implementation and 369
Assessment of Committees under the Board of
Commissioners
GENERAL MEETINGS OF SHAREHOLDERS 325 14. Policy on Loan Facilities for The Board of 372
1. Shareholders’ Rights 326 Commissioners
2. 2019 Annual GMS and Extraordinary GMS 326 15. Board of Commissioners Supervisory Duties 372
Report
a. AGMS 327
16. Performance Evaluation of Members of the 372
b. EGMS 328 Board of Commissioners
3. Procedures for Organizing AGMS and EGMS 330
4. Attendance of Management, Committees and 337 INDEPENDENT COMMISSIONERS 372
Shareholders
5. Chairperson of AGMS and EGMS 337
BOARD OF DIRECTORS
6. Rules of Procedure AGMS and EGMS 337
1. Legal Basis 373
7. Decision Making Methods 339
2. Guidelines and Code of Conduct of Board of 374
8. The Vote Counting Mechanism for AGMS and 340 Directors (BoD Charter)
EGMS
3. Duties and Responsibilities of the Board of 374
9. 2019 AGMS Decision and its Realization 341 Directors
10. 2019 EGMS Decision and its Realization 347 4. Authorities of the Board of Directors 375
11. 2018 AGMS and EGMS Decision and its 348 5. Criteria for the Board of Directors 375
Realization 6. Nomination for Members of the Board of 376
12. Realization of Dividend Payment 355 Directors
13. Statement Regarding the Unrealized Decision 355 7. Number and Composition of the Members of 378
of the GMS the Board of Directors
8. Composition of BCA Board of Directors During 379
2019
INFORMATION ON CONTROLLING 355
SHAREHOLDER 9. Division of Duties and Responsibilities of the 381
Board of Directors
BOARD OF COMMISSIONERS 356
10. Induction Program for New Members of the 381
1. Legal Basis 356 Members of Board of Directors
2. Board of Commissioners Charter 357 11. Training Programs to Enhance the Competence 381
3. Duties and Responsibilities of the Board of 357 of Members of the Board of Directors
Commissioners
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12. Share Ownership for Directors that Amounts to 387 10. Policies and Meetings Implementation of 424
5% or More of Paid-Up Capital AC
13. Dual Positions of Members of the Board of 388 11. Realization of Work Program and 425
Directors Implementation of AC Activities in 2019
14. Performance Assessment of Executive 389
Committees of the Board of Directors
RISK OVERSIGHT COMMITTEE (ROC) 426
15. Policy on Loan Facilities For The Board Of 393
1. Legal Basis 426
Directors
2. ROC Charter 426
16. Performance Assessment of Members of the 393
Board of Directors 3. Structure and Membership of ROC 427
4. Profiles and Qualifications of ROC Members 427
BOARD OF COMMISSIONERS MEETINGS, 393 5. Education or Training Activities 427
BOARD OF DIRECTORS MEETINGS, AND JOINT 6. Term of Duty of ROC 428
MEETINGS
7. Independence of ROC Members 428
1. Board of Commissioners Meeting 393
8. Duties and Responsibilities of Risk Oversight 429
2. Board of Directors Meeting 397 Committee
3. Joint Meetings of the Board of Commissioners 400 9. Authorities of ROC 429
with the Board of Directors
10. Policies and Meetings Implementation of ROC 429
11. Realization of Work Program and 430
AFFILIATED RELATIONSHIP Implementation of Activities of ROC in 2019
1. Affiliated Relationships of Members of the 403
Board of Commissioners
2. Affiliated Relationships of Members of Board 403 REMUNERATION AND NOMINATION COMMITTEE 431
of Directors (RNC)
3. Statement of Independence of the Board of 404 1. Legal Basis 431
Commissioners and Board of Directors
2. Principle Function of the RNC 431
3. RNC Guidelines 431
DIVERSITY IN THE COMPOSITION OF THE 405
BOARD OF COMMISSIONERS AND THE BOARD 4. Structure and Membership of the RNC 431
OF DIRECTORS 5. Profiles and Qualifications of the RNC 432
6. Education or Training Activities 432
PERFORMANCE ASSESSMENT OF THE BOARD OF 407 7. Term of Duty of the RNC 432
COMMISSIONERS AND BOARD OF DIRECTORS
8. Independence of the RNC 432
9. Duties and Responsibilities of the RNC 433
REMUNERATION POLICY 409
10. Policies and Meetings Implementation of the 434
1. Remuneration for the Board of Commissioners 409 RNC
2. Remuneration for the Board of Directors 411 11. Policies Concerning Board of Directors 435
3. BCA Remuneration Implementation 413 Succession Plan
12. Realization of Work Program of the 435
RNC in 2019
BOARD OF COMMISSIONERS COMMITTEES 420
13. Remuneration of the RNC 435
AUDIT COMMITTEE 420
1. Legal Basis 420
INTEGRATED GOVERNANCE COMMITTEE (IGC) 435
2. AC Charter 420
1. Legal Basis 435
3. Structure and Membership of AC 420
2. IGC Guideline and Code of Conduct 435
4. Profiles and Qualifications of AC Members 421
3. Structure and Membership of IGC 436
5. Education or Training Activities 421
4. Members Profile 436
6. Term of Duty of AC 422
5. Education or Training 437
7. Independence of AC Members 422
6. Term of Office of IGC Members 439
8. Duties and Responsibilities of AC 423
7. Independence of IGC Members 439
9. Authorities of AC 424
8. Duties and Responsibilities of IGC 439
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9. Work Mechanism 439 3. Structure, Membership, and Voting Status of 451
CPC
10. Policy and Implementation of Meetings 439
4. Duties and Responsibilities of CPC 452
11. Realization of Work and Implementation 440
Activities of Integrated Governance Program in 5. CPC Meeting 452
2019
6. Decision Making 452
7. Frequency of CPC Member Meetings During 452
EXECUTIVE COMMITTEES OF THE BOARD OF 441 2019
DIRECTORS
8. Accountability Reporting 453
ASSET & LIABILITY COMMITTEE (ALCO) 441
9. Realization of the CPC Work Program in 2019 453
1. Main Functions of ALCO 441
2. Authorities of ALCO 441
CREDIT COMMITTEE (CC) 454
3. Membership Structure of ALCO and Voting 442
1. Main Functions of CC 454
Right Status
2. Authorities of CC 454
4. Main Duties of ALCO Members 442
3. Membership Structure of CC and Voting Rights 455
5. Meeting of ALCO 442
Status
6. Decision Making 443
4. Duties and Responsibilities of CC 455
7. Frequency of ALCO Meetings in 2019 443
5. CC Meetings 455
8. Report of Responsibility 444
6. Decision Making 456
9. Realization of Work Program in 2019 444
7. Frequency of CC Meeting in 2019 456
8. Realization of Meetings in 2019 457
RISK MANAGEMENT COMMITTEE (RMC) 445
1. RMC Main Core Functions 445
INFORMATION TECHNOLOGY STEERING 458
2. Authorities of RMC 445 COMMITTEE (ITSC)
3. Structure, Membership of RMC and Voting 445 1. Main Functions of ITSC 458
Rights Status
2. Authorities of ITSC 458
4. Main Duties of RMC Members 446
3. Structure, Membership and Voting Rights 459
5. RMC Meetings 446 Status of ITSC
6. Decision Making 446 4. Duties and Responsibilities of ITSC 459
7. Frequency of RMC Meetings in 2019 447 5. Meetings of ITSC 460
8. Accountability Reporting 447 6. Decision Making 460
9. Realization of RMC Work Unit Year 2019 447 7. Frequency of ITSC Meetings in 2019 460
8. Accountability Reporting 461
INTEGRATED RISK MANAGEMENT COMMITTEE 448 9. Realization of Work Programs of ITSC in 2019 461
(IRMC)
1. Main Functions of IRMC 448
PERSONNEL CASE ADVISORY COMMITTEE 462
2. Authorities of IRMC 448
1. Main Functions of the PCAC 462
3. Structure, of IRMC Membership, and Status of 448
Voting Rights 2. Authorities of the PCAC 462
4. Main Duties of IRMC 449 3. Membership Structure of PCAC 462
5. Meetings of IRMC 449 4. Main Duties of the PCAC 463
6. Decision Making 449 5. Meetings of the PCAC 463
7. Frequency of IRMC Meeting in 2019 450 6. Decision Making 463
8. Accountability Reporting 450 7. Frequency of the PCAC Meetings in 2019 463
9. Realization of Work Program in 2019 450 8. Accountability Report 464
9. Realization of Work Program of PCAC 2019 464
CREDIT POLICY COMMITTEE (CPC) 451
1. Main Functions of CPC 451
2. Authorities of CPC 451
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CORPORATE SECRETARY 464 IMPLEMENTATION OF RISK MANAGEMENT 482
1. Structure and Position of the Corporate 464 1. Overview of BCA’s Risk Management 482
Secretary System
2. Corporate Secretary Profile 465 2. Risk Management System 483
3. Competence Development and Training 466 3. Risks Faced and Managed 483
Programs
4. Review/Results Review of Risk Management 488
4. Corporate Secretary Functions 466 System Implementation
5. Brief Description of the Implementation of 467
Corporate Secretary Duties in 2019
NTERNAL CONTROL SYSTEM 489
6. Corporate Secretary Report in 2019 467
1. Main Components of Internal Control System 490
7. Information Disclosure Report 470
2. Implementation of Internal Control 490
MAIN DUTIES OF INVESTOR RELATIONS 470
ANTI FRAUD STRATEGY IMPLEMENTATION 492
1. Main Duties of Investor Relations 470
1. Introduction 492
2. Activities of Investor Relations 471
2. Background 492
3. Investor Relations Contact 472
3. Objectives 492
4. Implementation and Internalization 493
INTERNAL AUDIT FUNCTION 472
1. Position and Structure of the Internal Audit 472
Division WHISTLEBLOWING SYSTEM 495
2. Procedure for Appointment/Dismissal of the 473 1. Whistleblowing Procedure 495
Internal Audit Division 2. Whistleblower Protection 496
3. Head of Internal Audit Division 473 3. Report Management 496
4. Human Resources of Internal Audit Division 473 4. Parties Managed the Report 496
5. Internal Audit Charter 474
6. Independency 474 ANTI GRATUITY 498
7. Auditor’s Code of Ethics 475
8. Duties and Responsibilities of the Internal 475 AFFILIATED TRANSACTION AND CONFLICT OF 499
Audit Division INTERESTS
9. Audit Implementation Standards 475
10. Implementation of Internal Audit Division 475 LEGAL CASES 503
Activities in 2019
1. Criminal Cases 503
11. Focus of the 2020 Audit Plan 476
2. Civil Cases 503
PUBLIC ACCOUNTING FIRM (EXTERNAL AUDIT) 476
SIGNIFICANT CASES AND ADMINISTRATIVE 505
1. Name of the PA 476 SANCTIONS TOWARD VIOLATIONS
2. Name of the PAF 476 Administrative Sanctions from Related Authorities 506
3. Procedures for Using PA Services 477
4. 2019 Audit Fees 478 INFORMATION ACCESS AND CORPORATE DATA 507
5. Other Services Provided by PAF/PA Beyond 478 1. Stakeholders Involvement 507
Audit
2. Product Information and Transparency 509
3. Media 509
COMPLIANCE FUNCTION 478
4. Information Access 509
1. The Work Implementation of Compliance 479
5. BCA website 510
Function Work During 2019
6. BCA Social Media 511
2. Compliance Indicators in 2019 480
7. List of Press Releases in 2019 512
3. Anti-Money Laundering and Terrorism 481
Financing Prevention Program (AML and CFT) 8. Correspondence with OJK and IDX 518
4. Integrated Compliance Function 481 9. Internal Communication 521
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CODE OF ETHICS 523 IMPLEMENTATION OF INTEGRATED GOVERNANCE 534
1. Core of BCA’s Code of Ethics 523 1. Requirements of Main Entity’s Board of 534
Commissioners and Board of Directors
2. Enforcement of Code of Ethics 523
2. Duties and Responsibilities of Main Entity’s 537
3. Socialization 523
Board of Commissioners and Board of Directors
4. Code of Ethics Related to Anti-Corruption 524
3. Duties and responsibilities of the Integrated 537
5. Code of Ethics Related to Vendors 524 Governance Committee
6. Enforcement and Sanctions for Violations of 525 4. Duties and responsibilities of the Integrated 538
Code of Ethics Compliance Unit
7. Types of Sanctions for ever Violations 525 5. Duties and Responsibilities of the Integrated 538
8. Type of Sanctions, Total and Status of Case 525 Internal Audit Unit
Resolution on Code of Ethics Violation in 2019 6. Implementation of Integrated Risk 538
Management
CORPORATE CULTURE 526 7. Formulation and Implementation of Integrated 538
Governance Guideline
1. BCA Vision 526
8. Realization of Integrated Governance 539
2. BCA Mission 526
9. Assessment of the Implementation of 539
3. BCA Value 526 Integrated Governance
4. Socialization of Vision, Mission, and Value 526 10. Annual Report concerning Implementation of 540
Integrated Governance
STOCK OPTIONS 527
FULFILLMENT INDEX OF GOVERNANCE 552
RECOMMENDATIONS
SHARES BUY BACK 527
1. OJK Circular Letter No. 32/SEOJK.04/2015 552
concerning Governance Guidelines for Public
OTHER CORPORATE ACTIONS 527 Companies
2. OJK Circular Letter No. 13/SEOJK.03/2017 552
concerning Implementation of Governance for
PROVISION OF FUND TO RELATED PARTY AND 529 Commercial Banks
LARGE EXPOSURE
3. OJK Circular Letter No. 30/SEOJK.04/2016 553
1. Lending Policy to Board of Directors and Board 529 concerning the Form and Content of Annual
of Commissioners Report of Issuer or Public Companies
2. Policy on Provisions of Fund to Related Parties 530 4. ASEAN Corporate Governance Scorecard 556
5. Good Corporate Governance and Bad 563
STRATEGIC PLAN 530 Corporate Governance Practices
TRANSPARENCY OF THE BCA FINANCIAL AND 530
NON-FINANCIAL CONDITIONS UNDISCLOSED IN
OTHER REPORTS
1. Transparency of Financial Conditions 530
2. Transparency of Non-Financial Conditions 531
SUSTAINABILITY GOVERNANCE 532
1. Guarantor 532
2. Competency Development for Financial 532
Sustainability Guarantor
3. RAKB Follow Up 533
PROVISION OF FUNDS FOR SOCIAL ACTIVITIES 533
PROVISION OF FUNDS FOR POLITICAL ACTIVITIES 533
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CORPORATE
GOVERNANCE
INTRODUCTION
1. Objective of Corporate Governance s 5NDERSTANDING THE VARIOUS NEEDS OF
Implementation customers and provide the right financial
BCA continuously strives to apply the principles services to achieve optimal customer
of Good Corporate Governance and abides by the satisfaction.
prevailing regulations at all times. The objectives s %NHANCING THE FRANCHISE VALUE AND THE
of the implementation of the principles of Good value of BCA stakeholders.
Corporate Governance at BCA are: c. Providing benefits and added value for
a. Supporting BCA’s vision to become the “To be shareholders and stakeholders.
the most trusted bank of choice and a major d. Maintaining and increasing healthy and
pillar of the Indonesian economy” competitive business for a long term
b. Supporting BCA’s mission, namely: (sustainable).
s "UILDING A CENTER OF EXCELLENCE IN PAYMENT e. Gaining investor confidence to BCA.
settlement and financial solutions for
business customers and individuals
2. Roadmap
BCA prepares a roadmap for governance within a period of five years which is used as a reference for implementing
governance at BCA. The roadmap for BCA governance from 2015 to 2020 is as follows:
2015-2016 2017 2018
Collecting Sketch Building Foundation Improving GCG Area
s !MEND "#!S !RTICLES OF s &ORMULATE s !MEND "#!S !RTICLES OF !SSOCIATION
Association. - The Mechanism and Submission s &ORMULATE
s %STABLISH )NTEGRATED 'OVERNANCE of Self-Assessment Report on the - Insider Trading Policies.
Committee. Implementation of Integrated - Dividend Policies.
s &ORMULATE Governance. - Assessment Policy for the Board of
- Integrated Governance - Mapping of BCA’s Integrated Commissioners and Board of Directors
Guidelines. Governance. s 2EVISE
- Formulate the Anti-Fraud - The Affiliate Transaction and - The Corporate Governance Guidelines.
Strategy Guidelines Conflict of Interest Policy - The Audit Committee Charter.
s 3TATEMENT OF )NTENT BY s 2EVISE - The Affiliate Transaction Practices and
Independent Commissioners. - The Integrated Governance Conflicts of Interest.
Guidelines - BCA’s Website Governance Guidelines
- The Reporting Flow Mechanism Section.
of Specific Share Ownership. - The means to socialize GCG through
- The Governance Guidelines. GCG Articles in MyBCA portal
- The Board of Directors and Board
of Commissioners Charter.
s #ORPORATE 'OVERNANCE 3HARING
Session
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2019 2020
Strengthening GCG Fostering GCG Culture
s &ULlLL !#'3 )NDICATOR s &ULlLL THE /*+S 2ECOMMENDATION 2EGARDING s /VERSEE THE )MPLEMENTATION OF
s $ISCLOSE /*+S 4ABLE OF Corporate Governance. GCG at BCA with regulations.
Recommendation with s )MPROVE s 2EVISE
explanations. - Corporate Governance Guidelines. - GCG implementation based
s )MPROVE )NTEGRATED 'OVERNANCE - Affiliate Transaction Practices and Conflict of on External Assessment
Communication through Interest Policy. Results.
Workshops with Subsidiaries - GCG Articles in MyBCA portal. - ACGS implementation
cooperate with KNKG. s !NALYSIS - Sustainable Governance
- Code of Ethics. Implementation and
- Annual Disclosure. Revision
- BCA’s Website in Corporate Governance Section. - The Integrated Governance
s )MPLEMENT Guidelines.
- The self-assessment of Board of Directors’ and - The Implementation of
Board of Commissioners’ Performance Pursuant Integrated Governance
to OJK’s guide. s 3OCIALIZE
- BCA’s Code of Ethics.
- Invitation AGMS released 28 Days before the
- The Annual Disclosure
commencement of AGMS.
Practices.
- The publication the result of AGMS at the same
- Compulsory Materials
day as the commencement of AGMS.
on GCG E-learning to All
s &ORMULATE THE &INANCIAL 3USTAINABILITY 2EPORT Employees.
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3. References - OJK Regulation No. 5/POJK.03/2016 concerning
BCA has implemented Good Corporate Governance the Bank Business Plans.
by referring to regulatory provisions, internal - OJK Regulation No. 56/POJK.04/2015
regulations, and best practices that are applicable concerning Formation and Guidelines for the
and exemplified in a national and international Formation of Internal Audit Unit Charter.
scale. - OJK Regulation No. 55/POJK.04/2015
concerning Formation and Guidelines for Work
BCA sets the ASEAN Corporate Governance Implementation of the Audit Committee.
Scorecard (ACGS), an international best practices - OJK Regulation No. 45/POJK.03/2015
issued by ASEAN Capital Market Forum (ACMF), as concerning Implementation of Governance in
guideline to implement Good Corporate Governance Providing Remuneration for Commercial Banks
as reference. Indonesian regulations, including the - OJK Regulation No. 21/POJK.04/2015
Law, Finance Services Authority (OJK) regulations, concerning Implementation of Governance
OJK Circular Letters, as well as the roadmap of Guidelines for Public Companies.
Indonesian Corporate Governance Guidelines - OJK Regulation No. 35/POJK.04/2014
issued by OJK, sets as the basis of the formulation concerning .Corporate Secretary of Issuers or
of Good Corporate Governance policies at BCA. Public Companies.
BCA completed the legal basis for the formulation - OJK Regulation No. 34/POJK.04/2014
of Good Corporate Governance policies by also concerning Nomination and Remuneration
referring to BCA’s Articles of Association in order Committee of Issuers or Public Companies.
for the policies to not only comply with existing - OJK Regulation No. 33/POJK.04/2014
regulations, but also are in line with BCA’s business concerning Directors and Board of
efforts. Commissioners of Issuers or Public Companies.
- OJK Regulation No. 18/POJK.03/2014
The formulation of BCA’s Good Corporate concerning Implementation of Integrated
Governance policies are referring to the following Governance for Financial Conglomerations.
regulations: - OJK Regulation No. 17/POJK.03/2014
- Law No. 8 of 1995 concerning Capital Markets. concerning Implementation of Integrated Risk
- Law No. 40 of 2007 concerning Limited Liability Management for Financial Conglomerations
Companies. - OJK Circular Letter No.13/SEOJK.03/2017
- POJK No. 11/POJK.04/2017 concerning concerning Implementation of Governance for
Ownership Reports or Any Changes in Commercial Banks.
Ownership of Public Company Shares. - OJK Circular Letter No. 43/SEOJK.03/2016
- POJK No. 10/POJK.04/2017 concerning concerning Transparency and Publication of
Amendments to OJK Regulation No.32/ Conventional Commercial Bank Reports.
POJK.04/2014 on the Plans and Organizing of - OJK Circular Letter No. 40/SEOJK.03/2016
a General Meeting of Shareholders of a Public concerning Implementation of Governance in
Company. Providing Remuneration for Commercial Banks
- POJK No. 55/POJK.03/2016 concerning - OJK Circular Letter No.25/SEOJK.03/2016
Implementation of Governance for Commercial concerning the Commercial Bank Business
Banks. Plans.
- OJK Regulation No. 32/POJK.03/2016 - OJK Circular Letter No. 30/SEOJK.04/2016
concerning Amendments to the OJK concerning Form and Content of Issuers or
Regulation No.6/POJK.03/2015 concerning the Companies’ Annual Reports.
Transparency and Publication of Bank Reports. - OJK Circular Letter No.32/SEOJK.04/2015
- OJK Regulation No. 29/POJK.04/2016 concerning Guidelines for Open Corporate
concerning Annual Reports of Issuers or Public Governance.
Companies.
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- OJK Circular Letter No.15/SEOJK.03/2015 concerning Implementation of Integrated Governance for Financial
Conglomerations.
- OJK Circular Letter No.14/SEOJK.03/2015 concerning Implementation of Integrated Risk Management for
Financial Conglomerations.
- BCA’s Articles of Association.
- Roadmap of Indonesian Corporate Governance Guidelines issued by the OJK.
4. Good Corporate Governance Framework and Action Plan
The following is the BCA’s framework of BCA’s Good Corporate Governance.
Monitoring & Evaluation
Implementation
Structure
(Corporate) Implementation
Principles
Structure
Corporate Governance Implementation Report
BCA’s Good Corporate Governance Framework
The Good Corporate Governance framework at BCA consists of a governance structure as a foundation,
implementation as an embodiment of the implementation of governance principles, and the assessment towards
the implementation of corporate governance as a parameter for implementing Corporate Governance principles
at BCA. This parameter is used by BCA organs as an indicator to continue to make sustainable improvements in
implementing the principles of Good Corporate Governance. Disclosure of the Corporate Governance framework
is stipulated in the Corporate Governance Implementation Report.
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To timely determine the required action plan, BCA periodically conducts comprehensive self-assessment of the
application adequacy of good corporate governance. BCA’s 2019 good corporate governance action plan is as follows.
Strategy Process
BCA governance strategy is s #OMPLIANCE TO REGULATIONS AND
sets based on a good corporate internal policies
governance framework in s #OMPLETING OF POLICIES RELATED TO
accordance with applicable Good Corporate Governance
regulations
Improvement* Monitoring
s #ORPORATE 'OVERNANCE 'UIDELINES
update s #ONDUCTING EVALUATION OF 'OOD
s 2ENEWING POLICIES REGARDING #ORPORATE Corporate Governance implementation.
Governance s %VALUATING PROCESS AND AFlLIATED
s 3OCIALIZATION !FlLIATED 4RANSACTIONS transaction policies.
Reporting s %VALUATING CORPORATE GOVERNANCE SECTION
s 2EVAMPING #ORPORATE 'OVERNANCE on website.
section on website s -ONITORING THE CORPORATE GOVERNANCE
s )MPLEMENTATION OF THE !3%!. assessment results.
Corporate Governance Scorecard
s 'OVERNANCE 3OCIALIZATION
BCA Good Corporate Governance Action Plan in 2019
Remarks:
* Improvement is a the results follow-up of monitoring aimed at providing added value, refinement and/or correction in implementing the principles of
governance at BCA. Improvements that have been conducted in 2019 include:
- Corporate Governance Guidelines update
- Renewing policies regarding Corporate Governance, among others:
a. Internal audit function;
b. Audit committee;
c. Conflict of interest;
d. Affiliate transaction.
- Affiliated transactions reporting campaigning to work units
- The corporate governance section update website to facilitate the provision of good corporate governance information for stakeholders and the public
- Implementation of ASEAN CG scorecard indicators
- Campaigning on good corporate governance through uploaded articles related to corporate governance on BCA internal portal as well as endorsement that
discusses issues surrounding good corporate governance, including related to the new capital market regulations of the regulator, corporate governance
issues, and implementation of good corporate governance at BCA.
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A. CORPORATE GOVERNANCE STRUCTURE
BCA’s Corporate Governance structure is a governance organization scheme consisting of the of General Meeting
of Shareholders (GMS) as the highest organ to support work/business units of governance in BCA. Every work/
business unit has a defined set of duties and responsibilities, as a reflecting of check and balance principles and
the implementation of BCA internal control system.
BCA’s Corporate Governance Structure
General Meeting of Shareholders
(GMS)
BOARD OF Check & Balance
BOARD OF DIRECTORS
COMMISSIONERS
Asset & Liability Corporate
Audit Committee
Committee (ALCO) Secretary
Risk Oversight Risk Management Risk Management
Committee Committee Working Unit
Remuneration & Integrated Risk Compliance
Management
Nomination Committee Committee Working Unit
Integrated Governance Credit Policy
Legal Group
Committee Committee
Credit
Internal Audit Division
Committee
Information Technology
Steering Committee
Personnel Case
Advisory Committee
BCA’s corporate governance structure consists of: Risk Management Committee; Integrated
1) General Meeting of Shareholders (GMS); Risk Management Committee; Credit Policy
2) Board of Commissioners; Committee; Credit Committee; IT Steering
3) Board of Directors; Committee; Personnel Case Advisory
4) Committees under the Board of Commissioners Committee;
are Audit Committee, Risk Oversight 6) Corporate Secretary;
Committee, Remuneration and Nomination 7) Risk Management Work Unit, Compliance
Committee, Integrated Governance Work Unit, Legal Group, and Internal Audit
Committee; Division.
5) Board of Directors’ Executive Committees
are Asset and Liability Committee (ALCO),
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B. IMPLEMENTATION
BCA’s commitment to implement Good Corporate Governance is executed by following areas:
1. Internal Policies Related to Good Corporate Governance
BCA’s internal policies on Good Corporate Governance are served as a tool to comply with regulations,
to support Good Corporate Governance infrastructure, and to execute Good Corporate Governance
implementation. BCA policies related to Good Corporate Governance including:
Issues Type of Internal Policies
General Provision 1. BCA’s Article of Association
2. BCA’s Code of Ethics
Corporate Governance Policies The Board of Directors Decree No.168/SK/DIR/2018 dated October 24, 2018 concerning
Adjustment of Corporate Governance Guidelines
The Board of Commissioners and 1. Board of Commissioners Guidelines and Code of Conduct and the Board of Directors
the Board of Directors Guidelines and Code of Conduct that become an integral part of the Corporate
Governance Guidelines.
2. The Board of Directors Decree No. 215 / SK / DIR / 2018 dated 31 December 2018
concerning Self-Assessment Policy of the Board of Directors and the Board of
Commissioners.
The Committees Under the Board 1. The Board of Commissioners Decree No. 117 / SK / KOM / 2019 dated July 10, 2019
of Commissioners concerning Audit Committee Charter of PT Bank Central Asia Tbk.
2. The Board of Commissioners Decree No. 172 / SK / KOM / 2019 dated November 7
,2019 concerning Risk Oversight Committee Charter.
3. The Board of Commissioners Decree No. 035 / SK / KOM / 2017 dated February 24,
2017 Concerning the Remuneration and Nomination Committee Structure.
4. Part B Chapter 3 of the BCA Governance Guidelines concerning Guidelines and Code
of Conduct for the Integrated Governance Committee in Supporting Committees of
the Board of Commissioners of the Integrated Governance Committee Section.
Integrated Governance 1. The Board of Directors Decree No. 160A / SK / DIR / 2017 dated November 21,
2017 concerning the Revision of the Integrated Governance Guidelines of PT Bank
Central Asia Tbk.
2. The Board of Directors Decree No. 037 / SK / DIR / 2017 dated March 27, 2017
concerning the Integrated Compliance Risk Management Policy.
Affiliated Transactions and 1. The Board of Directors Decree No. 214 / SK / DIR / 2019 dated December 27, 2019
Conflict of Interest concerning Affiliated Transactions and Transactions Containing Conflicts of Interest.
2. Circular Letter No. 319 / SE / POL / 2019 dated December 27, 2019 concerning
Implementation Guidelines for Affiliated Transactions and Transactions Containing
Conflicts of Interest.
3. The Board of Directors Decree No. 219 / SK / DIR / 2003 dated 10 November 2003
concerning Provisions Regarding Conflicts of Interest.
Anti-fraud Circular Letter No. 064 / SE / POL / 2015 dated April 7 ,2015 concerning Guidelines for
Implementing Anti-Fraud Strategies.
Audit and Internal Control 1. The Board of Directors Decree No. 078 / SK / DIR / 2019 dated May 28, 2019
concerning Internal Audit Charter.
2. The Board of Directors Decree No. 183 / SK / DIR / 2017 dated December 13, 2017
concerning Guidelines for the Internal Control System of PT Bank Central Asia Tbk.
Risk Management The Board of Directors Decree No. 126 / SK / DIR / 2017 dated October 3, 2017 concerning
the Basic Risk Management Policy of PT Bank Central Asia Tbk.
Anti-Money Laundering 1. The Board of Directors Decree No. 065 / SK / DIR / 2015 dated May 15, 2015
concerning Revision of the Anti-Money Laundering and Prevention of Terrorism
Financing Policy.
2. The Board of Directors Decree No. 143 / SK / DIR / 2018 dated September 20, 2018
concerning Issuance of the Anti-Money Laundering and Prevention of Terrorism
Financing Guidelines for 2018.
Whistleblowing System The Board of Directors Decree No. 146 / SK / DIR / 2017 dated November 1, 2017
concerning Implementation of the Whistleblowing System at BCA.
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Issues Type of Internal Policies
Procurement 1. The Board of Directors Decree No. 130 / SK / DIR / 2017 dated October 10, 2017
concerning Provisions for Procurement of Goods and/or Logistics Services and
Building.
2. The Board of Directors Decree No. 089 / SK / DIR / 2018 dated June 6, 2018 concerning
Procurement of Goods and/or Services Related to Information Technology (IT).
Insider Trading Part B Chapter 5 of BCA Corporate Governance Guidelines regarding Insider Trading
Transactions.
Governance Guideline prohibitions, exceptions, and compliance
The Bank has a governance updated policy that of insider trading transaction policies. BCA
ratified guideline through Board of Directors staffs are required to comply with applicable
Decree No. 168/SK/DIR/2018 dated October capital market regulations and uphold the
24, 2018 concerning Adjustment of Corporate values of BCA’s Code of Ethics to support the
Governance Guidelines. The guidelines include implementation of this policy. BCA employees
the following areas: have to ensure that their personal interests
s 0RINCIPLES OF 'OOD #ORPORATE 'OVERNANCE unconflicted with the interests of BCA as a
s 'ENERAL -EETING OF 3HAREHOLDERS '-3 banking customer or entity, unabused their
and its implementation position and authority for personal or family
s 4HE "OARD OF #OMMISSIONERS AND THEIR interests and that not allowed to commit
guidelines and procedures disgraceful actions that particularly harm the
s 3UPPORTING COMMITTEES OF THE "OARD OF professional image and BCA image in general.
Commissioners and their guidelines and The insider trading transaction policy points
procedures can be downloaded on the BCA website on the
s 4HE "OARD OF $IRECTORS AND ITS GUIDELINES governance policy section (https://www.bca.
and procedures co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/
s #OMMUNICATION AND INFORMATION Tata-kelola).
functions.
s )NFORMATION DISCLOSURE Dividend Policy
s )NSIDER TRADING The Dividend Policy is regulated in the
s $IVIDEND DISTRIBUTION BCA Governance Guidelines, covering rules
s 3ELF ASSESSMENT REPORT ON THE regarding the legal basis policy, consideration
implementation of governance and of dividend distribution, proposed dividend
integrated governance distribution, and AGMS decisions regarding
s !NNUAL REPORT ON THE IMPLEMENTATION dividend. Announcement (publication),
of corporate governance and integrated schedule, and procedure for dividend
corporate governance payment refer to the prevailing rules and/or
s +EY POINTS OF "#!S GOVERNANCE GUIDELINES regulations, including regulations, Financial
can be downloaded on the BCA website Services Authority (OJK), Bank Indonesia,
under the Governance section (https:// Indonesia Stock Exchange (BEI), taxation, and
www.bca.co.id/en/Tentang-BCA/Tata- BCA articles of association. The main points
Kelola-Perusahaan/Tata-kelola). of dividend policy can be downloaded on the
BCA website on the governance policy section
In addition to guidelines above, BCA also have: (https://www.bca.co.id/en/Tentang-BCA/Tata-
Kelola-Perusahaan/Tata-kelola). Throughout
Insider Trading Transaction Policy 2019, the realization of dividend payments has
The insider transaction policy is regulated in been carried out in accordance with applicable
BCA’s corporate governance guidelines, which regulations.
include provisions on the policy legal basis,
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Conflict of Interest Policy Procurement Policy
BCA has a Conflict of Interest Policy based on In supporting its banking business activities,
the Board of Directors Decree No. 219/SK/DIR/ BCA procures goods and services. BCA already
2003 concerning Provision Conflict of Interest. has procurement guidelines for BCA to be
This policy is a guideline for BCA employees to able obtaining goods and/or services with the
consistently prioritizing BCA values in dealing desired quality in accordance with applicable
with customers, partners and colleagues in regulations and the principles of Good
implementing corporate governance practices Corporate Governance. BCA procurement
and enhancing public trust. policies including, policies for goods and/
or logistics and building services as well as
Emergency Management Policy those related to information technology.
The Emergency Management Policy is regulated BCA’s updated procurement policy is outlined
in BCA’s Financial Conglomeration Integrated in the Board of Directors Decree No. 130/SK/
Business Continuity Policy based on the Board DIR/2017 dated October 10 2017 and No. 089/
of Directors Decree No. 180/SK/DIR/2017 dated SK/DIR/2018 dated June 6, 2018.
December 11, 2017. The policy contains the
implementation of business continuity to Policies on procurement of goods and/or
sustainable the business of BCA and members logistical services and buildings cover terms
of BCA financial conglomerations in the event and authority for procurement, centralized
of a disruption. The matters that are regulated and decentralized procurement systems, types
in this policy are related to business continuity of goods and/or services, procurement problem
plan policies, protocols from BCA to members handling, activities grouping, supporting
of the BCA’s Financial Conglomerations and documents, procurement processes/flow,
vice versa, as well as the order of recovery and vendor selection. Procurement policies
priority. related to information technology including
procurement, trial and end user computing
Information Technology Corporate Governance activities, procurement recommendations and
Policy approvals, procurement recommendation
In line with the rapid development and use of and approval authority, multi-principal/multi-
technology in providing banking services, BCA vendor/multi-brand implementation as well
has had information technology corporate as procurement guidelines. The principles of
governance guidelines covering policies related procurement policies can be downloaded on
to information technology risks, managing the BCA website. The BCA Governance Policy
information technology changes, managing section periodically reviews these policies.
information technology problems, controlling
information technology quality, managing In relation to procurement vendors, BCA
information technology capacity, managing staffs are subject to the code of ethics relating
information technology communication to vendors which can be seen on page 524
networks and physical data center security. of the Code of Ethics section in this Annual
BCA has also regularly measured the maturity Report. Throughout 2019, BCA implemented
of its information technology and reviewing procurement and/or the process of appointing
the information technology governance suppliers/contractors in accordance with BCA
guidelines accordingly. internal policies on procurement of goods/
services/information technology and other
stipulated provisions.
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Communication Policy Loan Policy for the Board of Directors and
BCA recognizes the importance of Board of Commissioners
communication policies to manage the Loan Policy for the Board of Directors and
communication between BCA and its Board of Commissioners can be seen on page
stakeholders. BCA has a Communication and 529 on funding for related parties in this
Information Disclosure Policy as outlined Annual Report.
in the Governance Guideline. The policy
includes regulations related to the Corporate 2. Compliance with Good Corporate Governance
Secretary, Reporting and Disclosure, Investor Principles
Relations, Media Communication, Information BCA has complied Indonesian GCG principles
Access, Disclosure Level Determination, as a reference for BCA, whose Good Corporate
Transparency Aspects of BCA conditions, and Governance implementation. BCA is committed
material information or facts disclosure. BCA to continuously improving the implementation
continuously to ensure the stakeholders and of Good Corporate Governance principles
society to easily communicate and access BCA in accordance with applicable laws and
information and data. The main points of the regulations as well as the development of best
communication policy can be downloaded on practices in corporate governance and the
the BCA website in the Corporate Governance ACGS.
Policy section.
a. Basic Principles of Good Corporate
Affiliated Transaction and Conflict of Interest Governance.
Policy Based on OJK Regulation No. 55/
The Affiliated Transaction and Conflicts of POJK.03/2016 concerning Implementation
Interest policy can be seen on page 499 on of Governance for Commercial Banks and
Affiliated Transactions section of this Annual OJK Circular Letter No. 13/SEOJK.03/2017
Report. concerning the Implementation of
Governance for Commercial Banks,
the implementation of corporate
governance in the banking industry
should always be based on five basic
principles: transparency, accountability,
responsibility, independence, and fairness.
Fulfillment of Good Corporate Governance Principles
Transparency s 7ITH REGARDS TO IMPLEMENT THE TRANSPARENCY PRINCIPLE "#! HAS PROVIDE 'OOD #ORPORATE
Governance Implementation Report in BCA and disclosed the information in a
timely,clear, and easily accessible manner to stakeholders through BCA’s website.
s "#! DISCLOSED IMPORTANT INFORMATION IN ACCORDANCE TO THE PROCEDURES SET FORTH IN THE
capital market regulations and/or other related laws.
s 4HE DISCLOSURE PRINCIPLES ADOPTED BY "#! DOES NOT REDUCE "#!S OBLIGATION TO FULlLL THE
provisions on bank and job confidentiality
Accountability s -EMBERS OF "OARD OF $IRECTORS AND "OARD OF #OMMISSIONERS HAVE CLEAR DUTIES AND
responsibilities
s 4HE "OARD OF $IRECTORS AND "OARD OF #OMMISSIONERS TAKE ACCOUNT FOR THEIR PERFORMANCE
at the Annual General Meeting of Shareholders of BCA.
s "#! ESTABLISHES CLEAR RESPONSIBILITIES FOR EACH UNIT OF THE ORGANIZATION THAT SHOULD BE
in line with BCA’s vision, mission, business objectives and strategies. This can be seen in
BCA’s Organizational Structure, where each unit of the organization acts in accordance
with its responsibilities.
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Responsibility s "#! COMPLIES PRUDENTIAL BANKING PRACTICES IN CONDUCTING ITS BUSINESS ACTIVITIES
s "#! ALSO ACTS S A GOOD CORPORATE CITIZEN
Independency s "#! ACTS PROFESSIONALLY FREE FROM PRESSUREINTERVENTION FROM ANY PARTIES AND IS OBJECTIVE
in every decision making.
s "#! AVOIDS CONmICT OF INTEREST ALL THE TIME
Fairness s "#! PAYS ATTENTION CONSISTENTLY TO THE INTERESTS OF ALL STAKEHOLDERS BASED ON THE PRINCIPLE
of equality and equal treatment.
s "#! PROVIDES OPPORTUNITIES TO ALL SHAREHOLDERS TO EXPRESS THEIR OPINIONS AT THE 'ENERAL
Meeting of Shareholders.
s !LL STAKEHOLDERS HAVE ACCESS TO INFORMATION IN ACCORDANCE TO THE PRINCIPLE OF TRANSPARENCY
b. Implementation of Corporate Governance Guidelines for Public Company (recommendation of OJK
Circular Letter No.32/SEOJK.04/2015).
BCA has fulfilled the Corporate Governance Guidelines for Public Companies, in accordance with Article
3 OJK Regulation No. 21/POJK.04/2015 concerning Implementation of Corporate Governance Guidelines
for Public Company. In this Annual Report, BCA discloses information regarding the implementation of
recommendations in the corporate governance guidelines, as outlined in OJK Circular Letter No.32/
SEOJK.04/2015 concerning Corporate Governance Guidelines for Public Company, as follows:
Fulfillment of OJK Circular Letter No.32/SEOJK.04/2015
No. Recommendations Descriptions
A PUBLIC COMPANY RELATIONSHIP WITH SHAREHOLDERS IN GUARANTEEING SHAREHOLDER RIGHTS
1st Fundamental
Increase the Value of General Meetings of Shareholders (GMS).
1.1 Public company has a method Implementation: Comply
of voting, both open and
closed voting systems to The voting procedures of the BCA General Meeting of Shareholders (GMS) shall
uphold independence, and be governed in the GMS Rules of Procedure (announce in the beginning of GMS
the interests of shareholders. event) and in the Articles of Association to foster the independence and interest
of shareholders. To ensure transparency, shareholders and the public can also
download the BCA’s GMS Rules of Procedure on the BCA’s website https://www.
bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Aksi-Korporasi in GMS Rules
of Procedure section.
In BCA’s Annual General Meeting of Shareholders held on April 11, 2019 and
Extraordinary General Meeting of Shareholders on June 20, 2019, voting
ordinance for every agenda of the GMS was conducted in an open manner in
accordance with the instruction and guidelines given by the GMS Chairman.
Shareholders or authorized proxy for a shareholder who disagrees or abstains on
the proposed agenda may raise a hand to submit ballot paper to the Securities
Administration Agency and to be verified by Notary in accordance with BCA GMS
Rules of Procedure.
More info on page 337-338
1.2 All members of the Board of Implementation: Comply
Directors and members of the
Board of Commissioners of The attendance of all members of the Board of Directors and the Board of
the Public Company must be Commissioners at:
present at the annual GMS. - the Annual General Meeting Of Shareholders on April 11, 2019 is as follows:
5 members of the Board of Commissioners = 100%
12 members of the Board of Directors = 100%
- Extraordinary General Meeting Of Shareholders on June 20, 2019 is as follows:
5 members of the Board of Commissioners = 100%
11 members of the Board of Directors = 100%
More info on page 327, 332
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1.3 Summary of the GMS minutes Implementation: Comply
is available on the public
company’s website for at BCA has published the summary of the minutes of the Annual GMS on April 11,
least one year 2019 and the extraordinary GMS on June 20, 2019 on the BCA website page and
is available for more than one year. The summary of the minutes of the Annual
GMS and the extraordinary GMS of 2019 as well as the summary of the GMS
minutes of the past 5 years can be downloaded on the BCA website:
https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Aksi-Korporasi
under the General Meeting of Shareholders.
More info on the page 330-33
2nd Fundamental
Improve the Quality of Communications for the Public Company with Its Shareholders and Investors
2.1 The Public Company has a Implementation: Comply
communication policy with
shareholders or investors. BCA has a communication policy with shareholders set out in the corporate
governance manual of part i chapter of the communication function. BCA has
an Investor Relations Working Unit that supports the communication flow
between BCA and its shareholders or other capital market communities. The
forms of communication include, organizing an analyst meeting to present
BCA’s performance, attending conferences and non-deal road shows, receiving
investors through visits and over conference calls, and submitting information
through the BCA’s website on investor relations. This information can also be
accessed by the public through the BCA’s website: https://www.bca.co.id/id/
Tentang-BCA/Hubungan-Investor.
More info on the page 313, 507
2.2 The Public Company Implementation: Comply
disclosed the Company’s
communication policy with BCA has disclosed its communication policy with its Shareholders in BCA’s website
shareholders or investors on that can be viewed at:
the Website https://www.bca.co.id/id/Tentang-BCA/Tata-Kelola-Perusahaan/Tata-kelola
under policies related to corporate governance under the communication policy
section.
More info on the page 313, 507
B FUNCTION AND ROLE OF THE BOARD OF COMMISSIONERS
3rd Fundamental
Strengthen the Membership and Composition of The Board of Commissioners.
3.1 The members of the Board of Implementation: Comply
Commissioners is determined
by considering the state of The number of members of BCA’s Board of Commissioners as of December 31,
the Public Company. 2019 is 5 (five), including 3 (three) members are Independent Commissioners. For
the determination of the number of members of the Board of Commissioners,
the BCA Remuneration and Nomination Committee is tasked to provide
recommendations to the Board of Commissioners regarding the composition of
the positions of members of the Board of Commissioners. Such recommendations
also given with consideration to the applicable rules/regulations as well as the
condition, capacity, objectives and the fulfillment of the BCA’s needs.
More info on page 361-362
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No. Recommendations Descriptions
3.2 The determination of the Implementation : Comply
composition of the
members of the Board of The Remuneration and Nomination Committee of BCA has duties, to prepare
Commissioners takes into and make recommendations to the Board of Commissioners regarding:
account the diversity - Systems and procedures for the election and/or replacement of members of
of skills, knowledge, and the Boards of Directors and Commissioners;
experience required. - The composition of the members of the Boards of Directors and Commissioners;
- Policies and criteria required in the nomination process;
- Performance evaluation policy for members of the Boards of Directors and
Commissioners;
The diversity policy in the composition of the Board of Commissioners is written
on the Work Manuals and Code of Conducts of the Board of Commissioners
Section 4 about Criteria and Composition of the Board of Commissioners.
The composition of the Board of Commissioners has reflected diversity of its
members, in terms of education (field of study) work experiences, age, and
expertise regardless of gender, ethnicity, religion and race. The diversity of each
member of the Board of Commissioners who are highly competence, supports
the improvement of BCA’s performance.
More info on page 405-406
4th Fundamental
Improve Implementation Quality of Duties and Responsibilities of the Board of Commissioners.
4.1 The Board of Commissioners Implementation : Comply
has a self-assessment policy
to assess the performance of BCA has its own assessment policy for the Board of Commissioners as stated
the Board of Commissioners in the Governance Guidelines. The Self-Assessment Policy of the Board of
Commissioners is the guidelines used as a form of accountability in assessing the
performance of the Board of Commissioners.
The evaluation on the Board of Commissioners’ self-assessment results
is conducted based on the recommendation from the Nomination and
Remuneration Committee.
More info on page 407
4.2 Self-assessment policy to Implementation : Comply
assess the performance of
the Board of Commissioners BCA has disclosed its own performance assessment policy of the Board of
is disclosed through the Commissioners through this Annual Report of BCA.
Annual Report of the Public
Company. More info on page 407
4.3 The Board of Commissioners Implementation: Comply
has a policy related to the
resignation of members of Policies relating to the resignation of members of the Board of Commissioners
the Board of Commissioners from its position should any member be involved in financial crime are contained
should any member be in the Code of Conduct of the Board of Commissioners of BCA. Article 14 of the
involved in financial crime. BCA’s Articles of Association.
4.4 The Board of Commissioners Implementation : Comply
or the Committee performing
the Nomination and The Remuneration and Nomination Committee of BCA is in charge of formulating
Remuneration functions the Board of Directors’ succession policy. Implementation of the succession policy
shall establish a succession of the Board of Directors includes the provision of recommendations regarding
policy in the Nomination of the system, procedures and candidates for the Board of Directors for the
the members of the Board of selection and/or replacement of members of the Board of Directors to the Board
Directors of Commissioners to be submitted to the GMS.
More info on page 435
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No. Recommendations Descriptions
C FUNCTION AND ROLES OF THE BOARD OF DIRECTORS
5th Fundamental
Strengthen the Membership and Composition of the Board of Directors.
5.1 Determination of the number Implementation : Comply
of members of the Board
of Directors is based on the The members of BCA’s Board of Directors as of December 31, 2019 is 11 (eleven).
consideration on the Public For the determination of the number of members of the Board of Directors, the
Company’s conditions and Remuneration and Nomination Committee is tasked to provide recommendations
the effectiveness of decision to the Board of Directors regarding the composition of the members of the
making. Board of Directors. BCA has also considered the condition, capacity, objectives,
and the fulfillment of BCA’s needs.
More info on page 376-378
5.2 The determination of the Implementation : Comply
composition of the members
of the Board of Directors The BCA Remuneration and Nomination Committee is responsible to prepare
takes into account the and provide recommendations to the Board of Commissioners regarding:
diversity of skills, knowledge, - Systems and procedures for the election and/or replacement of members of
and experience required. the Boards of Directors and Commissioners;
- The composition of the members of the Boards of Directors and Commissioners;
- The policies and criteria required in the nomination process;
- Performance evaluation policy for members of the Boards of Directors and
Commissioners;
By performing the responsibilities duties of Remuneration and Nomination
Committe, the determination of members composition of the Board of
Commissioners has taken regarding to diversity of skills, knowledge, and
experience required.
More info on page 406
5.3 Members of the Board Implementation : Comply
of Directors overseeing
the accounting or finance Members of the Board of Directors overseeing the accounting and finance
division have expertise and/or division having experience in finance and accounting.
knowledge in accounting.
More info on page 74 (Vera Eve Lim profile).
th
6 Fundamental
Improve Implementation Quality of Duties and Responsibilities of Board of Directors.
6.1 The Board of Directors has Implementation : Comply
a self-assessment policy to
assess the performance of the BCA has its own self-assessment policy for the Board of Directors as stated in the
Board of Directors. Corporate Governance Guidelines. The self-assessment is conducted in referring
to the Bank’s Business Plans approved by the Board of Commissioners.
The Board of Directors’ self-assessment results (included President Director)
was evaluated by the Board of Commissioners in a meeting based on the
recommendations from Remuneration and Nomination Committee.
More info on page 407-409
6.2 The self assessment policy Implementation : Comply
to assess the performance
of the Board of Directors is The performance assessment of the Board of Directors has been disclosed in this
disclosed through the Public BCA’s Annual Report.
Company’s annual report.
More info on page 407-409
6.3 The Board of Directors Implementation : Comply
has a policy related to the
resignation of members of The resignation policies of members of the Board of Directors being involved in
the Board of Directors should financial crime are contained in the Code of Conduct of the Board of Directors
any member be involved in a of BCA and Article 11 of BCA Articles of Association has covered the resignation
financial crime. regulations of members of the Board of Directors.
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No. Recommendations Descriptions
D PARTICIPATION OF STAKEHOLDERS
7th Fundamental
Improve Corporate Governance through Stakeholder Participation.
7.1 The Public Company has Implementation : Comply
a policy to prevent the
occurrence of insider trading. BCA Insider Trading Policy has been included in the Corporate Governance
Guidelines of BCA. The policy principals of insider trading can be found at the
BCA website in the governance-related policies section:
https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Tata-kelola.
More info on page 311
7.2 The Public Company has Implementation : Comply
anticorruption and anti-fraud
policies. The Company has anti-corruption policies contained in the BCA Code of Ethics
and anti-fraud policies set forth in the Anti-Fraud Strategy Stipulation.
More info on page 492, 498
7.3 The Public Company has a Implementation : Comply
policy on the selection and
upgrading of suppliers or BCA has policies of goods and services procurement related to logistics, buildings
vendors. and information technology as outlined in the Decision Letters of the Board of
Directors No. 130/SK/DIR/2017 dated October 10, 2017 and No. 089/SK/DIR/2018
dated June 6, 2018. The policy regulates the value of procurement transactions
and the selection method used (tender, direct selection/price comparison, direct
appointment, repeat order, payment system, etc.) so that the procurement
process in BCA is fair and transparent.
More info on page 312 & 524
7.4 The Public Company has a Implementation : Comply
policy for the fulfillment of
creditor rights. BCA guaranteeing the fulfilling of creditor’s rights with references to the
relevant provisions that regulate as follows:
- Rights to obtain clear information.
- Rights to deliver suggestion/inputs, complains/reports and obtain the solutions.
- Rights to claim creditor rights in accordance with the signed agreement.
- Rights to access Audited Financial Report and Annual Report of the Company.
- Rights to obtain information and ease of access for announcements,
invitations, and results of Annual General Meeting of Shareholders as stated
in the established procedures in relation to the GMS.
BCA has fulfilled creditors’ rights.
7.5 The Public Company has a Implementation : Comply
whistleblowing system policy.
BCA has established a Whistleblowing System Policy is listed in the decree
Letter of the Board of Directors No.146/SK/DIR/2017 dated November 1, 2017
on the Implementation of Whistleblowing System in BCA. The principals of this
whistleblowing system has been disclosed at the BCA website in the governance-
related policies: https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/
Tata-kelola
More info on page 495
7.6 The Public Company has a Implementation : Comply
policy of providing long-term
incentives to Directors and The incentive policy for the Board of Directors has been disclosed in this Annual
employees. Report. The incentive policy for the employees has been disclosed in the Joint
Employment Agreement and Decision Letter 005/SK/DIR/2019 on Principal
Policies of Performance Assessment, Position/Rank and Payroll.
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No. Recommendations Descriptions
E INFORMATION DISCLOSURE
8th Fundamental
Improve the Implementation of Information Disclosure.
8.1 The Public Company uses Implementation : Comply
information technology more
widely aside from Website The use of information technology as a medium of the BCA Information
as a medium of information Disclosure:
disclosure. a. External, such as:
s 7EBSITE WWWBCACOID
s (ALO"#!
s 4WITTER ACCOUNTS 8PRESI"#! 'OOD,IFE "IZ'UIDE"#! (ALO"#!
BankBCA, KartuKreditBCA),
s &ACEBOOK ACCOUNTS 8PRESI"#! 'OOD,IFE"#! "IZ'UIDE"#! "ANK"#!
KartukreditBCA),
s 9OU4UBE ACCOUNT WWWYOUTUBECOMSOLUSIBCA
s 3LIDESHARE WWWSLIDESHARENET3OLUSI"#!
s ,INKEDLN 04 "ANK #ENTRAL !SIA 4BK
s )NSTAGRAM GOODLIFE"#!
s ,INE "ANK"#!
s 7HATSAPP
b. Internal
Internal Information Disclosure medium through MyBCA Intranet portal,
Employee’s Facebook Group (BCA Semua Beres), Info BCA Magazine, and
Plasma TV.
More info on page 507-522.
8.2 The Public Company’s Annual Implementation : Comply
Report discloses the ultimate
beneficiary of Company’s BCA Annual Report has disclosed:
shareholding ownership of a. List of BCA Shareholders with share ownership of 5% or more,
at least 5% (five percent), in b. List of ultimate beneficiary in the Company’s shareholding ownership, also
addition to the disclosure of c. BCA principal shareholders/controller.
the final beneficial owner in
the share ownership of Public More info on page 355-356.
Company through the major
shareholder or controller.
BCA has conducted all of recommendations the reference in the ASEAN CG Scorecard
in the implementation of Corporate Assessment. The ASEAN CG Scorecard to
Governance Guidelines for Public measure and improve the effectiveness
Companies. of the implementation of Corporate
Governance principles. Indonesia together
c. OECD Corporate Governance Principles. with Malaysia, the Philippines, Singapore,
BCA has implemented the principles of Thailand and Vietnam agreed to adopt the
Corporate Governance written by the criteria from the Corporate Governance
Organization for Economic Co-operation principles published by the OECD as a
and Development (OECD). OECD’s reference for the ASEAN CG Scorecard.
principles of Corporate Governance are
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
BCA implements to the principles of corporate governance from OECD as the following:
No Principles Remarks
1. Corporate Governance BCA has a framework for BCA’s governance that is reflected in its action plan and
Framework. its organizational structure.
2. Rights of Shareholder. In accordance with the Fulfillment of Recommendation Table OJK Circular Letter
No.32/SEOJK.04/2015 - Principle A (Relationship Between Public Company with its
Shareholders in Guaranteeing Rights of Shareholder).
3. Equal Treatment of Under the principle of fairness and equal treatment, BCA provides an opportunity
Shareholders. for all shareholders to convey opinions and have access to information in
accordance with the principle of transparency.
4. The Role of Stakeholders in In accordance with Fulfillment of Recommendation Table OJK Circular Letter
Corporate Governance. No.32/SEOJK.04/2015 - Principle D (Stakeholder Participation).
5. Disclosure and Transparency. In accordance with the Fulfillment of Recommendation Table OJK Circular Letter
No.32/SEOJK.04/2015 – Principle E (Information Disclosure).
6. Roles and Responsibilities In accordance with the Fulfillment of Recommendation Table OK Circular
of Board of Commissioners Letter No. 32/SEOJK.04/2015 – Principle B (Function and Roles of Board of
and Board of Directors. Commissioners) and Principle C (Functions and Roles of Board of Directors).
3 Internalization 2) State whether the person concerned
One of the effective effort to encourage serves as commissioner/director/
the implementation of Good Corporate employee/partner/ally/management
Governance at BCA is through all levels BCA in company paragraph 1) above and/
employees internalization from the the entry or other companies;
level up to the higher level. Internalization 3) State whether during the reporting
activities to support of the implementation of period, the company referred to in
BCA’s Good Corporate Governance include: paragraph 1) or 2) above receives
a. Statement of commitment to the credit or becomes a partner of the
implementation of Good Corporate Bank;
Governance. 4) State the presence or absence of
As a concrete manifestation of BCA’s transaction involvement in the process
commitment to continue to improve of granting credit/transactions as
the implementation of Good Corporate partners;
Governance principles pursuant to 5) State the presence or absence
regulations, hence, BCA requires its of family relations with owners,
Echelon 1 to Echelon 5 employees to Commissioners/Directors and/or Bank
annually sign the annual disclosure. partners;
6) State whether the person concerned
The written statement in this Annual is the management/member of
Disclosure is as follows: another organization that allows a
1) State the presence or absence of conflict of interest;
ownership of shares/investment of 7) State whether or not the person
10% or more in a company in the concerned has received gifts/rewards/
name of self or wife/husband and/or gifts from parties related to the Bank
children, individually or jointly; that can have a negative impact and
affect the Bank’s decision and/or the
price exceeds the reasonable limit;
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8) Other statements in regards to reward programs as an effort to encourage
conflict of interest not mentioned in the application and evaluation for BCA’s
the above paragraphs. Values to be stronger and to increase
team and customer engagement. Cultural
b. BCA Values Socialization. internalization programs are expected to
BCA values or corporate values that are encourage the behavior of BCA personnel
embedded in each employee at BCA to support the implementation of values,
include: good corporate governance, innovative,
1) Customer Focus risk-conscious and productive.
2) Integrity
3) Teamwork c. Socialization on Good Corporate
4) Continuous Pursuit of Excellence Governance.
(striving for the best). Socialization on Good Corporate
Governance is conducted through:
The principles of Good Corporate 1) Socialization on Principles and
Governance are included in every BCA Implementation of Good Corporate
value system, specifically in the value Governance.
of Integrity and the value to Continue This socialization was carried out
Pursuit of Excellence. through the Corporate Governance
bulletin (GCG series bulletin) on
Socialization which is one of the effort to MyBCA internal portal that can be
internalize BCA’s culture and values are accessed by every BCA employee
done through sharing sessions, face-to- nationwide. The GCG series presents
face meetings with leaders and colleagues the latest understanding, practices
in one division (community of practice/ and information on corporate
COP), creating comic on values, intranets, governance. In addition to the
and showing videos on values on the bulletin, the the Socialization of
internal portal which is downloadable by Good Corporate Governance
employees. campaign is also carried out through
COP and sharing sessions carrying
themes related to corporate
governance, as well as themes on the
importance of information disclosure,
implementation of corporate
governance in banking, and so on.
2) Socialization on Anti-Fraud
Awareness (AFA).
Values promotion via video on the internal
BCA has guidelines for implementing
portal
anti-fraud strategies that
contain application of strategies,
In addition to socialization, efforts to implementation of risk management,
internalize BCA’s values are also conducted mandatary reports to the regulators,
through SMART SOLUTION program. This and sanctions provided. BCA also
program aims to achieve BCA’s excellent actively promotes fraud awareness
service to meet customer needs and and anti-gratification through the
provide financial solutions. The SMART distribution of anti-fraud themed
SOLUTION program is supported with comics, anti-fraud statements, slides
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on the implementation of anti-fraud 3) Socialization on Affiliated
and whistleblowing systems that can Transactions and Conflicts of Interest.
be downloaded by employees on BCA has an active role in implementing
MyBCA internal portal, AFA videos, disclosure of information or reports
posters, COP implementation of anti- on affiliated transactions and conflicts
fraud strategies, e-learning that must of interest in its effort to apply
be followed by all employees, and so the principles of Good Corporate
on. Governance. Policies related to
affiliated transaction reports and
BCA implements the AFA program conflicts of interest are stipulated in
so every employee be able play an Board of Directors’ Decree No. 214/
active role in implementing an anti- SK/DIR/2019 dated December 27, 2019
fraud culture in an effort to apply concerning Affiliated Transactions
the principles of accountability and and Transactions containing Conflict
independence in Good Corporate of Interest and Circular Letter No.
Governance, to create conditions for 319/SE/POL/2019 dated December
a conducive work environment free 27, 2019 on the Implementation
from fraud. Manual for Affiliated Transactions
and Transactions Containing Conflicts
of Interest. The policy is available
for download on MyBCA intranet
portal which is accessible for all
BCA employees nationwide. The
dissemination is held through sharing
sessions, GCG series bulletins, and
internal memorandums.
AFA comic Good Corporate Governance
implementation is an important
factor in maintaining the trust of both
BCA shareholders and stakeholders.
Establishing Good Corporate Governance
is an increasingly significant necessity in
order to maintain business continuity amid
increasing business risks and challenges
in the banking industry. Through the
application of the principles of Good
Corporate Governance, BCA is expected
to be able to maintain a healthy and
Anti-fraud e-learning campaign
sustainable business.
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C. ASSESSMENT OF GOOD CORPORATE b. Implementation of Duties and
GOVERNANCE IMPLEMENTATION Responsibilities of Board of Commissioners;
Key performance indicators of good corporate c. Completeness and Implementation of
governance implementation are assessed both Committee’s Duties;
internally and externally. d. Conflicts of Interest Handling/
Management;
1. Internal assessment e. Implementation of Compliance Function;
BCA performs an internal assessment of Good f. Implementation of Internal Audit
Corporate Governance Implementation on Function;
a semester basis by using a self-assessment g. Implementation of External Audit
working paper method referring to OJK Function
Circular Letter No.13/SEOJK.03/2017 h. Implementation of Risk Management
concerning Implementation of Governance for Including Internal Control System;
Commercial Banks. i. Provision of Funds to Related Parties and
Large Exposure/Funds;
BCA’s Secretariat and Corporate j. Transparency of the Bank’s Financial
Communications Division collects data and and Non-Financial Conditions, the Bank
relevant information to the self-assessment Reporting Governance and Internal
related to the adequacy and effectiveness Reporting;
of the Implementation of Good Corporate k. Bank’s Strategic Plan.
Governance. The assessment covers all aspects
of governance by observing the principles of The parties conducting the assessment
significancy and materiality. After the data is Self-assessment covers 11 factors performed
collected, positive and negative factors from by related functions or units, including
each aspect of governance can be concluded, the Board of Commissioners, the Board of
namely governance structure, governance Directors, Committees, Internal Audit Division,
processes and governance outcomes. Compliance Work Unit, Risk Management
Work Unit, Corporate Secretary, and other
BCA also ensures that the Good Corporate related units.
Governance assessment process takes into
account the significancy of the problems. Self-Assessment Results
Throughout 2019, BCA has conducted a self- BCA conducts self-assessment towards its Good
assessment each semester with satisfactory Corporate Governance implementation with
results. the following objectives:
a. Governance structure
Assessment Criteria Assessing the adequacy of the structure
The criteria used in the assessment are as and infrastructure of the Bank’s corporate
stipulated in OJK Circular Letter No. 13/ governance in order to the process
SEOJK.03/2017 concerning Implementation of implementing Good Corporate
of Governance for Commercial Banks. In Governance principles generates outcomes
implementing the five basic principles of Good that are in line with the expectations of
Corporate Governance, BCA must conduct self- the Bank’s Stakeholders.
assessments regularly that include at least 11 b. Governance process
factors to be evaluated for the implementation Assessing the effectiveness in
of Good Corporate Governance, namely: implementing Good Corporate
a. Implementation of the Duties and Governance principles supported by
Responsibilities of the Board of Directors; the adequacy of the structure and
infrastructure of the bank’s corporate
governance.
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c. Governance outcome BCA applies those 3 (three) aspects of
Assessing the quality of outcome that governance as the basis for evaluating
meets the expectations of the Bank’s the implementation of Good Corporate
Stakeholders, as the results of the Governance. The result of Self-Assessment
implementation of Good Corporate implementation of Good Corporate
Governance principles and supported Governance both in 1st and 2nd semester in
by the adequacy of the structure and 2019 was ranked 2, with the following details:
infrastructure of the bank’s corporate
governance.
Self-assessment Result of the Application of Good Corporate Governance
Ranking Definition for Ranking
Individual 2 BCA management has applied good governance in general. The results are reflected
in the adequate over the principles of governance. If flaws exist in the application
of the principles of governance, generally they are insignificant and easily handled
by normal measure within BCA management
2. External Assessments b. Assessment aspects
BCA also conducted an external assessment The assessment instrument for IICD CG
of its implementation of Good Corporate Award is the Corporate Governance (CG)
Governance in 2019, provided by the Scorecard, which is also used by other
Indonesian Institute for Corporate Directorship Institute of Directors in several ASEAN
(IICD) and the ASEAN CG Scorecard assessor. countries. Indonesia together with five
other ACMF member countries (Malaysia,
The Indonesian Institute for Corporate the Philippines, Singapore, Thailand
Directorship (IICD) Corporate Governance and Vietnam) agreed to adopt criteria
Award which are a more detailed description
The IICD has held this award since 2009. The of the corporate governance principles
assessment for this award is based upon the published by the OECD which is set as a
disclosure of corporate governance practices benchmark for ASEAN CG scorecard. The
by the listed companies in Indonesia. ASEAN CG scorecard assessment is based
upon documentation which is accessible
a. The party conducting the assessment to the public. The evaluation aspects
The party conducting the assessment include, among others:
is IICD, an independent institution
that consistently conducts activities of Point Aspect
research, training, and consultation A Rights of shareholders
towards corporate governance practices B Fair treatment of shareholders
in Indonesia. IICD conducts evaluation C Roles of stakeholders
and ranking towards 100 listed companies D Disclosure and transparency
with the largest market capitalization in E Responsibility of Board of Directors
the Indonesia Stock Exchange. and Board of Commissioners
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c. Assessment result 6) BCA already has its Risk Monitoring
In 2019, BCA won the Best Financial Committee in its corporate governance
Sector award at the 2019 IICD Corporate structure that assists the Board of
Governance Conference & Award 2019. Commissioners in monitoring BCA’s risks.
ASEAN Corporate Governance (CG) Scorecard BCA has also conducted a self-assessment
BCA is committed to implement the ASEAN CG based on the ASEAN CG Scorecard indicators to
Scorecard indicator in order to actualize good facilitate assessors in assessing and measuring
corporate governance practices. the implementation of the indicators. ASEAN
a. The party conducting the assessment CG Scorecard self-assessment can be accessed
The parties conducting the assessment are through the BCA website at https://www.bca.
independent assessors and OJK with RSM co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/
Consulting Indonesia. ACGS
b. Assessment aspect d. BCA has carried out good corporate governance
The use of ASEAN CG Scorecard assessment practices in accordance with applicable
is based upon documentation which is regulations. Regarding matters of concern to
accessible to the public, with aspects of the ACGS, it is still being discussed internally within
assessment covering the rights of shareholders, BCA.
fair treatment of shareholders, the role of
stakeholders, disclosure and transparency,
as well as the responsibilities of the Board of GENERAL MEETINGS OF SHAREHOLDERS
Directors and the Board of Commissioners.
c. Assessment result The General Meeting of Shareholders (GMS) is the
ACGS has not yet stated the assesment result highest organ in BCA’s Corporate Governance structure,
until December 31, 2019. BCA has implemented functions as a tool for shareholders to exercise their
each indicator and is able to exceed the rights and obligations. The GMS has its own authority,
minimum implementation standards, which which is not granted to the Board of Directors or the
are explained further as follows: Board of Commissioners, within the limits specified in
1) Notice of Annual GMS is released at least the laws and/or BCA’s Articles of Association.
28 days prior to the date of the Annual
GMS. The legal basis for organizing the BCA refers to:
2) Resolution of GMS is published one 1. Law No. 40 of 2007 Concerning Limited Liability
working day after the date of the GMS. Companies
3) Has applied the framework for 2. OJK Regulation No. 32/POJK.04/2014 dated
Sustainability Report. December 8, 2004 Concerning Plans and Organizing
4) BCA may use third-party services to of a Public Company Shareholders General Meeting
search for candidates for the Board 3. OJK Regulation No. 10/POJK.04/2017 dated 14 March
of Commissioners and/or the Board of 2017 Concerning Amendments to OJK Regulation
Directors. No. 32/POJK.04/2014 on Plans and Organizing of a
5) Policies and comprehensiveness on Public Company Shareholders General Meeting
corporate governance process about IT 4. BCA’s Articles of Association.
issues including, management disruption,
cyber security, and disaster recovery.
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1. Shareholders’ Rights j. At all times, appoint a member of the Board
The rights of the shareholders, among others: of Commissioners or more to increase the
a. Attend at the GMS. number of existing members of the Board of
b. Propose GMS agenda in accordance to Commissioners or to replace members of the
prevailing regulations. Board of Commissioners who are dismissed
c. Obtain the release of the GMS material no based on vacant opportunity in the Board of
later than 28 days prior to the GMS. Commissioners.
d. Receive the opportunity to raise questions k. Receive dividend payments in accordance with
and/or express opinions on each GMS agenda. applicable procedures and conditions.
e. Receive the equal treatment from BCA. l. Execute other rights and/or authorities
f. Voting at the GMS. pursuant to the BCA’s Articles of Association
g. Nominates candidates the Board of and applicable laws and regulations, including
Commissioners and/or the Board of Directors. the right to participate in case of authorizing
h. Propose the appointment of a member of the the increase of capital, amend BCA’s Articles of
Board of Directors or more and increase the Association, and transfer all or part of assets
number of members of the Board of Directors that cause the sale of the company.
to replace members of the Board are dismissed
or vacant opportunity in the position of Board The rights, authorities and responsibilities of
of Directors of BCA. the Shareholders are regulated in BCA’s Articles
i. Dismiss members of the Board of Commissioners of Association that can be accessed directly to
at any time before ending term. the website www.bca.co.id, BCA reminds to all
shareholders and/or their attorneys to attend the
General Meeting of Shareholders held by BCA.
2. 2019 Annual GMS and Extraordinary GMS
In 2019, BCA held 1 (one) Annual GMS (AGMS)
on April 11, 2019 and 1 (one) Extraordinary GMS
(EGMS) on June 20, 2019. The agenda (along with
an explanation of each agenda) discussed at the
AGMS and EGMS is available at the Secretariat and
Corporate Communication Division - BCA head
office, and has been uploaded on the BCA website
on the same date as the notice for GMS was released
with the following details:
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1. AGMS:
Day/Date : Thursday, April 11, 2019.
Time : 09.38 - 12.45 WIB.
Venue : Grand Ballroom, Hotel Indonesia Kempinski – 11th
Floor, Jl. M.H. Thamrin No. 1
Jakarta 10310
Agenda of the : 1. Approval of the annual report including the Company’s financial statements and report on the
meeting: supervisory duties of the Company’s Board of Commissioners for the financial year ended December
31, 2018 and grant of release and discharge of liability (acquit et de charge) to all members of the
Board of Directors and the Board of Commissioners of the Company for all actions taken in relation to
the management and supervision of the Company during the financial year ended December 31, 2018.
2. Appropriation of the Company’s net profit for the financial year ended December 31, 2018.
3. Change in the composition of the Company’s Board of Directors.
4. Determination of the amount of salary or honorarium and benefits for the financial year 2019 as
well as bonus payment (tantiem) for the financial year 2018 payable to the members of the Board of
Directors and the Board of Commissioners of the Company.
5. Appointment of the registered public accounting firm (including the registered public accountant
practicing through such registered public accounting firm) to audit the Company’s books and accounts
for the financial year ended December 31, 2019.
6. Grant of powers and authority to the Board of Directors to pay out interim dividends for the financial
year ended December 31, 2019.
7. Approval of the revised recovery plan of the Company.
8. Report on the realization of the use of the proceeds from the Continuous Public Offering of Continuous
Subordinated Bonds I of Bank Central Asia Phase I Year 2018.
All agendas and explanation of the agenda have been published and are available on the BCA website in
accordance with the provisions relating to GMS of a public company.
Quorum : The number of shares present and/or their proxies representing in the 2019 AGMS was 21,366,812,221
shares or equal to 86.66% of the total outstanding shares of the Company with valid voting rights,
namely 24,655,010,000 shares, and therefore the quorum as required by Article 23 paragraph 1 letter a of
the Company’s articles of association has been met.
Attendance of :
Djohan Emir Setijoso President Commissioner
the Board of
Commissioners Tonny Kusnadi Commissioner
Cyrillus Harinowo Independent Commissioner
Raden Pardede Independent Commissioner
Sumantri Slamet Independent Commissioner
All members of the Board of Commissioners are present at the AGMS (100%).
Attendance of :
Jahja Setiaatmadja President Director
the Board of
Directors Eugene Keith Galbraith Deputy President Director
Armand Wahyudi Hartono Deputy President Director
Suwignyo Budiman Director
Tan Ho Hien/Subur atau disebut juga Director (concurrently as Director of Compliance)
Subur Tan
Henry Koenaifi Director
Erwan Yuris Ang Independent Director
Rudy Susanto Director
Lianawaty Suwono Director
Santoso Director
Inawaty Handojo Director
Vera Eve Lim Director
All members of the Board of Directors are present at the AGMS (100%).
Attendance :
Cyrillus Harinowo Chairman
of the Audit
Committee Ilham Ikhsan Member
Tjen Lestari Member
All members of the audit committee are present at the AGMS (100%).
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Attendance :
Sumantri Slamet Chairman
of the Risk
Oversight Endang Swasthika Wibowo Member
Committee
Lianny Somyadewi D. Member
All members of the risk oversight committee are present at the AGMS (100%).
Attendance :
Raden Pardede Chairman
of the
Remuneration Djohan Emir Setijoso Member
and Nomination
Committee Hendra Tanumihardja Member
All members of the remuneration and nomination committee are present at the AGMS (100%).
Attendance of :
Sumantri Slamet Chairman
the Integrated
Governance Wimpie Rianto Member
Committee
Adhi Gunawan Budirahardjo Member
Gustiono Kustianto Member
Pudjianto Member
Suyanto Sutjiadi Member
Sutedjo Prihatono Member
Rudy Harjono Member
Mendari Handaya Member
Hendra Iskandar Lubis Member
All members of the integrated governance committee are present at the AGMS (100%).
Independent : % Notary: Fathiah Helmi, S.H.
Parties % Securities Administration Bureau: PT Raya Saham Registra.
2. EGMS:
Day/Date : Thursday, June 20, 2019.
Time : 10.42 - 11.12 WIB.
Venue : Grand Ballroom, Hotel Indonesia Kempinski –11th floor,
Jalan M.H. Thamrin No. 1,
Jakarta 10310.
Agenda : Approval of the acquisition plan in relation to the Company’s plan to acquire the shares of PT Bank Royal
Indonesia.
All agendas and explanation of the agenda have been published and are available on the BCA website in
accordance with the provisions relating to GMS of a public company.
Quorum : The number of shares present and/or represented in the 2019 EGMS is 21,704,803,950 shares or equal to
88.034% of the total outstanding shares of the Company with valid voting rights, namely 24,655,010,000
shares, and therefore the quorum as required by Article 23 paragraph 1 letter a of BCA ‘s Articles of As-
sociation has been met.
Attendance :
Ir. Djohan Emir Setijoso President Commissioner
Board of
Commissioners: Tonny Kusnadi Commissioner
Cyrillus Harinowo Independent Commissioner
Dr. Ir. Raden Pardede Independent Commissioner
Sumantri Slamet Independent Commissioner
All members of the Board of Commissioners are present at the AGMS (100%).
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Attendance of :
Jahja Setiaatmadja President Director
the Board of
Directors Armand Wahyudi Hartono Deputy President Director
Suwignyo Budiman Director
Tan Ho Hien/Subur atau disebut juga Director (concurrently as Director of Compliance)
Subur Tan
Henry Koenaifi Director
Erwan Yuris Ang Independent Director
Rudy Susanto Director
Lianawaty Suwono Director
Santoso Director
Inawaty Handojo Director
Vera Eve Lim Director
All members of the Board of Directors are present at the AGMS (100%).
Attendance :
Cyrillus Harinowo Chairman
of the Audit
Committee Ilham Ikhsan Member
Tjen Lestari Member
All members of the audit committee are present at the AGMS (100%).
Attendance :
Sumantri Slamet Chairman
of the Risk
Oversight Endang Swasthika Wibowo Member
Committee
Lianny Somyadewi D. Member
All members of the risk oversight committee are present at the AGMS (100%).
Attendance :
Raden Pardede Chairman
of the
Remuneration Djohan Emir Setijoso Member
and Nomination
Committee Hendra Tanumihardja Member
All members of the remuneration and nomination committee are present at the AGMS (100%).
Attendance of :
Sumantri Slamet Chairman
the Integrated
Governance Wimpie Rianto Member
Committee
Sulistiyowati Member
Gustiono Kustianto Member
Pudjianto Member
Suyanto Sutjiadi Member
Sutedjo Prihatono Member
Rudy Harjono Member
Mendari Handaya Member
Hendra Iskandar Lubis Member
All members of the integrated governance committee are present at the AGMS (100%).
Independent : s .OTARY #HRISTINA $WI 5TAMI 3( -(UM -+N
Parties s 3ECURITIES !DMINISTRATION "UREAU 04 2AYA 3AHAM 2EGISTRA
2019 Annual Report | PT Bank Central Asia Tbk 329
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
3. Procedures for Organizing AGMS and EGMS as the date of the AGMS and EGMS. BCA also
The AGMS and EGMS at BCA are organized due to submitted an explanation for each agenda
the following procedures: that requires shareholder approval
a. On five working days prior to announcement f. At the time of the AGMS invitation, BCA also
of the AGMS and EGMS, BCA has made a clear submitted the hardcopy and softcopy 2018
and detailed notification of the AGMS and BCA Annual Report to the OJK. In addition,
EGMS agenda to the OJK. the 2018 BCA Annual Report is also available
b. In accordance with Article 21 Paragraph 2 of on the BCA website that can be accessed by
BCA’s Articles of Association, BCA released an Stakeholders.
announcement no letter than 14 days prior g. Shareholders or shareholders’ representatives
the invitation of AGMS and in accordance who were entitled to attend the AGMS are
with Article 127 of Law No. 40 of 2007, BCA shareholders whose names are registered in
announced the EGMS regarding the acquisition the Register of Shareholders on March 12, 2019
of PT. Bank Royal Indonesia no later than 30 at 16:15 WIB. Shareholders or shareholders’
days before the invitation to the EGMS. This representatives who were entitled to attend
time period does not take into account the the EGMS are shareholders whose names are
announcement date and the date of the GMS recorded in the register of holders of shares on
invitation. May 28, 2019 at 16:15 WIB.
c. Individuals or more shareholders who jointly h. Each share issued has 1 right to vote, the
represent 1/20 or more of the total number of provisions in the BCA Articles of Association
BCA shares and have valid voting rights issued do not divide more than one classification of
by BCA can propose agendas for the GMS. shares that can affect different voting rights.
Proposals from shareholders will be included i. BCA announces the summary of minutes of
in the agenda of the GMS if they meet the AGMS and EGMS on the BCA website is one
provisions of Article 21 paragraph 6 of the working day after the AGMS and EGMS were
BCA Articles of Association and Article 12 of held.
the OJK Regulation No. 32/POJK.04/2014 dated j. BCA has submitted the summary of minutes of
8 December 2014 on Planning And Holding the AGMS and EGMS to the OJK and IDX. BCA
General Meetings Of Shareholders Of Public has also announced the summary of minutes of
Limited Companies. the AGMS and EGMS to the public through the
d. To facilitate shareholders, proxy forms can BCA website. Submission and announcement
be downloaded on the BCA website in the of the summary of minutes of the AGMS and
corporate governance section or can be EGMS are conducted within two working days
obtained from PT Raya Saham Registra, BCA’s after the AGMS and EGMS are held.
Securities Administration Bureau, on working k. BCA submitted minutes of the AGMS and
days and hours at Plaza Sentral Building 2nd EGMS to OJK and IDX no later than 30 days
Floor Jalan Jendral Sudirman Kavling 47 - 48 , after the AGMS and EGMS are held. A copy of
Jakarta, 12930 the minutes can be accessed and downloaded
e. The time period of AGMS invitations is 28 days by the public on the BCA website under the
and for the EGMS is 21 days prior to the day of corporate governance section.
AGMS and EGMS. The invitations do not take
into account the date of the invitation as well
330 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
AGMS Procedures
Announcement Preliminary Notice of GMS Implementation Summary
Notice
Notification of GMS Meeting Ads Notice ads for General Meeting Announcement
GMS Meeting to in newspapers, GMS meeting of Shareholders of of GMS Meeting
OJK BCA’s website, in newspapers, the Company Summary in :
OJK and IDX’s BCA’s website, - BCA’s website (1
websiteI OJK and IDX’s working days)
website - Newspapers
and OJK and
IDX’s website (2
working days)
`
5 days calendar 14 days 28 days 1-2 days
calendar calendar exchange
EGMS Procedures
Announcement Preliminary Notice of GMS Implementation Summary
Notice
Notification of GMS Meeting Ads Notice ads for General Meeting Announcement
GMS Meeting to in newspapers, GMS meeting of Shareholders of of GMS Meeting
OJK. BCA’s website, in newspapers, the Company Summary in :
OJK and IDX’s BCA’s website, - BCA’s website (1
websiteI OJK and IDX’s working days)
website. - Newspapers
and OJK and
IDX’s website (2
working days)
5 days calendar 30 days 21 days 1-2 days
calendar calendar exchange
Remark AGMS EGMS
Notice of OJK Notified to OJK through sending letter Notified to OJK through sending letter
No. 102/DIR/2019 dated February 19 , No. 213/DIR/2019 dated April 18, 2019
2019.
Announcement s 0UBLISHED THE !'-3 !NNOUNCEMENT s 0UBLISHED THE %'-3 !NNOUNCEMENT
through daily newspapers, Bisnis through daily newspapers, Bisnis
Indonesia and The Jakarta Post, and Indonesia and The Jakarta Post, and
BCA’s website on February 26, 2019. BCA’s website on April 26, 2019.
s 0ROOF OF THE !'-3 !NNOUNCEMENT s %VIDENCE OF THE !'-3 !NNOUNCEMENT
submitted by sending hardcopy and submitted by sending hardcopy and
through e-reporting to OJK and IDX through e-reporting to OJK and IDX
on May 13, 2019. on May 13, 2019.
s %VIDENCE OF !CQUISITION 0LAN 3UMMARY
published through daily newspapers,
Bisnis Indonesia and The Jakarta Post,
and BCA’s website on April 26 ,2019
2019 Annual Report | PT Bank Central Asia Tbk 331
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Remark AGMS EGMS
Notice of GMS s 0UBLISHED THROUGH DAILY NEWSPAPERS s 0UBLISHED THROUGH DAILY NEWSPAPERS
Bisnis Indonesia and The Jakarta Post, Bisnis Indonesia and The Jakarta Post,
and BCA’s website on March 13, 2019. and BCA’s website on May 29, 2019.
s 0ROOF OF THE )NVITATION SUBMITTED s %VIDENCE OF THE )NVITATION SUBMITTED
by handing hardcopy and through by sending hardcopy and through
e-reporting to OJK and IDX on March e-reporting to OJK and IDX on May
13, 2019 29, 2019.
Date April 11, 2019 June 20, 2019
Time 09.38 s.d. 12.45 Western Indonesia Time 10.42 s.d. 11.12 Western Indonesia Time
Place Grand Ballroom, Hotel Indonesia Grand Ballroom, Hotel Indonesia
Kempinski – Lantai 11 Kempinski – Lantai 11
Commence- Jalan M.H. Thamrin No.1 Jalan M.H. Thamrin No.1
ment Jakarta 10310 Jakarta 10310
Board of 100% 100%
Commissioners
Attendance
Board of Directors 100% 100%
Attendance
Audit Committee’s 100% 100%
Attendance
Oversight 100% 100%
Committee’s
Attendance
Remuneration 100% 100%
and Nomination
Committee’s
Attendance
Integrated 100% 100%
Governance
Committee’s
Attendance
Independent s .OTARY &ATHIAH (ELMI 3( s .OTARY #HRISTINA $WI 5TAMI 3(
Parties s 3ECURITIES !DMINISTRATION "UREAU 04 M.Hum., M.Kn.
Raya Saham Registra s 3ECURITIES !DMINISTRATION "UREAU 04
Raya Saham Registra
Summary of Minutes of Meeting s 0UBLISHED THROUGH "#!S WEBSITE ON s 0UBLISHED THROUGH "#!S WEBSITE ON
April 12 ,2019 June 21, 2019
s 0UBLISHED THROUGH DAILY NEWSPAPERS s 0UBLISHED THROUGH DAILY NEWSPAPERS
Bisnis Indonesia and The Jakarta Post Bisnis Indonesia and The Jakarta Post
on April 15, 2019. on April 15, 2019.
s %VIDENCE OF PUBLICATION IS SUBMITTED s %VIDENCE OF PUBLICATION IS REPORTED BY
through handing hardcopy and handing hardcopy and e-reporting to
e-reporting to OJK and IDX on April OJK and IDX dated June 24, 2019.
15, 2019.
Minutes of Meeting s 0UBLISHED THROUGH "#!S WEBSITE ON s 0UBLISHED THROUGH "#!S WEBSITE ON
April 12, 2019. July 2, 2019.
s -INUTES OF MEETING IS SUBMITTED s -INUTES OF MEETING IS SUBMITTED
by handing hardcopy and through through handing hardcopy and
e-reporting to OJK and IDX on May e-reporting to OJK and IDX on July 2,
13, 2019 2019
332 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
AGMS Advertisement
www.bca.co.id www.bca.co.id
PRELIMINARY NOTICE NOTICE
ANNUAL GENERAL MEETING OF SHAREHOLDERS OF ANNUAL GENERAL MEETING OF SHAREHOLDERS
PT BANK CENTRAL ASIA Tbk PT BANK CENTRAL ASIA Tbk
This is to inform all Shareholders of PT Bank Central Asia Tbk (the “Company”) that the Company is The Board of Directors of PT Bank Central Asia Tbk (the “Company@D' & 'J
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PT BANK CENTRAL ASIA Tbk
Board of Directors
2019 Annual Report | PT Bank Central Asia Tbk 333
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Announcement of Summary of Minutes of AGMS
334 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
EGMS Advertisement
www.bca.co.id www.bca.co.id
PRELIMINARY NOTICE NOTICE OF
EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS
PT BANK CENTRAL ASIA Tbk PT BANK CENTRAL ASIA Tbk
This is to inform all Shareholders of PT Bank Central Asia Tbk (the “Company”) that the Company is going to hold The Board of Directors of PT Bank Central Asia Tbk (the “Company”) hereby invites the Shareholders of the Company to
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Date : Thursday, 20 June 2019
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PT Raya Saham Registra, no later than Monday, 17 June 2019, 16:00 Western Indonesia Time.
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Jakarta, 29 May 2019
PT BANK CENTRAL ASIA Tbk
Board of Directors
2019 Annual Report | PT Bank Central Asia Tbk 335
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Announcement of Summary of Minutes of EGMS
336 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
4. Attendance of Management, Committees and 6. Rules of Conduct of AGMS and EGMS
Shareholders BCA also provides information related to voting
A further description on the attendance of the procedures at the AGMS and EGMS in the rules
management, committees, and shareholders in the of the meeting which are always read out before
AGMS and EGMS is listed on page 327-332 of this starting the AGMS and EGMS.
Annual Report.
Shareholders or their representatives who attend
5. Chairperson of AGMS and EGMS the AGM are advised to observe the following rules:
The GMS was chaired by Mr. Ir. Djohan Emir Setijoso 1) Procedures for giving feedback relating to the
as the President Commissioner, in accordance agenda of the meeting:
with Article 22 Paragraph 1 (a) of BCA Articles of a) Shareholders or shareholders’ power of
Association. attorney may submit questions and/or
opinions for each agenda that requires a
Policies related to the Chairperson of the GMS are meeting decision.
regulated in BCA Articles of Association, as follows: b) When discussing each meeting agenda
s )N THE EVENT THAT THE 0RESIDENT #OMMISSIONER that requires a decision, the Chairperson of
or a member of the Board of Commissioners the Meeting will provide the opportunity
appointed by the Board of Commissioners for shareholders or shareholders’ power
to chair the AGMS or EGMS has a conflict of of attorney to submit questions and/or
interest with the agenda to be decided at the opinions before voting on the matter.
AGMS and EGMS, the Board of Commissioners Shareholders or shareholders’ power of
may appoint other members of the Board of attorney may only submit questions and/
Commissioners who do not have a conflict of or opinions on the occasion given by the
interest as a substitute. Chairperson of the Meeting.
s )N THE EVENT THAT ALL MEMBERS OF THE "OARD c) Only shareholders or authorized
of Commissioners have a conflict of interest, shareholders’ power of attorney present at
the AGMS or EGMS is chaired by the President the meeting are entitled to raise questions
Director and/or opinions about the agenda of the
s )N THE EVENT THAT THE 0RESIDENT $IRECTOR HAS A meeting being discussed.
conflict of interest with the agenda decided d) Questions and/or opinions raised must
at the AGMS or EGMS, the AGMS or EGMS is be directly related to the agenda of the
chaired by the Deputy President Director who meeting being discussed.
is appointed by the Directors and does not e) Before submitting questions and/or
have a conflict of interest opinions, shareholders or the power of
s )N THE EVENT THAT THE 0RESIDENT $IRECTOR AND attorney of shareholders are asked to take
Deputy President Director have a conflict of and fill out forms that will be provided by
interest, the AGMS and EGMS are chaired by the meeting’s officers, to be filled with
other members of the Board of Directors who the names of shareholders, the number
do not have a conflict of interest. of shares owned/represented as well as
s )N THE EVENT THAT ALL MEMBERS OF THE "OARD questions and/or opinions raised.
of Directors have a conflict of interest, the f) Shareholders or shareholders’ power of
AGMS or EGMS is chaired by one of the attorney who wish to submit questions
non-controlling shareholders elected by the and/or opinions that have been written on
majority of other shareholders present at the the form referred to in number 1) letter e)
AGMS or EGMS. this section, are asked to raise their hands,
write their questions and/or opinions on a
2019 Annual Report | PT Bank Central Asia Tbk 337
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
form that will be provided by the meeting d) The chairperson of the meeting will ask
officer for then to be read out th rough a the shareholders or the power of attorney
loudspeaker, and submit the form to the of shareholders who DO NOT AGREE or
Meeting officer. ABSTAIN to the proposal submitted to
g) To provide equal opportunities to all raise their hands and submit ballot papers
shareholders, each shareholder or to the meeting’s officers. The ballots
shareholder’s power of attorney may each will then be counted by PT Raya Saham
submit a maximum of two questions and/ Registra as the Company’s securities
or opinions for each agenda. administration bureau and then verified
h) All questions will be answered one by one by the notary as an independent official
in order. If several questions are asked e) Shareholders or shareholders’ power of
about the same material, the questions attorney who do not raise their hands to
will be answered simultaneously. submit ballots NOT APPROVAL or ABSTAIN
i) After questions and/or opinions submitted to the proposal submitted, are considered
by shareholders or the shareholders’ to approve the proposal submitted
power of attorney have been answers without the chair of the meeting need to
and/or explained, the Chairperson of the ask the shareholders or the shareholders’
Meeting will propose to shareholders or power of attorney to raise their respective
the shareholders’ power of attorney to hands as a sign of agreement.
make decisions. f) In accordance with Article 30 of OJK
Regulation Number 32 / POJK.4 / 2014
2) Procedure for voting and vote counting: Concerning Planning And Holding
For all agenda meetings requiring a decision, General Meetings Of Shareholders Of
vote counting will be conducted with reference Public Limited Companies, ABSTAIN votes
to the provisions of the Company’s articles of are considered to be the same votes as the
association and the Limited Liability Companies majority votes of shareholders who issue
Act, as follows: votes.
a) Decisions of the meeting are taken based g) The vote count is conducted by scanning
on deliberation to reach consensus. the barcode on the ballots NOT DISAGREE
b) In the event that a decision based on and ABSTAIN submitted to the meeting
deliberation to reach consensus is not officer by using a barcode scanner. The
reached, then the decision is taken by total votes will appear on the screen
voting. Shareholders or the power of available in the meeting room.
attorney of shareholders have the right h) Shareholders or shareholders’ power of
to vote AGREE, a NO AGREE vote or an attorney who have registered but left
ABSTAIN vote for each agenda. the meeting room and do not report the
c) For each agenda item that requires a matter to the registration officer before
decision of the meeting, the decision on the meeting are considered to be present
the proposal submitted at the meeting and approve the proposal submitted at
is valid if approved by more than ½ (one the meeting.
half) of the total number of shares with
voting rights present at the meeting.
338 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Shareholders or their power of attorney who c) The Chairperson of the Meeting will
attend the EGMS are advised to pay attention to request shareholders or shareholders’
the following rules: power of attorney who DOES NOT AGREE
1) Procedures for giving feedback relating to the or ABSTAIN the proposal submitted to
agenda of the meeting: raise their hands and submit ballot papers
a) The Chairperson of the Meeting will give to the Meeting’s officer. The ballots
the opportunity to the shareholders or will then be counted by PT Raya Saham
shareholders’ power of attorney to submit Registra as the Company’s securities
questions and/or opinions prior to the administration bureau and then verified
vote on the agenda of the meeting. by the Notary as an independent official.
b) Questions and/or opinions can only be Shareholders or shareholders’ power of
submitted on the occasion given by the attorney who do not raise their hands to
Chairperson of the Meeting. submit ballots DO NOT AGREE or ABSTAIN
c) Shareholders or shareholder’s power of to the proposal submitted, are deemed to
attorney who wish to submit questions approve the proposal submitted without
and/or opinions are asked to raise their the chair of the meeting need to ask the
hands, write their questions and/or shareholders or shareholders’ power of
opinions on a form that will be provided attorney to raise their respective hands as
by the Meeting officer for then to be read a sign of agreement
out through a loudspeaker, and submit d) Shareholders or shareholders’ power of
the form to the Meeting officer. attorney who issue ABSTAIN votes are
d) Questions and/or opinions raised must considered to issue the same votes as the
be directly related to the agenda of majority vote of the shareholders who
the meeting being discussed. If several vote.
questions are asked about the same e) Decisions on proposals submitted at the
material, the questions will be answered meeting are valid if they are approved
simultaneously. by more than 3/4 (three quarters) of the
e) To provide opportunities for other total number of shares with voting rights
meeting participants, each shareholder or present at the meeting.
shareholder’s power of attorney may each f) Shareholders or shareholders’ power of
submit a maximum of 2 (two) questions attorney who have registered but left
and/or opinions. the meeting room and do not report the
matter to the registration officer before
2) Procedure for voting and vote counting: the meeting is considered to be present
a) Decisions of the meeting are taken based and approve the proposal submitted at
on deliberation to reach consensus. the meeting.
b) In the event that a decision based on
deliberation to reach consensus is not 7. Decision Making Method
reached, hence, the decision is taken by Decision making regarding proposals submitted
voting. in each agenda of the AGMS and EGMS of BCA is
conducted based on deliberations for consensus,
in accordance with Article 23 paragraph 8 of BCA’s
Articles of Association. If deliberations for consensus
are not reached, hence, the decision will be taken
by way of voting.
2019 Annual Report | PT Bank Central Asia Tbk 339
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
8. The Vote Counting Mechanism for AGMS and At the third agenda of the 2019 AGMS, there was
EGMS one question from the shareholder of BCA and the
Before voting is held for each AGMS and EGMS BCA’s Board of Directors responded to the question
agenda, each shareholder or their proxies raised.
representing them are given the opportunity to ask
questions and/or submit opinions to the chairperson The voting regarding proposals submitted in each
of the AGMS and EGMS. GMS agenda is conducted verbally using the voting
polls method. In the event that the shareholders
At the first agenda of the 2019 AGMS, there were or their power of attorneys do not agree or abstain
two questions from BCA shareholders and the BCA from the proposal submitted, they can submit the
Board of Directors responded to the questions ballot papers again. Voting polls through ballots
raised. collected will be counted by PT Raya Saham
Registra as BCA’s Securities Administration Bureau
At the second agenda of the 2019 AGMS, there and verified by a Notary as an independent party,
was one question from the shareholder of BCA and in accordance with the GMS Rules of Procedure.
the Board of Directors of BCA responded to the
question raised.
2019 Annual GMS:
Agenda Agree Disagree Abstain Inquiries
First 21,328,133,721 11,580,200 27,098,300 2
(99.82%) (0.05%) (0.13%)
Second 21,309,214,794 20,134,127 37,463,300 1
(99.73%) (0.09%) (0.18%)
Third 21,182,881,652 168,293,669 15,636,900 1
(99.14%) (0.79%) (0.07%)
Fourth 20,647,772,218 536,995,413 182,044,590 Nil
(96.64%) (2.51%) (0.85%)
Fifth 20,854,616,849 416,406,381 95,788,991 Nil
(97.60%) (1.95%) (0.45%)
Sixth 21,309,214,794 20,134,127 37,463,300 Nil
(99.73%) (0.09%) (0.18%)
Seventh 21,355,521,921 1,386,600 9,903,700 Nil
(99.94%) (0.01%) (0.05%)
Eighth There is no vote/ approval of this Agenda (Report only).
2019 Extraordinary GMS:
Agree Disagree Abstain Inquiries
17,919,918,203 3,407,313,822 377,571,925 Nil
(82.562%) (15.698%) (1.74%)
Independent Parties who Conducts Counting and/or Independent Parties who Conducts Counting and/or
Validation of the Votes in the AGMS Validation of the Votes in the EGMS
The independent parties that count and/or validate the The independent parties that count and/or validate
votes at the AGMS were PT Raya Saham Registra as BCA’s the votes at the AGMS were PT Raya Saham Registra
Securities Administration Bureau and Fathiah Helmi, as BCA’s Securities Administration Bureau and Christina
S.H. as the Notary who verified the vote count. Dwi Utami, SH, M.Hum., M.Kn., as the Public Notary who
verified the vote count.
340 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
9. 2019 AGMS Decision and its Realization
The decision of the 2019 AGMS and its realization are as follows:
No Agenda 2019 Annual GMS Decision Realization
1. First Agenda I Approving the Annual Report, including: Realized.
Approval of the Annual 1. the Financial Statements, which include the Company’s
Report including the Balance Sheet and Profit or Loss Statement for the
Company’s Financial financial year ended December 31, 2018, audited by
Statements and the the The Kantor Akuntan Publik Tanudiredja, Wibisana,
Board of Commissioners’ Rintis & Rekan (a member firm of PwC Global Network),
Report on its Supervisory as evident from its report Number 00037/2.1025/
Duties for the financial AU.1/07/0229-2/1/II/2019 dated February 11, 2019 with
year ended 31 December unmodified opinion, as contained in the 2018 Annual
2018 and grant of release Report; and
and discharge of liability 2. the Board of Commissioners’ Report on its Supervisory
(acquit et decharge) to Duties, for the financial year ended December 31, 2018,
all members of the Board as contained in the 2018 Annual Report;
of Directors and the
Board of Commissioners
II Granting a release and discharge of liability (acquit
of the Company for all
et decharge) to members of the Company’s Board of
actions taken in relation
Directors and Board of Commissioners for their respective
to the management
management and supervisory actions taken during the
and supervision of the
financial year ended December 31, 2018, to the extent
Company in the financial
that such actions were reflected in the Company’s Annual
year ended 31 December
Report and Financial Statements for the financial year
2018.
ended December 31, 2018 and any relevant supporting
documents thereof.
Total Votes:
Agree Disagree Abstain
21,328,133,721 11,580,200 27,098,300
(99.82%) (0.05%) (0.13%)
2. Second Agenda I Determining that according to the Company’s Balance
Appropriation of the Sheet and Profit or Loss Statement for the financial year
Company’s Net Profits for ended December 31, 2018, audited by the The Kantor
the financial year ended Akuntan Publik Tanudiredja, Wibisana, Rintis & Rekan (a
31 December 2018. member firm of PwC Global Network), the Company’s net
profits for the financial year ended December 31, 2018
amounted to Rp25,855,154,148,976 (twenty-five trillion
eight hundred fifty-five billion one hundred fifty-four
million one hundred forty-eight thousand nine hundred
seventy-six rupiah) (“Net Profits for 2018”).
2019 Annual Report | PT Bank Central Asia Tbk 341
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
No Agenda 2019 Annual GMS Decision Realization
Second Agenda II Appropriating the Company’s Net Profits for 2018, which Realized.
(continued) amounted to Rp25,855,154,148,976 (twenty-five trillion On 30th of April
eight hundred fifty-five billion one hundred fifty-four 2019, BCA has
million one hundred forty-eight thousand nine hundred distributed cash
seventy-six rupiah) as follows: dividends for
1. An amount of Rp340 (three hundred forty rupiah) the financial
per share will be distributed as cash dividends for year ended 31st
the financial year ended 31 December 2018 to the December 2019 to
shareholders entitled to receive cash dividends, the shareholders.
such amount includes the interim dividends of Rp85
(eighty-five rupiah) share or a total amount of
Rp2,095,675,850,000 (two trillion ninety-five billion
six hundred seventy-five million eight hundred fifty
thousand rupiah) paid out by the Company on 21
December 2018, accordingly, the remaining amount of
dividends is Rp255 (two hundred fifty-five rupiah) per
share or a total amount of Rp6,287,027,550,000 (six
trillion two hundred eighty-seven billion twenty-seven
million five hundred fifty thousand rupiah).
As regards such dividend payments, the following terms
and conditions shall apply:
i. i. the remaining amount of dividends for the
financial year 2018 will be paid out for each
share issued by the Company as recorded in the
Company’s Register of Shareholders as at the record
date, which will be determined by the Board of
Directors;
ii. as regards the payments on the remaining
dividends for the financial year 2018, the Board of
Directors shall withhold the tax on such dividends in
accordance with the tax regulations in force;
iii. the Board of Directors is granted the power and
authority to stipulate any matters concerning
the payment of the remaining dividends for the
financial year 2018, including (but not limited to):
(aa) stipulating the record date as referred to in
item (i) to determine the shareholders of the
Company eligible to receive payments on the
remaining dividends for the financial year
2018; and
(bb) stipulating the date of payment of the
remaining dividends for the financial year
2018, and any other technical matters with
due observance of the regulations of the Stock
Exchange where the Company’s shares are
listed;
2. An amount of Rp258,551,541,490 (two hundred fifty-
eight billion five hundred fiftyone million five hundred
forty-one thousand four hundred ninety rupiah) will be
appropriated as reserve fund;
3. The remainder of the Net Profits for 2018 that has
not been appropriated for any particular use will be
determined as retained earnings.
III Stating that such power and authority as described in point
II item 1 of this resolution will be effective as of the date
on which the proposal in this agenda item is approved by
this Annual GMS.
Total Votes::
Agree Disagree Abstain
21,309,214,794 20,134,127 37,463,300
(99.73%) (0.09%) (0.18%)
342 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
No Agenda 2019 Annual GMS Decision Realization
3. Third Agenda I Approving the honourable dismissal of Mr. Eugene Keith Realized.
Change in the composition Galbraith as Deputy President Director with effect from
of the Board of Directors the close of this Meeting.
of the Company.
II Expressing the highest appreciation and gratitude to Mr.
Eugene Keith Galbraith for his services during his term of
office as Deputy President Director of the Company.
III Appointing Mr. Suwignyo Budiman as Deputy President
Director, which will be effective only to the extent of and
as from the approval of such appointment by the Financial
Services Authority until the close of the Company’s Annual
General Meeting of Shareholders which will be held on
2021 (two thousand twenty-one), provided that if the
approval for such appointment from the Financial Services
Authority has not been obtained, Mr. Suwignyo Budiman
will remain in office as a Director until his appointment
as Deputy President Director is approved by the Financial
Services Authority. If his appointment as Deputy President
Director is not approved by the Financial Services Authority,
Mr. Suwignyo Budiman will remain in office as a Director
until the close of the Company’s Annual General Meeting
of Shareholders which will be held in 2021 (two thousand
twenty-one).
IV Replacing the Company’s Director of Compliance by
appointing Mrs. Inawaty Handojo to replace Mr. Tan Ho
Hien/Subur a.k.a. Subur Tan, which will be effective only to
the extent of and as from the approval of such appointment
by the Financial Services Authority until the close of the
Company’s Annual General Meeting of Shareholders
which will be held in 2021 (two thousand twenty-one).
Before the approval for the appointment of Mrs. Inawaty
Handojo as the Company’s Director of Compliance is
obtained from the Financial Services Authority or if such
approval is not given by the Financial Services Authority,
Mr. Tan Ho Hien/Subur a.k.a. Subur Tan will remain in office
as the Company’s Director of Compliance until the close of
the Company’s Annual General Meeting of Shareholders
which will be held in 2021 (two thousand twenty-one),
and Mrs. Inawaty Handojo will retain her current office as
the Company’s Director.
V Stating that accordingly the composition of the Board of
Commissioners and the Board of Directors of the Company
as from the close of this Meeting shall be as follows:
Board of Commissioners
President Commissioner Mr. Ir. Djohan Emir
Setijoso
Commissioner Mr. Tonny Kusnadi
Independent Commissioner Mr. Cyrillus Harinowo
Independent Commissioner Mr. Dr. Ir. Doktor Insinyur
Raden Pardede
Independent Commissioner Mr. Sumantri Slamet
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Third Agenda Board of Directors
(continued)
President Director Mr. Jahja Setiaatmadja
Deputy President Mr. Armand Wahyudi Hartono
Director
Director Mr. Ir. Suwignyo Budiman
Director (concurrently Mr. Tan Ho Hien/Subur or a.k.a.
serving as Director of Subur Tan
Compliance)
Director Mr. Henry Koenaifi
Independent Director Mr. Erwan Yuris Ang, SH, MH.
Director Mr. Rudy Susanto
Director Ms. Lianawaty Suwono
Director Mr. Santoso
Director Ms. Inawaty Handojo
Director Miss Vera Eve Lim
without prejudice to the right of the General Meeting of
Shareholders to at any time dismiss any member of the
Board of Commissioners and the Board of Directors of the
Company as mentioned above.
In accordance with the provisions of Article 12 paragraph
9 of the Company’s Articles of Association, the Meeting
further granted authority to the Board of Commissioners
to determine the duties and authorities of and among the
members of the Board of Directors.
VI Granting power and authority to the Board of Directors
of the Company, with the right of substitution, to cause
the resolution on the composition of the Board of
Commissioners and the Board of Directors as described
above to be expressed in a deed made before a Notary,
including the composition of the Board of Commissioners
and the Board of Directors after obtaining the Approval
Letter from the Financial Services Authority in respect of the
above-mentioned Meeting resolution, and subsequently
file any notice with the competent authorities, and take
any and all necessary actions in respect of such resolution
in accordance with the prevailing laws and regulations.
VII Stating that the grant of power and authority under point
VI of this resolution will be effective as of the date on
which the proposal in this agenda item is approved by the
Meeting.
Total Votes:
Agree Disagree Abstain
21,182,881,652 168,293,669 15,636,900
(99.14%) (0.79%) (0.07%)
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4. Fourth Agenda I 1. Granting full power and authority to PT DWIMURIA Realized.
Determination of the INVESTAMA ANDALAN, as the majority shareholder of
amount of salary or the Company, to determine the amount of honorarium
honorarium and benefits and benefits to be paid by the Company to the members
for the financial year 2019 of the Board of Commissioners serving the Company
as well as bonus payments over the financial year 2019;
(tantieme) for the financial 2. Granting full power and authority to the Company’s
year 2018 payable to Board of Commissioners to determine the amount of
members of the Board of salary and benefits to be paid by the Company to the
Directors and the Board members of the Board of Directors of the Company
of Commissioners of the serving the Company over the financial year 2019.
Company.
in carrying out the powers and authorities:
1. PT DWIMURIA INVESTAMA ANDALAN, as the current
majority shareholder of the Company, will consider the
recommendations from the Board of Commissioners,
which will take into account the recommendations from
the Remuneration and Nomination Committee;
2. The Board of Commissioners will consider the
recommendations from the Remuneration and
Nomination Committee.
II Upon considering the performance of the Company and the
performance of the members of the Board of Commissioners
and the Board of Directors of the Company who served in
and over the financial year 2018, and with due observance
of Regulation of the Financial Services Authority No.
55/POJK.03/2016 on the Implementation of Corporate
Governance for Commercial Banks in conjunction with article
71 paragraph 1 of Law Number 40 of 2007 on Limited Liability
Companies, and after receiving the recommendations
from the Board of Commissioners, which also took into
account the recommendations from the Company’s Board
of Directors and the inputs from the Remuneration and
Nomination Committee, the Meeting further determined
that a maximum amount of Rp413,500,000,000 (four
hundred thirteen billion five hundred million rupiah) will be
paid as bonuses (tantieme) to the members of the Board of
Commissioners and the Board of Directors of the Company
who served in and over the financial year 2018.
In relation to such bonus payments (tantieme),
PT DWIMURIA INVESTAMA ANDALAN, as the current
majority shareholder of the Company, is hereby granted the
power and authority to determine the amount of bonuses
(tantieme) to be paid and to determine the distribution of
such bonuses (tantieme) among the members of the Board
of Commissioners and the Board of Directors of the Company
who served in and over the financial year 2018, including all
matters related to such bonus payments.
III Stating that the grant of power and authority under point I
and point II of this resolution will be effective as of the date
on which the proposal in this agenda item is approved by
the Meeting.
IV The amount of salary or honorarium and benefits to be paid
by the Company to the members of the Board of Directors
and the Board of Commissioners serving the Company over
the financial year 2019 and the amount of bonuses (tantieme)
to be paid by the Company to the members of the Board of
Directors and the Board of Commissioners who served in and
over the financial year 2018 will be set out in the Annual
Report for the financial year 2019.
Total Votes:
Agree Disagree Abstain
20,647,772,218 536,995,413 182,044,590
(96.64%) (2.51%) (0.85%)
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5. Fifth Agenda I Granting power and authority to the Board of Realized.
Appointment of the Commissioners to appoint and/or replace the Public Board of
Registered Public Accounting Firm registered with the Financial Services Commissioners has
Accounting Firm (including Authority (including the Public Accountant registered in appointed a Public
the Registered Public the Financial Services Authority practicing through such Accounting firm,
Accountant practising Registered Public Accounting Firm) that will audit the registered in the
through such Registered books and records of the Company for the financial year Financial Services
Public Accounting Firm) ended December 31, 2019 and to determine the amount of Authority
to audit/examine the fee and other requirements in relation to the appointment Public Accounting
Company’s books and of such Registered Public Accounting Firm registered with Firm of Tanudiredja,
accounts for the financial the Financial Services Authority (including the Public Wibisana, Rintis &
Rekan
year ended 31 December Accountant registered with the Financial Services Authority
(a member
2019. practicing through such Registered Public Accounting
firm of PwC
Firm) with due regard for the recommendations from the
Global Network)
Audit Committee and the prevailing laws and regulations.
including the
II Stating that such power and authority will be effective as Public Accountant,
of the date on which the proposal in this agenda item is name Lucy Luciana
approved by the Meeting. Suhenda registered
in the Financial
Total Votes: Services Authority
Agree Disagree Abstain practicing from such
Registered Public
20,854,616,849 416,406,381 95,788,991 Accounting Firm
(97.60%) (1.95%) (0.45%) who will audit the
books and records
of the Company
for the financial
year ended 31
December 2019.
The appointment of
public accountant
has met the
prerequisite
requirements
that have been
determined in
the Annual GMS
which is to consider
the quality,
requirements, and
the competitive
price for the
company.
6. Sixth Agenda I Granting power and authority to the Board of Realized.
Grant of powers and Commissioners to appoint and/or replace the Public On 20th of
authority to the Board Accounting Firm registered with the Financial Services December 2019,
of Directors to pay out Authority (including the Public Accountant registered BCA has distributed
interim dividends for the with the Financial Services Authority practicing through interim dividends
financial year ended 31 such Registered Public Accounting Firm) that will audit for the financial
December 2019 the books and records of the Company for the financial year ended 31st
year ended December 31, 2019 and to determine the December 2019
amount of fee and other requirements in relation to to qualified
the appointment of such Registered Public Accounting shareholders.
Firm registered with the Financial Services Authority
(including the Public Accountant registered with the
Financial Services Authority practicing through such
Registered Public Accounting Firm) with due regard for
the recommendations from the Audit Committee and the
prevailing laws and regulations.
II Stating that such power and authority will be effective as
of the date on which the proposal in this agenda item is
approved by the Meeting.
Total Votes:
Agree Disagree Abstain
21,309,214,794 20,134,127 37,463,300
(99.73%) (0.09%) (0.18%)
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7. Agenda Ketujuh I Approving the amendments to the Company’s Recovery Realized.
Approval of the Revised Plan, as incorporated in the Recovery Plan of PT Bank
Recovery Plan of the Central Asia Tbk 2019, which has been filed with the
Company Financial Services Authority for its supervision, as evident
in letter from the Financial Services Authority Number
S-21/PB.3/2019 dated March 8, 2019 on the Recovery
Plan of PT Bank Central Asia Tbk 2019 (“the Company’s
Recovery Plan”).
Total Votes:
Agree Disagree Abstain
21,355,521,921 1,386,600 9,903,700
(99.94%) (0.01%) (0.05%)
10. 2019 EGMS Decision and its Realization
The decision of the 2019 EGMS and its realization are as follows:
No Agenda 2019 Extraordinary GMS Decision Realization
1. Approving the acquisition I Approving the acquisition plan (rancangan akuisisi) Realized.
plan to acquire shares of in relation to the Company’s plan to acquire all the On 31st of October
PT Bank Royal Indonesia subscribed and paid-up shares of PT Bank Royal Indonesia 2019, both Parties
by the Company (whether directly or indirectly through the Company’s have signed the
controlled subsidiary, i.e. PT BCA Finance), including the Acquisition Deed
draft acquisition deed, as appended to the acquisition No. 308 dated
plan, which had been distributed to the shareholders or 31 October 2019
proxies for the shareholders as materials for discussion at made before a
the Meeting. Notary, Christina
Dwi Utami,
II Approving the Company’s action to purchase 2,871,999
S.H., M.Hum.,
(two million eight hundred seventy-one thousand nine
M.Kn., Notary
hundred ninety-nine) shares from the shareholders of PT
in West Jakarta
Bank Royal Indonesia or representing 99.99% (ninety-nine
with regards
point nine nine percent) of the total subscribed and paid-
to transaction
up shares of PT Bank Royal Indonesia.
settlement in
III Granting power and authority to the Board of Directors acquisitioning
of the Company, with the right of substitution, to take Bank Royal.
any and all actions required or deemed necessary in
relation to the acquisition of the subscribed and paid-
up shares of PT Bank Royal Indonesia in accordance with
the Meeting’s resolution, including but not limited to
determining the terms and conditions for the acquisition,
as well as preparing, drawing up, making, procuring to
be made, and signing the necessary documents including
the acquisition deed, filing applications, and/or requesting
approvals and/or filing the Meeting’s resolution with the
competent authorities, in accordance with the prevailing
laws and regulations.
IV Stating that the grant of power and authority under
point III of this resolution will be effective as of the date
on which the proposal on this agenda is approved by the
Meeting.
Total Votes:
Agree Disagree Abstain
17,919,918,203 3,407,313,822 377,571,925
(82.562%) (15.698%) (1.74%)
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11. 2018 AGMS and EGMS Decision and its Realization
BCA has implemented all recommendations from the decision of the annual GMS financial year 2018, therefore,
there is no information pertaining to any reason with regards to decisions that has not been realized.
The decision of the 2018 AGMS and its realization are as follows:
No Agenda 2018 Annual GMS Decision Realization
1. First Agenda I Approve the Annual Report, including the Board of Realized.
Approval of the Commissioners’ Supervisory Task Report for the financial year
Annual Report ending December 31, 2017 contained in the 2017 Annual
including the Report.
Company’s
II Ratify the financial statements covering the Company’s Balance
Financial
Sheet and Profit and Loss Statement for the financial year
Statements and
ended December 31, 2017 which has been audited by the
the Board of
Tanudiredja Public Accountant Firm, Wibisana, Rintis & Rekan
Commissioners’
(a member firm of PwC Global Network) contained in the 2017
Report on its
Annual Report.
Supervisory Duties
for the financial III Provide repayment and release of responsibilities (acquit et
year ended 31 decharge) to members of the Board of Directors and Board
December 2017 and of Commissioners of the Company for management and
grant of release supervision actions carried out by each member of the Board
and discharge of of Directors and Board of Commissioners during the financial
liability (acquit et year ending December 31, 2017 provided that the actions are
decharge) to all recorded in the Report Annual and Financial Statements of the
members of the Company for the financial year ending on December 31, 2017
Board of Directors and supporting documents.
and the Board of Total Votes:
Commissioners of
the Company for Agree Disagree Abstain
all actions taken 21,029,505,515 3,510,100 12,104,400
in relation to the (99.926%) (0.017%) (0.057%)
management
and supervision
of the Company
in the financial
year ended 31
December 2017.
2. Second Agent I Resolving to accept that according to the Company’s Balance Realized.
Appropriation of Sheet and Profit and Loss Statement for the financial year On 30th of April 2018,
the Company’s ended December 31, 2017, audited by the Public Accounting BCA has distributed
profits for Firm of Tanudiredja, Wibisana, Rintis & Rekan (a member cash dividends for the
the financial firm of PwC Global Network) the Company’s net income for financial year that
year ended 31 the financial year ended December 31, 2017, amounted to ended 31st December
December 2017; Rp23,309,993,511,865.00 (twenty-three trillion three hundred 2017 to qualified
nine billion nine hundred ninety-three million five hundred shareholders.
eleven thousand eight hundred sixty-five Rupiah) (“Net Income
for 2017”);
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No Agenda 2018 Annual GMS Decision Realization
Second Agenda II Resolving that the Company’s Net Income for 2017, which
(continued) amounted to Rp23,309,993,511,865.00 (twenty-three trillion
three hundred nine billion nine hundred ninety-three million
five hundred eleven thousand eight hundred sixty-five Rupiah),
will be appropriated as follows:
1. An amount of Rp233,099,935,119.00 (two hundred thirty-
three billion ninety-nine million nine hundred thirty-
five thousand one hundred nineteen Rupiah) will be
appropriated as reserve fund;
2. An amount of Rp6,287,027,550,000.00 (six trillion two
hundred eighty-seven billion twenty-seven million
five hundred fifty thousand Rupiah) or Rp255.00 (two
hundred fifty-five Rupiah) per share will be distributed
as cash dividends for the financial year ended December
31, 2017 to the shareholders entitled to receive cash
dividends; such amount includes the interim dividends of
Rp1,972,400,800,000.00 (one trillion nine hundred seventy-
two billion four hundred million eight hundred thousand
Rupiah) or Rp80.00 (eighty Rupiah) per share, which was
paid out by the Company on 20 December 2017; accordingly,
the remaining amount of dividend is Rp4,314,626,750,000.00
(four trillion three hundred fourteen billion six hundred
twenty-six million seven hundred fifty thousand Rupiah) or
Rp175.00 (one hundred seventy-five Rupiah) per share.
As regards the dividend payments, the following terms and
conditions shall apply:
i. the remaining amount of the dividends for the financial
year 2017 will be paid out for each share issued by the
Company as at the record date, which will be determined
by the Board of Directors;
ii. as regards the payments on the remaining dividends for
the financial year 2017, the Board of Directors shall make
withholding for tax on such dividends in accordance
with the tax regulations in force;
iii. the Board of Directors is granted the power and
authority to stipulate matters concerning or relating to
the payment of the remaining dividends for the financial
year 2017, including (but not limited to):
(aa) stipulating the record date as referred to in point
(i) to determine the shareholders of the Company
eligible to receive payments on the remaining
dividends for the financial year 2017; and
(bb) stipulating the date of payment of the remaining
dividends for the financial year 2017, and any
other technical matters with due observance of
the regulations of the Stock Exchange where the
Company’s shares are listed;
3. The remainder of the Net Income for 2017 that has not
been allocated for any particular use will be determined as
retained earnings.
III Resolving that such power and authority as described in point
II.2 will be effective as of the date on which the proposals on
this agenda are approved by the Annual General Meeting of
Shareholders.
Total Votes:
Agree Disagree Abstain
20,987,425,390 18,133,925 39,560,700
(99.726%) (0.086%) (0.188%)
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No Agenda 2018 Annual GMS Decision Realization
3. Third Agenda I Appointing Miss VERA EVE LIM as a Director of the Company, Realized.
Appointment of effective as of the date of approval by the Financial Services
the members of the Authority (“OJK”) for such appointment and the term of office
Board of Directors will continue until the close of the Annual General Meeting of
Shareholders of the Company to be held in 2021 (two thousand
of the Company. twenty-one);
II Resolving that accordingly the composition of the Board of
Commissioners and the Board of Directors of the Company as
from the close of this Annual General Meeting of Shareholders
shall be as follows:
Board of Commissioners
President Mr. Ir. Djohan Emir Setijoso
Commissioner
Commissioner Mr. Tonny Kusnadi
Independent Mr. Cyrillus Harinowo
Commissioner
Independent Mr. Dr. Ir. Raden Pardede
Commissioner
Independent Mr. Sumantri Slamet
Commissioner
Board of Directors
President Director Mr. Jahja Setiaatmadja
Deputy Director Mr. Eugene Keith Galbraith
Deputy Director Mr. Armand Wahyudi Hartono
Director Mr. Ir. Suwignyo Budiman
Director (concurrently Mr. Tan Ho Hien/Subur or a.k.a.
serving as Director of Subur Tan
Compliance)
Director Mr. Henry Koenaifi
Independent Director Mr. Erwan Yuris Ang, SH, MH.
Director Mr. Rudy Susanto
Director Ms. Lianawaty Suwono
Director Mr. Santoso
Director Ms. Inawaty Handoyo
Director Miss Vera Eve Lim
The appointment of Miss Vera EVE LIM as a Director of the
Company shall be effective as of the date of approval by the
Financial Services Authority (“OJK”) for such appointment and
will continue until the close of the Annual General Meeting of
Shareholders of the Company to be held in 2021 (two thousand
twenty-one).
However, the term of office of the other members of the Board
of Commissioners and the Board of Directors shall remain
unchanged, i.e. commencing from the effective date of their
term of office and will end at the close of the Annual General
Meeting of Shareholders of the Company to be held in 2021 (two
thousand twenty-one).
The term of office in respect of the appointments set forth
above shall not prejudice the right of the General Meeting
of Shareholders to modify the composition of the Board of
Commissioners and the Board of Directors of the Company within
and during the relevant term of office. In accordance with the
provisions of Article 12 paragraph 9 of the Company’s Articles of
Association, the Annual General Meeting of Shareholders shall
further authorize the Board of Commissioners to determine the
duties and authorities of and among the members of the Board
of Directors;
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No Agenda 2018 Annual GMS Decision Realization
III Granting powers and authority to the Board of Directors
of the Company, with the right of substitution, to cause the
resolution on the composition of the Board of Commissioners
and the Board of Directors to be made in a notarial deed
before a Notary, including the composition of the Board of
Commissioners and the Board of Directors after obtaining an
Approval Letter from the OJK in respect of the resolution of the
Annual General Meeting of Shareholders, and subsequently file
any notice with the competent authorities, and take any and
all necessary actions in respect of such resolution in accordance
with the prevailing laws and regulations;
IV Resolving that the grant of power under point III of this
resolution shall be effective as of the approval by this Annual
General Meeting of Shareholders of the proposal set out in this
agenda item.
Total Votes:
Agree Disagree Abstain
20,848,295,852 178,952,868 17,871,295
(99.065%) (0.850%) (0.085%)
4. Fourth Agenda I 1. Granting full power and authority to PT DWIMURIA Realized.
Determination INVESTAMA ANDALAN, as the majority shareholder of the
of salary or Company, to determine the amount of honorarium and
honorarium, and benefits to be paid by the Company to the members of the
allowances for Board of Commissioners who served over the financial year
fiscal year 2018 2018;
and bonuses for 2. Granting full power and authority to the Company’s Board
2017 financial year of Commissioners to determine the amount of salary and
to the Board of benefits to be paid by the Company to the members of the
Directors and Board Board of Directors of the Company who served over the
of Commissioners financial year 2018.
of the Company.
In exercise of the power and authority mentioned above:
1. PT DWIMURIA INVESTAMA ANDALAN, as the current
majority shareholder of the Company, will consider
recommendations from the Board of Commissioners, which
will take into account recommendations made by the
Remuneration and Nomination Committee;
2. The Board of Commissioners will consider recommendations
from the Remuneration and Nomination Committee;
II Upon taking into account the performance of the members
of the Board of Commissioners and the Board of Directors
of the Company who served in and during the financial year
2017, and with due observance of Regulation of the Financial
Services Authority No. 55/POJK.03/2016 on the Implementation
of Corporate Governance for Commercial Banks, in conjunction
with article 71 paragraph 1 of Law Number 40 of 2007 on
Limited Liability Companies, and the inputs from the Board
of Commissioners with due regard for the recommendations
from the Remuneration and Nomination Committee, the
Annual General Meeting of Shareholders further resolved
that a maximum amount of Rp355,000,000,000.00 (three
hundred fifty-five billion Rupiah), calculated with reference
to the Company’s Net Income for the financial year 2017 in
the amount of Rp23,309,993,511,865.00 (twenty-three trillion
three hundred nine billion nine hundred ninety-three million
five hundred eleven thousand eight hundred sixty-five Rupiah)
will be paid as bonuses (tantieme) to the members of the Board
of Commissioners and the Board of Directors of the Company
who served in and during the financial year 2017.
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No Agenda 2018 Annual GMS Decision Realization
In relation to such bonus payments (tantieme), PT DWIMURIA
INVESTAMA ANDALAN, as the current majority shareholder
of the Company, is hereby granted the power and authority
to determine the amount of bonuses (tantieme) to be paid to
the members of the Board of Commissioners and the Board
of Directors who served in and during the financial year 2017
and to determine the distribution of such bonuses (tantieme)
among the members of the Board of Commissioners and the
Board of Directors who served in and during the financial year
2017, including all matters related to such bonus payments.
III Resolving that such power and authority as described in points
I and II above will be effective as of the date on which the
proposals on this agenda item are approved by the Annual
General Meeting of Shareholders.
Agenda Keempat IV The amount of salary or honorarium and benefits to be paid
(Lanjutan) by the Company to the members of the Board of Directors and
the Board of Commissioners who serve in the financial year
2018, and the amount of bonuses (tantieme) to be paid by the
Company to the members of the Board of Directors and the
Board of Commissioners who served over the financial year
2017 will be set out in the 2018 Annual Report.
Total Votes:
Agree Disagree Abstain
20,385,014,164 437,981,445 222,124,406
(96.863%) (2.081%) (1.056%)
5. Fifth Agenda I Granting power and authority to the Board of Commissioners Realized.
Appointment of to appoint a Registered Public Accounting Firm registered with Board of
the Registered the Financial Services Authority (including a Registered Public Commissioners have
Public Accounting Accountant registered with the Financial Services Authority that appointed a Public
Firm (including is a member of such Registered Public Accounting Firm) to audit Accounting firm,
the Registered the books and records of the Company for the financial year registered in the
Public Accountant ended December 31, 2018 and to determine the amount of fee Financial Services
practising through and other requirements in relation to the appointment of such Authority Public
such Registered Registered Public Accounting Firm registered with the Financial Accounting Firm of
Public Accounting Services Authority (including a Registered Public Accountant Tanudiredja, Wibisana,
Firm) to audit the registered with the Financial Services Authority that is a member Rintis & Rekan (a
Company’s books of such Registered Public Accounting Firm) with due observance member firm of PwC
and accounts for the of the recommendations from the Audit Committee and the Global Network)
financial year ended prevailing laws and regulations; including the Public
31 December 2018. Accountant, name
II Resolving that such power and authority will be effective as of the
Lucy Luciana Suhenda
date on which the proposals on this agenda item are approved by
registered in the
the Annual General Meeting of Shareholders.
Financial Services
Total Votes: Authority practicing
from such Registered
Agree Disagree Abstain
Public Accounting Firm
20,642,784,472 361,745,143 40,590,400 who will audit the
(98.088%) (1.719%) (0.193%) books and records of
the Company for the
financial year 2018.
The appointment of
public accountant has
met the prerequisite
requirements that have
been determined in the
Annual GMS which is
to consider the quality,
requirements, and the
competitive price for
the company.
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6. Sixth Agenda I Giving power and authority to the Board of Directors of the Realized.
Grant power Company (with the approval of the Board of Commissioners), On 21st of December
and authority to if the financial situation of the Company allows and taking 2018, BCA has
the Board of of into account the applicable legal and regulatory provisions, distributed interim
Directors to pay out to set and pay interim dividends for the financial year ending dividends for the
interim dividens December 31, 2018, provided that, to comply with Article 72 of financial year ended
for the financial Law Number 40 of 2007 concerning Limited Liability Companies, 31st December 2018
year ended 31 if the interim dividend is to be distributed, the dividend must to the qualified
December 2018. be made before the end of 2018 fiscal year to shareholders, shareholders.
including determining the form size and method temporary/
interim dividend payment.
II Stating that such power and authority will be effective as of
the date on which the proposal in this agenda item is approved
by the Annual GMS.
Total Votes:
Agree Disagree Abstain
20,987,425,390 18,133,925 39,560,700
(99.726%) (0.086%) (0.188%)
7. Seventh Agenda I Approve the Company’s Recovery Plan, as contained in the Realized
Approval of PT Bank Central Asia Tbk Recovery Plan in 2018, which was
the Company’s recorded in the Financial Services Authority supervision
Recovery Plan. administration based on a letter from the Financial Services
Authority supervision administration based on a letter from
the Financial Services Authority Number S-17/PB.32018 March
2018 14, concerning PT Bank Central Asia Tbk’s Recovery Plan
in 2018 (“Company Action Plan”).
II In the event of a situation and condition where the Board of
Directors of the Company must carry out one or several options
in the Company’s Action Plan, given that these conditions
require immediate and urgent action so that the General
Meeting of Shareholders is not possible beforehand, hence,
in connection with the implementation of one or several
options which requires the approval of the General Meeting of
Shareholders with this Annual General Meeting of Shareholders
giving the Board of Directors the power and authority to carry
out one or several options in the Company’s Action Plan by first
obtaining Board of Commissioners approval.
III Stating that such power and authority will be effective as of
the date on which the proposal in this agenda item is approved
by the Annual GMS.
Total Votes:
Agree Agree Abstain
21,035,923,015 Nil 9,197,000
(99.956%) (0,044%)
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The Decision of the 2018 Extraordinary GMS and the Realization are as follows:
No Agenda 2018 Extraordinary GMS Decision Realization
1. Amendment of the I Approved the amendment of Article 11 Paragraph 5, Realized.
Company’s Articles of Article 11 Paragraph 6, Article 11 Paragraph 15, Article 12
Association. Paragraph 4, Article 13 Paragraph 1, Article 14 Paragraph
1, Article 14 Paragraph 5 and Article 16 Paragraph 1
of the Company’s Articles of Association, addition of
Article 14 Paragraph 14 The Articles of Association of the
Company, as well as approve the abolition of Article 24
Paragraph 4 of the Company’s Articles of Association as
contained in the Proposed Amendment to the Articles of
Association which have been aired on slides and submitted
to the shareholders or proxy representing them at the
Extraordinary General Meeting of Shareholders, while
articles others in Deed Number 171 dated April 23, 2015
made before Notary Dr. Irawan Soerodjo, SH, M.Si., and
has been notified to the Minister of Law and Human Rights
of the Republic of Indonesia as evidenced by a letter issued
by the Director General of General Legal Administration
dated April 23, 2015 Number AHU.AH.01.03-0926937
and has been registered in List of Companies Number
AHU3496701.AH.01.11.Tahun 2015 dated April 23, 2015
(“Deed Number 171 Year 2015”) that was not amended
and/or deleted remains valid and valid
II Reiterate all Articles of the Company’s Articles of
Association including those that were not amended, which
are now stipulated in Deed Number 171 of 2015.
III Grant power and authority to the Board of Directors of
the Company, with the right of substitution, to do all and
any action required in connection with such decision,
including but not limited to the declaration/declarationin
the acts made before the Notary to modify an/or arrange
return the entire provisions of Article 11, Article 12, Article
13, Article 14, Article 16 and Article 24 of the Company’s
Articles of Association in accordance with such decision,
as required by and in accordance with the prevailing laws
and regulations, make or order to make and sign deeds the
deed and the necessary documents and documents, and
hereinafter to submit an application for approval an/or to
notify the change of the Company’s Articles of Association
on the decision of this Extraordinary General Meeting of
Shareholders to the competent authority and to make
alterations and/which is somehow necessary to obtain the
consent and/or acceptance of such notice As well as to file
and sign all applications and other documents, to choose
a place of residence and to perform any other action that
may be required.
Total Votes:
Agree Disagree Abstain
16,112,593,084 4,469,760,492 457,.806,439
(76.580%) (21.244%) (2.176%)
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Independent Parties who Conducts Counting and/ 13. Statement Regarding the Unrealized Decision of
or Validation of the Votes in the AGMS and EGMS the GMS
The independent parties that count votes and/or BCA has implemented all recommendations from
validate the votes at the 2018 AGMS and EGMS the Annual GMS decision and Extraordinary GMS
were PT Raya Saham Registra as BCA’s Securities decision in the 2019 financial year, therefore, there
Administration Bureau and Dr. Irawan Soerodjo is no information pertaining to any reason with
S.H., M.Si., as the Notary who verified the vote regards to decisions that has not been realized.
count.
INFORMATION ON CONTROLLING
12. Realization of Dividend Payment SHAREHOLDER
s )NFORMATION RELATED TO THE PROCEDURE OF
proposal and dividend distribution or The BCA’s Controlling Shareholder since November
payment, shareholders who are entitled to 11, 2016 is PT Dwimuria Investama Andalan. BCA has
receive dividends, and related tax provisions approved the amendment to the Company’s Controlling
are regulated in the BCA Dividend Distribution Shareholder through letter No. KEP-15/D.03/2017
Policy. The main policy can be downloaded on dated February 1, 2017 regarding the assessment of PT
the BCA website in the Corporate Governance- Dwimuria Investama Andalan to be fit and proper as a
corporate action-dividend section. Potential Controlling Shareholder of the Company.
s $IVIDEND PAYMENTS INTERIM OR lNALANNUAL
were made by BCA punctually and based on In connection with the change in the controlling
the principle of fairness. All shareholders are shareholders, there has been no change in control where
treated equally and dividends are paid no later the BCA’s ultimate Controlling Shareholders remain
than thirty days after the announcement of an Robert Budi Hartono and Bambang Hartono.
interim dividend and/or AGMS approving the
distribution of the final dividend. Information schemes or diagrams regarding the BCA’s
s 0AYMENT OF CASH DIVIDENDS FOR lNANCIAL YEAR Controlling Shareholders, both directly and indirectly, to
2018 was paid on April 30, 2019 and interim the individual owners are as follows:
dividend payments for financial year 2019
were made on December 20, 2019.
s "#! PUBLISHED THE ANNOUNCEMENT AND
procedure for payment of cash dividends
2018 on April 15, 2019 in the Bisnis Indonesia
and The Jakarta Post daily newspaper. The
announcement and procedure for payment of
the 2019 interim dividend was published on
November 29, 2019 in the Bisnis Indonesia and
The Jakarta Post daily newspaper.
s 4HE HISTORICAL AMOUNT OF DIVIDEND DISTRIBUTION
can be seen on page 20 of this Annual Report.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Diagram on Controlling Shareholders of BCA
Robert Budi Hartono Bambang Hartono
(Controlling Shareholder) (Controlling Shareholder)
51,00% 49,00%
PT Dwimuria Investama
Public
Andalan
54,94% 45,06%*
Remarks:
Controlling
Controlling Path
* Of the portion of shares belonging to public shareholders, 2.49% is owned by affiliated parties of PT Dwimuria Investama Andalan, 1.76% is
owned by Anthoni Salim. In addition, 0.19% is owned by certain members of the current Board of Commissioners and Board of Directors of
BCA.
Information regarding BCA’s Controlling Shareholder can be seen on the BCA’s website (www.bca.co.id) in the investor
relations section.
BOARD OF COMMISSIONERS e. OJK Regulation No.27/POJK.03/ 2016 Concerning
Fit and Proper Test for Primary Parties of Financial
Board of Commissioners is one of the BCA’s organ which Services Institutions.
according to Law No. 40 of 2007 concerning Limited f. OJK Regulation No.33 / POJK.O4 / 2014 concerning
Liability Companies, has duties a task and responsibility Board of Directors and Board of Commissioners of
to conduct supervision in general, and/or specifically Issuers or Public Companies.
in accordance with BCA’s Articles of Association, and g. OJK Regulation No. 18 / POJK.03 / 2014 concerning
provides advice to the Board of Directors. The Board the Implementation of Integrated Governance
of Commissioners is also responsible to ensure the for Financial Conglomerates.
implementation of the principles of Good Corporate h. OJK Regulation No.17/ POJK.03 / 2014 concerning
Governance in all business activities at all levels of the the Implementation of Integrated Risk
organization. Management for Financial Conglomerates.
i. OJK Circular Letter No. 9 / SEOJK.03 /2019 concerning
1. Legal Basis Re-evaluation for Main Parties of Banks.
Legal basis of the Board of Commissioners includes j. OJK Circular Letter No.13/SEOJK.03/2017
as following: concerning the Implementation of Governance
a. Law No. 40 of 2007 concerning Limited Liability for Commercial Banks.
Companies. k. OJK Circular Letter No.39/SEOJK.03/2016
b. OJK Regulation No. 34/POJK.03/ 2018 concerning concerning Fit and Proper Test for Prospective
Re-evaluation of Main Parties of Financial controlling Shareholders, Prospective Members of
Services Institutions. the Board of Directors, and Prospective Members
c. OJK Regulation No.11/POJK.04/2017 concerning of the Board of Commissioners of the Bank.
Ownership Reports or Any Changes in l. OJK Circular Letter No.15/SEOJK.03/2015
Ownership of Public Company Shares. concerning the Implementation of Integrated
d. OJK Regulation No.55/POJK.03/2016 concerning Governance for Financial Conglomerates.
the Implementation of Governance for m. OJK Circular Letter No.14/SEOJK.03/2015
Commercial Banks. concerning the Implementation of Integrated
Risk Management for Financial Conglomerates.
n. BCA’ Articles of Association.
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2. The Board of Commissioners Charter 3. Duties and Responsibilities of the Board of
The Board of Commissioners Charter or the Charter Commissioners
or Board Charter (hereinafter referred to as The In 2019, the Board of Commissioners of BCA, in
Board of Commissioners Charter) is prepared accordance with their duties and responsibilities,
to guide BCA’s Board of Commissioners so each were not involved in making decisions on bank
member can perform the supervisory function operations.
effectively, efficiently, accountably, transparently
and independently. The Board of Commissioners The duties and responsibilities of the BCA Board of
Charter refers to Financial Services Authority Commissioners include the following:
(OJK) Regulation No. 55/POJK.03/2016 on the a. Supervise and be responsible for overseeing
Implementation of Governance for Commercial the management policies of BCA and the
Banks and OJK Regulation No. 33/POJK.04/2014 running management in general, as well as
concerning Directors and Board of Commissioners of giving advice to the Board of Directors. The
Issuers or Public Companies which can be periodically Board of Commissioners conducts supervision
evaluated and updated with reference to applicable in the interest of BCA, in accordance with the
laws and regulations. purposes and objectives of the BCA Articles of
Association
The Board of Commissioners Charter is listed in the b. Ensure the implementation of the principles
BCA Governance Guidelines and can be accessed by of the Good Corporate Governance are carried
the public through BCA website in the Corporate out in every business activity at all levels of
Governance Section. In general, The Board of BCA organization, at least through:
Commissioners Charter regulates the following: - Implementation of the duties and
1. Legal basis. responsibilities of the Board of
2. Values. Commissioners and Directors.
3. Composition and Criteria of the Board of - Completeness and implementation of
Commissioners. duties of committees and work which
4. Independent Commissioner. carries out that the Bank’s internal control
5. Terms of Duties of the Board of Commissioners. functions.
6. Appointment of the Board of Commissioners. - Implementation of the compliance,
7. Dual Positions of the Board of Commissioners. internal auditor and external auditor
8. Obligations, Duties, Responsibilities, and functions.
Authority of the Board of Commissioners. - Application of risk management, including
9. Transparency and Prohibition for the Board of internal control systems.
Commissioners. - Provision of funds to related parties and
10. Orientation and Training of the Board of provision of large funds.
Commissioners. - Bank’s strategic plan.
11. Ethics and Working Hours of the Board of - Transparency of the Bank’s financial and
Commissioners. non-financial conditions.
12. Board of Commissioners Meeting. - Approve and periodically review the
13. Reporting and Accountability. Bank’s vision, mission and core values.
14. Remuneration. c. Directing, monitoring and evaluating the
15. The Board of Commissioners’ Self-Assessment. implementation of BCA’s strategic policies.
d. Ensure that the Board of Directors has followed
The Board of Commissioners’ Charter is set forth up on audit findings and recommendations
in the Corporate Governance Manual and can be from the Internal Audit Division, external
found on BCA website on the Corporate Governance auditors, the results of supervision by the
section (https://www.bca.co.id/en/Tentang-BCA/ authorities, including but not limited to OJK,
Tata-Kelola-Perusahaan/Struktur-Organisasi). Bank of Indonesia, and/or the Indonesia Stock
Exchange.
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e. Notifying OJK/Bank Indonesia no later than Duties and Responsibilities of President
7 (seven) working days since the violation Commissioner
of laws and regulations in the financial and The President Commissioner carries out the
banking sector has been discovered, and/or same duties and responsibilities as the Board
circumstances or predicted condition that may of Commissioners above, plus other duties and
endanger the business continuity of BCA. responsibilities:
f. Establish supporting committee for the a. Lead the Board of Commissioners in carrying
effectives of Board of Commissioners’ in out supervisory and assurance duties.
performing its duties and responsibilities: b. Coordinate the implementation of the
1) Audit Committee. duties and responsibilities of the Board of
2) Risk Oversight Committee. Commissioners.
3) Remuneration and Nomination c. Propose to hold Board of Commissioners
Committee. meetings, including meeting agendas.
4) Integrated Governance Committee. d. Make call and lead the Board of Commissioners’
The Board of Commissioners must ensure meeting.
that the committees established perform e. Submit a supervisory report to obtain
their duties effectively and evaluate the the approval of the Annual GMS for the
performance of the committees that help carry implementation of the duties and supervision
out The Board of Commissioners duties and of the Board of Commissioners.
responsibilities at the end of the financial year. f. Ensure that the implementation of the
g. Ensure that the committees established by the responsibilities of the Board of Commissioners
Board of Commissioners carry out their duties has been carried out according to procedure.
effectively. g. Ensure that meetings of the Board of
h. Provide sufficient time to carry out their duties Commissioners make decisions effectively
and responsibilities optimally. based on true and complete information,
i. Hold regular meetings of the Board of including ensuring that:
Commissioners in accordance with applicable - All strategic and important issues are
laws and regulations. taken into consideration by the Board of
j. Prepare minutes of the Board of Commissioners’ Commissioners.
meetings, signed by all members of the Board - Problems are discussed carefully and
present at the meeting. thoroughly.
k. Distribute copies of the minutes of the Board - All members of the Board of
of Commissioners’ meeting to all members of Commissioners are given the opportunity
the Board and related parties. to contribute effectively.
l. Hold regular meetings with the Directors at - Each member of the Board of
least 1 (one) time every 4 (four) months. Commissioners receives relevant
m. Submit reports on supervisory tasks that have information in a timely manner, including
been carried out during the previous financial a brief explanation of the issues that will be
year to the Annual GMS and set forth in the discussed at the Board of Commissioners’
Annual Report. meeting.
n. Supervise the implementation of Integrated - Meetings of the Board of Commissioners
Governance. produces clear decisions and are recorded
o. Approved the Sustainable Financial Action in the minutes.
Plan prepared by the Directors. h. Ensure that the Board of Commissioners
behaves in accordance to the Board of
Commissioners Charter.
i. Strive to meet the development needs of the
Board of Commissioners.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
j. Conduct a final evaluation, taking into account ii. In order to guarantee the obligations
the recommendations of the Remuneration of other parties for amounts
and Nomination Committee, on the results exceeding a certain amount which
of the collective evaluation of the Board of from time to time will be determined
Commissioners and its Committees and the by the Board of Commissioners.
evaluation of individual members of the Board 3) Purchase or otherwise acquire immovable
of Commissioners and committee members. property, except for the purpose of
implementing what is stipulated in Article
4. Authorities of the Board of Commissioners 3 of the BCA Articles of Association which
In carrying out its duties and responsibilities, the exceeds a certain amount from time to
BCA Board of Commissioners has the authority to: time will be determined by the Board of
a. Have access to all buildings or other premises Commissioners, that is to carry out other
used or controlled by BCA. activities that are commonly carried out by
b. Check all bookeeping, letters and other banks as long as they are not contrary to
evidence. prevailling laws and regulations, including
c. Request clarifications from the Board of but not limited to actions in the context
Directors regarding all matters concerning of restructuring or saving credit including
BCA. buying collateral, either in whole or in
d. Temporarily terminate one or more members part, through an auction or other means,
of the Board of Directors, should any of the in the event that the debtor does not
member of the Board act contrary to the BCA’s fulfill his obligations to the bank provided
Articles of Association, cause harm to the that the collateral purchased is mandatory
Bank, neglect obligations, and/or violate the disbursed as soon as possible.
prevailling laws and regulations. 4) Establish a new company, undertake or
e. Evaluate and decide upon Directors’ requests dispose or reduce capital participation or
related to transactions that require the increase capital participation, except:
approval of the Board of Commissioners in i. Additional capital participation from
accordance with BCA’s Articles of Association: BCA stock dividends, or
1) Lend money or providing credit facilities ii. Equity participation in the context of
or other banking facilities that correspond credit rescue.
or result in money borrowing: with regard to the prevailing laws and
i. To related parties as stipulated in the regulations
provisions of Bank Indonesia or the 5) Borrow money that is not included in
OJK or other authorized agencies regulation that referred to the Articles
concerning the legal lending limit for of Association of BCA, namely collecting
commercial banks. funds from the public in the form of
ii. Which exceeds a certain amount that deposits such as current account, time
from time to time shall be determined deposits, certificates of deposit, savings,
by the Board of Commissioners. and/or other forms equivalent to that.
2) Provide a guarantee or debt security 6) Transfer or relinquish BCA’s written off
(borgtocht): rights, whether in part or in whole, the
i. In order to guarantee payment amount of which will be determined
obligations of related parties to other from time to time by the Board of
parties as stipulated in the provisions Commissioners.
of Bank Indonesia or the OJK or other
authorized agencies concerning the
legal lending limit for commercial
banks.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
7) Sell or transfer or relinquish rights or c) Have never been convicted of a
pledge/guarantee BCA’s assets above a criminal offense that is detrimental
certain value that will be determined to the state finances and/or related
from time to time by the Board of to the financial sector.
Commissioners but less than or equal to d) Have never been a member of the
½ (one half) of the total net worth of Board of Directors and/or a member
BCA recorded in the balance sheet BCA, of the Board of Commissioners who
either in one transaction or in several during their tenure:
independent transactions or related to s .OT HELD AN !NNUAL '-3
each other in 1 one) financial year. s !CCOUNTABILITY AS A MEMBER
8) Carry out legal actions or transactions of the Board of Directors and/
that are strategic in nature and can have or members of the Board of
a significant impact on the continuity Commissioners has been rejected
of BCA’s business, the type of legal by the GMS or does not provide
action or transaction from time to time accountability as a member
will be determined by the Board of of the Board of Directors and/
Commissioners. or member of the Board of
Commissioners to the GMS.
The Board of Commissioners shall be aware s (AD CAUSED A COMPANY
of the provisions of the BCA’s Articles of obtaining permits, approvals,
Association, the Board of Commissioners or registrations from OJK fail to
Charter, as well as the prevailing laws and comply with the obligation to
regulations in order to carry out its duties, submit Annual Reports and/or
responsibilities and authority. financial reports to OJK.
4) Has the commitment to comply with laws
5. Criteria for Members of the Board of and regulations.
Commissioners 5) Has knowledge and/or expertise in
BCA Board of Commissioners members are the fields required by Issuers or Public
individuals who meet the criteria and requirements Companies.
according to:
a. OJK Regulation No. 33/POJK.04/2014 on the b. Based on Article 27 of OJK Regulation No.
Directors and Board of Commissioners of 55/POJK.03/2016 on the Implementation
Issuers or Public Companies, which requires of Governance for Commercial Banks, each
that members of the Board of Commissioners member of the Board of Commissioners must
must: meet the requirements for fit and proper test
1) Have good character, morals and integrity in accordance with OJK Regulation No. 27/
2) Be competent in carrying out legal actions POJK.03/2016 on The Fit and Proper Test for
3) Within 5 (five) years before appointment Main Parties of Financial Services Institutions,
and during their tenure: which among others state that:
a) Have never been declared bankrupt. 1) Integrity requirements, including:
b) Have never been a member of the a) Capable of carrying out legal actions.
Board of Directors and/or a Board of b) Has good character and morals,
Commissioners who was found guilty at least shown by the attitude of
of causing a company to go bankrupt. complying with applicable provisions,
including have never been convicted
of a crime in a certain period before
being nominated.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
c) Has a commitment to comply with which states that the proposed appointment,
laws and regulations and uphold OJK termination and/or replacement of members of
policies the Board of Directors to the GMS as referred
d) Has a commitment towards the to in Article 7, mutatis mutandis, applies to
development of a healthy financial members of the Board of Commissioners.
services institution
e) Not included as a individual principal Nomination Mechanism
prohibited from being a party. The flow of the nomination mechanism is as follows:
2) Financial reputation requirements, at least 1. Proposals from shareholders/Board of
evidenced by: Commissioners related to the nominations of
a) Not having bad credit and/or non the Board of Commissioners are submitted to the
performing loan. Board of Commissioners.
b) Has never been declared bankrupt 2. The Board of Commissioners requests the
and/or has never been a shareholder, Remuneration and Nomination Committee to
controller of an insurance company discuss proposals related to the nomination of
who is not a shareholder, member of the Board of Commissioners.
the Board of Directors, or a member 3. The Remuneration and Nomination Committee
of the Board of Commissioners found conducts discussions related to the proposal in
guilty of causing a company to be the Remuneration and Nomination Committee
declared bankrupt within the last 5 meeting. The discussion was outlined in the
(five) years before being nominated. minutes of the RNC meeting. Matters considered
in the meeting include:
6. Nomination for Members of the Board of a. Reasons and/or considerations of proposals.
Commissioners b. Qualification of candidates according to
related proposals.
Legal Basis c. The Remuneration and Nomination
The holding of nominations for members of the Committee takes the following steps:
Board of Commissioners refers to the following s 0AYING ATTENTION TO EXTERNAL AND
guidelines: internal conditions according to the
a. Article 27 of OJK Regulation No. 55/ bank’s strategic direction.
POJK.03/2016 concerning the Implementation s #OMMUNICATE WITH THE CONTROLLING
of Governance for Commercial Banks which shareholder (if the proposal is not from
states that any proposed appointment and/ the controlling shareholder).
or replacement of members of the Board of 4. After conducting the discussion, the
Commissioners to the GMS must consider the Remuneration and Nomination Committee
Remuneration and Nomination Committee provides recommendations to the Board of
recommendations. Commissioners as outlined in the Remuneration
b. Article 7 of OJK Regulation No. 33/ and Nomination Committee Decision Letter.
POJK.04/2014 concerning Directors and Board 5. Based on the Remuneration and Nomination
of Commissioners of an Issuers or Public Committee recommendations, the Board of
Companies which states that the proposed Commissioners submits candidates for the
appointment, dismissal, and/or replacement of Board of Commissioners and/or Directors to
members of the Board of Directors to the GMS the chairman of the GMS through the Decision
must consider the recommendations of the Letter of the Board of Commissioners.
Board of Commissioners or the committee that 6. The GMS leader requests the approval of the
carries out the nomination function. shareholders in the agenda of the GMS related to
c. Article 26 OJK Regulation No. 33/POJK.04/2014 the nominations of the Board of Commissioners
concerning Directors and Board of and/or Directors.
Commissioners of Issuers or Public Companies
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7. After obtaining approval from the GMS, the approval shall be set forth in the minutes of the GMS which is
the basis of the fit and proper test process for candidates for the Board of Commissioners and/or Directors.
8. BCA may use the services of third parties in the search for candidates for the Board of Commissioners and/or
Directors.
Nomination Mechanism of BCA Board of Commissioners Members
Nomination Mechanism
Shareholders /
Remuneration and Board of Directors
Board of Board of Commissioners GMS
Nomination Committee Bureau
Commissioners
Nominated Proposal Rejected
(Candidate for the Board Submit proposals Discussion in the
of Commissioners to RNC RNC meeting
and/or BCA Directors)
Accepted
Submission of
candidate proposals RNC decision letter
to the GMS leader
The leader of
the GMS asked
for shareholder
approval
Approval is set forth
Preparation and
in the minutes of
fulfillment of the
the GMS
fit and proper test
(basis of fit and
process
proper test)
Acceptance of fit
and proper test
results
PT Bank Central Asia
Finish
7. Number and Composition of the Members of the Board of Commissioners
BCA has determined the number and composition of members of the Board of Commissioners in accordance with
OJK Regulation No. 55/POJK.03/2016 concerning the Application of Governance for Commercial Banks.
OJK Regulation No. 55 / POJK.03 / 2016 concerning the
Implementation at BCA
Implementation of Governance for Commercial Banks
Have at least three people and at most the same as the There are 5 (five) members of the Board of Commissioners.
number of members of the Board of Directors.
Have at least one member of the Board of Commissioners All members of the Company’s Board of Commissioners are
domiciled in Indonesia. domiciled in Indonesia.
Have Independent Commissioner of at least 50% of the The number of Independent Commissioners of the
total members of the Board of Commissioners. Company is 3 (three) people or 60% (sixty percent) of the
total members of the Board of Commissioners.
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As of December 31, 2019, BCA had 5 (five) members in the next period as Independent Commissioners
of the Board of Commissioners, consisting of 1 (one) with the following conditions:
President Commissioner, 3 (three) Independent - The meeting of the members of the Board of
Commissioners, and 1 (one) Non-Independent Commissioners considers that the Independent
Commissioner. The number of members of the Commissioners could still act independently.
Board of Commissioners of BCA does not exceed the - The Independent Commissioner stated in the
number of members of the Board of Directors of BCA. GMS regarding the independency concerned.
The number of BCA Independent Commissioners
has fulfilled the provisions exceeding 50% (fifty BCA has Independent Commissioners who have
percent), or specifically 60% (sixty percent) of the been appointed for more than 2 (two) periods,
total members of the BCA Board of Commissioners. namely Cyrillus Harinowo and Raden Pardede. Both
All members of the BCA Board of Commissioners of them have made an independent declaration
are domiciled in Indonesia. which was read at the time of the appointment of
Independent Commissioner members at the 2016
In accordance with BCA’s Articles of Association, BCA Annual General Meeting. The contents of the
the term of office of members of the Board of declaration of independence can be seen in the
Commissioners is five years from the date specified independent commissioner’s statement section of
in the GMS. The term of office of the members of this Annual Report.
the Board of Commissioners for this period will
end when BCA Annual GMS is closed in 2021. The All members of the Board of Commissioners of
GMS still has the authority to dismiss one or more BCA have obtained approval from Bank Indonesia
members of the Board of Commissioners at any or the OJK and have passed the fit and proper test
time before his term ends. before carrying out their duties and functions. This
is in accordance with the provisions of the regulator
Independent Commissioners who have served for regarding the fit and proper test.
two consecutive terms of office can be reappointed
Position Name No. Letter of Agreement
President Commissioner Djohan Emir Setijoso 13/99/GBI/DPIP/Rahasia dated August 25, 2011
Commissioner Tonny Kusnadi 5/4/DpG/DPIP/Rahasia dated September 4, 2003
Independent Commissioner Cyrillus Harinowo 5/4/DpG/DPIP/Rahasia dated September 4, 2003
Independent Commissioner Raden Pardede 8/84/DPB3/TPB3-2 dated August 16, 2006
Independent Commissioner Sumantri Slamet SR -117/D.03/2016 dated July 11, 2016
8. Composition of BCA Board of Commissioners Members During 2019
In 2019 there was no change in the composition of the Board of Commissioners, so in this Annual Report BCA
does not present the reasons for the change in the composition of the Board of Commissioners. The composition
of the BCA Board of Commissioners’ membership in 2019 is contained in the The Meeting Resolution Deed of PT
Bank Central Asia Tbk No. 100 dated October 10, 2019, made before Christina Dwi Utami, S.H. M.Hum., M.Kn.,
Notary in Jakarta.
The Composition of BCA’s Board of Commissioners in 2019
Position Name Position Period
President Commissioner Djohan Emir Setijoso 2016 – 2021
Commissioner Tonny Kusnadi 2016 – 2021
Independent Commissioner Cyrillus Harinowo 2016 – 2021
Independent Commissioner Dr. Ir. Raden Pardede 2016 – 2021
Independent Commissioner Sumantri Slamet 2016 – 2021
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BCA did not change the composition of the Board of Commissioners in 2018. The composition of the Board of
Commissioners based on the BCA annual GMS in 2018 is as follows.
Composition of BCA Board of Commissioners in 2018
Position Name Position Period
President Commissioner Djohan Emir Setijoso 2016 – 2021
Commissioner Tonny Kusnadi 2016 – 2021
Independent Commissioner Cyrillus Harinowo 2016 – 2021
Independent Commissioner Raden Pardede 2016 – 2021
Independent Commissioner Sumantri Slamet 2016 – 2021
There have been no members of the Board of Commissioners who were former Directors of BCA in the last two
years.
9. Induction Program for New Board of b. Meetings with members of the Board of
Commissioners Members Directors and the Board of Commissioners
The orientation program is designed for new to discuss various issues in BCA or other
members of the Board of Commissioners in order to information needed.
prepare them to properly perform their duties and c. Visiting various locations of BCA’s business
responsibilities as members of the BOC. activities/branches together with other
members of the Board of Directors/
Board of Commissioners orientation program management.
policies are regulated in the BCA corporate
governance guidelines in Part B concerning 10. Training Programs to Enhance the Competence
procedures for implementing corporate governance of Members of the Board of Commissioners
principles-chapter II on guidelines and code of Board of Commissioners training program policies
conduct for the Board of Commissioners. are regulated in the BCA corporate governance
guidelines in Part B concerning procedures for
The orientation program includes: implementing corporate governance principles-
a. Knowledge about BCA which includes the chapter II on guidelines and code of conduct for the
vision, mission, strategies and plans for Board of Commissioners.
the medium and long term, performance,
governance, and finance of BCA. Guidelines and code of conduct for the Board
b. Understanding of duties and responsibilities of Commissioners are stated in the corporate
as a member of the Board of Directors, limits governance guidelines and can be found in BCA
of authority, working time, relations with website under the corporate governance section
the Board of Commissioners, related internal/ (https://www.bca.co.id/en/Tentang-BCA/Tata-
external rules/ conditions, and others. Kelola-Perusahaan/Struktur-Organisasi).
Orientation Procedures BCA requires members of the Board of
The orientation procedures for the new members Commissioners to take part in a training program
of the Board of Commissioners may be conducted at least 1 (one) time a year in order to support the
by: implementation of the duties and obligations. The
a. Presentation from work units by involving list of training programs participated by the Board
the management to introduce various aspects of Commissioners in 2019 is as follows:
deemed necessary.
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Training Program Participated by Members of the Board of Commissioners in 2019
No Name Training Program Organizer Location Date
1 Djohan Emir 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Setijoso Indonesia
2. Knowledge Sharing BCA Open BCA Jakarta, July 16, 2019
Source: “Arab-China Relations Indonesia
in Economy and Business in The
Middle East”
3. Seminar: “Role of Compliance Communication Jakarta, June 27, 2019
Director in Facing Digital Forum of Indonesia
Economy Challenges and Banking’s
Banking Readiness in Facing Compliance
Mutual Evaluation Review Director
(MER)”
4. GRC Summit 2019: “Sustaining CRMS Indonesia Jakarta, August 22-23,
Through Integrated GRC” (Center for Risk Indonesia 2019
Management
Studies)
5. Digital Transformation in BCA BCA Jakarta, September 3,
Indonesia 2019
6. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
7. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
8. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
2 Tonny Kusnadi 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
3. The Asia Global Payment Currency Bali, Indonesia October 10-11,
Summit Research Malta 2019
Limited
4. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
5. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
3 Cyrillus Harinowo 1. ASEAN Global Leadership London School London, March 25-29,
Programme LSE 2019 of Economics & England 2019
Political Science
(LSE) and
SRW & Co.
2. National Seminar revival & Pusat Studi Jakarta, February 19, 2019
BUMN: Infrastructure Sector BUMN Indonesia
3. Knowledge Sharing BCA Open BCA Jakarta, July 16, 2019
Source: “Arab-China Relations Indonesia
in Economy and Business in The
Middle East”
4. Digital Transformation in BCA BCA Jakarta, September 3,
Indonesia 2019
5. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
6. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
7. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup.
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No Name Training Program Organizer Location Date
4 Raden Pardede 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. J.P. Morgan’s Asia Pacific CEO- J.P. Morgan New York, USA September 4-5,
CFO Conference 2019 2019
3. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
4. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
5. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup - BCA - Jakarta,
Indonesia.
5 Sumantri Slamet 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. National Seminar revival & Pusat Studi Jakarta, February 19, 2019
BUMN: Infrastructure Sector BUMN Indonesia
3. Arab-china Relationing in BCA Jakarta, July 16, 2019
Economy and Business in the Indonesia
Middle East
4. Data Analysis and New York New York, USA August 5-9, 2019
Programming for Finance Institute for
Finance
5. J.P. Morgan’s Asia Pacific CEO- J.P. Morgan New York, USA September 4-5,
CFO Conference 2019 2019
6. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
7. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
8. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup - BCA - Jakarta,
Indonesia.
Pursuant to Bank Indonesia Regulation No. 11/19/ Board of Commissioners shall be reported to the
PBI/2009 dated 4 June 2009 as amended by Bank OJK in accordance with OJK regulations. BCA policy
Indonesia Regulation No. 12/7/PBI/2010 dated 19 April regarding the obligations of member of the Board
2010 concerning Risk Management Certification for of Commissioners to disclose the share ownership
Management and Official of Commercial Banks, all information refers to the following provisions:
members of the Board of Commissioners have risk a. Article 2 of OJK Regulation No. 11/
management certification and/or refreshment in POJK.04/2017 concerning Report of Ownership
accordance with applicable regulations. or Any Changes in the Share Ownership of a
Public Company stating that a member of the
11. Share Ownership for Members of the Board of Board of Directors or Board of Commissioners
Commissioners that Amounts to 5% or More of shall report to the OJK on ownership and any
Paid-Up Capital change of ownership of the Company’s shares
either directly or indirectly.
Legal Basis
BCA regulates the obligations of members of the
Board of Commissioners to disclose share ownership
that reaches 5% or more of paid-up capital. Any
changes in the share ownership for members of
366 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
b. Article 39 of OJK Regulation No. 55/ BCA has a policy regarding the obligations of
POJK.03/2016 Implementation of Corporate members of the Board of Commissioners to disclose
Governance for Commercial Banks states that information on ownership and changes of BCA’s
members of the Board of Commissioners shall shares contained in the corporate governance
disclose share ownership of 5% or more at the guidelines on code of conduct of the Board of
Bank or other banks and companies domiciled Commissioners. This policy is in accordance with
in and outside the country. Article 3 of OJK Regulation No. 11/POJK.04/2017
concerning Report of Ownership or Any Changes
Implementation of Ownership or Report Share in the Share Ownership of a Public Company. In
The Board of Commissioners code of conduct addition, BCA has also conducted socialization of
regulates, among others about the Board of the OJK Regulation through Corporate Secretary
Commissioners obligation to disclose share Memo No. 120/MO/ DCS/2017 dated 25 April 2017
ownership of 5% or more of paid-up capital, to all members of the Board of Directors and Board
which includes the type and number of shares in of Commissioners.
BCA, other banks, non-bank financial institutions
and other companies, which are domiciled in and BCA has submitted a report on any changes in
outside the country. In addition to the above, BCA share ownership of the Board of Commissioners in
has also held and stored a special list as regulated in 2019 through the e-reporting system and hardcopy
Article 50 of the Limited Liability Company Law. document to the OJK and Indonesia Stock Exchange
in compliance with internal and external policies
regarding share ownership reports.
Table of Share Ownership of the Board of Commissioners that Amounts to 5% or More as of December 31, 2019
Share Ownership of the Board of Commissioners that amounts to 5% or
more of paid-up capital on:
Name
Non-Bank
BCA Other Banks Other Companies
Financial Institution
Djohan Emir Setijoso - - - 3
Tonny Kusnadi - - - 3
Cyrillus Harinowo - - - 3
Dr. Ir. Raden Pardede - - - 3
Sumantri Slamet - - - -
Remark:
3 owns shares in the amount of 5% (five percent) or more.
Table of BCA Share Ownership by the Board of Commissioners in 2019
Total Ownership In the beginning of Total Ownership at the end of year
Name
the year (as of January 1, 2019) (as of December 31, 2019)
Djohan Emir Setijoso 23,100,481 22,147,163
Tonny Kusnadi 1,137,939 1,175,285
Cyrillus Harinowo - -
Raden Pardede - -
Sumantri Slamet - -
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12. Dual Positions for Members of the Board of s .ON )NDEPENDENT #OMMISSIONERS PERFORM
Commissioners functional tasks from bank shareholders
Throughout 2019, BCA complied with legal in the form of legal entities in the Bank
regulations regarding the dual positions of the business group.
Board of Commissioners. There are no members s -EMBERS OF THE "OARD OF #OMMISSIONERS
of the Board of Commissioners of BCA who hold hold positions in non-profit organizations
concurrent positions beyond the prevailing or institutions.
provisions.
Disclosure
Legal Basis Concurrent positions on the Board of Commissioners
a. Members of the BCA Board of Commissioners of BCA have taken into account Article 28 of
do not hold concurrent positions, except for the OJK Regulation No. 55/POJK.03/ concerning
the terms and conditions stipulated in: Implementation of Corporate Governance for
s /*+ 2EGULATION .O 0/*+ ON Commercial Banks. The list of concurrent positions
the Implementation of Governance for of the Board of Commissioners of BCA in 2019 is as
Commercial Banks. follows:
s /*+ 2EGULATION .O 0/*+ 1. 1 (one) Non-Independent Commissioner
on the Board of Directors and Board of concurrently serving as President Commissioner
Commissioners of the Issuers or Public in one other company not a financial
Companies. institution.
s /*+ #IRCULAR ,ETTER .O 3%/*+ 2. 1 (one) Independent Commissioner concurrently
on the Implementation of Governance for serving as an Independent Commissioner in
Commercial Banks. another company not a financial institution.
b. Members of the BCA Board of Commissioners 3. 1 (one) other Independent Commissioner
do not hold concurrent positions as members concurrently serving as an Independent
of the Board of Directors, the Board of Commissioner in one other company not a
Commissioners, or executive officers: financial institution and also as a member of
s )N lNANCIAL INSTITUTIONS OR lNANCIAL the University of Indonesia’s Board of Trustees’
companies, both banks and non-banks; organization.
s )N MORE THAN ONE NON lNANCIAL INSTITUTION
or non-financial company, both domestic Disclosure of concurrent positions held by members
and abroad. of the Board of Commissioners in the last 3 (three)
c. The following conditions are not considered years is as follows:
concurrent positions, as referred to in the
paragraph above, if:
s -EMBERS OF THE "OARD OF #OMMISSIONERS
serve as members of the Board of
Directors, members of the Board of
Commissioners, or executive officers who
perform supervisory functions in 1 (one)
non-bank subsidiary company controlled
by the Bank.
368 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Table of Dual Positions of the Board of Commissioners of BCA in 2019
Position at
Name Position at BCA Position at Other Companies Industry
Other Banks
Djohan Emir Setijoso President Commissioner - - -
Tonny Kusnadi Commissioner - President Commissioner of PT Sarana Menara Operator of Telkom Tower
Nusantara Tbk
Cyrillus Harinowo Independent Commissioner - - -
Independent Commissioner of PT Adaro Energy Coal mining
Raden Pardede Independent Commissioner -
Tbk
- Independent Commissioner and Head of - Beverages company
Audit Committee of Audit PT Multi Bintang
Sumantri Slamet Independent Commissioner - Indonesia Tbk - Education
- Member of Risk Committee of Universitas
Indonesia
Table of Dual Positions of the Board of Commissioners of BCA in 2018
Position at
Name Position at BCA Position at Other Companies/Institutions Industry
Other Banks
Djohan Emir Setijoso President Commissioner - - -
Tonny Kusnadi Commissioner - President Commissioner of PT Sarana Menara Operator of Telkom Tower
Nusantara Tbk
Cyrillus Harinowo Independent Commissioner - - -
Independent Commissioner of PT Adaro Coal mining
Raden Pardede Independent Commissioner -
Energy Tbk
- Independent Commissioner of PT Multi - Beverages company
Bintang Indonesia Tbk
Sumantri Slamet Independent Commissioner -
- Member of Board of Trustee of Universitas - Education
Indonesia Foundation
Table of Dual Positions of the Board of Commissioners of BCA in 2016-2017
Position at
Name Position at BCA Position at Other Companies/Institutions Industry
Other Banks
Djohan Emir Setijoso President Commissioner - - -
Tonny Kusnadi Commissioner - President Commissioner of PT Sarana Menara Operator of Telkom Tower
Nusantara Tbk
Independent Commissioner of PT Unilever Consumer Goods
Cyrillus Harinowo Independent Commissioner -
Indonesia Tbk
Independent Commissioner of PT Adaro Energy Coal mining
Raden Pardede Independent Commissioner -
Tbk
- Independent Commissioner of PT Multi - Beverages Company
Bintang Indonesia Tbk
Sumantri Slamet Independent Commissioner -
- Member of Board of Trustee of Universitas - Education
Indonesia Foundation
13. Report on Task Implementation and Assessment The report on the implementation of committee
of Committees under the Board of Commissioners duties under the Board of Commissioners in 2019
Throughout 2019, the committees under the Board can be found in the committee section under the
of Commissioners have carried out their functions Board of Commissioners in this Annual Report.
and responsibilities properly in supporting the
implementation of the duties of the Board of The Board of Commissioners evaluates these
Commissioners. Committees under the Board of committees with the following conditions:
Commissioners include: 1. Criteria
1. Audit Committee. The criteria for evaluating the committees
2. Risk Oversight Committee (ROC) under the Board of Commissioners are based
3. Remuneration and Nomination Committee on their compliance towards the guidelines
(RNC) and code of conduct, as well as the realization
4. Integrated Governance Committee (IGC). of work/implementation of the duties of each
committee
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
2. Process
The assessment is performed by the Board of Commissioners once in 1 (one) year
3. Result
The Board of Commissioners believes that all of these committees have worked accordingly by upholding
competency standards and good quality.
Table of Results of Evaluation of Committees under the Board of Commissioners
Committee Realization / Remarks Results
Audit Committee In 2019, in performing its function, the Audit The Audit Committee ensured the
Committee has convened 21 meetings, 6 (six) implementation of internal control and
meetings with the Internal Audit Division, and effectively assisted the Board of Commissioners
has reviewed more than 114 internal audit in overseeing the implementation of internal
reports. and external audit functions, implementation
of corporate governance and compliance with
applicable laws and regulations.
Risk Oversight The Risk Oversight Committee organized The Risk Oversight Committee ensured BCA
Committee 14 (fourteen) meetings in 2019, including to has a risk management system that provides
conduct reviews of credit, liquidity, reputation protection against the risks faced by BCA
and operational risk, crisis management and
business continuity plan, as well as review of
the recovery plan.
Remuneration and In 2019. the Remuneration and Nomination The Remuneration and Nomination
Nomination Committee held 5 (five) meetings, Committee carried out its duties in
Comitte of which 3 (three) meetings were related to providing recommendations to the Board
The remuneration function and 2 (two) of Commissioners regarding the overall
meetings related to the nomination function. remuneration policy at BCA.
Integrated In 2019. the integrated Governance Committee The Integrated Governance Committee
Governance organized 4 (four) meetings and actively supported the Board of Commissioners in
Committee participated in development of BCA Integrated conducting supervision of the implementation
Governance. of governance in BCA and its subsidiaries in an
integrated manner.
1. Assessment of the Audit Committee c. Conduct meeting with the public
The assessment used by the Board of accounting firm Tanudiredja, Wibisana,
Commissioners is based on the realization of Rintis & Partners (a member firm of PwC
The Audit Committee’s duties. Throughout Global Network) to discuss audit plans and
2019, the committee has performed its duties scope of BCA Financial Statement for the
effectively and held 21 (twenty one) meetings. financial year 2019.
In addition, the committee also realized the d. Conduct meeting with Finance and
following work programs: Planning Division to review BCA Financial
a. Conduct meeting with the public Statement published quarterly.
accounting firm Tanudiredja, Wibisana, e. Conduct meeting with internal audit
Rintis & Partners (a member firm of PwC division six times to:
Global Network) to discuss BCA final audit i. Evaluate annual plan;
report for financial year 2018 along with ii. Evaluate implementation of internal
management letter. audit every semester; and
B. Recommended to the Board of iii. Conduct discussions related to audit
Commissioners for Reappointing Public Results deemed significant.
Accounting Firm Tanudiredja, Wibisana, f. Attended internal audit exit meetings at
Rintis & Partners (a member firm of PwC one main branch office, (including review
Global Network) to audit BCA financial of 3 (three) supporting branches), as
statements for the financial year 2019. part of internal audit quality assessment
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
process. In addition, conducting review of c. Review on BCA’s risk profile and specifically
cash processing center (CPC) Alam Sutera explored credit risk, operational, market,
already in operation and data center liquidity and reputation risk.
Surabaya as part of the assessment of d. Analysis on the results of stress tests of
adequacy and effectiveness of control in credit, market and liquidity risk.
the internal work unit. e. Ensured the implementation GCG was
g. Reviewed internal audit reports (more carried out well and in an appropriate
than 114 reports) and monitored the manner. The committee also attended the
follow up. general meeting of Shareholders, Analyst
h. Assessed BCA compliance with rules, Meeting and BCA National Work Meeting
regulations and laws applies in banking for fiscal 2020.
through review of compliance reports f. Conducted monthly monitoring of
based on prudence principles reported the realized implementation of credit,
every semester. liquidity, market and operational risk.
i. Reviewed the credit portfolio report g. Learnt new regulations and conducted
published every semester. a review of the compatibility of the KPR
j. Monitored the implementation of risk charter with the new regulations.
management through quarterly reports h. Conduct a visit to the Surabaya data center
of risk profile company and monthly in order to monitor risk mitigation with
report of operation risk management the Audit Committee and the Internal
information system (ORMIS). Audit Division.
k. Conducted review of:
i. OJK examination results and the 3. Assessment of the Remuneration and
follow-up Nomination Committee (RNC)
ii. Management letter from public Throughout 2019, RNC held 5 (five) meetings,
accounting firm Tanudiredja, and implemented work programs as follows:
Wibisana, Rintis & Partners (a member a. Prepared recommendations for the Board
firm of PwC Global Network) along of Directors’ nominations for 2019.
with the follow up. b. Prepared recommendations related
l. Reported the results of regular studies to the remuneration of the Board of
and evaluations on governance, risk Commissioners and Board of Directors.
management, compliance and control of
Board of Commissioners quarterly. 4. Assessment of the Integrated Governance
m. Attended GMS, analyst meeting, and BCA Committee (IGC)
national work meeting in 2020 in order ICG held 4 (four) meetings in 2019, and also
to supervise the implementation good implemented work programs as follows:
corporate governance. a. Evaluated the Implementation of
integrated governance in semester II 2018.
2. Assessment of the Risk Oversight b. Reviewed the implementation of
Committee (ROC) integrated risk management of the BCA
ROC held 14 (fourteen) meetings in 2019, and financial conglomerates.
also implemented work programs as follows: c. Evaluate the implementation of
a. Monitor the implementation of the duties integrated governance in semester I 2019.
of the committee. d. Updated information related to
b. Monitor the implementation of the duties subsidiaries in the BCA financial
of the Risk Management Work Unit. conglomerates.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
e. Follow up on the previous meeting Based on OJK Circular Letter No. 13/SEOJK.03/2017 on
f. Conduct discussions related to the Implementation of Good Corporate Governance
coordination between internal audit for Commercial Banks, Independent Commissioners are
division and subsidiaries. members of the Board of Commissioners who do not
have financial, management, ownership, and/or family
14. Policy on Loan Facilities for the Board of relationships with members of the Board of Directors,
Commissioners other members of the Board of Commissioners, and/or
BCA already has policies regulating loan facilities to Controlling Shareholders, or relationships with the Bank
the Board of Commissioners, as explained on page that can affect their ability to act independently.
529 regarding Provision of Funds to Related Parties
and Large Exposure. 1. Independent Commissioner Criteria
All Independent Commissioners must meet the
15. Board of Commissioners Supervisory Duties following criteria:
Report 1. Not a person who is employed or has the
The Board of Commissioners carries out supervisory authority and responsibility to plan, lead,
duties to ensure BCA operates in the right direction, control, or oversee BCA activities within the
maintains business sustainability, and provides last six months, except for re-appointment as
added value to all stakeholders. The Board of an Independent Commissioner of BCA in the
Commissioners also provides recommendations and following period;
advice to the Board of Directors in relation to their 2. Have no financial, management, ownership,
supervisory duties, including recommendations, and/or family relationships with members of
advices and assessments related to the the Board of Directors, other members of the
implementation of Good Corporate Governance in Board of Commissioners, and/or Controlling
BCA. Shareholders, or relationships with BCA that
can affect their ability to act independently;
A full Report on the Implementation of the Duties 3. Have no shares in BCA, directly or indirectly;
of the Board of Commissioners is presented on page 4. Have no affiliation with BCA, other members
37 section of the Board of Commissioners’ report in of the Board of Commissioners, members
this Annual Report. of the Board of Directors, or the Majority
Shareholders of BCA;
16. Performance Evaluation of Members of the 5. Have no direct or indirect business relationships
Board of Commissioners related to BCA business activities;
Performance evaluation of members of the Board 6. Meet other requirements of Independent
of Commissioners, related to the procedures Commissioners in accordance with prevailing
for carrying out performance appraisals, the regulations;
criteria used, and the parties conducting the 7. Prospective Independent Commissioners who
evaluation can be seen on page 407 under section are former members of the Board of Directors
of the Performance Evaluation of the Board of or BCA executive officers or other parties
Commissioners and the Board of Directors in this having a relationship with BCA must undergo
Annual Report. a cooling off period of at least one year before
becoming an Independent Commissioner;
INDEPENDENT COMMISSIONERS 8. Non-Independent Commissioners who will shift
to Independent Commissioners must undergo
In 2019, there were three Independent Commissioners of a cooling off period of at least six months; and
BCA, out of five members of the Board of Commissioners, 9. Independent Commissioners who serve as the
representing 60% of the total members of the Board. chairperson of the committee, may only hold
dual positions as the chairperson of at the
most of one other committee.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Independent Commissioners who have served I declare this statement of independency is made
for two consecutive terms may be reappointed as truthfully.”
Independent Commissioners in the next period in
the case of: BOARD OF DIRECTORS
s 4HE "OARD OF #OMMISSIONERS -EETINGS ASSESS
that the Independent Commissioners remain Pursuant to Law No. 40 Year 2007 on Limited Liability
able to act independently; and Companies, the Board of Directors is the organ of the
s )NDEPENDENT #OMMISSIONERS DECLARE THEIR Company that has the authority and full responsibility to
independence at the GMS. manage the Company for the interest of the Company,
in accordance with the purposes and objectives of the
2. Statement of Independent Commissioners Company as well as to represent the Company, either
The current BCA Independent Commissioners were in or out the court in accordance with the provisions of
appointed in 2016 and this will remain effective until the articles of association and the applicable laws and
2021, so that at the 2019 Annual GMS there was regulations.
no need for the appointment of an Independent
Commissioner. 1. Legal Basis
BCA appointed the Board of Directors based on the
The appointment of the Independent Commissioner following regulations:
at the 2016 BCA Annual GMS was followed by a. Law No. 40 Year 2007 concerning Limited
the reading of the independence statement by Liability Companies.
Mr. Cyrillus Harinowo and Mr. Raden Pardede as b. Financial Services Authority (OJK) Regulation
Independent Commissioners. The statement of No. 34/POJK.03/2018 concerning Revaluation
independence is as follows: for the Main Parties of a Financial Services
Institution;
In connection with my nomination as an Independent c. OJK Regulation No. 11/POJK.04/2017
Commissioner of PT Bank Central Asia Tbk (“the concerning Reporting of Ownership, or
Company”) and considering that I have served as Changes in the Ownership, of Shares in Public
an Independent Commissioner of the Company for Companies.
more than two terms of tenure, in order to comply d. OJK Regulation No. 27/POJK.03/2016
with the provisions of Article 25 paragraph 1 of concerning Fit and Proper Test of Main Parties
the OJK Regulation No. 33/POJK.04/2014 regarding of Financial Services Institutions
Boards of Directors and Boards of Commissioners of e. OJK Regulation No. 55/POJK.03/2016
Issuers or Public Companies, hereby I declare that I: concerning The Implementation of Good
1. Am not working nor having the authority and Corporate Governance for Commercial Banks;
responsibility to plan, lead, control or oversee f. OJK Regulation No. 33/POJK.O4/2014
the Company’s activities within the last six concerning Board of Directors and Board of
months, except as Independent Commissioner Commissioners of Issuers or Public Companies.
of the Company; g. OJK Regulation No. 18/POJK.03/2014
2. Do not have any shares directly or indirectly in concerning Implementation of Integrated
the Company; Governance for Financial Conglomerates.
3. Do not have any affiliation with the Company, h. OJK Regulation No. 17/POJK.03/2014
members of the Board of Commissioners, concerning Implementation of Integrated Risk
members of the Board of Directors or Majority Management for Financial Conglomerates.
Shareholders of the Company; i. OJK Circular Letter No. 9/SEOJK.03/2019
4. Do not have any direct or indirect business concerning Revaluation of Main Parties of the
relationship related to the Company’s business Bank.
activities.
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j. OJK Circular Letter No.13/SEOJK.03/2017 The Board of Directors Charter is covered in the
concerning Implementation of Governance for Corporate Governance Guideline and can be viewed
Commercial Banks. on the BCA website (https://www.bca.co.id/en/
k. OJK Circular Letter No. 39/SEOJK.03/2016 Tentang-BCA/Tata-Kelola-Perusahaan/Struktur-
concerning Fit and Proper Test for Prospective Organisasi).
Controlling Shareholders, Prospective Members
of the Board of Directors, and Prospective 3. Duties and Responsibilities of the Board of
Members of the Board of Commissioners of the Directors
Bank. BCA’s Articles of Association and other regulations
l. OJK Circular Letter No. 15/SEOJK.03/2015 set out duties and responsibilities of the Board of
concerning the Implementation of Integrated Directors as follows:
Governance for Financial Conglomerates. a. Lead and manage BCA in accordance with
m. OJK Circular Letter No. 14/SEOJK.03/2015 the purposes and objectives of the Articles of
concerning Implementation of Integrated Risk Association.
Management for Financial Conglomerates. b. Control, maintain, and manage BCA’s assets for
n. BCA Articles of Association. the benefit of BCA.
c. Create internal control structure, ensure the
2. Guideline and Code of conduct of the Board of implementation of the internal audit function
Directors (Board of Directors Charter) at every level of management, and follow up
BCA has Guideline and Code of conduct of the Board on internal audit findings in accordance with
of Directors or Board of Directors Charter that is policies or directions given by the Board of
formulate pursuant to Article 18 of OJK Regulation Commissioners.
No. 55/POJK.03/2016 concerning Implementation d. Submit Annual Work Plan which also
of Governance for Commercial Banks and Article 35 includes the Annual Budget to the Board
of OJK Regulation No. 33/POJK.04/2014 concerning of Commissioners for approval, prior to
Board of Directors and Board of Commissioners of the commencement of the forthcoming
Issuers or Public Companies. The Board of Directors financial year, taking into account applicable
Charter regulates the following matters: regulations.
a. Legal basis; e. Implement the Good Corporate Governance
b. Values; principles in every BCA’s business activities at
c. Composition, Criteria, and Independence of all levels and stages of the organization.
the Board of Directors; f. Establish Integrated Risk Management
d. Tearms of duties of the Board of Directors; Committee.
e. Dual Positions of the Board of Directors; g. Evaluate the performance of the committee
f. Appointment of the Board of Directors; under the Board of Directors at the end of
g. Obligation, Duties, Responsibilities and each financial year.
Authorities of the Board of Directors; h. Conduct the Board of Directors’ meetings
h. Transparency and Prohibitions for the Board of regularly, at least once each month.
Directors; i. Record minutes of Board of Directors meetings
i. Orientation and Training of the Board of and have them signed by all members of
Directors; the Board of Directors present at the Board
j. Ethics and Working hours of the Board of Directors’ meeting.
Directors; j. Distribute copies of the minutes of meetings of
k. Board of Directors Meetings; the Board of Directors meeting to all members
l. Reporting and Accountability; of the Board of Directors and related parties.
m. Board of Directors self-assessment. k. Conduct meetings of the Board of Directors
together with the Board of Commissioners in
accordance with regulations.
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l. Hold and keep the list of shareholders, based on applicable laws and/or GMS
special list, minutes of General Meeting resolutions.
of Shareholders, and minutes of Board of f. Hire and dismiss employees based on personnel
Directors’ meetings. regulations. The Directors also disclose to
m. Prepare Annual Report and other company employees regarding BCA’s personnel policies,
documents as referred to in the applicable including the recruitment, promotion and
laws and regulations. remuneration system, through communication
n. Follow up on audit findings and facilities that can be accessed by employees.
recommendations from external auditors, the g. Perform other actions, either on management
results of supervision of OJK, Bank Indonesia or on ownership, in accordance with the
and/or the results of supervision of other provisions regulated further by the Board
authorities including but not limited to the of Commissioners with due regard to
Indonesia Stock Exchange. the provisions of the applicable laws and
o. Responsible for carrying out its duties and regulations.
responsibilities to shareholders through the
GMS. In performing its duties, responsibilities and
authorities, the Board of Directors shall take actions
Throughout 2019, the Board of Directors did not in good faith, with full responsibility and prudence,
grand general power of attorney to employees or with regard to BCA’s Articles of Association, the
other parties related to their duties and functions, Board of Directors Code of Conduct and prevailing
as stipulated in OJK Regulations related to laws and regulations.
Governance.
5. Criteria for the Board of Directors
4. Authorities of the Board of Directors Those who may be appointed as a member of the
Based on BCA’s Articles of Association and other Board of Directors are individuals who meet the
relevant regulations, the Board of Directors’ criteria and requirements in accordance with:
authority includes: a. OJK Regulation No. 33/POJK.04/2014 on Board
a. Represent BCA in and out of court on all of Directors and Board of Commissioners of
matters and in any event, binding BCA with Issuers or Public Companies namely to:
other parties and other parties with BCA, 1) Have good ethics, morals, and integrity
and carrying out all actions, both regarding 2) Be proficient in performing legal actions
management and ownership, with restrictions 3) Within 5 (five) years before appointment
as set forth in BCA’s Articles of Association. and during the term of office:
b. Arrange the handover of power of the Board a) Not have been declared bankrupt
of Directors to represent BCA in and out of b) Not have been a member of a Board of
court to one or several members of the Board Directors or Board of Commissioners
of Directors specifically appointed for that, or found guilty of causing a company to
to one or more BCA employees, either alone or be declared bankrupt
with other people or entities. c) Not have been punished for
c. The BOD shall be entitled to appoint one or committing a crime detrimental
more persons authorized to perform certain to state finances or relating to the
acts in accordance with the terms stipulated by financial sector
the BOD in a special power of attorney. d) Not have been a member of a Board of
d. Establish policies in leading and managing Directors or Board of Commissioners
BCA. in which during his/her term of office:
e. Regulate provisions on employment, including s $ID NOT ORGANIZE AN !NNUAL '-3
determination of salary, pension or old age
benefits, and other income for employees,
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s (AD HISHER ACCOUNTABILITY AS A b) Have never been declared
member of the Board of Directors bankrupt and/or have never been
or Board of Commissioners a shareholder, controlling party of
not accepted by the GMS or insurance company, that are note
he/she did not submit his/her shareholders member of the Board
accountability as a member of of Directors, or member of the Board
the Board of Directors or Board of Commissioners found guilty of
of Commissioners to the GMS. causing a company to go bankrupt
s (AVE CAUSED A COMPANY THAT in the last 5 (five) years before being
obtained license, approval or nominated.
registration from the OJK to not
fulfil the obligation to submit 6. Nomination for Members of the Board of
annual report and/or financial Directors
report to the OJK.
4) Have a commitment to comply with laws Legal Basis
and regulations. Nomination of the Board of Directors shall be
5) Have knowledge and/or expertise in the conducted based on the following provisions:
fields required by the company. a. Article 6 of OJK Regulation No. 55/POJK.03/2016
b. Based on Article 6 of OJK Regulation No. 55/ concerning Implementation of Governance
POJK.03/2016 concerning the Implementation for Commercial Banks, stating that any
of Governance for Commercial Banks, each proposed replacement and / or appointment
member of the Board of Directors must of members of the Board of Directors by the
meet the requirements for fit and proper Board of Commissioners to the GMS, must
test in accordance with OJK Regulation No. take into account the recommendations from
27/POJK.03/2016 concerning Fit and Proper Remuneration and Nomination Committee.
Test for Main Parties of Financial Services b. Article 7 of OJK Regulation No. 33 / POJK.04 /
Institutions, which includes: 2014 concerning Board of Directors and Board
of Commissioners of Issuers or Public Companies,
1) Integrity requirements, including: stating that the appointment, dismissal, and
a) Be capable of carrying out legal / or replacement of members of the Board of
actions. Directors to the GMS must take into account
b) Have good character and morals, at the recommendations from the Board of
least shown by the compliance with Commissioners or committee performing the
the prevailing provisions, including nomination function.
never having been convicted of a
crime in a certain period before being Nomination Mechanism
nominated. The Board of Directors’ succession policy is prepared
c) Have a commitment to comply with by the BCA’s Remuneration and Nomination
laws and regulations and support Committee (RNC). Implementation of the Board
OJK policies. of Directors’ succession policy includes providing
d) Be committed to the development of recommendations on systems, procedures, and
healthy financial services institution. selection of candidates for the Board of Directors and/
e) Not be included as a party that is or replacement of members of the Board of Directors
prohibited from being a main party. to the Board of Commissioners for submission to
2) Financial reputation requirements, at the GMS. Policies regarding the succession of the
least evidenced by: Board of Directors can be seen in The Remuneration
a) Does not have bad credit and/or and Nomination Committee section of this Annual
financing. Report.
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The flow of nomination mechanism for members of 4. After conducting the discussion, RNC
the Board of Directors is as follows: provides recommendations to the Board of
1. Proposal from shareholders/Board of Commissioners, stated in the form of an RNC
Commissioners/President Directors related to Decision letter.
the nomination of Directors is submitted to the 5. Based on the RNC recommendation, the
Board of Commissioners. Board of Commissioners decides to submit
2. The Board of Commissioners requests the RNC candidate(s) of the Board of Commissioners
to discuss proposal related to the nomination and/or Board of Directors to the chairman of
of the Board of Directors. the GMS through a Board of Commissioners
3. RNC conducts discussions related to the Decision Letter.
proposal in the RNC meeting, in which the 6. The GMS lead requests the approval of the
summary is stated in the minutes of the RNC shareholders in the GMS agenda related to the
meeting. Things to consider in the meeting nominations of the Board of Commissioners
include: and/or Board of Directors.
a. Reasons and/or considerations of proposal; 7. After obtaining approval from the GMS, the
b. Qualification of candidates according to approval is then stated in the minutes of the
the proposal; GMS that subsequently becomes the basis
c. The steps taken by RNC include: for the fit and proper test for candidates of
s 0AY ATTENTION TO EXTERNAL AND INTERNAL the Board of Commissioners and/or Board of
conditions according to the bank’s Directors.
strategic direction. 8. BCA may use third-parties services in looking
s #OMMUNICATE WITH THE CONTROLLING for candidates of the Board of Commissioners
shareholder (if the proposal is not and/or Board of Directors.
from the Controlling Shareholder).
Nomination Mechanism of Members of the Board of Directors of BCA
Nomination Mechanism
Shareholders/Board
Board of Board of Directors
of Commissioners/ RNC GMS
Commissioners Bureau
President Director
Disagree
Nomination Proposal Discussion in the Discussion in the
(Candidates of BCA RNC Meeting RNC Meeting
Board of Directors)
Agree
Propose candidates
RNC Decree
to GMS Chairman
GMS Chairman
asking for
shareholders
approval
Approval is
Preparation and
mentioned in the
fulfillment of Fit
GMS Decision (basis
and Proper Test
for fit and proper
process
test)
Acceptance of Fit and
Proper Test Result
PT Bank Central Asia
Finish
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7. Number and Composition of the Members of the BCA has also appointed an Independent Director
Board of Directors who has the duty and responsibility to supervise
BCA has complied with the provisions on the regional and branch management, network
number and composition of the members of the management and regional development, and
Board of Directors in accordance with Article 4 of procurement.
OJK Regulation No. 55/POJK.03/2016 concerning
Implementation of Corporate Governance for The term of office of the Board of Directors of
Commercial Banks, states that Banks are required BCA will expire at the closing of the fifth annual
to have at least three members of the Board of GMS held after the GMS appointing the relevant
Directors. member of the Board of Directors, without
reducing the authority of the GMS to dismiss one
As of December 31, 2019, the number of members or more members of the Board of Directors at
of the Board of Directors of BCA was eleven people any time before the position ends. BCA Articles
consisting of: of Association state that members of the Board of
s ONE 0RESIDENT $IRECTOR Directors whose term of service has ended can be
s TWO $EPUTY 0RESIDENT $IRECTORS reappointed.
s ONE #OMPLIANCE $IRECTOR
s ONE )NDEPENDENT $IRECTOR AND All members of the Board of Directors of BCA
s SIX OTHER $IRECTORS have obtained approval from Bank Indonesia or
the OJK and have passed the fit and proper test
From the above composition, BCA has a member before performing their duties and functions. It is
of the Board of Directors who also serves as the in accordance with the provisions of the regulator
Compliance Director. The President Director is regarding the fit and proper test.
independent from the controlling shareholders.
Name Position No. Letter of Agreement
Jahja Setiaatmadja President Director 13/21/DPBB3/TPB3-7 dated June 17, 2011
Suwignyo Budiman Deputy President Director 38/KDK.03/2019 dated August 14, 2019
Armand Wahyudi Hartono Deputy President Director SR-106/D.03/2016 dated June 21, 2016
Subur Tan Director 4/69/DpG/DPIP/Rahasia dated August 13 2002
Henry Koenaifi Director 10/32/DPB3/TPB3-2 dated February 13 2008
Erwan Yuris Ang Independent Director 13/99/GBI/DPIP/Rahasia dated August 25, 2011
Rudy Susanto Director SR-119/D.03/2014 dated July 21, 2014
Lianawaty Suwono Director SR-137/D.03/2016 dated July 27, 2016
Inawaty Handojo Director (concurrently 39/KDK.03/2019 dated August 14, 2019
Compliance Director)
Santoso Director SR-143/D.03/2016 dated August 8, 2016
Vera Eve Lim Director SR-79/PB.12/2018 dated April 23, 2018
All members of the Board of Directors who have met the requirements and passed the fit and proper test
are domiciled in Indonesia as stipulated in Article 4 of the OJK Regulation No. 55/POJK.03/2016 concerning
Implementation of Corporate Governance for Commercial Banks.
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8. Composition of BCA Board of Directors During 2019
In 2019, BCA underwent a change in the composition of the Board of Directors based on the decision of the third
agenda of 2019 Annual GMS. Changes in the composition of the Directors can be seen in the general meeting
of shareholders section of this annual report. The composition of the BCA Board of Directors in 2019 has been
included in the Deed of Decision of the Meeting of PT Bank Central Asia Tbk No. 100 dated October 10, 2019,
made before Christina Dwi Utami, S.H., M.Hum., M.Kn., Notary in Jakarta.
Composition of the Board of Directors of BCA in 2019:
No Position Name Period
1. President Director Jahja Setiaatmadja 2016-2021
2. Deputy President Director* Suwignyo Budiman** 2019-2021
3. Deputy President Director Armand Wahyudi Hartono 2016-2021
4. Director Tan Ho Hien/ Subur/ Subur 2016-2021
Tan
5. Director Henry Koenaifi 2016-2021
6. Independent Director Erwan Yuris Ang 2016-2021
7. Director Rudy Susanto 2016-2021
8. Director Lianawaty Suwono 2016-2021
9. Director (concurrently Compliance Director) Inawaty Handojo** 2019-2021
10. Director Santoso 2016-2021
11. Director Vera Eve Lim 2018-2021
Remarks:
* : from January 1, 2019 to April 11,l 2019 was assumed by Eugene Keith Galbraith.
** : assuming the role since October 3, 2019
In 2018, there was a change in the composition of the Directors due to the change in members of the Directors.
The composition of the BCA Board of Directors in 2018 has been included in the Deed of Decision of the Meeting
of PT Bank Central Asia Tbk No. 180 dated 26 April 2018, which was made before Dr. Irawan Soerodjo, S.H., M.Sc.,
Notary in Jakarta.
Composition of the Board of Directors of BCA in 2018:
No Position Name Period
1. President Director Jahja Setiaatmadja 2016-2021
2. Deputy President Director Eugene Keith Galbraith 2016-2021
3. Deputy President Director Armand Wahyudi Hartono 2016-2021
4. Director (concurrently Compliance Director) Tan Ho Hien/ Subur/ Subur 2016-2021
Tan
5. Director Rudy Susanto 2016-2021
6. Director Henry Koenaifi 2016-2021
7. Director Suwignyo Budiman 2016-2021
8. Independent Director Erwan Yuris Ang 2016-2021
9. Director Lianawaty Suwono 2016-2021
10. Director Santoso 2016-2021
11. Director Inawaty Handojo 2016-2021
12. Director Vera Eve Lim 2018-2021
At present there is no Director of BCA who is a former President Director of BCA in the last 2 (two) years.
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9. Division of Duties and Responsibilities of the Board of Directors
BCA discloses the duties and responsibilities of the Board of Directors in this annual report, in accordance with
OJK Circular Letter No. 30/SEOJK.04/2016 concerning the Form and Content of Annual Reports of Issuers or Public
Companies in Chapter III on the Contents of Annual Reports.
The division of tasks and authorities among members of the Board of Directors is determined based on the
decision of the Board of Directors with approbation by on a letter the resolution of the Board of Commissioners
No. 197/SK/KOM/2019 dated December 23, 2019 concerning the Division of the Duties and Responsibilities of the
Board of Directors of PT Bank Central Asia Tbk, which is explained in the table as follows:
Alternate Alternate Alternate
No. Name Position Duties and Responsibilities
Director I Director II Director III
1. Jahja Setiaatmadja President Director s )NTERNAL !UDIT *) DHC DCR DJW
(JS) (PD) s Anti-Fraud DCR DHC DJW
s #ORPORATE 3OCIAL 2ESPONSIBILITy DTP DCR DJW
2. Suwignyo Budiman Deputy President s #ONSUMER #REDIT +02 ++" DKS DBK DTP
(SB) Director s )NDIVIDUAL #USTOMER "USINESS DKR DTP WP2
(WP1)**) Development
s 7EALTH -ANAGEMENT DTP DKR WP2
s "#! 3YARIAH DTP DJW WP2
s !SURANSI 5MUM "#! "#! DKR DKS DBK
Insurance)
s !SURANSI *IWA "#! "#! ,IFE DHC DKS DBK
s "ANK 2OYAL )NDONESIA DKS DKR DFC
3. Armand W. Deputy President s /PERATION 3TRATEGY DJW DHC DFC
Hartono Director Development
(AH) (WP2)**) s )NFORMATION 4ECHNOLOGY WP1 DFC DTP
s $OMESTIC 0AYMENT 3ERVICES DKR DJW DKS
s %LECTRONIC "ANKING 3ERVICES DTP DJW DHC
s )NTERNATIONAL "ANKING 3ERVICES
s $IGITAL 3ERVICES DBK DTP DHC
s #ENTRAL #APITAL 6ENTURA DTP DJW DHC
WP1 DHC DTP
4. Subur Tan Director of Credit s #REDIT !NALYSIS DJW PD DHC
(ST) & Legal s #REDIT 2ECOVERY DJW PD DHC
s ,EGAL DJW WP1 DCR
5. Henry Koenaifi Director of s #OMMERCIAL 3-% "USINESS DBK WP1 DTP
(HK) Commercial s #ASH -ANAGEMENT DBK DTP WP1
Banking s #REDIT 3ERVICES DKR DJW DBK
& SME s "#! -ULTI &INANCE WP1 DKR DTP
(DKS)**) s "#! &INANCE WP1 DKR DTP
6. Erwan Yuris Ang Director of s 2EGIONAL "RANCH "ANKING WP2 DKS DFC
(EY) Regional & Branch Services DFC DKS WP2
Network s .ETWORK 2EGIONAL
(DJW) #) Development DFC DHC WP1
s 0ROCUREMENT
7. Rudy Susanto Corporate s #ORPORATE "USINESS DKS WP1 DTP
(RS) Banking s #ORPORATE &INANCE DKS WP1 DTP
Director s #ORPORATE "RANCH DKS WP1 DJW
(DBK)**) s 4REASURY PD DKS WP1
s )NTERNATIONAL "ANKING WP1 PD DKS
s "#! &INANCE ,TD (ONGKONG DTP DKR DFC
s "#! 3EKURITAS WP1 PD DFC
8. Lianawaty Suwono Director of s (UMAN #APITAL -ANAGEMENT DKR PD WP1
(LS) Human Capital s ,EARNING $EVELOPMENT DCR WP2 WP1
Management
(DHC)
9. Inawaty Handojo Compliance & s #OMPLIANCE*) DHC DKR DJW
(IH) Risk Management s 2ISK -ANAGEMENT *) DJW DKR DHC
Director s %NTERPRISE 3ECURITY DHC DKR WP1
(DCR)***)
10. Santoso Director of s 4RANSACTION "ANKING "USINESS DHC WP2 DKS
(SL) Transaction Developmnet & Marketing
Banking Banking Transactions
(DTP) s 4RANSACTION "ANKING DBK WP2 DKS
Partnership Solution
Development DBK WP2 DKS
s 4RANSACTION "ANKING 0RODUCT
Development DKS DBK WP1
s 4RANSACTION "ANKING "USINESS
Support & Services
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Alternate Alternate Alternate
No. Name Position Duties and Responsibilities
Director I Director II Director III
11. Vera Eve Lim (VL) Finance Director s #ORPORATE 3TRATEGY 0LANNING WP1 DKR PD
& Corporate s &INANCE
Secretary s #ORPORATE 3ECRETARY PD DKR WP1
(DFC) ****) Corporate Communication DCR DBK PD
Note:
1. - Substitute Director reports to the Director of respective field regarding all actions taken/decisions made while replacing the Director of field.
- Substitute Director for credit sector refers to the credit provisions manual.
2. The management functions of the subsidiaries are regulated as follows:
*)
Monitor the implementation of the internal audit function/risk management/compliance with the subsidiaries in the context of establishing integrated
corporate governance and integrated risk management.
**)
Perform monitoring functions on the business development of subsidiaries.
***)
Perform risk monitoring functions on the subsidiaries in the framework of integrated risk management.
****)
Perform overall monitoring and alignment functions of the management of subsidiaries and monitoring financial performance of the subsidiaries.
The implementation of the above functions takes into account the principles of limited liability companies, in which the subsidiary is an independent separate legal
entity.
The responsibility of the Board of Directors and/or Board of Commissioners of the subsidiaries is to the AGMS of the subsidiaries.
The parent company as a shareholder performs its authority and functions through the GMS of subsidiaries.
#)
3. Director of regional and branch network as daily executors, supervisors and monitors of regional and branch management. The responsibility of the head of
regional office is to the Board of Directors.
10. Induction Program for New Members of the b. Meetings with members of the Board of
Members of Board of Directors Directors and the Board of Commissioners
The orientation program is designed for new to discuss various issues in BCA or other
members of the Board of Directors in order to information needed, or
prepare them properly performing duties and c. Visiting various locations of BCA’s business
responsibilities as members of the Board of activities/branches together with other
Directors. members of the Board of Directors/
management.
Board of Directors orientation program policies
are regulated in the BCA corporate governance 11. Training Programs to Enhance the Competence
guidelines in Part B of the guidelines concerning of Members of the Board of Directors
procedures for implementing corporate governance BCA has a Board of Directors training program
principles - Chapter IV on guidelines and code of policy listed in the BCA governance guidelines in
conduct for the Board of Directors (https://www. Part B of the guidelines concerning the procedure
bca.co.id/ id/Tentang-BCA/Tata-Kelola-Perusahaan/ for implementing corporate governance principles
Struktur-Organisasi). -Chapter IV concerning guidelines and code of
conduct for the Board of Directors.
The orientation program includes:
a. Knowledge about BCA which includes the In accordance with Bank Indonesia Regulation No.
vision, mission, strategies and plans for 11/19/PBI/2009 dated 4 June 2009 and amendments
the medium and long term, performance, to Bank Indonesia Regulation No. 12/7/PBI/2010
governance, and finance of BCA. dated 19 April 2010 concerning Risk Management
b. Understanding of duties and responsibilities Certification for Management and Officers of
as a member of the Board of Directors, limits Commercial Banks, all members of the Board of
of authority, working hours, relations with Directors have risk management certification and/
the Board of Commissioners, related internal/ or refreshment in accordance with applicable
external rules/conditions, and others. regulations.
Orientation Procedures BCA requires members of the Board of Directors to
The orientation procedures for the new members take part in a training program at least one time a
of the Board of Directors may be conducted by: year in order to improve competence and support
a. Presentation by work units to obtain an the implementation of the duties and obligations
explanation of various aspects deemed of Directors. The training programs participated in
necessary by involving subordinates, or by the Board of Directors in 2019 is as follows:
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No Name Training Program Organizer Location Date
1 Jahja 1. Annual Meeting of Financial OJK Jakarta, January 11, 2019
Setiaatmadja Services Industry Indonesia
2. Banking Economy Dialogue INDEF, Bank Jakarta, January 30 , 2019
With Governor of Bank Sinarmas, The Indonesia
Indonesia Consumer
Banking School
3. Discussion on KEPP and OJK Jakarta, January 31, 2019
Banking Indonesia
4. Bank Indonesia Meeting Bank Indonesia Jakarta, February 6 , 2019
Navigating Digitalization of Indonesia
Banking Industry
5. National Seminar revival & Pusat Studi Jakarta, February 19, 2019
BUMN: Infrastructure Sector BUMN Indonesia
6. 5th Asia Pacific CEO Forum ICC (Indonesia Jakarta, March 12, 2019
International Indonesia
Chamber of
Commerce)
7. The Wall Street Journal CEO The Wall Street Tokyo, Japan May 21, 2019
Council Journal
8. FGD: Prospects and Risks of Badan Intelijen Jakarta, May 29 , 2019
the 2019 Post-Election Banking Negara Indonesia
Sector Amid Increasingly
Uncertain International
Economic and Trade
Environment
9. IMC Meeting 2019 IMC Paris, France June 2 - 4, 2019
(International
Monetary
Conference)
10. Digital Transformation in BCA BCA Jakarta, September 3,
Indonesia 2019
11. Indonesia Knowledge BCA Jakarta, October 8-9 ,2019
Forum Indonesia
12. Intensive Leadership Program BPJS Kesehatan Bogor, October 30, 2019
(ILP) Training of Senior Leader Indonesia
Competence Development,
Topic : Building A Great
Corporate Culture Work Life
Integration
13. CEO Networking 2019 (42th OJK, BEI, PT KSEI Jakarta, October 31, 2019
Anniversary of Indonesia Stock dan PT KPEI Indonesia
Market) Topic: Embracing the
Opportunities in Dynamic
Global Economy
14. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
15. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup - BCA - Jakarta,
Indonesia.
16. Communication Forum of Communication Jakarta, December 19,
Banking Compliance Director, Forum of Indonesia 2019
Topic: Prospects for Economic Banking
Challenges in 2020 Compliance
Director
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No Name Training Program Organizer Location Date
2 Suwignyo 1. Digital Transformation in BCA BCA Jakarta, September 3,
Budiman Indonesia 2019
2. Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
3. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
4. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
3 Armand Wahyudi 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Hartono Indonesia
2. Information Technology Gartner Barcelona, November 3-7,
Symposium 2019 Spain 2019
3. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
4. Sharing Session “The BCA Jakarta, December 6,
Ecosystem” by OVO, Indonesia 2019
Tokopedia, HaloDoc and
Djarum Grup
4 Subur Tan 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
3. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
4. Sharing Session “The BCA Jakarta, December 6,
Ecosystem” by OVO, Indonesia 2019
Tokopedia, HaloDoc and
Djarum Grup
5 Henry Koenaifi 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. Economy Dialogue Seminar Lembaga Jakarta, March 13, 2019
“Economy Prospect & Fiscal Indonesia Indonesia
Policy 2019” Tiongkok (LIT)
3. Digital Transformation in BCA BCA Jakarta, 3 September,
Indonesia 2019
4. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
5. Indonesia Banking Expo 2019 Perbanas Jakarta, November 6, 2019
Indonesia
6. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
7. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
8. Sharing Session with Prof. Andy Business School, Singapore December 9, 2019
Rose and Mr. Samuel Tsien National
University of
Singapore
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No Name Training Program Organizer Location Date
6 Erwan Yuris Ang 1. Refreshment SMR Level V KIRAN Jakarta, January 17, 2019
"Managing People Risk in a Indonesia
Bank"
2. ASEAN Global Leadership London School London, March 25 - 29,
Programme LSE 2019 of Economics & England 2019
Political Science
(LSE) and SRW
& Co.
3. Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
4. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
5. Sharing Session “The BCA Jakarta, December ,6
Ecosystem” by OVO, Indonesia 2019
Tokopedia, HaloDoc and
Djarum Grup
7 Rudy Susanto 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. Treasury Sertification ACI Bali, Indonesia January 18, 2019
Refreshment Programme
(Advance level)
3. Discussion on KEPP and OJK Jakarta, January 31, 2019
Banking Indonesia
4. Focus Group Discussion (FGD) OJK Jakarta, July 18, 2019
Development of Strategic Indonesia
Issues in Indonesian Banking
5. In House Briefing EFMA EFMA Jakarta, August 2, 2019
Indonesia
6. International Banking BCA Jakarta, August 9, 2019
Workshop BCA Indonesia
7. Communication Forum SSK Bank Indonesia Jakarta, August 23, 2019
Quarter-II 2019 Indonesia
8. Treasury Customers BCA Jakarta, September 6,
Appreciation 2019 Indonesia 2019
9. Sibos 2019 Sibos London, September 23-26,
England 2019
10. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
11. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
12. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
8 Lianawaty 1. The 10th HRDI Gathering HR Directors Jakarta, January 29, 2019
Suwono Indonesia & SAP Indonesia
2. The 5th Indonesia HR Director Intipesan Jakarta, February 19, 2019
Summit Indonesia
3. CEO Power Breakfast "Building Siloam Hospital Jakarta, February 27, 2019
a Lasting Legacy in the Digital Indonesia
Economy Era"
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No Name Training Program Organizer Location Date
4. HR Symposium : Back To Basics Centre For Bandar Sri April 8, 2019
Islamic Banking, Begawan,
Finance and Brunei
Management Darussalam
(CIBFM)
5. Gallup Great Workplace Award Gallup Nebraska, USA June 3-5, 2019
& Clifton Strengths Summit
6. Mercer Annual Forum 2019 Mercer Jakarta, July 1, 2019
"Becoming Future Fit - Indonesia
Curating The Work Experience"
7. Digital Company, Digital IDStar Jakarta, July 18, 2019
Process, Digital Workforce Indonesia
8. Digital Transformation in BCA BCA Jakarta, September 3,
Indonesia 2019
9. Indonesia Knowledge Forum BCA Jakarta, October 8-9, 2019
Indonesia
10. Information Technology Gartner Barcelona, November 3-7,
Symposium 2019 Spain 2019
11. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
12. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
13. Compassionate Systems OJK Jakarta, December 13,
Leadership for a Sustainable Indonesia 2019
World : Transforming Public
Policies, Corporates and
Educations System in Digital
Era
9 Inawaty Handojo 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. Digital Transformation in BCA BCA Jakarta, September 3,
Indonesia 2019
3. Indonesia Knowledge BCA New York, USA October 8-9, 2019
Forum
4. ICA’s 2nd Annual APAC International Singapore October 16-17,
Conference 2019 Compliance 2019
Association
5. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
6. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
10 Santoso 1. Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
2. American Express Conference - AMEX Jakarta, October 29-31,
Global Network Partner Forum Indonesia 2019
3. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
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No Name Training Program Organizer Location Date
4. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Grup
11 Vera Eve Lim 1. Trading Trends 2019 BCA Jakarta, January 15, 2019
Indonesia
2. Banking Economy Dialogue INDEF, Bank Jakarta, January 30, 2019
with BI Governor Sinarmas, The Indonesia
Consumer
Banking School
3. Mandiri Investment Forum Mandiri Jakarta, January 31 -
Sekuritas Indonesia February 1, 2019
4. Money Live Indonesia Money Force Jakarta, February 20, 2019
Conference Indonesia
5. UBS Indonesia Conference UBS Jakarta, March 5, 2019
Indonesia
6. 5th Asia Pacific CEO Forum ICC (Indonesia Jakarta, March 12, 2019
International Indonesia
Chamber of
Commerce)
7. Workshop 2019 CFO Office BCA Jakarta, March 18 - 19,
Strategic Indonesia 2019
8. Credit Suisse Asian Investment Credit Suisse Hong Kong March 25 - 26,
Conference 2019
9. Seminar ACSI XV HIMA Perbanas Jakarta, April 24, 2019
Institute Indonesia
10. 2019 ABF Retail Banking Forum CMG Business Jakarta, May 8, 2019
Conference Indonesia
11. Digital BCG Asia Pacific BCG Hong Kong May 17, 2019
Conference
12. Nomura Investment Forum Asia Nomura Singapore May 27 - 29, 2019
2019
13. CGS-CIMB 13th Annual CIMB Bali, Indonesia June 27-28, 2019
Indonesia Conference
14. MoneyLIVE Digital Banking APAC Singapore July 2 - 3, 2019
2019
15. Citi Indonesia Investor Citi Jakarta, August 6, 2019
Conference 2019 Indonesia
16. Macquarie ASEAN Conference Macquarie Singapore, August 26 - 28,
Singapore 2019
17. JP Morgan Asia Pacific CEO JP Morgan New York, USA September 4 - 5,
CFO 2019
18. Transforming ASEAN AGLP Shanghai & September 16 -
Organization : Understanding Hangzhou, 20, 2019
China Next Move Cina
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No Name Training Program Organizer Location Date
19. Information Technology Gartner Barcelona, November 3-7,
Symposium 2019 Spain 2019
20. Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
21. Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc dan
Djarum Grup
12. Share Ownership for Directors that Amounts to Implementation for Reporting Policy of
5% or More of Paid-Up Capital Ownership or Any Change of Share Ownership
BCA regulates the obligations of members of the The Board of Directors code of conduct regulates,
Board of Directors to disclose share ownership that among others, the Board of Directors obligation to
reaches 5% or more of paid-up capital. Any changes disclose share ownership of 5% or more of paid-
in the share ownership for members of Board of up capital, which includes the type and number
Directors shall be reported to the OJK in accordance of shares in BCA, other banks, non-bank financial
with OJK regulations. institutions and other companies, which are
domiciled in and outside the country. In addition to
BCA has a policy regarding the obligations of the above, BCA has also held and stored a special
member of the Board of Directors to disclose the list as regulated in Article 50 of the Limited Liability
share ownership information with reference to the Company Law.
following provisions:
a. Article 2 of OJK Regulation No. 11/ BCA has a policy regarding the obligations of
POJK.04/2017 concerning Report of Ownership members of the Board of Directors and Board
or Any Changes in the Share Ownership of a of Commissioners to disclose information on
Public Company stating that a member of the ownership and changes of BCA’s shares contained
Board of Directors or Board of Commissioners in the Corporate Governance Guidelines on Code
shall report to the OJK on ownership and any of Conduct of the Board of Directors. This policy is
change of ownership of the Company’s shares in accordance with Article 3 of OJK Regulation No.
either directly or indirectly. 11/POJK.04/2017 concerning Report of Ownership
b. Article 21 of OJK Regulation No. 55/ or Any Changes in the Share Ownership of a Public
POJK.03/2016 concerning Implementation of Company. BCA has also conducted socialization of
Corporate Governance for Commercial Banks the OJK Regulation through Corporate Secretary
states that members of the Board of Directors Memo No. 120/MO/DCS/2017 dated 25 April 2017
shall disclose share ownership of 5% or more to all members of the Board of Directors and Board
at the Bank or other banks and companies of Commissioners.
domiciled in and outside the country.
BCA has submitted reports on any changes in share
ownership of the Board of Directors and Board of
Commissioners in 2019 through the e-reporting
system and hardcopy document to the OJK and
Indonesia Stock Exchange in compliance of internal
and external policies regarding share ownership
reports.
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Table of Share Ownership of the Board of Directors that amounts to 5% or More as of December 31 2019
Share ownership of members of the Board of Directors amounting 5% or more of paid-up
capital on:
Name
BCA Other Banks Non Bank Financial Institution Other Companies
Jahja Setiaatmadja - - - 3
Suwignyo Budiman - - - -
Armand Wahyudi Hartono - - - 3
Subur Tan - - - -
Henry Koenaifi - - - -
Erwan Yuris Ang - - - -
Rudy Susanto - - - -
Lianawaty Suwono - - - -
Inawaty Handojo - - - -
Santoso - - - -
Vera Eve Lim - - - -
Table of Total Share Ownership by the Board of Directors in 2019
Total Ownership at the Beginning of Total Ownership at the End of the Year
Name
the Year (as of January 1, 2019) (as of December 31, 2019)
Jahja Setiaatmadja 8,103,902 8,007,628
Suwignyo Budiman 7,407,206 7,475,051
Armand Wahyudi Hartono 851,213 851,213
Subur Tan 2,705,481 2,773,326
Henry Koenaifi 957,138 1,041,883
Erwan Yuris Ang 1,191,967 1,251,720
Rudy Susanto 416,193 480,926
Lianawaty Suwono 126,279 183,694
Inawaty Handojo 102,667 163,374
Santoso 171,140 237,324
Vera Eve Lim 17,000 57,348
13. Dual Positions for Members of the Board of subsidiaries, perform functional duties as a
Directors member of the Board of Commissioners of a
non-bank subsidiary company controlled by
Legal Basis the Bank).
a. Article 7 of OJK Regulation No. 55/
POJK.03/2016 on the Implementation of b. Article 6 of OJK Regulation No. 33/POJK.04/2014
Corporate Governance for Commercial Banks on the Board of Directors and Board of
states that members of the Board of Directors Commissioners of the Issuer or Public Company
are prohibited from serving concurrently as states that members of the Board of Directors
members of the Board of Directors, members may hold concurrent positions as members of
of the Board of Commissioners or executive the Board of Directors at most one issuer or
officers at other banks, companies and/or other public company, members of the Board of
institutions (excluding concurrent positions Commissioners of at most three issuers or other
if the members of Board of Directors are public company, and/or committee members at
responsible to supervise participation in a maximum of five committees in the issuer
or public company in which the member also
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serves as a member of the Board of Directors Disclosure
or a member of the Board of Commissioners. Throughout 2019, all members of the Board of
The concurrent position can only be done as Directors of BCA are not concurrently serving as
long as it is not contrary with other laws and members of the Board of Directors, members of
regulations. the Board of Commissioners, or executive officers
at other banks, companies and/or institutions. This
condition has taken into account the provisions in
Article 7 of OJK Regulation No. 55/POJK.03/2016 on
the Implementation of Corporate Governance for
Commercial Banks.
Table of Dual Positions of the Board of Directors of BCA in 2019
Position at Other
Name Position at BCA Position at Companies/Institutions Business Line
Bank
Jahja Setiaatmadja President Director - - -
Suwignyo Budiman* Deputy President - - -
Director
Armand Wahyudi Deputy President - - -
Hartono Director
Tan Ho Hien/Subur/ Director - - -
Subur Tan
Henry Koenaifi Director - - -
Erwan Yuris Ang Independent Director - - -
Rudy Susanto Director - - -
Lianawaty Suwono Director - - -
**
Inawaty Handojo Director (concurrently - - -
as Compliance
Director)
Santoso Director - - -
Vera Eve Lim Director - - -
Remark :
*
: Assuming the position of Deputy President Director since October 3, 2019.
**
: Assuming the position of Compliance Director since October 3, 2019
14. Performance Assessment of Executive Executive Committees of the Board of Directors
Committees of the Board of Directors The executive committees of the Board of Directors
BCA conducted the performance assessment of was established by the Board of Directors to
the executive committee of the Board of Directors contribute to the fulfilment of BCA’s business
based on OJK Circular Letter No. 30/SEOJK.04/2016 requirements in accordance with the duties and
concerning the Form and Contents of Annual responsibilities of the Board of Directors. The
Reports of the Issuers or Public Company in Chapter establishment of the committees was in accordance
III on the Contents of Annual Reports. with regulatory requirements and is expected to
create operational effectiveness and efficiency in
Throughout 2019, the executive committee of the BCA.
Board of Directors performed its functions and duties
properly that supported the fulfilment of BCA’s The following are the seven executive committees
requirement. The report on the implementation under the Board of Directors:
of the executive committee’s duties in 2019 is 1) Asset and Liability Committee (ALCO)
available in the executive committee of the Board 2) Risk Management Committee (RMC)
of Directors section in this annual report. 3) Integrated Risk Management Committee
(IRMC)
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4) Credit Policy Committee (CPC) Realization of ALCO Work Program 2019
5) Credit Committee (CC) In performing its management duties in 2019,
6) Information Technology Steering Committee ALCO held 12 (twelve) meetings with the
(ITSC) following agenda:
7) Personnel Case Advisory Committee (PCAC) a) Report of follow-up on previous ALCO
meeting decisions.
The Board of Directors conducted assessment on b) Setting economic parameters including
the above executive committees of the Board of inflation, Bank Indonesia interest rates,
Directors with the following conditions: term deposits, Rupiah and USD yield
1. Criteria: curves, Rupiah and USD market liquidity,
Evaluation criteria of the executive and Rupiah exchange rates
committees of the Board of Directors are c) Setting liquidity reserves comprising
based on compliance with the guidelines, of primary and secondary Rupiah and
code of conducts, and work realization/ foreign exchange reserves, Rupiah and
implementation of duties of each committee. foreign exchange fund structure, credit
2. Proses: projection, and liquidity projection
Assessment is conducted collegially by the d) Interest rate risk which consists of
Board of Directors and performed one time in repricing gap and sensitivity analysis, both
the period of one year. for Rupiah and foreign exchange
3. Result: e) Follow up interest rates trading book and
In 2019, the Board of Directors assessed that foreign exchange risks
all the executive committees contributed f) Setting loan portfolio, which comprises
in accordance with their duties and limit and outstanding loans and type of
responsibilities and provided useful opinions, debtor
thereby supporting the implementation of g) Setting yield and cost of funds of Rupiah
the Board of Directors’ duties. The committees and foreign exchange
actively periodically discussed work programs h) Make analysis of assets/liabilities
in accordance with developments of the Bank, management
the economy, and the regulations. The Board i) Setting stress test for liquidity risk and
of Directors expressed appreciation for the stress test for exchange rates and interest
support and commitment of the committees. rates trading book risk
j) Keep up with the development of bank
Explanations regarding the Executive Committee of fund towards total banking Comparison
the Board of Directors are detailed in the Chapter of the composition of bank funds to the
of the Board of Directors’ Executive Committees on banking sector
page 441-464 of this Annual Report. k) Discussion and decision of changes in
interest rates for funds and loans, prime
1) Asset and Liability Management Committee lending rates and limits related to asset/
Asset and liability management committee liability management (ALM)
(ALCO) is a permanent committee under the l) Review of the results of profit/loss
Board of Directors with the mission to achieve simulation in accordance with BCA ALM
optimal level of BCA profitability and liquidity strategy.
risk, interest rate risk, and controlled foreign
exchange risk through the establishment of
policies and strategies for BCA assets and
liabilities management.
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2) Risk Management Committee c. Request OJK’s advice related to Integrated
The Risk Management Committee (RMC) was Risk Management.
established to ensure that the risk management d. Perform an IRMIS development update.
framework has provided adequate protection e. Prepare a report on the Integrated Risk
against all BCA risks. Profile of the First Semester BCA Financial
Conglomeration in 2019.
Realization of Risk Management Committee
Work Program 2019 4) Credit Policy Committee
In performing its duties throughout 2019, The Credit Policy Committee (KKP) was
the committee held four meetings with established to direct the lending through
the realization of the work program of the the formulation of credit policies in order to
committee as follows: achieve prudent lending targets.
a. Informing new Financial Services Authority
regulation (POJK) related to legal lending Realization of Credit Policy Committee Work
limit (LLL) and provision of large funds Program 2019
b. Informing Interest rate risk in the In performing its duties throughout 2019, the
banking book (IRRBB) including reporting committee held one meeting and implemented
obligations and calculation results based work programs and provide recommendations
on OJK circular of “internal provisions in the corporate credit
c. Informing the results of the bottom up risk analysis group for disbursement and
stress test (BUST) 2018/2019. monitoring of investment credit and project
d. Inform the results of the review and finance facilities”.
update changes to the Informal Risk
Appetite Statement. 5) Credit Committee
e. Inform BCA strategic risk related Digital The Credit Committee was established to assist
Finance/ Fintech. the Board of Directors in evaluating and/or
f. Inform operational risk capital reserves providing credit decisions within the authority
using the Standardized Approach limits established by the Board of Directors as
stipulated in the BCA articles of association with
3) Integrated Risk Management Committee due regard to business development without
The Integrated Risk Management Committee abandoning prudent principles. The committee
was established to ensure that the risk consists of the corporate credit committee and
management framework provided adequate the commercial credit committee.
protection against all risks of BCA and its
subsidiaries in an integrated manner. Realization of Credit Committee Work Program
2019
Realization of Integrated Risk Management In performing its duties throughout 2019,
Committee 2019 corporate credit committee held 20 meetings,
In performing its duties throughout 2019, the and the commercial credit committee held
committee held meetings three times with the meetings 5 (five) times
realization of the work program by discussing
several topics as follows:
a. Reviewing the implementation of the
Integrated Risk Management of the BCA
Financial Conglomerate.
b. Implement Financial Sustainability.
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6) Information Technology Steering Committee a) Development of big data near real-
The Information Technology Steering time analytics capabilities to support
Committee was established to ensure the business units in generating business-
implementation of information technology (IT) based solutions and BCA transactional
systems in line with BCA’s strategic plan. The banking services.
committee has the mission to enhance BCA’s b) Development of a centralized
competitive advantage through the utilization and integrated data platform for
of appropriate information technology (IT). reporting and predictive analytics
needs to improve the digital customer
Realization of Information Technology experience.
Steering Committee Work Program 2019 c) Development of new data centers
In performing its duties throughout 2019, corresponding to the direction of
the committee held 4 (four) meetings and business transformation and the
implemented work programs as follows: increasing need for IT operational
s %VALUATED AND OVERSAW THE processing capacity in line with BCA’s
implementation of IT strategic projects to business growth.
be aligned with BCA’s strategic corporate d) Building new approaches to IT
objectives and business direction project development using lean and
s %VALUATED THE IMPLEMENTATION OF agile principles, which focus on the
processes and technologies exercised in IT design of products and services that
project development are appropriate for customers.
s 2EVIEWED AND OVERSAW STRATEGIC MEASURES s 2EVIEWED AND EVALUATED THE DEVELOPMENT
to minimize the risk of IT investment, of the capabilities of IT human resources
reduce operating costs, and improve IT and management office to be able to
service levels adapt to technological changes
s -ONITORED THE USE OF THE )4 BUDGET s 2EVIEWED AND EVALUATED THE )4 RISK
s 2EVIEWED AND EVALUATED NEW )4 STRATEGIC management and IT compliance
projects, including: management processes to achieve good IT
a) Customers 3600 to support customer governance.
profiling and know customer
sentiment so as to be able to provide 7) Personnel Case Advisory Committee
appropriate solutions The Personnel Case Advisory Committee was
b) Campaign management to support established to provide recommendations to
the effectiveness of campaign or the Board of Directors on the settlement of
marketing activities in accordance cases that meet the principles of justice and
with the intended target customers equity through reviewing cases of violations
c) Fraud detection system to detect and/or crimes committed by employees.
fraud by maximizing data such
as location, time, and customer
transaction patterns
s %VALUATED AND OVERSAW )4 INITIATIVES
implemented to support the delivery of IT
strategic projects. These initiatives are:
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Realization of Personnel Case Advisory BOARD OF COMMISSIONERS MEETINGS,
Committee BOARD OF DIRECTORS MEETINGS, AND JOINT
In performing its duties throughout 2019, MEETINGS
the committee held 8 (eight) meeting, with
realizations of the work program were to BCA discloses information regarding Board of
provide input in terms of information, analysis, Commissioners meetings, Board of Directors meetings
and consideration to make recommendations and joint meetings of the Board of Commissioners and
to the Board of Directors in response to Board of Directors in accordance with the provisions in
resolve violations committed by employees OJK Circular Letter No. 30/SEOJK.04/2016 concerning the
that required a Board of Directors decision for Form and Content of Annual Reports of Issuers or Public
settlement, especially regarding the imposition Companies in Chapter III on the Contents of Annual
of sanctions and/or improvement of systems Reports.
and operational procedures and/or legal
proceedings. 1. Board of Commissioners Meeting
BCA refers to the following rules for holding a
Explanations related to the Executive Board of Commissioners meeting:
Committee of the Board of Directors are a. Article 37 paragraph 1 OJK Regulation No. 55/
detailed in Chapter of the Directors’ Executive POJK.03/2016 concerning Implementation of
Committees. Corporate Governance for Commercial Banks
states that Board of Commissioners meetings
15. Policy on Loan Facilities for the Board of must be held periodically at least 4 (four) times
Directors in 1 (one) year.
BCA already has provisions related to loan facilities b. Article 31 paragraph 1 OJK Regulation No. 33/
to the Board of Directors as explained on page 529 POJK.04/2014 concerning Board of Directors
regarding Provision of Funds to Related Parties and and Board of Commissioners of an Issuer or
Large Exposure. Public Companies, states that the Board of
Commissioners must hold at least 1 (one)
16. Performance Evaluation of Members of the meeting in 2 (two) months.
Board of Directors c. Article 16 paragraph 2 OJK Regulation No. 33/
Performance evaluation of members of the Board POJK.04/2014 concerning Board of Directors
of Directors addresses procedure of performance and Board of Commissioners of Issuers or Public
evaluation, criteria used, and parties conducting Companies, the Board of Directors must hold
the evaluation can be viewed on page 407-409 a Board of Directors meeting with the Board
section Performance Evaluation of the Board of Commissioners periodically at least 1 (one)
of Commissioners and Board of Directors in this time in 4 (four) months.
Annual Report d. Article 16 of the BCA’s Articles of Association.
e. Board of Commissioners Charter.
Meeting Policy
The policies and implementation of the frequency
of meetings of the Board of Commissioners,
including joint meetings of the Board of Directors,
and the attendance of members of the Board of
Commissioners in the meeting have been regulated
in the corporate governance guidelines part B
chapter 2 on Guidelines and Code of Conduct of
the Board of Commissioners, which among others
regulates:
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a. Meeting Frequency Quorum and Decision Making
Meetings of the Board of Commissioners must Decision making at a Board of Commissioners
be held periodically, at least 1 (one) time in 2 meeting is considered valid and binding if more
(two) months. than 1/2 (one half) of the total number of members
b. Scheduling and Meeting Materials of the Board of Commissioners are present or
Material for scheduled meetings must be represented at the meeting. This provision is in
submitted to meeting participants, no later accordance with article 16 paragraph 8 of BCA’s
than 5 (five) working days before the meeting Articles of Association.
is held.
c. Minutes of Board of Commissioners’ Meeting Decisions are made by consensus agreement. If
s 4HE RESULTS OF THE "OARD OF #OMMISSIONERS the deliberation does not reach consensus, then
meeting must be stated in the minutes the decision is made based on majority votes. All
of meeting signed by all members of the decisions taken at Board of Commissioners meetings
Board of Commissioners present. are binding. Dissenting opinions that occur in the
s -EETINGS HELD THROUGH TELECONFERENCING Board of Commissioners’ meeting and the reasons
technology should be recorded and the thereof must be clearly stated in the minutes of
minutes of meeting and should be signed meeting.
by all BOC teleconferencing participants.
s -INUTES OF "OARD OF #OMMISSIONERS Implementation
meetings that have been signed by all Throughout 2019, BCA held 37 (thirty seven) Board
members of the Board of Commissioners of Commissioners meetings. BCA has fulfilled the
present at the meeting must be provisions of the OJK Regulation on the minimum
distributed to all members of the Board of frequency of Board of Commissioners’ meetings.
Commissioners.
Frequency of Attendance, Schedule and Agenda of the Board of Commissioners’ Meetings
The frequency of the Board of Commissioners meetings and the attendance of members of the Board of
Commissioners throughout 2019 are as follows:
Number of
Name Position Attendance Percentage
Meetings
Djohan Emir Setijoso President Commissioner 37 35 95%
Tonny Kusnadi Commissioner 37 34 92%
Cyrillus Harinowo Independent Commissioner 37 33 89%
Raden Pardede Independent Commissioner 37 33 89%
Sumantri Slamet Independent Commissioner 37 34 92%
The Board of Commissioners meeting schedule in 2019 has been posted on the BCA website and can be
accessed at https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Struktur-Organisasi.
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The schedule and agenda of the Board of Commissioners meetings held throughout 2019 are as follows:
No. Date Agenda Attendees
1. January 16, 2019 s 0RESENTATION OF 4REASURY $IVISION DES, TK, CH, RP, SS
s 0RESENTATION OF #REDIT 2ISK !NALYSIS 'ROUP AND
Corporate Business Group
s 7EEKLY #REDIT $ECISION 2EVIEW
2. January 23, 2019 s 0RESENTATION OF #ORPORATE #REDIT 2EVIEW DES, TK, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
3. January 30, 2019 s 4REASURY $IVISION 0RESENTATION DES, TK, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
4. February 6, 2019 s !PPROVAL OF #REDIT 2EQUEST FOR 2ELATED 0ARTIES DES, TK, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
5. February 13, 2019 s 0RESENTATION OF )NTERNAL !UDIT $IVISION TK, CH, RP, SS
s 4REASURY $IVISION 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
6. February 20, 2019 s 0RESENTATION OF 2/# 2ISK /VERSIGHT #OMMITTEE DES, TK, CH, RP, SS
s 0RESENTATION OF !# !UDIT #OMMITTE
s 7EEKLY #REDIT $ECISION 2EVIEW
7. March 6, 2019 s 0RESENTATION OF #REDIT 2ISK !NALYSIS 'ROUP AND #ORPORATION DES, TK, CH, RP, SS
Business Group
s 2.# 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
8. March 13, 2019 s 2EPORTING OF )'# SEMESTER )) TO THE "OARD OF #OMMISSIONERS DES, TK, CH, RP, SS
of the Main Entity
s 7EALTH -ANAGEMENT $IVISION 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
9. March 20, 2019 s 4REASURY $IVISION 0RESENTATION DES, TK, CH, RP
s 7EEKLY #REDIT $ECISION 2EVIEW
10. March 27, 2019 s !PPOINTMENT OF #HAIRMAN OF THE !NNUAL '-3 DES, TK, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
11. April 4, 2019 RNC Presentation DES, TK, RP, SS
12. April 10, 2019 s 0RESENTATION OF #REDIT 2ISK !NALYSIS 'ROUP AND DES, TK, CH, RP, SS
Corporate Business Group
s 7EEKLY #REDIT $ECISION 2EVIEW
13. April 24, 2019 RNC presentation DES, TK, CH, RP, SS
14. May 8, 2019 s 0RESENTATION OF )NTERNAL !UDIT $IVISION DES, TK, CH, RP, SS
s 0RESENTATION OF 2ISK -ANAGEMENT 7ORK 5NIT
s #ORPORATE 3ECRETARY AND #OMMUNICATION $IVISION 0RESENTATION
s !PPOINTMENT OF -EMBERS OF )'#
s 7EEKLY CREDIT DECISION REVIEW
15. May 15, 2019 s 0RESENTATION OF )NTERNAL !UDIT $IVISION AND 4REASURY $IVISION DES, TK, CH, RP, SS
s 0RESENTATION OF 2/#
s !# 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
16. May 22, 2019 s 0RESENTATION OF #REDIT 2ISK !NALYSIS 'ROUP AND DES, TK, RP, SS
Corporate Business Group
s 4REASURY $IVISION 0RESENTATION
s ,OGISTICS $IVISION 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
17. May 29, 2019 s 0RESENTATION 2ELATED TO 3UBSIDIARY DES, CH, RP, SS
s $ISCUSSION ON %XTRAORDINARY 'ENERAL -EETING OF 3HAREHOLDERS 3CENARIOS
s 7EEKLY #REDIT $ECISION 2EVIEW
18. June 19, 2019 s !PPROVAL OF #REDIT 2EQUEST FOR 2ELATED 0ARTIES DES, TK, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
19. June 26, 2019 s 4REASURY $IVISION 0RESENTATION DES, TK, CH, RP, SS
s )NTERNAL $ISCUSSION OF THE "OARD OF #OMMISSIONERS
s #ORPORATE 3ECRETARY AND #OMMUNICATION $IVISION 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
20. July 10, 2019 s 0RESENTATION OF #REDIT 2ISK !NALYSIS 'ROUP AND DES, TK, CH, RP, SS
Corporate Business Group
s 0RESENTATION OF #ORPORATE &INANCE $IVISION AND
Risk Management Work Unit
s 7EEKLY #REDIT $ECISION 2EVIEW
21. July 24, 2019 s 0RESENTATION OF )NTERNAL !UDIT $IVISION DES, TK, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
22. July 31, 2019 s 4REASURY $IVISION 0RESENTATION TK, CH, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
23. August 7, 2019 s #ORPORATE "USINESS 'ROUP 0RESENTATIONS AND #REDIT 2ISK !NALYSIS DES, TK, CH, RP
Group
s 0RESENTATION OF #ORPORATE &INANCE $IVISION
s 7EEKLY #REDIT $ECISION 2EVIEW
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No. Date Agenda Attendees
24. August 14, 2019 s 0RESENTATION OF INTERNATIONAL BANKING DIVISION DES, TK, CH, RP, SS
s 0RESENTATION OF INTERNAL AUDIT DIVISION
s 7EEKLY CREDIT DECISION REVIEW
25. August 21, 2019 s 0RESENTATION OF 2/# DES, TK, CH, SS
s !UDIT #OMMITTEE 0RESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
26. August 28, 2019 s 4REASURY $IVISION 0RESENTATION DES, TK, SS
s !PPROVAL OF #REDIT 2EQUEST FOR 2ELATED 0ARTIES
s 7EEKLY #REDIT $ECISION 2EVIEW
27. September 4, s )NTERNAL $ISCUSSION OF THE "OARD OF #OMMISSIONERS DES, TK, CH
2019 s 7EEKLY #REDIT $ECISION 2EVIEW
28. September 18, s 2EPORTING OF )'# SEMESTER ) TO THE "OARD OF #OMMISSIONERS OF DES, TK, CH, RP, SS
2019 the main entity
s 7EEKLY #REDIT $ECISION 2EVIEW
29. October 2, 2019 s 4REASURY $IVISION 0RESENTATION DES, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
30. October 16, 2019 s 0RESENTATION OF "ANKING 4RANSACTION 0RODUCT $EVELOPMENT $IVISION DES, TK, CH, RP, SS
s 0RESENTATION OF )NDIVIDUAL #USTOMER "USINESS $EVELOPMENT $IVISION
s 7EEKLY #REDIT $ECISION 2EVIEW
31. October 23, 2019 Presentation of Corporate Business Group and Credit Risk Analysis Group DES, TK, CH, RP, SS
32. October 30, 2019 s $ISCUSSION WITH 2/# DES, TK, CH, RP, SS
s 7EEKLY #REDIT $ECISION 2EVIEW
33. November 13, s 0RESENTATION OF 2ISK -ANAGEMENT 7ORK 5NIT DES, TK, CH, RP, SS
2019 s 0RESENTATION OF 2/#
s !# PRESENTATION
s 7EEKLY #REDIT $ECISION 2EVIEW
34. November 27, s 0RESENTATION OF #ORPORATE "USINESS 'ROUP AND #REDIT 2ISK !NALYSIS DES, TK, CH, RP, SS
2019 Group
s 7EEKLY #REDIT $ECISION 2EVIEW
35. December 4, 2019 s 4REASURY $IVISION 0RESENTATION DES, TK, CH, RP, SS
s )NTERNAL $ISCUSSION OF THE "OARD OF #OMMISSIONERS
s 7EEKLY #REDIT $ECISION 2EVIEW
36 December 11, s 0RESENTATION OF )NDIVIDUAL #USTOMER "USINESS $EVELOPMENT $IVISION DES, CH, RP, SS
2019 s 7EEKLY #REDIT $ECISION 2EVIEW
37. December 18, s )NTERNAL $ISCUSSION DES, TK, CH, RP, SS
2019 s 7EEKLY #REDIT $ECISION 2EVIEW
Remark:
No. Initial Name
1. DES Djohan Emir Setijoso
2. TK Tonny Kusnadi
3. CH Cyrillus Harinowo
4. RP Raden Pardede
5. SS Sumantri Slamet
Meeting Plan of the Board of Commissioners for 2020
BCA has scheduled the Board of Commissioners meeting in 2020 as follows:
January - April May - August September - December
Month Date Month Date Month Date
January 15, 22, 29 May 6, 13 September 2, 9, 16, 23, 30
February 5, 12, 19 June 3, 10, 24 October 7, 14
March 4, 11 July 1, 8, 15, 22 November 4, 11, 18
April 1, 15, 22 August 5, 12, 19 December 2, 9
The schedule of the Board of Commissioners’ meetings may change from time to time as deemed necessary. The
schedule of Board of Commissioners meeting plan for 2020 has been posted on the BCA website since December
2019 and can be accessed at https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Struktur-Organisasi.
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2. Board of Directors Meeting Meeting Policy
Legal Basis Policies and implementation of the frequency
The Board of Directors meetings are held based on of Board of Directors meetings, including joint
the following rules: meetings with the Board of Commissioners,
a. Article 20 of OJK Regulation No. 55/ and the attendance of members of the Board
POJK.03/2016 concerning Implementation of of Directors in meetings have been set in the
Corporate Governance for Commercial Banks, corporate governance guidelines at BCA in part II
which states that each policy and strategic of the guidelines on procedures for implementing
decision is decided through a Board of Directors corporate governance principles - Chapter IV
meeting with due regard for supervision in regarding guidelines and code of conducts of the
accordance with the duties and responsibilities Board of Directors. The policy states that Board of
of the Board of Commissioners. Directors meetings must be held at 1 (one) time each
b. Article 16 paragraph 1 of OJK Regulation No. month and meetings of the Board of Directors with
33/POJK.04/2014 concerning Board of Directors the Board of Commissioners are held periodically at
and Board of Commissioners of Issuers or least one time in four months.
Public Companies, which states that the Board
of Directors is required to hold a Board of Quorum and Decision Making
Directors meeting periodically at least 1 (one) Decision making in a Board of Directors meeting is
time each month. considered valid and binding if more than one half
c. Article 16 paragraph 2 of OJK Regulation of the total number of Board of Directors present
No. 33/POJK.04/2014 concerning Board of or represented at the meeting. This provision is in
Directors and Board of Commissioners of accordance with article 13 paragraph 8 of BCA’s
Issuers or Public Companies, which states that Articles of Association.
the Board of Directors is required to hold a
Board of Directors meeting with the Board Decisions are made by consensus agreement. If the
of Commissioners periodically at least 1 (one) deliberation does not reach consensus, then the
time in four months. decision is made based on agreed votes of more
d. Article 13 of BCA’s Articles of Association. than one half of the total number of valid votes
e. The Board of Directors’ Code of Conduct. cast at the meeting. All decisions taken at Board of
Directors meetings are binding. Dissenting opinions
that occur in the Board of Directors meeting and
their reasons must be clearly stated in the minutes
of their meeting.
Implementation
Throughout 2019, the Board of Directors held 36
(thirty six) meetings. BCA has complied with OJK
Regulation regarding the minimum frequency of
Board of Directors meetings.
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Frequency of Attendance and Schedule of Board of Directors
The frequency and attendance level of the members of Board of Director into 2019 are as follows:
Number of
Name Position Attendance Percentage
Meetings
Jahja Setiaatmadja President Director 36 33 92%
Eugene Keith Deputy President Director 12 9 75%
Galbraith*
Suwignyo Budiman** Deputy President Director 36 30 83%
Armand Wahyudi Deputy President Director 36 29 81%
Hartono
Subur Tan*** Director 36 28 78%
Henry Koenaifi Director 36 29 81%
Erwan Yuris Ang Independent Director 36 27 75%
Rudy Susanto Director 36 32 89%
Lianawaty Suwono Director 36 34 94%
Santoso Director 36 28 78%
****
Inawaty Handojo Compliance Director 36 34 94%
Vera Eve Lim Director 36 27 75%
Information:
* Mr Eugene Keith Galbraith ended his term in the AGMS on April 11 2019.
** Mr Suwignyo Budiman assumes the position of Deputy President Director based on OJK Letter No. 38/KDK.03/2019 dated August 14 2019.
*** Mr. Subur Tan served as Compliance Director until October 3,2019
**** Mrs Inawaty Handojo assumes the position of Compliance Director based on OJK Letter No. 39/KDK.03/2019 dated August 14 2019.
The Board of Directors meeting schedule in 2019 has been posted on the BCA website and can be accessed at
https://www.bca.co.id/id/Tentang-BCA/Tata-Kelola-Perusahaan/Struktur-Organisasi.
The schedule and agenda of the Board of Directors meetings held throughout 2019 are as follows:
No. Date Agenda Attendees
1 January 10, 2019 s 0RESENTATION OF #ORPORATE &INANCE $IVISION JS, AH, EG, SB, ST, HK, RS,
s #ORPORATE 4RANSACTION 'ROUP 0RESENTATION LS, SL, IH, VL
s #ORPORATE 3OCIAL 2ESPONSIBILITY 7ORK 5NIT 0RESENTATION
2 January 24, 2019 Presentation of Human Capital Management Division JS, EG, AH, SB, ST, HK, LS, SL,
IH, VL
3 February 7, 2019 Presentation on Performance of Subsidiary JS, EG, AH, SB, ST, HK, EY,
RS, LS, IH, VL
4 February 12, 2019 Presentation on Performance of Subsidiary JS, EG, AH, HK, EY, RS, SL,
LS, IH
5 February 14, 2019 s 0RESENTATION OF (UMAN #APITAL -ANAGEMENT $IVISION JS, EG, AH, SB, ST, HK, EY,
s 0RESENTATION OF #OMMERCIAL AND 3-% "USINESS $IVISION RS, SL, LS, IH
6 February 21, 2019 s 0RESENTATION ON 0ERFORMANCE OF 3UBSIDIARY JS, AH, SB, ST, HK, EY, RS, LS,
s 0RESENTATION OF #ORPORATE &INANCE $IVISION IH, VL
7 February 26, 2019 s 0RESENTATION ON 0ERFORMANCE OF 3UBSIDIARIES JS, EG, AH, SB, ST, HK, EY,
s 0RESENTATION OF .ETWORK -ANAGEMENT AND 2EGIONAL RS, LS, IH, VL
Development Division
8 February 28, 2019 s 0RESENTATION OF "ANKING 4RANSACTION 0RODUCT $EVELOPMENT EG, AH, SB, ST, EY, RS, LS,
Division IH, VL
s 2EGIONAL /FlCE "RAINSTORMING
9 March 21, 2019 s #ONSULTANT 0RESENTATION JS, AH, SB, ST, HK, EY, RS, LS,
s 2EGIONAL /FlCE "RAINSTORMING IH, SL, VL
10 March 28, 2019 Presentation of Enterprise Security Work Unit and Strategic JS, EG, AH, ST, HK, RS, LS,
Information Technology Group SL, VL
11 April 4, 2019 Internal discussion JS, SB, HK, RS, LS, IH, SL, VL
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No. Date Agenda Attendees
12 April 9, 2019 Wealth Management Division Presentation JS, EG, AH, SB, ST, HK, EY,
RS, LS,
SL, IH, VL
13 April 18, 2019 s 0RESENTATION OF #ORPORATE &INANCE $IVISION JS, AH, SB, ST, HK, EY, RS, LS,
s 0RESENTATION OF 3UBSIDIARY #OMPANIES SL, IH, VL
14 May 6, 2019 Internal Discussion JS, AH, ST, EY, RS, IH, SL, VL
15 May 14, 2019 s 7EALTH -ANAGEMENT $IVISION 0RESENTATION JS, SB, ST, HK, EY, RS, LS, SL,
s 0RESENTATION OF /PERATION 3TRATEGY AND $EVELOPMENT OF IH, VL
Services Division
s )NTERNAL $ISCUSSION
16 May 16, 2019 Presentation of the Human Capital Management Division JS, AH, SB, ST, HK, EY, RS, LS,
SL, IH, VL
17 May 24, 2019 Wealth Management Division Presentation JS, AH, SB, HK, LS, IH, SL, VL
18 June 25, 2019 s 0RESENTATION OF 2ISK -ANAGEMENT 7ORK 5NIT JS, SB, ST, HK, RS,LS, SL, IH,
s )NTERNAL $ISCUSSION VL
19 July 2, 2019 Wealth Management Division Presentation JS, AH, SB, HK, EY, RS, LS, IH
20 July 4, 2019 Internal Discussion JS, AH, SB, HK, RS, LS, IH, VL
21 July 11, 2019 Presentation of Corporate Finance Division JS, AH, HK, EY, RS, LS, IH, SL,
VL
22 July 18, 2019 Presentation of Corporate Finance Division JS, AH, SB, ST, HK, EY, LS, IH,
SL, VL
23 July 25, 2019 s 0RESENTATION OF 3UBSIDIARY JS, AH, SB, ST, HK, EY, RS, LS,
s )NTERNAL $ISCUSSION SL, IH, VL
24 August 1, 2019 Regional Office Brainstorming JS, AH, SB, ST,HK, EY, RS, LS,
SL, IH
25 August 8, 2019 s 0RESENTATION OF THE #ORPORATE 3TRATEGY AND 0LANNING JS, SB, ST, HK, EY, RS, LS, SL,
Division IH, VL
s 0RESENTATION OF #ORPORATE &INANCE $IVISION
s 0RESENTATION ON 3UBSIDIARY #OMPANY 0ERFORMANCE
26 August 15, 2019 Credit Risk Analysis Group Presentation JS, AH, SB, HK, EY, RS, LS, SL,
IH, VL
27 August 22, 2019 s 3TRATEGIC )NFORMATION 4ECHNOLOGY 'ROUP 0RESENTATION JS, AH, EY, RS, LS, SL, IH, VL
s 0RESENTATION ON 0ERFORMANCE OF 3UBSIDIARY
28 August 29, 2019 s 0RESENTATION OF %LECTRONIC "ANKING 3ERVICE #ENTERS JS, AH, SB, ST, EY, RS, LS, SL,
s 0RESENTATION OF #ORPORATE 3TRATEGY AND 0LANNING $IVISION IH, VL
29 September 5, 2019 Internal Discussion JS, SB, ST, HK, RS, LS, IH
30 September 19, 2019 s 7EALTH -ANAGEMENT $IVISION 0RESENTATION JS, AH, SB, ST, HK, EY, RS, LS,
s 0RESENTATION OF 4RANSACTION "ANKING 0RODUCT $EVELOPMENT SL, IH
Division
s ,EARNING AND $EVELOPMENT $IVISION 0RESENTATION
31 October 24, 2019 s 0RESENTATION OF #ORPORATE &INANCE $IVISION SB, AH, ST, EY, RS, LS, SL, IH,
s )NTERNAL $ISCUSSION VL
32 November 7, 2019 Presentation of Risk Management Work Unit JS, SB, ST, EY, RS, SL, IH
33 November 14, 2019 s #ONSULTANT 0RESENTATION JS, AH, SB, ST, HK, EY, LS, SL,
s )NTERNAL $ISCUSSION IH,
34 November 21, 2019 s 0RESENTATION OF 4RANSACTION "ANKING 0RODUCT $EVELOPMENT JS, ST, EY, RS, LS, SL, IH
Division
s 0RESENTATION OF /PERATION 3TRATEGY $EVELOPMENT
Division
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No. Date Agenda Attendees
35 December 12, 2019 Presentation of Project management Office JS, SB, AH, ST, HK, RS, LS, SL,
IH, VL
36 December 19, 2019 Presentation from Consultant SB, AH, ST, HK, EY, RS, LS, VL
Remark:
No. Abbreviation Name No. Abbreviation Name
1. JS Jahja Setiaatmadja 7. EY Erwan Yuris Ang
2. EG Eugene Keith Galbraith 8. RS Rudy Susanto
3. AH Armand Wahyudi Hartono 9. LS Lianawaty Suwono
4. SB Suwignyo Budiman 10. SL Santoso
5. ST Subur Tan 11. IH Inawaty Handojo
6. HK Henry Koenaifi 12. VL Vera Eve Lim
Meeting Plan of Directors in 2020
BCA has scheduled the Board of Directors meetings in 2020 as follows:
January - April May - August September - December
Month Date Month Date Month Date
January 9, 16, 23, 30 May 14, 28 September 3, 10, 17, 24
February 6, 13, 20, 27 June 4, 11, 18, 25 October 1, 8, 15, 22
March 5, 12, 19, 26 July 2, 9, 16, 23, 30 November 5, 12, 19, 26
April 2, 9, 16, 23, 30 August 6, 13, 27 December 11, 18
The schedule for the Board of Directors meetings may change from time to time as deemed necessary.
The Board of Directors meeting schedule has been posted on the BCA website since December 2019 and can be
accessed at https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Struktur-Organisasi.
3. Joint Meetings of the Board of Commissioners with the Board of Directors
During 2019, the Board of Commissioners and the Board of Directors held 20 (twenty) joint meetings.
Attendance Frequency of the Board of Commissioners in Joint Meetings of the Board of Commissioners
and the Board of Directors in 2019
Number of
Name Position Attendance Percentage
Meetings
Djohan Emir Setijoso President Commissioner 20 19 95%
Tonny Kusnadi Commissioner 20 18 90%
Cyrillus Harinowo Independent Commissioner 20 17 85%
Raden Pardede Independent Commissioner 20 17 85%
Sumantri Slamet Independent Commissioner 20 19 95%
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Attendance Frequency of the Board of Directors in Joint Meetings of the Board of Commissioners and
the Board of Directors in 2019
Number of
Name Position Attendance Percentage
Meetings
Jahja Setiaatmadja President Director 20 15 75%
Eugene Keith Deputy President Director 6 6 100%
Galbraith*
Suwignyo Budiman** Deputy President Director 20 18 90%
Armand Wahyudi Deputy President Director 20 13 65%
Hartono
Subur Tan*** Director 20 19 95%
Henry Koenaifi Director 20 15 75%
Erwan Yuris Ang Independent Director 20 11 55%
Rudy Susanto Director 20 18 90%
Lianawaty Suwono Director 20 17 85%
Santoso Director 20 16 80%
Inawaty Handojo**** Compliance Director 20 20 100%
Vera Eve Lim Director 20 20 100%
Remarks:
* Mr Eugene Keith Galbraith ended his term in the AGMS on April 11 2019.
** Mr Suwignyo Budiman assumes the position of Deputy President Director based on OJK Letter No. 38/KDK.03/2019 dated August 14 2019.
*** Mr. Subur Tan served as Compliance Director until October 3,2019
**** Mrs Inawaty Handojo assumes the position of Compliance Director based on OJK Letter No. 39/KDK.03/2019 dated August 14 2019.
Meeting schedule and attendance of Board of Commissioners in the joint meetings of the Board of Commissioners
and the Board of Directors throughout 2019:
No. Date Agenda Attendees
1 January 17, 2019 Presentation of Corporate Secretary and Communication DES, TK, RP, SS
Division EG, AH, ST, RS, SB, IH, SL, LS,
VL
2 January 24, 2019 s 0RESENTATION OF #ORPORATE 3ECRETARY AND #OMMUNICATION DES, TK, CH
Division JS, EG, AH, ST, HK, SB, IH, SL,
s 0RESENTATION OF 2ISK -ANAGEMENT 7ORK 5NIT LS, VL
3 February 27, 2019 s 0RESENTATION OF &INANCE $IVISION DES, TK, CH, SS
s 0RESENTATION OF #OMPLIANCE 7ORK 5NIT JS, EG, ST, RS, HK, SB, EY, IH,
LS, VL
4 March 12, 2019 Presentation of Finance Division DES, TK, CH, RP, SS
JS, EG, AH, ST, RS, HK, SB,
EY, IH, LS, VL
5 March 27, 2019 Presentation of Corporate Secretary and Communication DES, TK, RP, SS
Division JS, EG, AH, ST, RS, HK, IH, SL,
LS, VL
6 April 9, 2019 Presentation of Corporate Secretary and Communication DES, TK, CH, RP, SS
Division JS, EG, AH, ST, RS, HK, SB,
EY, IH, SL, LS, VL
7 April 24, 2019 Presentation of Corporate Strategy and Planning Division DES, CH, RP, SS
AH, ST, RS, HK, SB, IH, SL,
LS, VL
8 June 19, 2019 Presentation of Corporate Strategy and Planning Division DES, TK, CH, RP, SS
JS, SH, ST, RS, HK, SB, IH, SL,
LS, VL
9 July 24, 2019 s 0RESENTATION OF #OMPLIANCE 7ORK 5NIT DES, TK, CH, RP, SS
s 0RESENTATION OF &INANCE $IVISION JS, AH, ST, RS, HK, SB, EY, IH,
s 0RESENTATION OF #ORPORATE 3TRATEGY AND 0LANNING $IVISION SL, LS, VL
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No. Date Agenda Attendees
10 August 14, 2019 Discussions on Subsidiaries DES, TK, CH, SS
JS, RS, HK, SB, IH, SL, LS, VL
11 September 12-13, Presentation on Business Strategy and Priorities DES, TK, CH, RP, SS
2019 JS, AH, ST, RS, HK, SB, EY, IH,
SL, LS, VL
12 September 25, 2019 Presentation of Corporate Strategy and Planning Division TK, CH, RP, SS
ST, HK, SB, EY, IH, SL, VL
13 October 23, 2019 Presentation of Corporate Strategy and Planning Division DES, TK, CH, RP, SS
SB, AH, ST, RS, IH, SL, VL
14 October 29, 2019 Presentation of Corporate Strategy and Planning Division DES, TK, CH, RP, SS
JS, SB, AH, ST, EY, RS, LS, IH,
VL
15 October 31, 2019 Discussions on Subsidiary DES, TK, CH, RP, SS
JS, SB, ST, HK, EY, RS, IH, VL
16 November 20, 2019 s 0RESENTATION OF #ORPORATE 3TRATEGY AND 0LANNING $IVISION DES, TK, CH, RP, SS
s 0RESENTATION OF #ORPORATE 3ECRETARY AND #OMMUNICATION JS, SB, AH, ST, HK, EY, RS, LS,
Division IH, SL, VL
17 November 26, 2019 s 0RESENTATION FROM #ONSULTANT DES, TK, RP, SS
s 0RESENTATION OF #ORPORATE 3ECRETARY AND #OMMUNICATION JS, SB, ST, RS, LS, IH, SL, VL
Division
18 November 27, 2019 Presentation of Corporate Strategy and Planning Division DES, TK, CH, RP, SS
JS, ST, EY, RS, LS, IH, SL, VL
19 December 11, 2019 Presentation of Corporate Strategy and Planning Division DES, CH, RP, SS
SB, AH, ST, HK, EY, RS, LS, IH,
SL, VL
20 December 18, 2019 Presentation of Strategy and Development of Service DES, TK, CH, RP, SS
Operations Division JS, SB, AH, ST, HK, RS, LS, IH,
SL, VL
Remarks:
The Board of Commissioners: The Board of Directors:
No. Abbreviation Name No. Abbreviation Name
1. DES Djohan Emir Setijoso 1. JS Jahja Setiaatmadja
2. TK Tonny Kusnadi 2. EG Eugene Keith Galbraith
3. CH Cyrillus Harinowo 3. AH Armand Wahyudi Hartono
4. RP Raden Pardede 4. SB Suwignyo Budiman
5. SS Sumantri Slamet 5. ST Subur Tan
6. HK Henry Koenaifi
7. EY Erwan Yuris Ang
8. RS Rudy Susanto
9. LS Lianawaty Suwono
10. SL Santoso
11. IH Inawaty Handojo
12. VL Vera Eve Lim
Joint Meeting Plan of the Board of Commissioners and the Board of Directors for 2020
BCA has scheduled joint meetings of the Board of Commissioners and the Board of Directors for 2020 as follows:
January - April May - August September - December
Month Date Month Date Month Date
January - May - September -
February 26 June 17 October 21, 28
March 18 July 29 November 25
April 29 August 26 December 16
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The joint meeting schedule above mentioned may governance implementation report. The disclosure
change from time to time as deemed necessary. is in line with Article 39 Point b of OJK Regulation
No. 55/POJK.03/2016 on the Implementation of
The joint meeting plan of the Board of Corporate Governance for Commercial Banks.
Commissioners and the Board of Directors in 2020
has been posted in BCA website since December All members of the Board of Commissioners of BCA
2019 and can be accessed at https://www.bca.co.id/ do not have any affiliated relationships of family,
en/Tentang-BCA/Tata-Kelola-Perusahaan/Struktur- financial, management, and ownership relationship
Organisasi. with other members of the Board of Commissioners,
members of the Board of Directors, or main and/or
AFFILIATED RELATIONSHIP controlling shareholders.
Affiliated relationships among members of the Board The Board of Commissioners of BCA follows the
of Directors, the Board of Commissioners, and main/ principles of integrity and independence, and does
controlling shareholders are as follows: not have conflicts of interest that may disrupt his/
her ability to perform duties professionally and
objectively.
of Commissioners
BCA has disclosed financial and family relationship Affiliated relationship between members of the
between member of the Board of Commissioners Board of Commissioners and other members of the
and other members of the Board of Commissioners, Board of Commissioners, members of the Board of
members of the Board of Directors, and/ Directors, and main and/or controlling shareholders
or controlling shareholders in the corporate is shown in the table below.
Table of Affiliated Relationships of the Board of Commissioners of BCA
Family Relationship with: Financial Relationship with:
Board of Board of Controlling Board of Board of Controlling
Name Position Commissioners Directors Shareholders Commissioners Directors Shareholders
Yes No Yes No Yes No Yes No Yes No Yes No
Djohan President Commissioner - 3 - 3 - 3 - 3 - 3 - 3
Emir
Setijoso
Tonny Commissioner - 3 - 3 - 3 - 3 - 3 - 3
Kusnadi
Cyrillus Independent - 3 - 3 - 3 - 3 - 3 - 3
Harinowo Commissioner
Raden Independent - 3 - 3 - 3 - 3 - 3 - 3
Pardede Commissioner
Sumantri Independent - 3 - 3 - 3 - 3 - 3 - 3
Slamet Commissioner
BCA has disclosed financial and family relationship between members of the Board of Directors and other
members of the Board of Directors, members of the Board of Commissioners, and/or controlling shareholders in
the Corporate Governance Implementation Report. It is in accordance with Article 21 Point b of OJK Regulation
No. 55/POJK.03/2016 concerning Implementation of Governance for Commercial Banks.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
The majority of the members of BCA Board of Affiliated relationship between members of
Directors is not affiliated with other members the Board of Directors and other members of
of the Board of Directors, members of the Board the Board of Directors, members of the Board
of Commissioners, or Main and/or Controlling of Commissioners, and Main and/or Controlling
Shareholders. Shareholders is shown in the table below.
Board of Directors of BCA follows the principles
of integrity and independence, and does not have
conflict of interests that may disrupt his/her ability
to perform duties professionally and objectively.
Table of Affiliated Relationship of BCA’s members of Board of Directors
Family Relationship with: Financial Relationship with:
Board of Board of Controlling Board of Board of Controlling
Name Position Commissioners Directors Shareholders Commissioners Directors Shareholders
Yes No Yes No Yes No Yes No Yes No Yes No
Jahja President - 3 - 3 - 3 - 3 - 3 - 3
Setiaatmadja Director
Suwignyo Deputy President - 3 - 3 - 3 - 3 - 3 - 3
Budiman Director
Armand Deputy President - 3 - 3 3 - - 3 - 3 3 -
Wahyudi Director
Hartono
Henry Director - 3 - 3 - 3 - 3 - 3 - 3
Koenaifi
Subur Tan Director - 3 - 3 - 3 - 3 - 3 - 3
Erwan Yuris Independent Director - 3 - 3 - 3 - 3 - 3 - 3
Ang
Rudy Director - 3 - 3 - 3 - 3 - 3 - 3
Susanto
Lianawaty Director - 3 - 3 - 3 - 3 - 3 - 3
Suwono
Santoso Director - 3 - 3 - 3 - 3 - 3 - 3
Inawaty Director (concurrently - 3 - 3 - 3 - 3 - 3 - 3
Handojo Compliance Director)
Vera Eve Lim Director - 3 - 3 - 3 - 3 - 3 - 3
3. Statement of Independence of the Board of Commissioners and the Board of Directors
BCA complies with the provision of disclosure on the Implementation of Corporate Governance as stipulated in
Section IX Point 1 of OJK Circular Letter No. 13/SEOJK.03/2017 concerning Implementation of Governance for
Commercial Banks, covering the implementation of duties and responsibilities of the Board of Directors and the
Board of Commissioners including:
- The number, composition, criteria, and independence of members of the Board of Directors and the Board
of Commissioners;
- Duties and responsibilities of Board of Directors and the Board of Commissioners;
- Recommendations of the Board of Commissioners.
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Independence Policy of the Board of DIVERSITY IN THE COMPOSITION OF THE
Commissioners and the Board of Directors BOARD OF COMMISSIONERS AND THE BOARD
BCA already has and implements a policy related to OF DIRECTORS
the independence of the Board of Commissioners
in article 14 paragraph 14 of BCA’s Articles of BCA has a diverse composition of its Board of
Association. The policy regulates that the majority Commissioners and Board of Directors. The diversity in
of members of the Board of Commissioners is composition is important to support the management,
prohibited from having family ties to the second governance, commissioning, and implementation of
degree, either in a straight line or a side line, or son- the duties of members of the Board of Commissioners
in-law and brother-in law relationship with fellow and Board of Directors, and to support the acceleration
members of the Board of Commissioners and/or the of BCA’s performance. The diversity of BCA’s Board
Board of Directors. of Commissioners and Board of Directors meets the
provisions of the OJK’s Principles and Recommendations,
BCA also has and implements a policy related to as regulated in OJK Circular Letter No. 32/SEOJK.04/2015
independence of the Board of Directors in article concerning Corporate Governance Guidelines for Public
11 paragraph (15) of BCA’s Articles of Association. Company.
The policy regulates that the majority of members
of the Board of Directors is prohibited from having 1. Diversity in the Composition of Members of the
family ties to the second degree, either in a straight Board of Commissioners
line or a side line, or son-in-law and brother-in law The policy on diversity in the composition of the
relationship with fellow members of the Board of Board of Commissioners is set out in the Board of
Directors and/or the Board of Commissioners. Commissioners Guideline and Work Procedures in
Part B Chapter 2 of Corporate Governance Guideline
Statement of Independence can be viewed at https://www.bca.co.id/en/Tentang-
All members of the Board of Commissioners of BCA BCA/Tata-Kelola-Perusahaan/Struktur-Organisasi)
have no financial or family relationship up to the The policy reflects the diversity of the members
second degree with other fellow members of the in terms of education (field of study), working
Board of Commissioners, members of the Board experience, age, expertise, and independence
of Directors, and/or controlling shareholders. In regardless of gender, ethnicity, religion, and race.
addition, all members of the Board of Commissioners The diversity of strong competence from each
of BCA also have no relationship with BCA that may member of the Board of Commissioners supports
influence their ability to act independently. the acceleration of BCA’s performance.
The majority members of the Board of Directors BCA does not limit opportunities for women and
of BCA has no financial, management, share men who meet the qualification requirements to
ownership, and/or family relationship up to the become members of the Board of Commissioners.
second degree with other fellow members of
the Board of Directors, members of the Board of
Commissioners, and/or controlling shareholders.
In addition, the majority of members of the Board
of Directors of BCA also has no relationship with
BCA that may influence his/her ability to act
independently.
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Diversity in the composition of members of the Board of Commissioners can be seen in the following table.
No Diversity Factor Remarks
1 Expertise/Education Members of the Board of Commissioners have various expertise/ education
backgrounds from bachelor’s, master’s, up to doctoral degrees, in the field of
accounting, engineering and economics.
2 Professional Experience Members of the Board of Commissioners have various working experiences as
professionals in national/multinational banks and financial institutions, and as
consultants, lecturers, and government officials.
3 Age Members of the Board of Commissioners range from 59 years old to 78 years old.
4 Independence 1. All members of the Board of Commissioners are independent of BCA’s controlling
shareholders.
2. The majority (60%) of the members of the Board of Commissioners of BCA
are Independent Commissioners. Out of 5 (five) members of the Board of
Commissioners, there are 3 (three) Independent Commissioners.
Complete information on the Board of Commissioners’ personal data can be seen in the Company Profile section
on page 75-79 of this 2019 Annual Report.
2. Diversity in the Composition of Members of the and independence. The diversity, professional
Board of Directors experiences, and strong competences of each
The policy on diversity in composition of the Board member of the Board of Directors positively support
of Directors is set out in the Board of Directors the acceleration of BCA’s performance.
Guidelines and Work Procedures in Part B Chapter
4 of Corporate Governance Guidelines (can be BCA does not limit opportunities for women and
viewed at can be viewed at https://www.bca.co.id/ men who meet the qualification requirements to
en/Tentang-BCA/Tata-Kelola-Perusahaan/Struktur- become members of the Board of Directors. BCA
Organisasi).The policy reflects the diversity of the has met the policy of more than one woman sitting
members in terms of education (field of study), in the Board of Directors, by currently having three
working experience, age, or expertise regardless of members of the Board who are women.
gender, ethnicity, religion, race, as well as criteria
Diversity in the composition of members of the Board of Directors can be seen in the following table:
No Diversity Factor Remarks
1 Expertise/Education Members of the Board of Directors have various expertise/education backgrounds
from bachelor’s, and master’s degrees, in the field of economics, accounting,
information technology, law, engineering and business.
2 Professional Experience Members of the Board of Directors have various working experiences as
professionals in national/multinational banks and financial institutions, and as
consultants, lecturers, and accounting professionals.
3 Age Members of the Board of Commissioners ages range from 44 years old to 69 years
old.
4 Gender Out of 11 (eleven) members of the Board of Commissioners, 3 (three) are women.
5 Independence s 4HE 0RESIDENT $IRECTOR IS INDEPENDENT OF "#! CONTROLLING SHAREHOLDERS
s 4HERE IS ONE )NDEPENDENT $IRECTOR
s 4HE MAJORITY OF MEMBERS OF THE "OARD OF $IRECTORS ARE INDEPENDENT OF "#!
controlling shareholders.
Complete information on the Board of Directors’ personal data can be seen in the Company Profile section page
64-74 of this 2019 Annual Report.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PERFORMANCE ASSESSMENT OF THE BOARD OF b. Frequency
COMMISSIONERS AND BOARD OF DIRECTORS The Board of Commissioners is obliged to
BCA employs a self-assessment policy for the Board of perform self-assessment at least once every
Commissioners and Directors in order to comply with year.
OJK Regulation No. 21/POJK.04/2015 on the Guidelines c. Criteria and Benchmark
of Corporate Governance Implementation for Listed The criteria for performing the assessment of
Company and OJK Circular Letter No. 32/SEOJK.04/2015 the Board of Commissioners are:
on Guidelines of Corporate Governance of Listed 1) Supervisory and advisory of the Board of
Company in accordance with ACGS assessment and Directors in association with:
indicators. The self-assessment policy of the performance s "#!S KEY STRATEGY AND PLAN
of the Board of Commissioners and Board of Directors is s )NTEGRITY OF "#!S lNANCIAL STATEMENT
a manifestation of the accountability of the Board of s )NTERNAL CONTROL SYSTEM AND RISK
Commissioners and Board of Directors in carrying out management
their duties and responsibilities. s 'OOD CORPORATE GOVERNANCE
2) Approval of the Board of Directors’
1. Procedure of the Performance Assessment of decisions is granted in accordance with
the Board of Commissioners BCA’s Articles of Association and laws and
The procedure of the performance assessment of regulations.
the Board of Commissioners includes the following: d. Assessors and Evaluator
a. Assessment Method and Instrument The Board of Commissioners, through self-
Assessment is conducted by employing a self- assessment, conducts the assessment of the
assessment method performed by the Board of Board of Commissioners performance. The
Commissioners guided by the self-assessment outcome will then be evaluated by the Board
form. of Commissioners in a meeting based on
recommendations from Remuneration and
Nomination Committee.
e. Assessment Process Flow
The self-assessment result of
the Board of Commissioners will
Each member of Board of be evaluated by the Board of
Commissioners fill the Self- Commissioners through meetings Evaluation Results
Assessment Form based on the recommendation
from the Committee of
Remuneration and Nomination.
f. 2019 Assessment Result 2. Procedure of the Board of Directors Performance
The Board of Commissioners’ 2019 self- Assessment
assessment result was “Very Good”. The The procedure of Board of Directors performance
Board of Commissioners of BCA will strive for assessment includes the following:
improvement on good corporate governance, a. Assessment Method and Instrument
internal controls, and risk management in the Assessment is conducted by employing the
banking digitalization era. self-assessment method performed by the
members of the Board of Directors guided by
the self-assessment form. The form is issued in
accordance to the duties and responsibilities of
Board of Directors as stated in the Company’s
decrees.
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b. Frequency d. Assessors
The Board of Directors is obliged to perform The Board of Directors itself, through self-
self-assessment at least once every year. assessment, is the party conducting the
assessment of the Board of Directors. The
c. Criteria and Benchmark outcome will then be evaluated by Board
The criteria and benchmark referred to herein of Commissioners in a meeting based on
adheres to the Bank’s business plan which has recommendations from the Remuneration and
been approved by the Board of Commissioners. Nomination Committee.
e. Assessment Process Flow
The self-assessment result of the
Board of Directors will be evaluated
Each member of Board of Directors Evaluation Results
by the Board of Commissioners
fill the Self-Assessment Form through meetings based on the
recommendation from the RNC
f. Board of Directors Component Assessment
Each member of the Board of Directors fills out a Self-Assessment Form in which will be later be evaluated
by Board of Commissioners through a meeting based on recommendations from the Remuneration and
Nomination Committee.
g. Performance Assessment Result
The result of the Board of Directors self-assessment in 2019 was “Very Good”.
Coming into 2020, the Board of Directors needs to be aware of several challenges, such as economic
conditions that are not fully conducive, the disruption of digital technology and fin-tech, and changes in
customer behavior in order to maintain the Bank’s sustainable business growth. BCA will also focus on good
corporate governance, internal controls and risk management in the era of banking digitalization.
3. Procedure of the Assessment of the President Director
The procedure of the assessment of the President Director includes the following:
a. Assessment Method and Instrument
Assessment is conducted by the President Director guided by the Self-Assessment Form. In which was
accordance with the duties and responsibilities of the President Director as stated in the Company’s decrees.
b. Frequency
The President Director is obliged to perform self-assessment at least once every year.
c. Criteria and Benchmark
The criteria or benchmarks used for assessing the President Director refer to the Bank’s business plan that
has been approved by the Board of Commissioners.
d. Assessors
The party evaluating the performance of the President Director is the President Director, through a self-
assessment method, which is then evaluated by the Board of Commissioners through a meeting based on
the recommendations of the Remuneration and Nomination Committee.
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e. Assessment Process Flow
The self-assessment result of the
President Director will be evaluated
The President Director fill the Self- by the Board of Commissioners Evaluation Results
Assessment Form through meetings based on the
recommendation from the RNC.
f. The President Director Assessment Component REMUNERATION POLICY
With regards to assisting President Director’s
individual self-assesment, BCA sets and compiles 1. Remuneration for the Board of Commissioners
the assessment component of President The remuneration of BCA’s Board of Commissioners
Director’s individual self-assessment in has been adjusted to the prevailing regulations
accordance with the duties and responsibilities and is based on the procedures, structure, and
of the President Director which include the indicators that form the basis for determining the
financial, customer, business process, with remuneration.
learning and development components.
References of Determination and Disclosure
g. 2019 Assessment Result Disclosure of remuneration of the Board of
The 2019 self-assesment result was determined Commissioners is based on:
“Very Good”. The President Director will also a. Article 28 of OJK Regulation No. 45/
focus on input from the Board of Commissioners POJK.03/2015 concerning Implementation of
regarding good corporate governance, internal Governance in Remuneration for Commercial
control, and risk management in the era of Banks, which states that banks are required
banking digitalization, in order to maintain to disclose remuneration policy information in
sustainable bank business growth. their annual report on corporate governance
implementation as stipulated in the provisions
regarding the implementation of Good
Corporate Governance for commercial banks.
b. Article 40 of OJK Regulation No. 55/
POJK.03/2016 concerning Implementation
of Governance for Commercial Banks,
which states that members of the Board of
Commissioners are required to disclose the
remuneration and other facilities determined
by the GMS in the report of corporate
governance implementation, with reference to
the OJK regulations on the Implementation of
Governance in Remuneration for Commercial
Banks.
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c. OJK Circular Letter No. 30/SEOJK.04/2016 Procedure
concerning the Form and Content of Annual Based on resolution of BCA Annual GMS held in
Reports of Issuers or Public Companies 2019, the GMS authorized and granted the majority
in Chapter III on the Contents of Annual shareholder to determine:
Reports, which states that the governance a. Amount of honorarium and other allowances
reports of issuers or public companies contain to be paid by BCA to the members of the Board
a brief description of the procedures, basis of Commissioners who served during fiscal year
for determination, structure, and amount of 2019.
remuneration for each member of the Board of b. Tantiem distribution among members of the
Commissioners. Board of Commissioners and Board of Directors
d. Chapter IV of OJK Circular Letter No. 40/ of BCA.
SEOJK.03/2016 concerning the Implementation
of Governance in Remuneration for Commercial
Banks, which states that banks are required
to disclose remuneration policy information
in annual reports on good governance
implementation, as stipulated in the provisions
regarding good governance for commercial
banks.
Procedure of Proposal and Determination of Remuneration for the Board of Commissioners Scheme
RNC submits the result of the
evaluation and policy recommendation The Board of Commissioners
of the Board of Commissioners to be proposes the determination
submitted to the GMS of renumeration to the GMS
The determination of remuneration The GMS shall determine
to members of the Board of remuneration to
Commissioners based on decision made members of the Board of
by the GMS Commissioners
Remuneration Structure of the Board of Commissioners
Following Chapter IV Point 2 letter i of OJK Circular Letter No. 40/SEOJK.03/2016 on the Implementation of
Governance on Remuneration for Commercial Banks, remuneration packages and facilities received by the Board
of Commissioners cover remuneration structure and details of the nominal amount as specified in the table below:
Amount Received in 1 (one) year
Types of Remuneration and Facilities Board of Commissioners
Number of people In million Rupiah
Salary, bonus, routine allowance, tantiem, and other non-natura facilities 5 134.313
Other facilities in the form of natura (housing, health insurance, etc) that :
1. Can be possessed - -
2. Cannot be possessed - -
Total 5 134.313
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Based on Chapter IV Point 2 letter j of OJK Circular Letter No. 40/SEOJK.03/2016 on the Implementation of
Governance on Remuneration for Commercial Banks, remuneration packages are classified into income levels
received by the Board of Commissioners within 1 (one) year, as indicated in the table below:
Amount Received in 1 (one) year
Total Remuneration per Person in 1 (one) Year *)
Number of People
Above Rp2 billion 5
Above Rp1 billion up to Rp2 billion -
Above Rp500 million up to Rp1 billion -
Below Rp500 million -
Remark : *) received in cash
The amount of remuneration for each member of the Board of Commissioners in 1 (one) year is above
Rp2 billion, which was received in cash during 2019.
2. Remuneration for the Board of Directors description regarding procedure, basis for
Remuneration for BCA Board of Directors has been determination, structure, the amount of
adjusted to the prevailing regulations and based on remuneration of every member of the Board of
the procedures, structures and indicators, which Directors, as well as the relationship between
form the basis of remuneration determination. remuneration and performance of issuers or
public companies.
Legal Basis for Determination and Disclosure d. Chapter IV Point 1 of OJK Circular Letter No. 40/
Disclosure of remuneration for the Board of SEOJK.03/2016 concerning the Implementation
Directors is based on: of Governance on Remuneration for
a. Article 28 of OJK Regulation No. 45/ Commercial Banks, which states that Banks
POJK.03/2015 on the Implementation of must disclose their remuneration policy in their
Governance on Remuneration for Commercial annual report of governance implementation,
Banks, which states that the Bank must disclose as stipulated in the provision of governance
its remuneration policy in its annual report implementation for commercial banks.
of corporate governance implementation, as
stipulated in the provision of Good Corporate Procedure
Governance implementation for Commercial Based on resolution of BCA Annual GMS held in
Banks. 2019, the GMS authorized and granted:
b. Article 22 paragraph (3) of OJK Regulation a. The Board of Commissioners to determine
No. 55/POJK.03/2016 on the Implementation the amount of salary and other allowances to
of Governance for Commercial Banks, which members of the Board of Directors;
states that members of the Board of Directors b. The Majority Shareholder to determine tantiem
must disclose remuneration and other facilities distribution among members of the Board of
in the governance implementation report by Commissioners and the Board of Directors.
referring to the OJK regulation concerning the
Implementation of Governance on Remuneration In exercising such power and authority, the Board
for Commercial Banks. of Commissioners observes the recommendations
c. Chapter III of OJK Circular Letter No. 30/ from the RNC.
SEOJK.04/2016 on the Form and Content of the
Annual Report of Issuers or Public Companies,
which states that governance report of issuers
or public companies should contain a brief
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Nomination Mechanism for Members of the Board of Directors Scheme
RNC submits the result and Board
of Directors’ recommendation The Board of Commissioners
on numeration policy to Board proposes remuneration of
of Commissioners which will be the Board of Directors to the GMS
provided to GMS
The determination of remuneration to The GMS shall determine
members of the Board of Directors remuneration to Members of the
based on decision made by the GMS Board of Directors
Remuneration Structure of the Board of Directors
Following Chapter IV Point 2 letter i of OJK Circular Letter No. 40/SEOJK.03/2016 on the Implementation of
Governance on Remuneration for Commercial Banks, remuneration packages and facilities received by the Board
of Directors cover remuneration structure and details of the nominal amount, as specified in the table below:
Amount Received in 1 (one) year
Types of Remuneration and Facilities Board of Directors
Number of People in million Rupiah
Salary, bonus, routine allowance, tantiem, and other non-natura 11 456,602
facilities
Other facilities in the form of natura (housing, health insurance, etc) -
that :
1. Can be possessed - -
2. Cannot be possessed - -
Total 11 456,602
Based on Chapter IV Point 2 letter j of OJK Circular Letter No. 40/SEOJK.03/2016 on the Implementation of
Governance on Remuneration for Commercial Banks, remuneration package is classified into income levels
received by the Board of Directors within 1 (one) year, as indicated in the table below:
Amount Received in 1 (one) Year
Total Remuneration per Person in 1 (one) Year *)
Number of People
Above Rp2 billion 11
Above Rp1 billion up to Rp2 billion -
Above Rp500 million up to Rp1 billion -
Below Rp500 million -
Remark : *) received in cash
The amount of remuneration for each member of the Board of Directors in 1 (one) year is above Rp2 billion,
which was received in cash during 2019.
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Indicators of Remuneration Stipulation for the Board of Directors
Basic indicator for determining the remuneration for the members of The Board of Directors, among others, are
as follows:
a. Performance of individual member of the Board of Directors.
b. Financial performance and reserve fulfilment as stipulated in Law No. 40 Year 2007 on Limited Liability
Company.
c. Fairness with peer group.
d. The equality of positions within the BCA and to several other similar banks in terms of assets and
characteristics.
e. Consideration of BCA long term goals and strategy.
3. BCA Remuneration Implementation
No Provision Detail Disclosure
a. Remuneration Names of members, Name of members:
Committee. composition, tasks and 1. Djohan Emir Setijoso
responsibilities. 2. Raden Pardede
3. Hendra Tanumihardja
Composition of the remuneration committee:
Position Served by
Chairman (concurrently Independent commissioner
member)
Member s #OMMISSIONER
s %XECUTIVE /FlCERS OFlCERS
directly report to Board
of Directors and in charge
of human resources
department) .
Secretary (concurrently A member of the committee
member) appointed by the Committee
session for a certain period of
time.
Duties and responsibilities:
Related to the remuneration function:
s 4O EVALUATE AND ENSURE THAT THE REMUNERATION POLICY IS IN
compliance with prevailing provisions that are based on
performance, risk, fairness between peer groups BCA long term
goals and strategies.
s 4HE FULlLLMENT OF RESERVES AS STIPULATED IN REGULATIONS AND "#!
revenue potential in the future.
s 4O ASSIST THE "OARD OF #OMMISSIONERS TO CONDUCT PERFORMANCE
appraisals with the appropriateness of remuneration received
by every member of the Board of Directors and/or the Board of
Commissioners.
s 4O SUBMIT EVALUATION AND RECOMMENDATION RESULTS TO THE "OARD
of Commissioners on:
1. Remuneration policy for the Board of Commissioners and
Board of Directors to be submitted to the General Meeting
of Shareholders (GMS)
2. The structure and amount of remuneration for Board of
Directors and Board of Commissioners;
3. Remuneration policy for all the executive officers and
employees to be submitted to the Board of Directors.
s 4O CONDUCT PERIODIC EVALUATIONS OF THE IMPLEMENTATION OF
remuneration policies.
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No Provision Detail Disclosure
Related to the nomination function:
s %STABLISH AND PROVIDE RECOMMENDATIONS TO THE "OARD OF
Commissioners on the system and procedures for the selection
and/or replacement of the Board of Commissioners and the
Board of Directors to be submitted to the GMS.
s 0ROVIDE RECOMMENDATIONS TO THE "OARD OF #OMMISSIONERS ON
1. Composition of positions of the Board of Directors and/or
the Board of Commissioners,
2. The policies and criteria required in the nomination process,
3. Performance evaluation policy for the Board of Directors
and/or the Board of Commissioners.
s !SSISTING THE "OARD OF #OMMISSIONERS TO EVALUATE THE
performance of Board of Directors and/or Board of
Commissioners based on the benchmarks that have been
prepared as evaluation materials.
s 0ROVIDE RECOMMENDATIONS TO THE "OARD OF #OMMISSIONER
regarding the capacity building program for the Board of
Directors and/or the Board of Commissioners.
s 0ROVIDE RECOMMENDATION TO THE "OARD OF #OMMISSIONERS ON
candidate members of the Board of Directors and eligible
members of the Board of Commissioners to be submitted to the
GMS.
s 0ROVIDE RECOMMENDATIONS TO THE "OARD OF #OMMISSIONERS ON
Independent Parties who will be a member of the AC and ROC.
Number of meetings Throughout 2019, BCA’s RNC held 5 (five) meetings.
held.
Remunerations that Remuneration paid to members of RNC for 1 (one) year is
have been paid out Rp63,620,908,119.00. Remunerations comprises salary/honorarium
to members of the and other bonuses as officer of BCA.
remuneration committee
during 1 (one) year.
b. Process of Review of the Fixed remuneration policies must at least consider business
remuneration policy background and purpose scale, business complexity, peer groups, inflation rates, financial
development. of remuneration policy. conditions and capabilities as well as its with statutory regulations.
Specifically for variable remuneration, remuneration also considers
risk factors in BCA’s business activities, namely credit risk, market
risk, liquidity risk, operational risk, legal risk, reputation risk,
strategic risk and compliance risk.
Implementation of the Improvements to the remuneration policy review in accordance
review on remuneration with the provisions in OJK Regulation No. 45/POJK.03/2015 on the
policy in the previous Implementation of Governance on Remuneration for Commercial
year, as well as its Banks.
improvements.
Complementing the previous Board of Directors and Board of
Commissioners’ remuneration policy, Board of Commissioner’s
Decree No. 060/SK/KOM/2018 dated 3 April 2018 on the
Remuneration Policy for the Board of Directors and Board of
Commissioners has been released.
Mechanism for ensuring Performance appraisal in the control unit is not related to the
that the remuneration achievement of business targets/performance of the work units it
for employees in supervises, this is ensured through 2 (two) ways, namely:
the control unit is 1. Separation of the organizational structure of the control unit to
independent of the work ensure independency.
units being overseen. 2. Any approval of business targets must go through the approval
of direct superiors and superiors from direct superiors.
c. Remuneration BCA does not have overseas branch offices.
policy coverage and
its implementation
per business unit,
per region and
at subsidiary
companies or
branch offices
located overseas.
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No Provision Detail Disclosure
d. Remuneration Types of key risks The current primary risk of BCA is credit risk.
related to risks. used in establishing
remuneration.
Criteria for determining The types of transactions and businesses that are most significant
types of key risks, in generating profits and the decisions taken for a business
including risks that are decision with major impact on BCA’s business.
difficult to measure.
Impacts of the The determination of the main risk types will have an impact
determination of on the stipulation of the KPI and have an impact on variable
key risks on variable remuneration distribution.
remuneration policy.
Changes in the There was no change compared to last year.
determination of types
of key risks compared to
the previous year as well
as the reasons, if any.
e. Performance A review on The indicators for the remuneration of members of the Board of
measurement remuneration policy that Directors among others are as follows:
that is related to is related to performance s 0ERFORMANCE OF EACH MEMBER OF THE "OARD OF $IRECTORS
remuneration. assessment. s "#! lNANCIAL PERFORMANCE
s )NDUSTRIAL BENCHMARKS
s 2ISKS THAT MAY ARISE IN THE FUTURE RESULTING IN LOSS TO "#!
BCA’s performance appraisal system is carried out as objectively as
possible and oriented towards employee development:
1. Performance appraisal is directed at work performance and
demonstration of the company’s core values in employees
where:
s 7ORKER ACCOMPLISHMENT IS THE WORK AND ACHIEVEMENT OF
workers against work targets/targets
s #ORE VALUES DEMONSTRATIONS OF THE BEHAVIOR EXHIBITED BY
employees in carrying out their duties and responsibilities,
which reflect the company’s core values.
2. The results from the performance appraisal combined with
employee competency assessment become reference to
determine the direction of employee development.
Methods used in relating BCA’s performance will influence the determination of the
individual remuneration amount of remuneration, especially those with variable. Individual
with BCA’s performance, performance will be reviewed every 1 (one) year. The results of
work unit performance the individual performance appraisal will be the basis for company
and individual appreciation in the form of bonuses, promotions, rank reviews,
performance. and salary increases.
A description of the Performance measurement is based on performance agreed at the
method used by BCA’s beginning of the year. Bonuses is given based on an assessment
to state that in the of individual performance where the determination has been
case where the agreed done based on decree and circular letter. For evaluation of the
performance has not achievement of business/work targets that are quantitative in
been achieved, it is nature, guidelines for assessment are used such as exceeding the
necessary to make target (> 110%), achieving the target (100-110%) and achieving
an adjustment to some of the target (80-99%).
the remuneration as
well as the size of
the remuneration
adjustment when such a
condition occurs.
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No Provision Detail Disclosure
f. Adjustments to Policy concerning For material risk takers (MRT), including all Board of Directors and
remunerations Variable Remuneration Board of Commissioners, 15% of tantiem are deferred and paid in
related to that are postponed, the prorated terms in cash and shares, as follows:
performance and sizes, and criteria for 1. 5% in cash
risks. determining those sizes. 2. 10% in the form of shares to be locked up during the
withholding period.
(Especially for Independent Commissioners, the deferred tantiem is
entirely in cash).
BCA’s policy concerning In certain condition as follows:
postponed Variable the royalties paid for MRT in cash or in stock can be withdrawn.
Remuneration which s 4HERE IS MISUSE OF OFlCE FRAUD
payments are postponed s 3UBMISSION OF MISLEADING INFORMATION REGARDING lNANCIAL
(malus), or withdrawn statements; and
when they have been s $ECLINING lNANCIAL PERFORMANCE DUE TO SIGNIlCANT FAILURES OR
paid out (clawback). omissions by Material Risk Takers (MRT);
tantiem that has been paid for Material Risk Takers (MRT) in cash
or stock can be withdrawn.
The vesting policy of Withholding period is 3 (three) years from the first time variable
deferred remuneration, remuneration is paid.
among other things, the
term of payment.
Disclosure of factors Equal withholding period is applicable for all MRT.
that determine the
difference of Variable
Remuneration that
is suspended among
employees or group of
employees.
g. Name of external Willis Tower Watson
consultant and their Scope of work:
tasks related to - To identify the gap analysis compared to regulation
the remuneration - Salary survey.
policy.
h. Remuneration The remuneration package and facilities received by the Board of
packages and Directors and Board of Commissioners including the remuneration
facilities received structure and details of the nominal amount, as in the table below:
by the Directors
Amount received in 1 (one) year
and Commissioners
covering The Board of The Board of
remuneration Type of remuneration Directors Commissioners
structure and details and facilities
Number In Number In
of nominal values.
of million of million
people Rp people Rp
Salaries, bonuses, 11 456,602 5 134,313
routine allowances,
tantiem, and other
facilities in non
natura form.
Other facilities in
the form of natura
(housing, health
insurance, etc.)
which:
a. Can be possessed - - - -
b. Cannot be - - - -
possessed
Total 11 456,602 5 134,313
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No Provision Detail Disclosure
i. Remuneration Remuneration packages that are grouped into income levels
packages and received by Board of Directors and Board of Commissioners within
facilities received one year, as in the following table:
by the Board of
Total remuneration per person Number of Number of
Directors and its
in 1 (one) year *) Directors Commissioners
member covering
remuneration Above Rp2 billion 11 people 5 people
structure and details
Above Rp1 billion up to Rp2 - -
of nominal values.
billion
Above Rp500 million up to Rp1 - -
billion
Below Rp500 million - -
Note: *) received in cash
j. Variable The forms of variable Variable Remuneration consists of cash and shares. Shares are in
remuneration remunerations as well as the form of extra bonuses which are spent on PT Bank Central Asia
the reasons for choosing Tbk (BBCA) shares.
those forms.
Extra bonuses which are spent on BBCA shares by BCA are
subsequently postponed (locked up) for 3 (three) years from the
bonus disbursement.
Extra bonuses in form of BBCA shares has the following objectives:
s !S AN APPRECIATION TO THE EMPLOYEES CONTRIBUTION THROUGHOUT
the year of performance.
s &OSTER A SENSE OF BELONGING FROM EMPLOYEES THAT IS EXPECTED TO
have a positive impact on increasing engagement of employees
with the company.
s )NCREASE PRODUCTIVITY OF EMPLOYEES
s #REATION OF HARMONY AMONG EMPLOYEES MANAGEMENT AND
shareholders in improving company performance.
Explanation in the Differences in the provision or Variable Remuneration, namely in
event of differences the bonus budget (cash and shares) are distinguished based on
in the granting of position level:
Variable Remuneration 1. The Board of Directors and Board of Commissioners.
between the Board of 2. S1-S3 echelon employees.
Directors, the Board of 3. S4-S8 echelon employees.
Commissioners and /
or workers, including The underlying consideration is the impact of the position on the
an explanation of the achievement of company performance, so that the higher the
factors determining position level resulted in the greater the bonus budget.
the difference and
the underlying
considerations.
k. Number of the Number of Board of Directors, Board of Commissioners, and
Board of Directors, employees receiving Variable Remuneration for 1 (one) year and
the Board of the nominal total as in the table below:
Commissioners
Total Variable Remuneration in 1 (one) year:
and employees
who have People In million Rp
received Variable
24,046 2,468,129
Remuneration
during 1 (one)
year and the total
nominal values
l. Positions and 1. President Director.
number of parties 2. All Directors.
who are MRT 3. President Commissioner.
4. All Commissioners.
Total MRT: 16 people.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
No Provision Detail Disclosure
m. Share options There were no share options for The Board of Directors, Board of
owned by the Commissioners and/or Executive Officers during 2019.
Board of Directors,
the Board of
Commissioners, and
executive officers
n. Highest and lowest The ratio of the highest to the lowest salary, which includes:
salary ratios. 1) The highest and lowest salary of employees ratio = 25.37
2) The highest and lowest salary of the Board of Directors
ratio = 2.81
3) The highest and lowest salary of the Board of Commissioners
ratio = 1.62
4) The highest salary of the Board of Directors and highest salary
of employees ratio = 8.68
o. Number of No correlation at BCA/no sign-on bonuses.
recipients and
amounts of
total Variable
Remuneration that
are unconditionally
guaranteed to
be paid by Bank
to candidate the
Board of Directors,
candidate the Board
of Commissioners,
and/or candidate
employees during
first 1 (one) year of
service.
p. Number of Number of employees affected by termination of employment and
employees the total nominal severance paid as in the table below:
who have been
Total nominal of severance paid for
terminated and Number of employees
1 (one) person in 1 (one) year
total nominal
value of severance Above Rp1 billion 198 people
payments.
Above Rp500 million up to Rp1 588 people
billion
Below Rp500 million 774 people
q. Amount of Total deferred Variable Remuneration, consisting of cash and/
total Variable or shares or stock-based instruments issued by BCA and were
Remuneration that implemented as 2019 payments, as follows:
are postponed, 1. In cash Rp 18,966,000.000.00
comprising cash 2. In shares Rp 20,576,500,000.00
and/or shares
or share-based
instruments issued
by the Bank.
r. Amount of total The total amount of deferred Variable Remuneration paid for 1
postponed variable (one) year has been implemented for payment in 2019, with the
remuneration paid details paid in cash of Rp18,966,000,000.00.
out during 1 (one)
year.
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No Provision Detail Disclosure
s. Details of 1. Fixed and Variable Details of the amount of remuneration granted in one year:
remuneration Remuneration
A. Fixed Remuneration *)
provided in 1 (one) 2. Postponed and
year non-postponed 1. In cash 214,316
remunerations
2. Shares/stock-based -
3. Forms of
instruments issued by
remuneration
BCA
provided in cash and/
or shares or share- B. Variable Remuneration *)
based instruments Not postponed Postponed
issued by Bank
1. In cash 337,058 18,966
2. Shares/stock-based - 20,577
instruments issued by
BCA **)
Note :
*) Only applicable for MRT and disclose in millions of rupiah
**) Shares are lock for up to 3 (three) years
t. Quantitative 1. Total amount Quantitative information related to the total remaining postponed
information. of remaining remuneration whether exposed to implicit or explicit adjustments,
remuneration still the total remuneration deduction caused by explicit adjustments
postponed, those during the reporting period, and the total remuneration deduction
exposed to both due to implicit adjustments during the reporting period are as
implicit as well follows:
explicit adjustments; Total deduction during the reporting period
2. Total amount of
Type of Variable Postponed Due to Due to Total (A)+(B)
deductions to explicit implicit
Remuneration *) shares
remuneration due to adjustment adjustment
explicit adjustments (A) (B)
during the reporting 1. In cash (in - - - -
period;and million Rp)
3. Total amount of 2. Shares/ 731,829 shares - - -
deductions to instruments
remuneration due to based on
shares issued
implicit adjustments by BCA (in
during the reporting shares and
period. nominal
million
rupiah
which is a
conversion of
these shares)
Note : *) Only for Material Risk Takers
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BOARD OF COMMISSIONERS COMMITTEES ratified based on the Board of Commissioners
Decree No. 117/SK/KOM/2019 dated July 10
1. AUDIT COMMITTEE (AC) 2019, concerning the Audit Committee Charter
AC was formed by, and responsible directly to. of PT Bank Central Asia Tbk.
The Board of Commissioners to assist the Board
of Commissioners to support the effectiveness The scope governed in the AC Charter is as
of the oversight duties and functions on matters follows:
related to financial reporting, internal control s $UTIES AND RESPONSIBILITIES
systems, performance of internal and external s !UTHORITY
audit functions, implementation of governance and s #OMMITTEE MEMBERSHIP STRUCTURE
compliance with applicable laws and regulations. s -EMBERSHIP REQUIREMENTS
s 4ERMS OF DUTY
1. Legal Basis s 7ORK MECHANISM
The formation of the audit committee refers to: s 7ORK HOURS
s /*+ 2EGULATION .O 0/*+ ON s -EETINGS
the Establishment and Guidelines for work s 2EPORTING
Implementation for Audit Committee. s (ANDLING OF COMPLAINTSREPORTS REGARDING
s /*+ 2EGULATION .O 0/*+ claims about infractions in financial
on Implementation of Governance for reports;
Commercial Banks. s #ODE OF ETHICS
s /*+ 2EGULATION .O0/*+ ON
the Implementation of the Internal Audit The AC Charter and code of conduct have been
Function at Commercial Banks. uploaded to the official website of the BCA
s /*+ #IRCULAR ,ETTER .O3%/*+ (www.bca.co.id) under the good corporate
on the Implementation of Governance for governance section.
Commercial Banks.
s !RTICLE OF "#!S ARTICLES OF ASSOCIATION 3. Structure and Membership of the AC
The structure and membership of the AC is in
2. AC Charter accordance with applicable regulations.
The BCA’s AC is equipped with work guidelines
stipulated in the AC Charter. The charter and In 2019, BCA’s AC had 3 (three) members,
the AC code of conduct have been adjusted consisting of:
from OJK Regulation No. 55/POJK.04/2015 s !N )NDEPENDENT #OMMISSIONER
concerning Formation and Audit Committee concurrently as head of the AC;
Work Implementation Guidelines and have been s !N )NDEPENDENT 0ARTY HAVING EXPERTISE IN
finance/accounting;
s !N )NDEPENDENT 0ARTY HAVING EXPERTISE IN
banking.
AC membership as of December 31, 2019
Name Position
Cyrillus Harinowo Chairman (concurrently as Independent Commissioner)
Ilham Ikhsan Member (Independent Party)
Tjen Lestari Member (Independent Party)
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The BCA’s AC has complied with the applicable provisions and was appointed based on Directors Decree
No.078 SK/DIR/2016 dated 2 June 2016 and the Board of Commissioners Meeting Decision No.23/RR/
KOM/2016 dated June 1, 2016.
! " Ilham Ikhsan
Cyrillus Harinowo The educational background, position, and
The educational background, position, and work experience of AC members can be seen
work experience of AC members can be seen in the corporate profile section on page 80 of
in the corporate profile section on page 77 of this 2019 BCA Annual Report.
this 2019 BCA Annual Report.
Tjen Lestari
The educational background, position, and
work experience of AC members can be seen
in the corporate profile section on page 81 of
this 2019 BCA Annual Report.
5. Education or Training Activities
During the 2019, members of the AC have participated in the following educational or training activities:
Name Education/Training Organizer Location Date
Cyrillus Can be seen in the Board of Commissioner Chapter – in the subsection of Training Programs to
Harinowo Enhance the Competence of Members of Board of Commissioner on page 365 of this 2019 BCA
Annual Report
Ilham Ikhsan ACIIA Conference 2019 and ACIIA (Asian Tokyo, Japan September 17-18,
On-Site Learning Towards Confederation 2019
Sustainable Management in A of Institutes of
New Era Internal Auditor)
Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
Sharing Session “Navigating BCA Jakarta, December 6 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Tjen Lestari Advanced Bank Liquidity LMI Yogyakarta, September 25-26
Management: Indonesia 2019
Stress Test - Contingency
Planning - and Funds Transfer
Pricing
Indonesia Knowledge BCA Jakarta, October 8-9 2019
Forum Indonesia
Sharing Session “Navigating BCA Jakarta, December 6 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
2019 Annual Report | PT Bank Central Asia Tbk 421
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
6. Term of Duty of AC relationships with BCA that may influence
The term of duty of AC members shall expire at their ability to act independently.
the end of the term of the AC chairman, who
is also an Independent Commissioner of BCA. AC members which appointed from an
The committee’s term of duty for this period independent part can concurrently assume
will end at the closing of the 2021 Annual GMS. positions as independent committee
members at BCA and at other companies, on
7. Independence of AC Members condition that they meet the competence and
All members of the AC are independent parties independence criteria, can keep important
who do not have the financial, management, data confidential, adhere to applicable codes
share ownership and / or family relationship of conduct, and do not neglect their duties and
with members of the Board of Commissioners, responsibilities as committee members.
members of the Board of Directors, and/
or controlling shareholders or business
The Independence Aspect of the Audit Committee can be seen in this table:
Independence Aspect Cyrillus Harinowo Ilham Ikhsan Tjen Lestari
Having no financial relationship with the Board 3 3 3
of Commissioners and Board of Directors.
Having no management relationship at the 3 3 3
company, subsidiaries or affiliated companies.
Having no share ownership in the company. 3 3 3
Having no family relationship with the Board of 3 3 3
Commissioners, Board of Directors, and/or fellow
members of the AC.
Not serving as an officer at any political party or 3 3 3
government office.
Requirements for AC members are as follows: f. Having at least 1 (one) member with
a. Having good integrity, character, and educational background and expertise in
morals. accounting and/or finance.
b. Possessing the necessary skills, knowledge g. Not serving as a member of a public
and experience in their respective fields accountant firm, law firm, appraiser, or
with strong ability to communicate. other parties providing assurance service,
c. Having an understanding of the financial non-assurance service appraisal, service,
statements and business of the BCA, and/or other consulting services to the
particularly in relation to its services and BCA within the past 6 (six) months.
business activities, audit process, and rules h. Not currently working or having authority
and regulation in the capital market and and responsibilities to plan, lead, control,
other relevant laws and regulations. or supervise the BCA’s activities within the
d. Complying with the BCA’s code of ethics past 6 (six) months, except for a position
and AC’s code of conduct. as Independent Commissioner.
e. Willing to continuously improve i. Not serving on a board of directors in
competence through training and other banks.
education.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
j. Not having either direct or indirect share integrity in discharging its duties. To also
ownership in the BCA. provide recommendations to the Board
k. In the event that an AC member acquires of Commissioners on the DAI annual
shares either directly or indirectly as a reward and remuneration for its overall
result of a legal event, the concerned performance.
member must transfer the shares to other 4. Ensure DAI communicates with the Board
parties within a maximum period of 6 (six) of Directors, the Board of Commissioners,
months after the shares were acquired. the external auditor, the OJK and BI.
l. Not being affiliated with the members 5. Ensure DAI works independently.
of Board of Commissioners, Board of 6. Monitor implementation of good
Directors, or major shareholders of the corporate governance (GCG) to see if it is
BCA. effective and sustainable.
m. Not having a direct or indirect business 7. Ensure the Board of Directors takes the
relationship with the BCA’s business necessary and immediate actions on the
activities. findings by DAI, public accountants, and
n. For the head of AC, only having another the results of supervision conducted by
concurrent position as head of committee the OJK and BI.
on 1 (one) committee in the BCA. 8. Oversee the audit work performed by the
o. AC members who are Independent Parties, public accounting firm, on the following
having another concurrent position as an aspects:
independent Party at other committees in a. Conformity of audit implementation
BCA, other banks and/or other companies by the public accountant office to the
allowed as long as he/she: applicable audit standards.
1) Meets all the required competencies; b. Conformity of financial statements to
2) Meets the independence criteria; the applicable accounting standards.
3) Is able to keep BCA matters c. Give independent opinions in case of
confidential; disagreements on opinions between
4) Observes the applicable code of the management and the public
conduct; accounting firm on the services they
5) Not neglecting the implementation provide.
of duties and responsibilities as a 9. Review all financial information to be
member of the committee. released by BCA to the public and/or the
authorities, and other financial-related
8. Duties and Responsibilities of AC information.
In carrying out its function, the AC has the 10. Review BCA’s compliance with regulations
following duties and responsibilities: of the banking industry, the capital
1. Provide recommendations to the Board market and other applicable laws and
of Commissioners pertaining to the regulations, as well as other provisions on
preparation of the audit plan, scope and BCA’s business.
budget of the internal audit division (DAI). 11. Provide recommendations based on
2. Monitor and review the Bank’s internal evaluation results to the Board of
audit. Commissioners on the appointment,
3. Evaluate DAI’s performance to see if the reappointment, and dismissal or
internal audit function at BCA is adequate
and effective, and ensure the DAI upholds
2019 Annual Report | PT Bank Central Asia Tbk 423
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
replacement of the public accounting firm c. To communicate directly with employees,
(PAF) and/or public accountant (PA) who including the Board of Directors and other
will audit the BCA’s financial statements parties executing internal audit and risk
based on independency, the scope of the management functions, and accountants
assignment, and fee for the audit work. regarding the duties and responsibilities
12. Provide recommendations to the Board of of AC.
Commissioners to appoint independent d. If needed, to involve independent
quality controllers from external parties parties outside the members of the audit
with the aim of conducting a review of committee whose services are required in
DAI. order to assist the committee in carrying
13. Analyze and report to the Board of out its duties .
Commissioners on any complaint that e. To perform other actions with authority
may relate to the BCA’s accounting and granted by the Board of Commissioners.
financial reporting processes.
14. Analyze and give advice to the Board of 10. Policies and Meetings Implementation of
Commissioners on conflicts of interest that AC
may occur at BCA. The AC holds 4 (four) meetings, at the very
15. Carry out other tasks relevant to the least, in a year as stipulated in Decree of the
function of the audit committee at the Board of Commissioner No. 117/SK/KOM/2019
request of the Board of Commissioners. on the Audit Committee Charter of PT Bank
16. Keep the confidentiality of BCA’s Central Asia, Tbk. During 2019, the BCA’s audit
documents, data and information. committee convened 21 (twenty one) meetings.
9. Authorities of AC Delivery of results of AC meetings as follows:
In performing its duties, the AC has the a. Results of audit committee meetings
authority to carry out the following activities: should be stated in the minutes of the
a. To receive reports from the head of the meeting and properly documented.
internal audit division, including work b. Dissenting opinions that occur in the
plan, internal audit implementation meetings of the committee should be
report, and internal audit result report. clearly stated in the minutes of the
b. To access documents, data, and information meeting, along with the reasons behind
regarding the BCA’s employees, funds, such dissent.
assets, and other resources as required.
Attendance of AC’s members in the meeting conducted throughout 2019 is as follows:
Number of
Name Attendance Percentage
Meetings
Cyrillus Harinowo 21 21 100%
Ilham Ikhsan 21 20 95%
Tjen Lestari 21 21 100%
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Meetings of AC throughout 2019 are as follows:
No Date Agenda
1 January 30, 2019 Clearance Meeting with AC
2 February 13, 2019 2018 Audit Realization and 2019 Audit Plan
3 February 20, 2019 Committee Reporting to the Board of Commissioners (Q4/2018)
4 February 27, 2019 BCA Financial Performance December 2018
5 April 24, 2019 BCA Financial Performance March 2019
6 April 24, 2019 Regular Meeting of AC with Internal Audit Division (I)
7 May 8, 2019 Socialization of POJK No 1 Year 2019
8 May 15, 2019 Committee Reporting to the Board of Commissioners (Q1/2019)
9 May 29, 2019 Regular Meeting of AC with Internal Audit Division (II)
10 July 24, 2019 Internal Audit Division Work Realization Semester I/2019
11 July 24, 2019 BCA Financial Performance June 2019
12 August 14, 2019 Presentation of Internal Audit Division: Summary of OJK Audit Finding in 2019
13 August 21, 2019 Committee Reporting to the Board of Commissioners (Q2/2019)
14 September 4, 2019 Regular Meeting of AC with Internal Audit Division (III)
15 October 16, 2019 Regular Meeting of AC with Internal Audit Division (IV)
16 October 16, 2019 Audit Planning (PwC)
17 October 23, 2019 BCA Financial Performance September 2019
18 October 30, 2019 Regular Meeting of AC with Internal Audit Division (V)
19 November 13, 2019 Committee Reporting to the Board of Commissioners (Q3/2019)
20 December 4, 2019 Hardclose Audit PwC
21 December 13, 2019 Regular Meeting of AC with Internal Audit Division (VI)
11. Realization of Work Program and c. Convened meetings with Tanudiredja,
Implementation of AC Activities in 2019 Wibisana, Rintis & Rekan PAF (a member
The following points are the realized work firm of PwC Global Network) to discuss
programs of the AC in 2019: the plan and scope of the audit of the
a. Convened meetings with PAF Tanudiredja, BCA’s financial statements for fiscal year
Wibisana, Rintis & Rekan (a member firm 2019.
of PwC Global Netwok) to discuss the final d. Meeting with the finance and planning
results of the audit of the BCA’s financial division to review the BCA’s financial
statements for the financial year 2018, report, which will be published quarterly.
along with the management letter. e. Convened 6 (six) meetings with the
b. Recommended to the Board of Internal Audit Division to:
Commissioners on reusing the PAF 1) Evaluate annual planning;
Tanudiredja, Wibisana, Rintis & Rekan (a 2) Evaluate the implementation of
member firm of PwC Global Network) to internal audits every semester; and
conduct an audit of the BCA’s financial 3) Discuss results of the audit considered
statements for fiscal year 2019. significant.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
f. Attend internal audit exit meeting at 1 2. RISK OVERSIGHT COMMITTEE (ROC)
(one) main branch office, including 3 ROC was established to assist the Board of
(three) supporting branch offices, as part Commissioners in discharging its responsibilities
of the internal audit quality assessment to supervise risk in accordance with the prevailing
process. Additionaly conduct review Cash regulations.
Processing Center (CPC) Alam Sutera that
has been operated and the Surabaya data 1. Legal Basis
center as part of adequacy assessment The legal basis for the establishment of KPR
and effectiveness of its internal work units refers to:
control. s /*+ 2EGULATION .O0/*+
g. Reviewed internal audit reports (more concerning Governance Implementation
than 114 reports) and monitored their for Commercial Banks.
follow ups. s /*+ #IRCULAR ,ETTER .O3%/*+
h. Reviewed the BCA’s compliance with concerning Governance Implementation
provisions, regulations, and applicable for Commercial Banks.
laws in the banking sector, through a s "OARD OF #OMMISSIONERS $ECREE .O
review of reports on compliance with / SK / KOM / 2019 dated November 7,
prudential provisions reported every 2019 concerning the Risk Monitoring
semester. Committee Charter.
i. Reviewed credit portfolio reports issued s "OARD OF $IRECTORS $ECREE .O!3+
every semester. DIR/2016 dated September 30, 2016 on the
j. Monitored the implementation of risk Appointment and Changes of Members of
management through quarterly reports the Risk Monitoring Committee.
on the Company’s risk profile and the
monthly operation risk management 2. ROC Charter
information system (ORMIS) report. In performing their duties and responsibilities,
k. Conducted studies on: the ROC has established work guidelines
1) Audit results of the OJK and their stipulated in the charter. The charter has been
follow ups, and approved by the Board of Commissioners
2) Management letter from the Decree No.172/SK/KOM/2019 dated November
public accounting firm Tanudiredja, 7, 2019 on Risk Oversight Committee Charter.
Wibisana, Rintis & Rekan (a member
firm of PwC Global Network) and its The ROC Charter governs the committee’s duties
follow up. and responsibilities, authority, membership
l. Reported the results of routine studies structure, membership requirements, work
and evaluations of governance aspects, mechanism, code of ethics, work hours, and
risk management, and compliance and meeting mechanism.
control to the Board of Commissioners
every quarter.
m. Attended the GMS, analyst meeting, and
national work meeting in 2020 in order
to monitor the implementation of Good
Corporate Governance.
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3. Structure and Membership of ROC
The ROC comprises 3 (three) members:
s !N INDEPENDENT COMMISSIONER CONCURRENTLY (EAD OF THE 2/#
s !N INDEPENDENT PARTY HAVING EXPERTISE IN RISK MANAGEMENTAND
s !N INDEPENDENT PARTY HAVING EXPERTISE IN lNANCE
Composition of members of the ROC as of December 31, 2019
Name Position
Sumantri Slamet Chairman (concurrently as Independent Commissioner)
Endang Swasthika Wibowo Member (Independent Party)
Lianny Somyadewi D. Member (Independent Party)
The appointment of members of the ROC of ! #"
BCA was conducted by the Board of Directors Sumantri Slamet
Decision Letter No 144A/SK/DIR/2016 dated Educational background, position and work
September 30, 2016 and was based on minutes experience of members of the ROC can be seen
of Board of Directors Meeting No 40/RR/ in the corporate profile section on page 79 of
KOM/2016 dated September 28, 2016. this 2019 BCA Annual Report.
Educational background, position, and work Endang Swasthika Wibowo
experience of members of the committee can Educational background, position and work
be seen in the corporate profile section on experience of members of the ROC can be seen
page 82-83 of this 2019 BCA Annual Report. in the corporate profile section on page 82 of
this 2019 BCA Annual Report.
Lianny Somyadewi D.
Educational background, position and work
experience of members of the ROC can be seen
in the corporate profile section on page 83 of
this 2019 BCA Annual Report.
5. Education or Training Activities
During 2019, members of ROC participated in the following training activities:
Name Education/Training Organizer Location Date
Sumantri Is available in the Board of Commissioners Section – the subsection of Training Programs to
Slamet Enhance Competence of the Board of Commissioners members on page 366 of this 2019 BCA
Annual Report
Endang Advanced Bank Liquidity LMI Yogyakarta, September 25-26,
Swasthika Management: Indonesia 2019
Wibowo Stress Test - Contingency
Planning - and Funds Transfer
Pricing
Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
Indonesia Banking Expo Indonesia Banks Jakarta, November 6, 2019
Association Indonesia
(Perbanas)
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Name Education/Training Organizer Location Date
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Lianny Treasury Dealer & Risk LSPP Jakarta, September 18, 2019
Somyadewi D. Management Indonesia
How to Mitigate Market Risk
in Banks
Indonesia Knowledge BCA Jakarta, October 8-9, 2019
Forum Indonesia
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
6. Term of Duty of ROC 7. Independence of ROC Members
The term of duty of the chairman and members All members of the committee are
of ROC shall expire upon the completion of the independent parties, not having financial
term of duty of the chairman who also serves relationships, management relationships,
as an IC. Accordingly, the term of duty of ROC share ownership, and or familial relationships
members within this period resembles the term with members of the Board of Commissioners,
of duty of the Board of Commissioners, which members of the Board of Directors and/or
will end upon the close of the Annual GMS of controlling shareholders, also having business
2021. relationships that may influence their ability to
act independently.
Independence Aspects of ROC are explained in the following table:
Independency Aspect Sumantri Slamet Endang S. Wibowo Lianny Somyadewi D.
Having no financial relationship with the 3 3 3
Board of Commissioners and Board of
Directors.
Having no management relationship at the 3 3 3
company, subsidiaries or affiliated companies.
Having no share ownership in the company. 3 3 3
Having no family relationship with the Board 3 3 3
of Commissioners, Board of Directors, and or
other members of the ROC.
Not serving as an officer at any political party 3 3 3
or government office.
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The requirements to be met by members of the 8. Duties and Responsibilities of ROC
ROC are, among others, as follows: Duties and responsibilities ROC among other:
a. Chairman of ROC can hold only 1 (one) a. Assisting and giving recommendations
other concurrent position as chairman at to the Board of Commissioners in
another committee of the BCA order to improve the effectiveness of
b. For ROC members who are independent oversight duties and responsibilities in
parties, holding more than one position as risk management and ensuring that
an independent party at other committees risk management policies are properly
in the Company or other banks is allowed implemented.
as long as he or she: b. In regard with the process to provide
1) Meets the required competencies. recommendations, the ROC should:
2) Meets the independency criteria. 1) Evaluate the consistency between
3) Is able to keep BCA matters risk management policies and policy
confidential. implementation.
4) Observes the applicable code of 2) Monitor and evaluate the
conduct. implementation of duties of ROC and
5) Does not neglect the implantation of the risk management work unit.
his or her duties as a member of BCA’s c. Composing and/or updating the ROC’s
ROC. Charter and code of conduct.
c. For ROC members who are independent d. Administer other duties that are relevant
parties, they must originate from with the ROC function as requested by the
external parts of the ROC and have no Board of Commissioners.
financial and management relationship,
share ownership and/or controlling 9. Authority of ROC
shareholders or relationship with BCA In implementing its function, the ROC has the
that may influence his or her ability to act following authority:
independently. a. To receive reports from the Board of
d. Former members of Board of Directors Directors and management regarding
or executive officers of the ROC or other significant risk management issues so as
parties having relationship with the to be able to provide recommendations to
ROC that may influence their ability to the Board of Commissioners.
act independently are not allowed to b. To perform other activities in accordance
become an independent party to serve with the guidelines of the ROC.
on the committee, unless they have
passed the cooling off period of 6 (six) 10. Policies and Meeting Implementation of
months. This provision is not applicable ROC
for former Directors or executive officers ROC meetings are held at least 4 (four) times a
whose duties are to conduct the oversight year, as stipulated in the committee’s charter.
function. During 2019, the ROC held 14 (fourteen)
e. Members of the ROC shall possess high meetings. For each meeting, there are minutes
integrity, suitable experience, strong that state the dates of meetings, attendance
character and good morals. of the ROC members, agenda, and meeting
f. Member of the Board of Directors are not materials.
allowed to become a member of the ROC.
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The list of ROC meeting attendance during 2019, are as follows:
Number of
Name Attendance Percentage
Meetings
Sumantri Slamet 14 14 100%
Endang Swasthika Wibowo 14 14 100%
Lianny Somyadewi D. 14 14 100%
Agenda of the meeting is the following:
No Date Agenda
1 February 14, 2019 Review of Treasury Risk Management
2 February 20, 2019 Report of Risk Oversight to the Board of Commissioners for Q4 2018
3 March 27, 2019 Gap Analysis – Risk Matrix
4 April 16, 2019 Risk Control Discussion” Treasury
5 April 24, 2019 Strategic Risk: Internet Banking and Digital Banking
Risiko Operasional: development of Information Technology Security
6 May 6, 2019 Review of Development program in Risk Oversight – Octagon
7 May 8, 2019 Risk Management Structure and Format – Management Risk Work Unit
8 May 15, 2019 Report of Risk Oversight to the Board of Commissioners for Q1 2019
9 June 26, 2019 Review of ROC Organizational Structure
10 July 31, 2019 Risk Analysis and Capital using the IRRBR Model
11 August 21, 2019 Risk Oversight Reporting to Board of Commissioners Q2 2019
12 October 30, 2019 Analysis on Reputation Risk
13 October 30, 2019 Review of Operational Risk: Human Error
14 November 13, 2019 Report of Risk Oversight to the Board of Commissioners for Q3 2019
11. Realization of Work Program and e. Monitoring of the realized implementation
Implementation of Activities of ROC in 2019 of risk management, specifically on risk
The realization of the work program of ROC control and limit, liquidity and market
during 2019 are: risks, and monthly operational risks.
a. Monitor the implementation of the duties f. Learnt new regulations and conducted
of the committee, and those of the Risk a review of the compatibility of the ROC
Management Work Unit and ITSC. charter with the new regulations.
b. Analysis on BCA’s risk profile and specifically g. Monitored and reviewed the
explored credit risk, operational, market, implementation of the business continuity
liquidity and reputation risk. program, by ensuring that testing,
c. Analysis on the results of stress tests of simulations, socialization have been
credit, market and liquidity risk. carried out, and worked with Internal
d. Ensured the implementation GCG was Audit Division and the internal audit
carried out well and in an appropriate division to make a review of the Surabaya
manner. The committee also attended the data center.
GMS, Analyst Meeting and the Company’s
national convention for fiscal 2020.
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3. REMUNERATION AND NOMINATION COMMITTEE 3. RNC Guidelines
(RNC) In performing its duties and responsibilities,
RNC was established to help the Board of RNC has its work guideline as stipulated
Commissioners in the development of remuneration in the governance guideline of supporting
and nomination of the BCA. committee of Board of Commissioners Chapter
and Board of Commissioners Decree No 035/SK/
1. Legal Basis KOM/2017 on the Structure of Remuneration
The establishment of the remuneration and and Nomination Committee.
nomination committee refers to the following:
s /*+ 2EGULATION .O 0/*+ ON Work guidelines and procedures of the RNC
Remuneration and Nomination Committee cover:
for Issuer or Public Company. s #OMPOSITION AND STRUCTURE OF MEMBERSHIP
s /*+ 2EGULATION .O0/*+ s $UTIES AND RESPONSIBILITIES
on Governance Implementation for s 7ORK MECHANISM
Commercial Banks. s %THICS AND WORK HOURS
s /*+ #IRCULAR ,ETTER .O 3%/*+ s -EETINGS
on Implementation Governance for s !CTIVITY REPORTING SYSTEM
Commercial Banks. s 0ROCEDURE FOR REPLACEMENT OF MEMBERS
s #ORPORATE 'OVERNANCE 'UIDELINES s 4ERM OF OFlCE
s 4HE "OARD OF #OMMISSIONERS $ECREE s $ECISION MAKING AND ACCOUNTABILITY
No.035/SK/KOM/2017 dated February,24
2017 concerning the Remuneration and 4. Structure and Membership of the RNC
Nomination Committee Structure. The structure and membership of RNC complies
s 4HE "OARD OF $IRECTORS $ECREE .O! with OJK Regulation No.34/POJK.04/2014 on
SK/DIR/2016 dated August 10, 2016 on the the Nomination and Remuneration Committee
Appointment of Members of Remuneration of Issuers or Public Companies.
and Nomination Committee.
In 2019, the BCA RNC consisted of:
2. Principle Function of RNC s !N )NDEPENDENT #OMMISSIONER AS
RNC was established to enhance the quality of chairman of the RNC.
top management through the remuneration s 4HE 0RESIDENT #OMMISSIONER
and nomination policies by always taking into s !N EXECUTIVE OFlCER IN CHARGE OF THE
account the BCA’s business sustainability. HCM (human resources) Division who has
knowledge regarding remuneration and/
or nomination system and succession plan.
Composition of RNC Members as of December 31, 2019
Name Position
Raden Pardede Chairman (concurrently as Independent Commissioner)
Djohan Emir Setijoso Member (concurrently as President Commissioner)
Hendra Tanumihardja Member (concurrently as Head of Human Capital Management Division)
The appointment of RNC members is undertaken by the Board of Directors Decree No.107A/SK/DIR/2016 dated
August 10,2016 based on Minutes of Board of Commissioners Meeting No. 31/RR/KOM/2016 dated August 10,
2016.
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$ ! &" Djohan Emir Setijoso
Raden Pardede Educational background, position and work
Educational background, position and work experience of remuneration and nomination
experience of remuneration and nomination committee member can be seen in corporate
committee member can be seen in corporate profile section on page 75 of this 2019 BCA
profile section on page 78 of this 2019 BCA Annual Report.
Annual Report.
Hendra Tanumihardja
Educational background, position and work
experience of remuneration and nomination
committee member can be seen in corporate
profile section on page 85 of this 2019 Annual
Report.
6. Education or Training Activities
Throughout 2019, members of the RNC have participated in the following education or training activities.
Name Education/Training Organizer Location Date
Raden Is available in the Board of Commissioners Section - the subsection of Training Programs to Enhance
Pardede Competence of the Board of Commissioners members on page 366 of this 2019 BCA Annual Report
Djohan Emir Is available in the Board of Commissioners Section - the subsection of Training Programs to Enhance
Setijoso Competence of the Board of Commissioners members on page 365 of this 2019 BCA Annual Report
Hendra Agile Leadership & Strategic National University Singapore April 23, 2019
Tanumihardja Visioning for Driving of Singapore
Innovation
Annual Conference ILO - ILO Geneva, Swiss June 17-21, 2019
Geneva
BCA – NUS Executive Vice National University Bogor, Indonesia July 3-5, 2019
President Programme of Singapore
Agile Organization Pivotal Labs - Singapore August 25-28
Singapore ,2019
Training on General Association of Jakarta, Indonesia November 18-21,
Management of Pension Fund Indonesia Pension 2019
Fund
Sharing Session “Navigating BCA Jakarta, Indonesia December 6, 2019
Change” by HDFC Bank
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, Indonesia December 6, 2019
Ecosystem” by OVO, Tokopedia,
HaloDoc dan Djarum Group
7. Term of Duty of the RNC 8. Independence of the RNC
The term of duty of the RNC members shall Members of RNC have acted independently and
expire upon the completion of the term of met the independency aspect in compliance
duty of the chairman, who also serves as an with applicable terms and in discharging their
Independent Commissioner, accordingly, the duties throughout 2019. Members of RNC have
term of duty of RNC members within this no financial, management, share ownership,
period will end upon the close of the Annual and/or familial relations with members of
GMS of 2021. the Board of Commissioners, members of
the Board of Directors, and/or controlling
shareholders, as well as business relationships
with BCA that may influence their capability to
act independently.
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Independence Aspects of the RNC include the following:
Independency Aspect Raden Pardede Djohan Emir Setijoso Hendra Tanumihardja
Having no financial relationship with the Board 3 3 3
of Commissioners and Board of Directors.
Having no management relationship at the 3 3 3
Company, subsidiaries or affiliated companies.
Having no share ownership in the Company. 3 3 3
Having no family relationship with the Board of 3 3 3
Commissioners, Board of Directors, and or other
members of the RNC.
Not serving as an officer at any political party or 3 3 3
government office.
9. Duties and Responsibilities of the RNC 4) BCA mid- and long-terms strategy
Duties and responsibilities of the RNC are: targets.
a. To evaluate the remuneration and e. To advise the Board of
nomination policies of the BCA. Commissioners;regarding prospective
b. To give recommendations to the Board of Board of Commissioners and/or Board of
Commissioners on: Directors to be submitted to the GMS.
1) Remuneration policy for the Board of f. To recommend independent parties as
Commissioners and Board of Directors prospective members of the AC and ROC
to be submitted to the GMS of BCA. to the Board of Commissioners.
2) Remuneration policy for all executive g. To review the policies regarding facilities
officers and employees to be delivered provided for the Board of Commissioners
by the Board of Commissioners to the and Board of Directors.
Board of Directors. h. To conduct other tasks as assigned by
c. To develop and recommend the selection the Board of Commissioners related
and/or replacement systems and to remuneration and nomination in
procedures of the members of Board of accordance with the prevailing provisions.
Commissioners and Board of Directors to i. To report needed to the Board of
the Board of Commissioners, to be further Commissioners the result of reviews and
submitted to the GMS. recommendations with regard to the tasks
d. To ensure that the remuneration policies of the RNC.
of the BCA are in accordance with:
1) Financial performance and fulfillment In addition, pursuant to OJK Regulation No
of reserves as governed under the 34/POJK.04/2014 dated December 8, 2014
prevailing laws and regulations; regarding Nomination and Remuneration
2) Individual performance; Committee of Issuers or Public Companies,
3) Fairness with peer group; the RNC has the following duties and
responsibilities:
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a. Relating to nomination function: b. Providing Remuneration Function:
1) Providing recommendations to the 1) Providing recommendations to the
Board of Commissioners on: Board of Commissioners on:
a) The composition of Board of a) Remuneration structure;
Directors and/or the Board of b) Remuneration policy;
Commissioners; c) Amount of remuneration.
b) Policies and criteria required in 2) Assisting the Board of Commissioners
the nomination process ;and to assess the performance
c) Performance evaluation policy compatibility with the remuneration
for members of the Board of received by each of the Board
Directors and/or the Board of of Directors and/or Board of
Commissioners. Commissioners.
2) Assisting the Board of Commissioners
to assess the performance of 10. Policies and Meetings Implementation of
Board of Directors and/ or Board the RNC
of Commissioners based on pre- The RNC holds meetings in accordance with
established benchmarks as the the needs of the BCA, at the very least once
evaluation material. every four months, as stipulated in the
3) Providing recommendations to the Financial Services Authority Regulation No.
Board of Commissioners on the 34/POJK.04/2014 dated December 8, 2014 on
competence development of the Nomination and Remuneration Committee of
Board of Directors and/or the Board Issuers or Public Companies. In 2019, RNC held
of Commissioners. 5 (five) meetings.
4) Nominating the candidates for
Directors and/or the Board of Minutes are prepared for each RNC meeting,
Commissioners to the Board of describing the date of meetings, attendance of
Commissioners to be submitted to RNC members, meeting agenda, and meeting
the GMS. materials.
Attendance of RNC members in the meetings conducted throughout 2019 is described in the following
table:
Number of
Name Attendance Percentage
Meetings
Raden Pardede 5 5 100%
Djohan Emir Setijoso 5 5 100%
Hendra Tanumihardja 5 5 100%
Of the 5 (five) meetings, 2 (two) meetings were held to discuss nominations and 3 (three) were held to
discuss remuneration:
No Date Agenda
1 February 27, 2019 Discussion Related to Nominations
2 March 6, 2019 Discussion Related to Nominations
3 March 6, 2019 Discussion Related to Remuneration
4 March 28, 2019 Discussion Related to Remuneration
5 April 16, 2019 Discussion Related to Remuneration
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11. Policies Concerning Board of Directors 1. Legal Basis
Succession Plan The establishment of an integrated governance
This Board of Directors succession policy covers: committee refers to:
a. Develop and provide recommendations s /*+ 2EGULATION .O 0/*+
on systems and procedure of selection concerning the Implementation of
and or replacement of members of Board Integrated Governance for Financial
of Commissioners and Board of Directors Conglomerates.
to the Board of Commissioners, to be s /*+ 2EGULATION .O 0/*+
submitted to the GMS. concerning Board of Directors and
b. Provide recommendations on prospective Commissioners of Issuers or Public
members of the Board of Commissioners Companies.
and/or Board of Directors to the Board s /*+ #IRCULAR ,ETTER .O 3%/*+
of Commissioners to be submitted to the concerning the Implementation of
GMS. Integrated Governance for Financial
c. Rotate the positions of each executive Conglomerate.
officer of BCA in order to prepare s 4HE "OARD OF #OMMISSIONERS $ECREE
the executive officers to gain broad of PT Bank Central Asia Tbk No. 37/SK/
knowledge and experience as an officer KOM/2015 dated February 26, 2015 on the
at the head or branch offices. Establishment of Integrated Governance
Committee.
12. Realization of Work Program of the RNC in s 4HE "OARD OF $IRECTORS $ECREE .O!
2019. SK/DIR/2017 dated November 21, 2017
Throughout 2019, the RNC convened 5 (five) concerning the Revision of PT Bank
meetings and realized the committee’s work Central Asia Tbk Integrated Governance
programs as follows: Guidelines.
a. Formulated recommendations for Board o s 4HE "OARD OF $IRECTORS $ECREE .O 3+
Directors nominations for 2019. /DIR/2019 dated May 27, 2019 concerning
b. Formulated recommendations related Appointment of Members of the
to remuneration of the Board of Integrated Governance Committee.
Commissioners and/or the Board Directors.
2. IGC Guideline and Code of Conduct
13. Remuneration of the RNC In carrying out its duties and responsibilities,
Remuneration paid to members of the IGC follows work guidelines contained in BCA’s
for 1 (one) year is Rp63,620,908,119.00. integrated governance guidelines.
Remunerations comprises salary/honorarium
and other bonuses as the officer of BCA. The work guidelines and rules cover the
following matters:
4. INTEGRATED GOVERNANCE COMMITTEE (IGC) s ,EGAL BASIS REFERENCE
The IGC was formed by and is responsible to the s 0OSITION
Board of Commissioners of the BCA as the main s $UTIES AND RESPONSIBILITIES
entity in the financial conglomerate. The IGC was s -EMBERSHIP STRUCTURE
formed to assist the Board of Commissioners in
monitoring the implementation of integrated
governance.
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s .UMBER AND COMPOSITION OF )NDEPENDENT b. Independent Commissioners representing
Commissioners. and appointed by the Financial Services
s 4ERM OF $UTY Institution in the Financial Conglomerate
s 7ORK MECHANISM as a member;
s -EETING PROVISIONS c. An Independent Party as a member;and
s -INUTES OF MEETINGS d. Member of the sharia supervisory board
s 2EPORTING from the Financial Services Institution in
the Financial Conglomerate, as a member.
3. Structure and Membership of IGC
Membership of the committee must consist of:
a. An Independent Commissioner from BCA
(main entity) as the chairman concurrently
as a member
Composition of IGC members as of December 31, 2019 is as follows:
Name Position
Sumantri Slamet Chairperson (concurrently independent commissioner of main entity)
Wimpie Rianto Members (independent main entity)
Sulistiyowati Member (independent commissioner of PT BCA Finance)
Gustiono Kustianto Member (independent commissioner of BCA General Insurance)
Pudjianto Member (independent commissioner of PT BCA Life Insurance)
Suyanto Sutjiadi Member (Independent Commissioner of PT Bank BCA Syariah)
Sutedjo Prihatono Member (Member of sharia supervisory board of PT Bank BCA Syariah)
Rudy Harjono Member (BCA Finance Limited independent director )
Mendari Handaya Member (independent commissioner of PT BCA Multi Finance formerly PT Central
Santosa Finance)
Hendra Iskandar Lubis Member (independent commissioner of PT BCA Sekuritas)
Number and Composition of Independent Wimpie Rianto
Commissioners Educational background, position, and work
The number and composition of independent experience of IGC member can be seen in
commissioners who are members of the IGC corporate profile page 86 on this 2019 BCA
are adjusted to the needs of the financial annual report.
conglomerate, as well as the efficiency and
effectiveness in carrying out the tasks of the Sulistiyowati
IGC, and heed the least representation of each The educational background, position and
financial service sector. work experience of IGC Member can be seen
in Corporate Profile page 87 on this 2019 BCA
annual report.
Sumantri Slamet
Educational background, position, and work Gustiono Kustianto
experience of IGC member can be seen in Educational background, position, and work
corporate profile page 79 on this 2019 BCA experience of IGC Member can be seen in
annual report. Corporate Profile page 87 on this 2019 BCA
annual report.
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Pudjianto Rudy Harjono
Educational background, position, and work Educational background, position, and work
experience of IGC Member can be seen in experience of IGC Member can be seen in
Corporate Profile page 88 88 on this 2019 BCA Corporate Profile page 89 on this 2019 BCA
Annual Report. Annual Report.
Suyanto Sutjiadi Mendari Handaya
Educational background, position, and work Educational background, position, and work
experience of IGC Member can be seen in experience of IGC Member can be seen in
Corporate Profile page 88 on this 2019 BCA Corporate Profile page 90 on this 2019 BCA
Annual Report. Annual Report.
Sutedjo Prihatono Hendra Iskandar Lubis
Educational background, position, and work Educational background, position, and work
experience of IGC Member can be seen in experience of IGC Member can be seen in
Corporate Profile page 89 on this 2019 BCA Corporate Profile page 90 on this 2019 BCA
Annual Report. Annual Report.
5. Education or Training
Throughout 2019, members of the IGC participated in education programs or training as follows:
Name Education/Training Organizer Location Date
Sumantri Can be seen in the chapter of the Board of Commissioners - training program in the framework
Slamet of improving the competence of members of the Board of Commissioners on this 2019 BCA
Annual Report.
Wimpie Rianto Indonesia Knowledge BCA Jakarta, February 21, 2019
Forum Indonesia
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Sulistiyowati National Seminar APPI Jakarta, February 21, 2019
“Anti Fraud Strategy In Indonesia
Multifinance Industry”
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Gustiono Workshop ISO 31000 - CRMS Indonesia Bandung, July 23-26, 2019
Kustianto International Risk Management Indonesia
Standart ERM Guidance for The
Implementation ISO-31004
Master Class Risk Governance CRMS Global dan Bali, December 4, 2019
for Senior Managers and Board ERMA- Enterprise Indonesia
Members Risk Management
Academy
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Name Education/Training Organizer Location Date
Risk Management: The Next Indonesian Pension Bali, December 5, 2019
Generations Fund Association Indonesia
Pudjianto Digital & Risk Management in Indonesia Life Bali, September 25-27,
Insurance Seminar year 2019 Insurance Association Indonesia 2019
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Suyanto Sharing Session “Navigating BCA Jakarta, December 6, 2019
Sutjiadi Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Sutedjo Workshop Pre Ijtima Sanawi National Sharia Board Semarang, September 17, 2019
Prihatono (Annual Meeting) DPS year 2019 - Indonesia Council of Indonesia
in Sharia Banking Ulama
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Rudy Harjono Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Mendari Sharing Session “Navigating BCA Jakarta, December 6, 2019
Handaya Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
Hendra Multifinance: Consumer Indonesia Bali, April 26, 2019
Iskandar Lubis Protection, Risk Management Finance Company Indonesia
and Fraud Early Warning Association
System in Digital Era
Sharing Session “Navigating BCA Jakarta, December 6, 2019
Change” by HDFC Bank Indonesia
(Housing Development Finance
Corporation) India
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Name Education/Training Organizer Location Date
Sharing Session “The BCA Jakarta, December 6, 2019
Ecosystem” by OVO, Indonesia
Tokopedia, HaloDoc and
Djarum Group
' * # +/" 9. Work Mechanism
Tenure of the members of the IGC is the same The arrangements for the working mechanism
as the tenure of BCA’s Board of Commissioners of the IGC are as follows:
(main entity), and can be reappointed for the a. The duties and responsibilities of the IGC
next period. Tenure of the currently in charge are carried out through IGC meetings.
members of the IGC will end at the closing of b. In order to facilitate the implementation
BCA’s Annual GMS in 2021. of tasks, the IGC assisted by the secretary
of the committee to carry out secretarial
7. Independence of IGC Members tasks, which includes:
Independence and requirements of IGC 1) Schedule meetings.
members follow the independence and 2) Propose and contact the required
requirements of the Board of Directors and/ resource person.
or Board of Commissioners of the main entity 3) Prepare and distribute invitations
and/or independence and requirements and meeting materials.
of the Board of Directors and/or Board of 4) Compile and distribute minutes of
Commissioners of subsidiaries in the Financial meetings.
Conglomerate. c. If needed, the IGC can invite speakers from
members of the Board of Commissioners,
8. Duties and Responsibilities of IGC the Board of Directors or other parties
In carrying out its functions, the IGC has the both from internal and external main
following duties and responsibilities: entities and financial services institutions
a. Evaluate the implementation of integrated members of Financial Conglomerate.
governance at least through assessing
the adequacy of internal controls and 10. Policy and Implementation of Meetings
implement the compliance function in an The IGC holds meetings at least 1 (one) time in
integrated manner. 1 (one) semester as stipulated in the committee
b. Provide recommendations to the Board of charter. During 2019, the committee currently
Commissioners of BCA as the main entity in charge held 4 (four) meetings.
in the Financial Conglomerate to improve
the Integrated Governance Guidelines.
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Attendance of data committee members in IGC meetings during 2019 were as follows:
Number of
Name Attendance Percentage
Meetings
Sumantri Slamet 4 4 100%
Wimpie Rianto 4 4 100%
*)
Adhi Gunawan Budirahardjo 4 1 25%
Sulistiyowati**) 4 3 75%
Gustiono Kustianto 4 4 100%
Pudjianto 4 3 75%
Suyanto Sutjiadi 4 4 100%
Sutedjo Prihatono 4 2 50%
Rudy Harjono 4 4 100%
Mendari Handaya 4 3 75%
Hendra Iskandar Lubis 4 4 100%
Note :
*
) Based on the GMS of PT. BCA Finance dated March 13, 2019, the term of office of Mr. Adhi Gunawan Budirahardjo has ended
**)
Mrs. Sulistiyowati assuming the position since May 27, 2019.
Total meetings were convened as follows:
No Date Agenda
1 March 13, 2019 Evaluation of the implementation of integrated governance in semester II 2018
2 June 19, 2019 Review the implementation of BCA’s Financial Conglomerate integrated risk
management
3 September 18, 2019 Evaluation of the implementation of integrated governance in semester I 2019
4 December 11, 2019 1. Update information related to subsidiary companies in the BCA financial
conglomerate.
2. Follow up on the previous meeting.
3. Coordination between Internal Audit Division and subsidiaries.
11. Realization of Work Program and Activities of IGC Program in 2019
Throughout 2019, the IGC carried out IGC activities/work programs, such as, evaluating the implementation
of integrated governance in the BCA’s financial conglomerate. The evaluations were carried out, among
others, through the presentation and discussion of the Integrated Internal Audit Report and the Integrated
Compliance Report.
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EXECUTIVE COMMITTEES OF THE BOARD OF 1. Main Functions of ALCO
DIRECTORS ALCO has the following functions:
BCA has 7 (seven) executive committees appointed by a. To establish and evaluate liquidity
the Board of Directors to help carry out the duties of management policies and strategies to
the Board of Directors. The executive committees are maintain liquidity in accordance with
tasked with providing objective opinions to the Board the applicable provisions, and to meet
of Directors and help to improve the effectiveness the BCA’s liquidity needs, including
of the Board’s systematic implementation, as well unexpected fund requirements, while
as contributing according to their areas of duty and minimizing idle funds.
responsibility. The executive committee under the Board b. To establish and evaluate policies and
of Directors are: strategies related to market risks, including
1. Asset and Liability Committee. interest rate and foreign exchange risk.
2. Risk Management Committee. c. To establish and evaluate pricing policies
3. Integrated Risk Management Committee. and strategies for funding products, loans
4. Credit Policy Committee. and inter-office accounts.
5. Credit Committee. d. To establish and evaluate policies and
6. Information Technology Steering Committee. strategies in structuring investment
7. Personnel Case Advisory Committee. portfolios.
e. To establish and evaluate policies and
1. ASSET AND LIABILITY COMMITTEE (ALCO) strategies for arranging balance sheet
ALCO is a permanent committee under the Board of structure by anticipating changes in
Directors whose mission is to optimally achieve BCA’s interest rates to achieve maximum net
profitability levels, as well as ensuring liquidity risk, interest margin.
interest rate risk, and controlled foreign exchange
risk through the establishment of policies and 2. Authority of ALCO
strategies for assets and liabilities management. ALCO has the authority to take strategic
ALCO is determined based on Board of Directors decisions in the management of the BCA’s
Decree No. 167/SK/DIR/2019 dated October 25, 2019 assets and liabilities within parameters set by
regarding the Asset Liability Committee Structure the Board of Directors. The authority of ALCO
(ALCO) and Board of Commissioners Decree No. as follows:
197/SK/KOM/2019 dated December 23, 2019 a. To establish interest rates on time deposits,
regarding the Scope of Duties and Responsibilities savings, and current accounts.
of the Board Directors and the main organization b. To establish lending rates.
structure at of PT Bank Central Asia Tbk. c. To establish funding and investment
strategies.
d. To establish hedging strategy where
necessary.
e. To establish limits relating to liquidity risk,
interest rate risk, and foreign exchange risk
according to the overall risk management
policy.
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3. Membership Structure of ALCO and Voting Right Status
Position Served by Status Voting Rights
Chairman (concurrently President Director Reserve voting rights
as member)
Members s $EPUTY 0RESIDENT $IRECTOR Reserve voting rights
s $EPUTY 0RESIDENT $IRECTOR
s #OMPLIANCE AND 2ISK -ANAGEMENT $IRECTOR
s #ORPORATE "ANKING $IRECTOR
s 3-% AND #OMMERCIAL "ANKING $IRECTOR
s 2EGIONAL AND "RANCH .ETWORK $IRECTOR
s #REDIT AND ,EGAL $IRECTOR
s 4RANSACTION "ANKING $IRECTOR
s 0LANNING AND &INANCE $IRECTOR
s %XECUTIVE 6ICE 0RESIDENT %60 IN CHARGE OF 4REASURY AND
International Banking Division
s %XECUTIVE 6ICE 0RESIDENT %60 IN CHARGE OF THE #ORPORATE
Banking Group
s %XECUTIVE 6ICE 0RESIDENT %60 IN CHARGE OF THE #ORPORATE
Finance Division and the Corporate Communications and
Secretariat Division
s (EAD OF THE )NTERNATIONAL "ANKING $IVISION
s (EAD OF 4REASURY $IVISION
s (EAD OF #ORPORATE &INANCE $IVISION
s (EAD OF #ORPORATE 3TRATEGY AND 0LANNING $IVISION
s (EAD OF THE #ORPORATE "ANKING 4RANSACTION AND &INANCE
Group
s (EAD OF #OMMERCIAL AND 3-% "USINESS $IVISION
s (EAD OF "ANKING 4RANSACTION 0RODUCT $EVELOPMENT $IVISION
s (EAD OF "ANKING 4RANSACTION "USINESS $EVELOPMENT AND
Marketing Division
s (EAD OF "ANKING 4RANSACTION #OOPERATION 3OLUTION
Development Division
s (EAD OF #ONSUMER #REDIT "USINESS $IVISION
s (EAD OF 2ISK -ANAGEMENT 7ORK 5NIT
Secretary Senior Advisor Risk Management Work Unit in charge of Asset No voting rights
Liability Management (ALM)
ALCO Independency s -ETHODOLOGIES FOR MEASURING
All ALCO members have fulfilled the liquidity risk, interest rate risk and
independence criteria and are able to carry out foreign exchange risk.
their duties independently. s $ETERMINATION OF THE PRICE OF FUNDS
and loan products.
4. Main Duties of ALCO Members s #OMPETITIVENESS OF INTEREST RATES FOR
Voting ALCO members have main duties as funds and loan products.
follows: s #OMPETITOR BANK STRATEGY
a. To provide input to the ALCO secretary for s #ONSTRAINTS ON THE APPLICATION OF
the preparation of meeting agenda and ALCO’s decision results
materials. s #USTOMER BEHAVIOR AND CHANGES
b. To provide input in the form of information
and analysis on the ALCO meeting, Charter
regarding: BCA has ALCO guidelines listed in the Decree
s -ETHODOLOGY FOR DETERMINING PRICE of the Board of Directors No. 167/SK/DIR/2019
of product funds and loans. dated October 25, 2019 concerning the asset
and liability committee structure (ALCO) to
suppport the implementation of ALCO’s duties
and responsibilities.
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5. Meeting of ALCO 6. Decision Making
The terms of ALCO meetings are as follows: The decision-making provisions are as follows:
- ALCO meetings are held as necessary and - Decision making in relation to the
at least 1 (one) every month. exercise of ALCO’s authority will only be
- ALCO meetings meet quorum if attended taken through legitimate ALCO meeting
by at least 1/2 (half) plus 1 (one) of the decisions.
members, including the chairman or - ALCO meeting decisions are valid and
alternate, or attended by 6 (six) Directors, binding if approved by 1/2 (half) plus 1
including the chairman or alternate. (one) of the members with voting rights
present plus 1 (one) vote.
7. Frequency of ALCO Meetings in 2019
As of December 31, 2019, ALCO held 12 (twelve) meetings with the following details:
Number of
Position Date Attendance Percentage
Meetings
President Director 1) 12 s *ANUARY 12 100%
2) 2019
Deputy President Director 3 1 33%
s &EBRUARY
Deputy President Director 3) 12 2019 8 67%
s -ARCH
Deputy President Director 12 5 42%
2019
Credit and Legal Director 12 s !PRIL 12 100%
Corporate Banking Director 12 s -AY 10 83%
s *UNE
Commercial and SME Banking Director 12 s *ULY 10 83%
Regional and Branch Network Director 12 s !UGUST 10 83%
2019
Compliance and Risk Management Director 12 s 3EPTEMBER 11 92%
Banking Transactions Director 12 20, 2019 7 58%
s /CTOBER
Planning and Finance Director 12 7 58%
2019
Executive Vice President (EVP) in charge of the s .OVEMBER
12 9 75%
International Treasury and Banking Division 2019
Executive Vice President (EVP) in charge of the s $ECEMBER
12 2019 5 42%
Corporate Banking Group
Executive Vice President (EVP) in charge of
Corporate Finance Division and Corporate 12 8 67%
Secretary and Communication Division
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Number of
Position Date Attendance Percentage
Meetings
Member Division Heads or Representing Officers:
International Banking Division 12 12 100%
Treasury Division 12 12 100%
Finance and Planning Division 12 4 33%
Divisi Corporate Strategy & Planning 4) 9 7 78%
Corporate Banking and Corporate Finance Group 12 11 92%
Commercial and SME Business Division 12 12 100%
Banking Transaction Product Development
12 12 100%
Division
Banking Transaction Business Development and
12 9 75%
Marketing Division
Banking Transaction Cooperation Solution
12 4 33%
Development Division
Consumer Credit Business Division 12 12 100%
Risk Management Work Unit 12 12 100%
Note:
1)
Chairman of ALCO
2)
In accordance with Annual GMS of BCA dated April 11, 2019 - term of Deputy President Director has ended and there was no reappointment
3)
Assuming the position of Deputy President Director replacing Eugene K. Galbraith since October 3, 2019, previously assuming the position of
Individual Banking Director
4)
Becoming ALCO member since April 2019
8. Report of Responsibility d. Determined the banking book interest rate
Realization of the committee’s work is reported risk based on the earnings perspective (NII
through: method) and economic value perspective
a. Minutes of regular meetings. (EVE method).
b. Minutes of special meetings held to discuss e. Following up on developments in trading
specific issues. book and forex interest rate risks.
c. Data and information related to the areas f. Established a loan portfolio consisting of
covered. limits and outstanding loans and debtor
d. Notes and ALCO’s opinion regarding the classes.
minutes of meetings and relevant data g. Determined yield and cost of funds in
and information. rupiah and foreign currency.
h. Prepared asset liabilities management
9. Realization of Work Program in 2019 analysis.
Throughout 2019, ALCO realized the following i. Established stress tests for liquidity risk
work programs: and stress tests in exchange rate and
a. Compiled follow-up report on the previous trading book interest rates.
ALCO meeting resolutions. j. Kept up with the development of banking
b. Compiled economic parameters including funds to total banking.
inflation, Bank Indonesia term deposit, k. Discussed and decided on changes in fund
interest rates, Rupiah and USD yield and credit interest rates, prime lending
curves, market liquidity, and Rupiah rates and limits relating to Asset Liability
exchange rates. Management (ALM).
c. Liquidity reserves comprising primary and l. Reviewed the profit/loss simulation results
secondary Rupiah and foreign exchange in accordance with BCA ALM strategy.
reserves, Rupiah and foreign exchange
fund structure, credit projection, liquidity
projection and losses due to liquidity risk.
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2. RISK MANAGEMENT COMMITTEE (RMC) 1. RMC Main Core Functions
RMC was established to ensure the risk management RMC has the following main functions:
framework provided adequate protection against a. Compiling policies, strategies, and
all BCA risks. BCA’s risk management and structure guidelines to implement risk management.
refers to the Board of Directors Decree No. 120/ b. Improving the implementation of risk
SK/DIR/2019 dated August 6, 2019 concerning the management based on the results of
Structure of The Risk Management Committee. The evaluation of the effective implementation
establishment of the RMC is also guided by: of the risk management process and
s /*+ 2EGULATION .O 0/*+ DATED system.
March 16, 2016 concerning the Implementation c. Determining matters relating to business
of Risk Management for Commercial Banks. decisions that deviate from the normal
s 4HE "OARD OF #OMMISSIONERS $ECREE .O procedures (irregularities).
SK/KOM/2019 dated December 23, 2019
concerning the Duties and Responsibilities 2. Authorities of RMC
of Board of Directors and the Organizational The RMC has the authority to assess and give
Framework of PT Bank Central Asia Tbk. recommendations concerning matters relating
to the risk management for the Board of
Directors to make decisions.
3. Structure, Membership of RMC and Voting Rights Status
Based on the Board of Directors Decree No. 120/SK/DIR/2019 dated August 6, 2019 concerning the Structure
of the RMC, the structure, membership and voting status of the RMC are as follows:
Position Served by Voting Rights Status
Chairman (concurrently Compliance and Risk Management Director Reserve voting rights
as member)
Permanent members1) s !LL MEMBERS OF THE "OARD OF $IRECTORS Reserve voting rights
s %XECUTIVE 6ICE 0RESIDENT OF THE #REDIT 2ISK !NALYSIS 'ROUP
(EVP GARK)
s (EAD OF #OMPLIANCE 7ORK 5NIT
s (EAD OF )NTERNAL !UDIT $IVISION 3)
Non-permanent s %XECUTIVE 6ICE 0RESIDENT IN EXCEPT %60 '!2+ Reserve voting rights
member2) s 7ORK 5NITS 'ROUPS OUTSIDE 0ERMANENT -EMBERS
Secretary (concurrently Head of Risk Management Work Unit/Substitute Officer Reserve voting rights
permanent member)
Notes:
1) For concurrent position, the person only has one vote.
2) Presence is according to the topic discussed.
3) Do not have voting rights.
RMC Independency
All RMC members have fulfilled the independence criteria and are able to carry out their duties independently.
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4. Main Duties of RMC Members Charter
a. Provide suggestions to the RMC secretary RMC has guidelines for carrying out its duties
on topics and meeting materials to be and responsibilities, based on Board of
discussed at the meeting of RMC. Directors Decree No. 120/SK/DIR/2019 dated
b. Provide information and analysis related August 6, 2019 concerning the RMC Structure.
to the topics discussed at the meeting of
RMC. 5. RMC Meetings
c. Topics that can be discussed at the meeting The following are the conditions concerning
include: RMC meetings:
s 4HE DIRECTION AND OBJECTIVES OF "#! a. RMC meetings are carried out according
in formulating policies, strategies and to the needs and at least 1 (once) in 3
guidelines for the implementation (three) months or 4 (four) times in 1 (one)
of risk management and changes if year
necessary. b. RMC meetings are legitimate if attended
s !SSESSMENT OF THE EFFECTIVENESS OF by at least 2/3 (two thirds) of permanent
the risk management framework members or 1/2 (one half) of the
implementation. permanent members by requesting the
s $EVELOPMENTS AND TRENDS IN TOTAL RISK approval of all permanent members.
exposure from BCA and suggestions
of an acceptable level of overall risk 6. Decision Making
tolerance (risk appetite). The following are the provisions concerning
s 2ESULTS OF STUDIES REGARDING THE TOTAL decision making:
risk exposure faced by BCA and its a. Decision making concerning the use of
impact. RMC authority is only made through the
s !SSESS "#!S CAPITAL ADEQUACY IN legitimate results of a committee meeting.
dealing with the risk of losses arising b. The decisions of a RMC meeting valid and
using various stress testing scenarios. binding if approved by more than 1/2 (one
s 0ROPOSAL FOR DEVELOPING RISK half) of the number of members present.
measurement methodologies,
contingency plans in abnormal
conditions (worst case scenario), and
other approaches related to BCA risk
management.
s -ATTERS REQUIRING JUSTIlCATION
related to business decisions that
deviate from normal procedures
(irregularities).
s ,IMITS OF AUTHORITY EXPOSURE AND
concentration of the loan portfolio
as well as other parameters aimed at
limiting risk.
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7. Frequency of RMC Meetings in 2019
As of December 31, 2019, the committee held 4 (four) meetings with the following details:
Number of
Position Date Attendance Percentage
Meetings
President Director (Jahja Setiaatmadja) 4 s -ARCH 4 100%
*)
2019
Deputy President Director (Eugene K. Galbraith) 1 1 100%
s -AY
Deputy President Director (Suwignyo Budiman) 4 2019 3 75%
s .OVEMBER
Deputy President Director (Armand W. Hartono) 4 3 75%
18, 2019
1)
Credit and Legal Director (Subur Tan) 4 s $ECEMBER 4 100%
13, 2019
Commercial and SME Banking Director (Henry Koenaifi) 4 4 100%
Regional and Branch Network Director (Erwan Yuris Ang) 4 4 100%
Corporate Banking Director (Rudy Susanto) 4 4 100%
Human Resource Director (Lianawaty Suwono) 4 1 25%
Compliance and Risk Management Director (Inawaty
4 4 100%
Handojo) 2)
Banking Transactions Director (Santoso) 4 3 75%
Planning and Finance Director (Vera Eve Lim) 4 4 100%
EVP Credit Risk Analysis Group (GARK) 4 3 75%
Head of Compliance Work Unit 4 4 100%
Head of Risk Management Work Unit (Secretary) 4 4 100%
Head of Internal Audit Division 4 4 100%
EVP Corporate Finance Division and Corporate
1 1 100%
Communication and Secretariat Division 3)
EVP Strategic Information Technology Group 3) 1 1 100%
Kepala Divisi Individual Customer Business Development 3) 1 1 100%
3)
Head of Business Finance and Planning Sub-Division 2 2 100%
Head of Electronic Banking Sub-Division 3) 1 1 100%
Note:
1) Served as chairman (Director of compliance and risk management) until September 2019.
2) Served as chair (Director of compliance and risk management) starting in October 2019.
3) The number of meetings for non-permanent members is in accordance with the invitations for the related discussion topic.
*) Number of meetings in line with effectively serving as Directors.
8. Accountability Reporting
Accountability and work realization of the RMC is reported through:
a. Periodical written report at least in one year to the Board of Directors concerning the results of the
routine RMC meetings.
b. Written report to the Board of Directors concerning the results of special meetings held to discuss
certain matters.
c. Special report or activity report (if necessary).
9. Realization of RMC Work Unit Year 2019
Throughout 2019, RMC held 4 (four) meetings and accomplished the following work programs:
a. Informing of new OJK Regulation related to legal lending limit (LLL) and provision of large funds.
b. Informing related to Interest rate risk in the banking book (IRRBB) including reporting obligations and
calculation results based on OJK Circular Letter.
c. Inform related to the results of the Bottom Up Stress Test (BUST) 2018/2019.
d. Inform the results of the review and update changes to the Informal Risk Appetite Statement.
e. Inform BCA strategic risk related Digital Finance/ Fintech.
f. Inform operational risk capital reserves using the Standardized Approach.
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3. INTEGRATED RISK MANAGEMENT COMMITTEE 1. Main Functions of IRMC
(IRMC) The RMC has the main function of providing
IRMC was established to ensure the risk recommendations to the Directors, which at
management framework provides integrated and least include:
adequate coverage over all risks faced by BCA and s #OMPILATION OF INTEGRATED RISK
its subsidiaries. management policies.
s 2EVISION OR RElNEMENT OF RISK MANAGEMENT
The committee’s structure is determined based on policy based on evaluation results.
the Board of Directors Decree No. 121/SK/DIR /2019
dated August 6, 2019 concerning the Integrated 2. Authorities of IRMC
Risk Management Committee Structure. The IRMC is authorized to review and provide
recommendations on risk management related
The establishment of the committee refers to matters for decisions by the Board of Directors.
the OJK Regulation 17/POJK.03/2014 concerning
Implementation of Integrated Risk Management
for Financial Conglomerate.
3. Structure, IRMC Membership, and Status of Voting Rights
Position Served by Voting Rights Status
Chairman (concurrently The director in charge of the integrated risk management Reserve voting
member) function rights
Permanent member1) s !LL MEMBERS OF THE "OARD OF $IRECTORS
s (EAD OF #OMPLIANCE 7ORK 5NIT
s (EAD OF )NTERNAL !UDIT $IVISION3)
Non-permanent s !LL %XECUTIVE 6ICE 0RESIDENTS
member2) s !LL (EAD OF $IVISIONS "USINESS 5NITS 'ROUPS 7ORK 5NITS
1. Executive Officer related to Subsidiary Companies, other than Permanent
Members
2. Subsidiary Director *) Directors who represent and are appointed by the Subsidiary
Secretary (concurrently Head of Risk Management Work Unit/Alternate Officer
permanent member)
Notes:
*) The number and composition are adjusted to the needs as well as the efficiency and effectiveness of the implementation of IRMC tasks by taking into
account, among others, the representation of each financial service sector.
1) If there are concurrent positions, the person concerned only has one vote.
2) According to the topics discussed.
3) Do not have voting rights.
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4. Main Duties of the IRMC s -ATTERS REQUIRING JUSTIlCATION RELATED
In carrying out its functions, the IRMC has the to business decisions that deviate from
following main duties: normal procedures (irregularities).
s 0ROVIDE RECOMMENDATIONS TO THE SECRETARY s ,IMIT OF AUTHORITY EXPOSURE AND
of the IRMC regarding the topics and concentration of the loan portfolio as well
meeting materials to be discussed in the as other parameters aimed at limiting risk.
IRMC meeting. s 2ElNING THE IMPLEMENTATION OF
s 0ROVIDE INPUT IN THE FORM OF INFORMATION integrated risk management periodically
and analysis related to the topics discussed and incidentally as a result of changes
at the committee meeting. in internal and external conditions that
Topics that can be discussed at the IRMC affect capital adequacy, risk profile, and
meeting include: ineffectiveness in the application of
s 4HE DIRECTION AND OBJECTIVES OF "#! integrated risk management based on
in formulating policies, strategies and evaluation results.
guidelines for the implementation
of integrated risk management, and 5. Meetings of IRMC
amendments as needed. The provisions of IRMC meetings are as follows:
s !SSESSMENT OF THE EFFECTIVENESS OF THE s )2-# MEETINGS ARE HELD AS NEEDED AND AT
implementation of an integrated risk least 1 (one) every semester
management framework. s )2-# MEETINGS ARE VALID IF ATTENDED BY
s $EVELOPMENTS AND TRENDS IN INTEGRATED more than 1/2 (one-half) of permanent
risk exposure and propose overall risk members, at least 51% (fifty one person)
levels that can be taken (risk appetite) and of the permanent members.
risk tolerance.
s 2ESULTS OF STUDY OF THE TOTAL INTEGRATED 6. Decision Making
risk exposure and their impacts. The following provisions regulate the decision-
s !SSESS THE "ANKS CAPITAL ADEQUACY IN making process in the IRMC:
dealing with the risk of losses arising s $ECISION MAKING RELATED TO THE EXERCISE OF
employing various stress testing scenarios. the IRMC’s authority will only be carried
s 0ROPOSE DEVELOPMENT OF RISK MEASUREMENT out through legitimate IRMC meeting
methods, contingency plans in abnormal decisions.
conditions (worst case scenario), and s )2-# MEETING DECISIONS ARE VALID AND
other methods related to integrated risk binding if approved by more than half of
management. the members present.
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7. Frequency of IRMC Meeting in 2019
As of December 31, 2019, the committee held 3 (three) meetings with the following details:
Number of
Position Date Attendance Percentage
Meetings
President Director 1) 3 s -AY th 3 100%
s 3EPTEMBER
Deputy President Director 1) 3 1 33%
s $ECEMBER
1)
Deputy President Director 3 3 100%
1) 4)
Credit and Legal Director 3 3 100%
Commercial and SME Banking Director 1) 3 2 67%
1)
Regional and Branch Network Director 3 2 67%
1)
Corporate Banking Director 3 3 100%
Compliance and Risk Management Director 1) 4) 3 3 100%
1)
Human Capital Director 3 1 33%
Banking Transaction Director 1) 3 2 67%
1)
Planning and Finance Director (formerly PT
3 1 33%
Central Santosa Finance)
Head of Compliance Work Unit 1) 3 3 100%
1)
Head of Risk Management Work Unit (Secretary) 3 3 100%
Head of Internal Audit Division 2) 3 3 100%
2)
PT BCA Finance Director 3 3 100%
PT BCA Multi Finance Director 2) 3 2 67%
2)
PT BCA Syariah Director 3 3 100%
2)
BCA Finance Limited Director 3 2 67%
PT BCA Sekuritas Director 2) 3 0 0%
2)
PT BCA Insurance Director 3 3 100%
PT BCA Life Director 2) 3 2 67%
2)
PT Central Capital Ventura Director 3 3 100%
Notes:
1) Permanent member
2) Non-permanent members
3) The number of meetings for non-permanent members is in accordance with the invitations for the related discussion topic
4) As of October 3, 2019, based on the Commissioner’s Decree No. 157/SK/KOM/2019 there was a change of Director who led risk management from
Mr. Subur Tan to Mrs. Inawaty Handojo.
- Bank Royal has joined as a member of the BCA Financial Conglomerate as of November 14, 2019, but has not been invited to the KMRT Meeting.
8. Accountability Reporting 9. Realization of Work Program in 2019
Responsibilities and work realization of the Throughout 2019, IRMC realized the following
IRMC are reported through: work programs:
s 7RITTEN REPORTS PERIODICALLY AT LEAST s 2EVIEWED THE IMPLEMENTATION OF THE
(one) In a year to the Board of Directors, integrated risk management of the BCA
containing results of regular committee Financial Conglomerate.
meetings. s )MPLEMENTED SUSTAINABLE lNANCE
s 7RITTEN REPORT TO THE "OARD OF $IRECTORS s 2EQUESTED /*+ OPINIONS RELATED TO
regarding the results of special meetings integrated risk management.
held to discuss certain matters. s 0ERFORMED )2-)3 DEVELOPMENT UPDATES
s 3PECIAL REPORTS OR ACTIVITY REPORTS IF s #OMPILED A REPORT ON THE INTEGRATED RISK
needed). profile of the first semester of the BCA
Financial Conglomerate in 2019.
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s #ONDUCT AN INTEGRATED STRESS TEST FOR THE 1. Main Functions of CPC
Financial Conglomerate of BCA in 2019. The CPC has the following main functions:
s $ISCUSS THE CONCEPT OF THE PROPOSED s !SSIST THE "OARD OF $IRECTORS IN FORMULATING
Financial Conglomerate of circuit breaker credit policies, especially those relating to
of BCA. the principle of prudence in credit.
s -ONITOR AND EVALUATE THE APPLICATION OF
4. CREDIT POLICY COMMITTEE (CPC) credit policies so they can be implemented
CPC was formed to direct the granting of credit consistently and consequently.
through the formulation of credit policies in the s #ONDUCT PERIODIC REVIEWS OF THE "ANKS
framework to achieve prudent credit targets. BCA basic credit policy.
CPC has been validated through Board of Directors s -ONITOR THE DEVELOPMENT AND CONDITION
Decree No. 175/SK/DIR/2019 dated November 5, of loan portfolios.
2019 concerning the Structure of the Credit Policy s 0ROVIDE SUGGESTIONS AND CORRECTIVE
Committee (CPC). measures for the results of monitoring
and evaluation that have been carried
The establishment of the committee was based on: out.
s 0/*+ 0/*+ DATED *ULY
concerning Obligations for the Compilation 2. Authorities of CPC
and Implementation of Credit Policies or Bank CPC has the authority to provide
Financing for Commercial Banks. recommendations on corrective measures to
s "OARD OF #OMMISSIONERS $ECREE .O 3+ the Board of Directors on matters relating to
KOM/2019 dated December 23, 2019 concerning credit policy.
the Duties and Responsibilities of the Board of
Directors and the Main Framework of PT Bank
Central Asia Tbk.
3. Structure, Membership, and Voting Status of CPC
Position Filled By Voting Status
Chairman (concurrently President Director Reserve voting rights
member)
Permanent member1) s $EPUTY 0RESIDENT $IRECTOR Reserve voting rights
s #REDIT AND ,EGAL $IRECTOR
s #OMPLIANCE AND 2ISK -ANAGEMENT $IRECTOR
s #ORPORATE "ANKING $IRECTOR 2)
s #OMMERCIAL AND 3-% "ANKING $IRECTOR 2)
s "ANKING 4RANSACTIONS $IRECTOR 2)
s %XECUTIVE 6ICE 0RESIDENT OF THE #REDIT 2ISK !NALYSIS 'ROUP
(EVP GARK) 2)
s %XECUTIVE 6ICE 0RESIDENT 'ROUP #ORPORATE "ANKING AND
Corporate Finance (EVP GBKF) 2)
s %XECUTIVE 6ICE 0RESIDENT IN CHARGE OF 4REASURY $IVISION AND
International Banking Division (EVP DTR-DPI) 2)
s (EAD OF #REDIT 2ISK !NALYSIS 'ROUP AND OR (EAD OF
Commercial & SME Business Division and / or Head of the
Corporate Banking Transaction and Finance Group and / or
Head of Consumer Credit Division and / or Head of Work
Units under the Directorate of Banking Transactions and /
or Head of the International Banking Division or Substitute
Officer 2)
s (EAD OF )NTERNAL !UDIT $IVISION OR 3UBSTITUTE /FlCER
s (EAD OF #OMPLIANCE 5NIT OR 3UBSTITUTE /FlCER
Secretary (concurrently Head of Risk Management Work Unit or Substitute Officer Reserve voting rights
permanent member)
Notes:
1) Other directors have the right to attend CPC meetings, but without voting rights
2) According to the topics discussed.
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4. Duties and Responsibilities of CPC - Bank fulfillment over the adequacy
CPC members have the following main tasks: of the allowance for possible write-
s 0ROVIDE OPINIONS TO THE #0# SECRETARY offs.
in preparing the agenda and meeting - Results of supervision of the
materials. application and implementation of
s 0ROVIDE INPUT IN THE FORM OF INFORMATION the Bank’s basic credit policy.
and analysis at a committee meeting to
make a CPC decision, regarding: 5. CPC Meeting
- Development of credit policies The following are provisions regarding CPC
(corporate loans, commercial loans, meetings:
SME loans, Small Enterprises Loans, s #0# MEETINGS ARE HELD AS NEEDED AND AT
consumer loans, credit cards and least 1 (one) in a year.
interbank credit) in accordance with s #0# MEETINGS ARE VALID IF AT LEAST TWO
BCA’s mission and business plan. thirds) of the members are present.
- Compliance with statutory provisions
in granting credit. 6. Decision Making
- Development and quality of the The decision-making provisions of the
overall credit portfolio. committee are as follows:
- The veracity of the exercise of s $ECISION MAKING IN RELATION TO THE USE OF
authority to decide upon credit. CPC authority can be carried out through
- The veracity of the process of circulation to CPC members or through
granting, developing, and quality of legitimate committee meetings.
credit given to related parties and s $ECISIONS THROUGH MEETINGS OR CIRCULATIONS
certain large debtors. to CPC members will be considered valid
- The veracity of the implementation and binding if approved by more than 1/2
of the legal lending limit (LLL). (half) the members present.
- Settlement of problem loans in
accordance with the provisions of the
credit policy.
7. Frequency of CPC Member Meetings During 2019
As of December 31, 2019, the committee had held 1 (one) meeting with the following details:
Number of
Position Attendance Percentage Remark
Meetings
President Director (Jahja Setiaatmadja) 1 1 100%
Deputy President Director 1 1 0 0% When the committee
(Eugene K. Galbraith) meeting was held, he
was no longer serving as
Deputy President
Director 1
Credit Director (Inawaty Handojo) *) 1 1 100%
Corporate Banking Director1) 1 1 100%
(Rudy Susanto)
Compliance, Law and Risk Management 1 1 100%
Director (Subur Tan)
Commercial and SME Banking Director 1) 1 1 100%
(Henry Koenaifi)
Individual Banking Director 1) 1 NA - The topic of the CPC
(Suwignyo Budiman) **) meeting was not related
to consumer credit policy
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Number of
Position Attendance Percentage Remark
Meetings
Banking Transactions Director 1) 1 NA - The topic of the CPC
(Santoso) meeting was not related
to the banking transaction
policy
Executive Vice President in charge of 1 NA - The topic of the CPC
Treasury Division and International meeting was not
Banking Division1) related to treasury or
international banking
policies
Executive Vice President of the Credit 1 1 100%
Risk Analysis Group (EVP GARK)1)
Executive Vice President Group 1 1 100%
Corporate Banking Transaction and
Finance (EVP GBKF)1)
Head of Credit Risk Analysis Group or 1 1 100%
substitute official1)
Head of the Commercial Bussiness and 1 1 100%
SME Division or substitute officials 1)
Head of Corporate Banking and 1 1 100%
Corporate Finance or substitute officials1)
Head of Consumer Credit Business 1 NA - The CPC meeting topic did
Division or substitute officer1) not concern the consumer
credit policy
Head of Work Unit under the 1 NA - The topic of the CPC
Directorate of Banking Transactions or meeting was not related
substitute officials1) to the banking transaction
policy
Head of the International Banking 1 NA - The topic of the CPC
Division or substitute official1) meeting was not related
to international banking
policy
Head of Internal Audit Division or 1 1 100%
substitute official
Head of Compliance Work Unit or 1 1 100%
substitute official
Head of Risk Management Work Unit or 1 1 100%
substitute official
Notes:
- The meeting was held on April 16, 2019.
1)
In accordance with the topics discussed
*)
At the meeting held on April 16, 2019, the person concerned still held the position of Director of Credit
**)
When the meeting was held on April 16, 2019, he was still serving as Director of Individual Banking.
8. Accountability Reporting 9. Realization of the CPC work Program in 2019
The responsibility and realization of the work Throughout the implementation of its
of the committee is reported through: management duties in 2019, the CPC
s 0ERIODIC WRITTEN REPORTS TO THE "OARD carried out a work program, which provides
of Directors with a copy to the Board of recommendations on Internal Provisions in
Commissioners regarding the results of GARK Corporation for Disbursement and
supervision, monitoring and evaluation of Monitoring of Investment Credit Facilities and
the implementation of the bank’s credit Project Finance.
policy base as well as suggestions for the
necessary improvements.
s 2EPORTS RELATED TO DATA AND OTHER
information relating to the results of
monitoring and evaluation of activities.
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5. CREDIT COMMITTEE (CC) - Large debtors
CC was formed to assist the Board of Directors in - Specific Industry
evaluating and/or providing credit decisions in - Special requests from the Directors.
accordance with the authority limits set by the s 4O DISCUSS CREDIT APPLICATIONS THAT ARE
Board of Directors, as stipulated in the BCA articles the decisions of the Board of Directors
of association and by taking into account business that need the approval of the Board of
development without neglecting the prudence Commissioners and the attached meeting
principle. minutes of meeting to seek approval
from the Board of Commissioners (with
The establishment of the committee was exceptions for credit extension).
determined through Directors Decree No. 176/SK/ s #OORDINATE WITH THE ASSET AND LIABILITIES
DIR/2019 dated November 5, 2019 concerning the committee (ALCO) in terms of aspects of
Credit Committee Structure. credit funding and adjusting corporate
loan interest rates.
The formation of the CC refers to:
s /*+ 2EGULATION .O 0/*+ DATED CC Level
July 12, 2017 concerning Obligations for the In carrying out its duties, the CC is grouped
Compilation and Implementation of Credit under the following credit categories:
Policies or Bank Financing for Commercial s #ORPORATE ##
Banks. s #OMMERCIAL ##
s "OARD OF #OMMISSIONERS $ECREE .O 3+
KOM/2019 dated December 23, 2019 regarding 2. Authorities of CC
the Scope of Duties and Responsibilities of the The authority of the CC includes making credit
Board Directors and the main organization decisions or providing recommendations for
structure at of PT Bank Central Asia Tbk. the draft of credit decisions, by referring to the
s 4HE "OARD OF $IRECTORS $ECREE .O 3+ provisions concerning the authority to approve
DIR/2017 dated July 31, 2017 regarding the credit as contained in the Corporate Credit
Organizational Structure of Credit Risk Analysis Manual and Commercial Credit Manual.
Group (GARK).
s 4HE "OARD OF $IRECTORS $ECREE .O 3+ The following is the scope of authority vested
DIR/2019 dated November 8, 2019 concerning in the CC:
the Organizational Structure of the Corporate s )N TERMS OF LEVEL OF AUTHORITY
Banking, Transaction and Finance (GBKF) The CC has the authority to approve
Group. credit in accordance with the authorized
s #ORPORATE CREDIT PROVISIONS MANUAL maximum amounts specified for each type
s #OMMERCIAL CREDIT PROVISIONS MANUAL of CC.
s )N TERMS OF OBJECT CREDIT DECISIONS
1. Main Functions of CC - Making credit decisions for corporate
The main functions of the CC are as follows: and commercial categories above a
s 0ROVIDE DIRECTION AND IF NECESSARY BE certain value.
able to conduct a more in-depth and - Making decision on the proposed
comprehensive credit analysis credit facility.
s 0ROVIDE A DECISION OR RECOMMENDATION ON - Determine plans for takeovers/
the draft credit decision submitted by the purchases of loans that have either
referral /proposer related to: been restructured or have not
yet been restructured from other
financial institutions.
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3. Membership Structure of CC and Voting Rights Status
Based on the Board of Directors Decree No. 176/SK/DIR/2019 regarding the Credit Committee Structure, the
structure, membership, and status of the CC voting status are as follows:
Structure, membership and Voting Status of the Corporate CC
Position Served By Voting Right Status1)
Chairman (concurrently Credit and Legal Director Reserve voting rights
as permanent member)
Permanent members President Director
s $EPUTY 0RESIDENT $IRECTOR
s #ORPORATE "ANKING $IRECTOR
s %60 '!2+
s %60 '"+&(2)
s %60 $42 $0)(2)
s %60 '"+&(2) No voting rights
s %60 $42 $0)(2)
Non-permanent s /THER DIRECTORS HAVING THE AUTHORITY TO DECIDE ON CREDIT Reserve voting rights
members s #OMPLIANCE AND 2ISK -ANAGEMENT $IRECTOR $#2 3)
Secretary (concurrently Head of GARK No voting rights
permanent member)
Notes:
1) Decision making through meetings is done by a voting mechanism.
2) According to the topics discussed.
3) Has voting rights in terms of deciding credit settlement and matters relating to risk management.
Structure, Membership and Voting Status of Commercial CC
Position Served By Voting Right Status1)
Chairman (concurrently Head of GARK based on compliance with commercial credit Reserve voting rights
as permanent member) exposure handled
Permanent members s #OMMERCIAL AND 3-% "ANKING $IRECTOR
s #REDIT AND ,EGAL $IRECTOR
s %60 '!2+
s (EAD OF 2EGIONAL /FlCE
Non-permanent Compliance and Risk Management Director3)
members
Secretary (concurrently Credit Adviser No voting rights
permanent member)
Notes:
1) Decision making through meetings is done by a voting mechanism
2) The duties of chairman can be substitute among the Head of Group in accordance to the commercial credit exposure that they handied
3) Has voting rights in terms of deciding credit settlement and matters relating to risk management.
4. Duties and Responsibilities of CC s 0ROVIDE INPUT TO THE SECRETARY REGARDING
Duties of the committee are: the need for CC meetings.
s 0ROVIDE DIRECTION A MORE COMPREHENSIVE
credit analysis is carried out, if necessary, 5. CC Meetings
should the presented information be not The following provisions govern CC meetings:
sufficient for decision making. s ## MEETINGS ARE HELD AS NEEDED AT LEAST
s 0ROVIDE CONSIDERATION TO THE DRAFT CREDIT (six) times within one year.
decisions submitted by provider of s ## MEETINGS CAN BE HELD AND DECLARED
recommendation/referral. valid if attended by at least 3 (three)
s $ECIDE ON CREDIT BASED ON PROFESSIONAL members having voting rights.
skills in an honest, objective, accurate, and s ## MEETINGS CAN BE CONDUCTED THROUGH
thorough manner. teleconferences.
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s &OR THE CORPORATE ## THE #OMPLIANCE s &OR THE CORPORATE ## IF THE CREDIT DECISIONS
and Risk Management Director or his taken at the committee meeting have not
substitute must attend each CC meeting. met the provisions concerning the Board
s #OMMERCIAL ## MEETINGS CAN BE HELD BOTH of Directors’ authority to decide on credit,
at the head office and at the local regional the credit decision draft is circulated for
office. approval of other the Board of Directors
s %ACH ## MEETING MUST BE STATED IN THE and/or the Board of Commissioners.
minutes of the meeting. s -ONITORS AND RESOURCE PERSONS DO NOT
have voting rights in credit decisions.
6. Decision Making
The following provisions govern the decision- Accountability of CC
making process: Accountability of the CC is delivered through
s $ECISION MAKING ON CREDIT CAN BE MADE the minutes of CC meeting, circulated decision
in approval of a decision draft, which is memorandum, and periodic committee
circulated in writing or memo circulation reports.
by email to the members of the CC or
through legitimate CC meetings. If the
circulated draft decision is not approved
by one member of the committee, then
the secretary needs to reschedule CC
meeting immediately.
7. Frequency of CC Meeting in 2019
Through 2019, Corporate CC meeting hold by 20 (twenty) meetings commercial CC and hold by 5 (five)
meetings. Meeting implementation and attendance rate of members of both the corporate CC and
commercial CC during in 2019 are as follows:
Frequency of Meetings and Attendance of the Board of Directors at the Corporate CC in 2019
Number of
Position Attendance Percentage
Meetings
**
President Director (Jahja Setiaatmadja) 20 19 95%
****
Deputy President Director (Armand W. Hartono) 20 7 35%
Deputy President Director (Eugene Keith Galbraith)**a 12 7 58%
*
Credit Director (Inawaty Handojo) 20 19 95%
**
Corporate Banking Director (Rudy Susanto) 20 20 100%
Commercial and SME Banking Director (Henry Koenaifi)*** 20 13 65%
***
Individual Banking Director (Suwignyo Budiman) 20 7 35%
Compliance and Risk Management Director (Subur Tan)*** 20 16 80%
Regional and Branch Network Director (Erwan Yuris
20 - -
Ang)***
Banking Transactions Director (Santoso)*** 20 1 5%
****
Human Resource Director (Lianawaty Suwono) 20 1 5%
Finance and Corporate Secretariat Director
20 1 5%
(Vera Eve Lim)****
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Number of
Position Attendance Percentage
Meetings
EVP GARK** 20 18 90%
**
EVP GBKF 20 10 50%
EVP DTR-DPI** 20 - -
Notes: Data as of August 31, 2019
* Chairperson (concurrently a permanent member)
** Permanent member
*** Non-permanent members
**** Other Directors
a Based on the BCA Annual GMS on April 11, 2019, the term of office of the Director has ended and has not been reappointed.
b Served as Director of Compliance & Risk Management starting in October 2019.
c Served as Deputy President Director starting in October 2019.
Frequency and Attendance Rate of Board of Directors in Comercial CC in 2019
Number of
Position Attendance Percentage
Meetings
Credit Director (Inawaty Handojo)** 5 5 100%
Commercial and SME Banking Director (Henry Koenaifi)** 5 5 100%
***
Compliance and Risk Management Director (Subur Tan) 5 1 20%
EVP GARK** 5 5 100%
Head of GARK* 5 5 100%
Head of Small and Medium Business Division in
5 1 20%
Commercial Business and SME****
Head of Compliance Work Unit***** 5 2 40%
Head of Regional Office ** 5 4 80%
Notes: Data as of December 31, 2019
* Chairperson (concurrently a permanent member)
** Permanent member
*** Non-permanent members
**** Interviewees
***** Monitors.
a Served as Director of Compliance & Risk Management starting in October 2019.
8. Realization of Meetings in 2019
Throughout the implementation of its management tasks in 2019, the corporate CC held 20 (twenty)
meetings and the Commercial CC held 5 (five) meetings, with the realization of the meetings as follows:
Corporate CC Meeting Dates Commercial CC Meeting Dates
January 10, 2019 June 18, 2019 January 10, 2019
February 7, 2019 June 25, 2019 March 27, 2019
February 26, 2019 July 9, 2019 May 6, 2019
March 26, 2019 July 18, 2019 July 8, 2019
March 28, 2019 July 23, 2019 August 27, 2019
April 4, 2019 August 1, 2019
April 9, 2019 August 6, 2019
April 16, 2019 August 13, 2019
April 30, 2019 August 20, 2019
May 14, 2019 August 29, 2019
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6. INFORMATION TECHNOLOGY STEERING s 4HE "OARD OF $IRECTORS $ECREE .O 3+
COMMITTEE (ITSC) DIR/2018 dated May 28, 2018 concerning
The ITSC was established to ensure that the the Revised Organizational Structure of the
implementation of the information technology (IT) Strategic Information Technology Group
system is in line with the BCA’s strategic plans, and (GSIT).
that implementation aims to improve the BCA’s s "ASIC POLICIES FOR RISK MANAGEMENT IN THE USE
competitive advantage through the utilization of of information technology.
appropriate IT functions. The ITSC was established
based on the Board of Directors Decision No. 127/ 1. Main Functions of ITSC
SK/DIR/2017 dated October 10, 2017 regarding The ITSC has the following main functions:
the Structure of Information Technology Steering s 4O REVIEW AND RECOMMEND )4 STRATEGIC
Committee. plans to be in line with BCA’s business
plans.
Charter s 4O CONDUCT PERIODIC EVALUATIONS OF )4
The ITSC carries out its duties and responsibilities support for BCA’s business activities.
based on the Decree of the Board of Directors No. s 4O ENSURE )4 INVESTMENTS PROVIDE ADDED
128/SK/DIR/2017 dated October 10, 2017 concerning value to BCA.
the Charter of Information Technology Steering
Committee. 2. Authorities of ITSC
The authority of the ITSC is as follows:
The establishment of ITSC is also guided by the s 0ROVIDE RECOMMENDATIONS TO THE "OARD
following regulations: of Directors on IT strategic plans to align
s /*+ 2EGULATION .O 0/*+ with BCA’s strategic business activities.
concerning Application of Risk Management s 0ROVIDE RECOMMENDATIONS FOR STRATEGIC
in the Use of Information Technology by steps to minimize the risk of BCA
Commercial Banks. investment in the IT sector.
s /*+ #IRCULAR 3%/*+ .O 3%/*+ s 0ROVIDE RECOMMENDATIONS FOR INVESTMENT
regarding the Application of Risk Management feasibility in the IT sector that can
in the Use of Information Technology by contribute to the achievement of BCA’s
Commercial Banks. business objectives.
s 4HE "OARD OF #OMMISSIONERS $ECREE .O s 0ROVIDE RECOMMENDATIONS ON THE
SK/KOM/2019 dated December 23, 2019 formulation of key IT policies, standards
concerning the Duties and Responsibilities of and procedures.
the Board of Directors and the Organizational
Framework of PT Bank Central Asia Tbk.
s 4HE "OARD OF $IRECTORS $ECREE .O 3+
DIR/2017 dated July 31, 2017 concerning the
Organizational Structure of the Strategic
Information Technology Group (GSIT).
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3. Structure, Membership and Voting Right Status of ITSC and Voting Rights Status
Based on the Board of Directors Decree No. 127/SK/DIR/2017 dated October 10, 2017 concerning the
Structure of the Information Technology Steering Committee, the structure, membership, and status of the
ITSC voting rights are as follows:
Position Served By Voting Right Status
Chairman concurrently Director in charge of Information Technology Reserve voting rights
member)
Secretary (concurrently Head of Data Management and IT Management Office Group *) Reserve voting rights
member)
Member1) s #OMPLIANCE AND 2ISK -ANAGEMENT $IRECTOR Reserve voting rights
s 2EGIONAL AND "RANCH .ETWORK $IRECTOR
s %XECUTIVE 6ICE 0RESIDENT OF )NFORMATION 4ECHNOLOGY %60 )4
s Strategic Information Technology Group (GSIT)*):
- Head of the Data Management and IT Management Office
Group
- Head of the IT Architecture and Service Quality Group
- Head of Application Management Group
- Head of the IT Infrastructure and Operation Group
- Head of the Digital Innovation Solutions Group
s (EAD OF %NTERPRISE 3ECURITY 7ORK 5NIT
s (EAD OF 2ISK -ANAGEMENT 7ORK 5NIT
s (EAD OF #OMPLIANCE 7ORK 5NIT
s (EAD OF /PERATIONS 3ERVICES 3TRATEGY AND $EVELOPMENT $IVISION
s (EAD OF 5NIT FOR -AIN )4 5SERS**)
s (EAD OF !UDIT )NTERNAL $IVISION Reserve voting rights
Notes:
*) GSIT only has one vote which is represented by EVP TI
**) Participation in a meeting depends on the topic of the meeting that is relevant to the work unit concerned.
4. Duties and Responsibilities of ITSC s -ONITOR AND ENSURE THE SUITABILITY OF
In carrying out its duties and responsibilities, IT project implementation with agreed
ITSC is guided by the Board of Directors Decree project plans (project charter).
No. 128 / SK / DIR / 2017 dated 10 October 2017 s -ONITOR AND ENSURE ALIGNMENT BETWEEN
concerning the Charter of the Information IT and management information system
Technology Steering Committee. ITSC has needs and the needs of the business
several responsibilities as follows: activities of BCA.
s 4O REVIEW )4 STRATEGIC PLANS TO BE IN LINE s -ONITOR )4 WORK PERFORMANCE AND ANY
with the strategic plans of BCA’s business effort to improve it.
activities s -ONITOR EFFORTS TO SOLVE VARIOUS PROBLEMS
s 4O REVIEW THE EFFECTIVENESS OF STRATEGIC related to IT, which cannot be resolved
steps to minimize the risk of BCA by the user work unit and IT work unit
investment in the IT sector effectively, efficiently and on time.
s 4O REVIEW INVESTMENT FEASIBILITY IN THE s %NSURE THE ADEQUACY AND ALLOCATION OF
IT sector that can contribute to the resources owned by BCA.
achievement of BCA’s business objectives
s 4O REVIEW KEY )4 POLICIES STANDARDS AND
procedures
s -ONITOR AND ENSURE CONFORMITY OF
approved IT projects with IT strategic
plans.
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5. Meetings of ITSC 6. Decision Making
The following provisions govern committee Provisions related to decision making by the
meetings: ITSC are as follows:
s )43# MEETINGS ARE HELD ACCORDING TO THE s $ECISION MAKING IN RELATION TO THE EXERCISE
needs of BCA, at least 4 (four) times in 1 of the ITSC’s authority will only be made
(one) year. through a legitimate ITSC meeting
s )43# MEETINGS CAN ONLY BE HELD IF ATTENDED decision.
by at least 2/3 (two thirds) of the number s )43# MEETING DECISIONS ARE VALID AND
of members invited and have voting binding if agreed by at least half the
rights. number of members present and having
voting rights plus 1 (one) vote.
7. Frequency of ITSC Meetings in 2019
As of December 31, 2019, the ITSC held 4 (four) meetings with the following details:
s -ARCH
s *ULY
s 3EPTEMBER
s .OVEMBER
Schedule and Frequency of ITSC Meetings in 2019
Number of
Position Attendance Percentage
Meetings
Deputy President Director (Armand W. Hartono) 1) 4 4 100%
Compliance and Risk Management Director
4 4 100%
(Inawaty Handojo) 2)
Regional and Branch Network Director (Erwan Yuris Ang) 4 4 100%
Executive Vice President of Information Technology 4 4 100%
Strategic Information Technology Group (GSIT) 3):
- Head of the Data Management and IT Management
4 4 100%
Office Group
- Head of IT Architecture and Service Quality Group 4) 1 1 100%
5)
- Head of Application Management Group - - -
- Head of the IT Infrastructure and Operation Group 4 4 100%
- Head of the Digital Innovation Solutions Group 4 4 100%
Head of the Enterprise Security Work Unit 4 4 100%
Head of Risk Management Work Unit 4 4 100%
Head of Compliance Work Unit 4 4 100%
Head of Operations-Services Strategy and Development
4 4 100%
Division
Head of Internal Audit Division 6) 4 4 100%
Notes:
1) Chairman.
2) Served as Director of Compliance and Risk Management since October 3, 2019.
3) GSIT has only one vote represented by EVP TI.
4) Head of IT architecture and service quality group retires as of April 2019.
5) As of December 31, 2019 present the position of head of the application management Group is still vacant, so represented
at the ITSC meeting by:
- SR IT Adviser Integration & Transactional Banking Application.
- SR IT adviser integration and business & back office application.
6) No voting rights.
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8. Accountability Reporting s %VALUATED AND OVERSAW )4 INITIATIVES
Accountability reports/realization of ITSC work implemented to support the delivery of IT
is submitted through the minutes of ITSC strategic projects. These initiatives are:
meetings with the following conditions: a) Development of big data near real-
s )43# MEMBERS PRESENCE IN THE MEETING HAS time analytics capabilities to support
fulfilled the quorum. business units in generating business-
s 4HE RESULTS OF THE )43# MEETING MUST BE based solutions and BCA transactional
stated in the minutes of the meeting and banking services.
properly documented. b) Development of a centralized
s -INUTES OF MEETINGS ARE PREPARED BY THE and integrated data platform for
secretary of ITSC and signed by the chair reporting and predictive analytics
of the ITSC. needs to improve the digital customer
experience.
9. Realization of Work Programs of ITSC in c) Development of new data centers
2019 corresponding to the direction of
Throughout 2019, the ITSC implemented work business transformation and the
programs including: increasing need for IT operational
s %VALUATED AND OVERSAW THE processing capacity in line with BCA’s
implementation of IT strategic projects to business growth.
be aligned with BCA’s strategic corporate d) Building new approaches to IT
objectives and business direction. project development using lean and
s %VALUATED THE IMPLEMENTATION OF agile principles, which focus on the
processes and technologies exercised in IT design of products and services that
project development. are appropriate for customers.
s 2EVIEWED AND OVERSAW STRATEGIC MEASURES s 2EVIEWED AND EVALUATED THE DEVELOPMENT
to minimize the risk of IT investment, of the capabilities of IT Human Resources
reduce operating costs, and improve IT and Management Office to be able to
service levels. adapt to technological changes
s -ONITORED THE USE OF THE )4 BUDGET s 2EVIEWED AND EVALUATED THE )4 2ISK
s 2EVIEWED AND EVALUATED NEW )4 STRATEGIC Management and IT Compliance
projects, including: Management Processes to Achieve Good
a) Customers 3600 to support customer IT Governance.
profiling and know customer
sentiment so as to be able to provide
appropriate solutions.
b) Campaign management to support
the effectiveness of campaign or
marketing activities in accordance
with the intended target customers.
c) Fraud Detection System to detect
fraud by maximizing data such
as location, time, and customer
transaction patterns.
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7. PERSONNEL CASE ADVISORY COMMITTEE (PCAC) 1. Main Functions of the PCAC
PCAC was formed by and reports to the Directors. The The PCAC has the following main functions:
PCAC has the mission to provide recommendations s %XAMINE CASES OF VIOLATIONS ANDOR CRIMES
to the Board of Directors regarding the resolution of committed by employees that require
cases that meet the principles of justice and equality a decision of the Board of Directors to
through the review of violations and/or crimes follow up on the resolution.
committed by employees. PCAC is determined by s 0ROVIDE RECOMMENDATIONS TO THE "OARD
BCA based on Board of Directors Decree No. 181/ of Directors in determining the follow-up
SK/DIR/2013 dated December 24, 2013 concerning settlements to the cases of violations and/
the Personnel case Advisory Committee Structure. or crimes, which include the imposition
of sanctions, improvement of operational
PCAC is also guided by the following regulations: systems and procedures, as well as legal
s 4HE "OARD OF $IRECTORS $ECREE .O 3+ proceedings if necessary.
DIR/2012 on February 6, 2012 concerning s 0ERIODICALLY REVIEW CASES OF VIOLATIONS AND
Amendment to Guidelines for Handling or crimes being resolved decided by the
Violation Cases. Head of The Main Branch Office and the
s 4HE "OARD OF $IRECTORS $ECREE .O 3+ Head of Regional Office.
DIR/2013 concerning Revision of Decree of s 0ROVIDE ADVICE AND DIRECTION IF NEEDED
Authority in the Scope of Human Resources at to branch offices and regional offices in
the Head Office. handling violation and/or crime cases.
s 4HE "OARD OF #OMMISSIONERS $ECREE .O
SK/KOM/2019 dated December 23, 2019 2. Authorities of the PCAC
concerning the Discipline of the Duties The PCAC has the authority to provide
and Responsibilities of Directors and the suggestions/recommendations to the Board of
Organizational Framework of PT Bank Central Directors regarding the resolution of violations
Asia Tbk. cases and/or crimes committed by employees.
s 'UIDELINES FOR THE 3TANDARDIZATION OF "RANCH
Offices and Regional Offices.
3. Membership Structure of PCAC
The structure, membership and status of the committee’s voting rights are regulated in the Board of Directors
Decree No. 181/SK/DIR/2013 dated December 24, 2013 concerning the Structure of the Personnel Advisory
Case Committee, which is as follows:
Position Served by Voting Rights Status
Chairman (concurrently Head of Human Capital Management Division Reserve voting rights
member)
Members s (EAD OF )NTERNAL !UDIT $IVISION Reserve voting rights
s (EAD OF ,EGAL 'ROUP
s (EAD OF /PERATIONS 3ERVICES 3TRATEGY AND $EVELOPMENT $IVISION
Non-permanent Head of Network Management and Regional Development Reserve voting rights
member Division
Secretary Head of Audit Sub-Division of Branch Offices and Regional Offices No voting Rights
(concurrently member)
Independency of PCAC
All PCAC members have fulfilled the independency criteria and are able to carry out their duties independently.
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4. Main Duties of the PCAC 5. Meetings of the PCAC
The main task of committee members having Provisions regarding the implementation of
voting rights is to provide input in the form PCAC meetings are as follows:
of information, analysis and consideration at s #OMMITTEE MEETINGS ARE HELD AS NEEDED
meetings to make proposals/recommendations s 6OTING RIGHTS ARE HELD BY MEMBERS
regarding: s #OMMITTEE MEETINGS MEET QUORUM IF
s )MPOSITION OF SANCTIONS attended by at least 2/3 (two thirds) of
s )MPROVEMENTS IN OPERATIONAL SYSTEM AND total members.
procedures.
s ,EGAL PROCEEDINGS 6. Decision Making
Provisions related to the decisions of
If there PCAC members are unable to attend committee meetings and decision making by
the meeting, his presence may be represented the committee are as follows:
by other officials (at the Head of Sub-Division s $ECISION MAKING RELATED TO THE EXERCISE
or Bureau Chief) appointed by the member of the committee’s authority can only
concerned. be made through legitimate committee
meeting decisions
s $ECISIONS MADE IN COMMITTEE MEETINGS
can be in the form of:
- One recommendation to the Board of
Directors agreed by all members ; or
- More than one recommendation (if
no mutual agreement is reached).
7. Frequency of the PCAC Meetings in 2019
As of December 31, 2019, the committee held 8 (eight) meetings with details:
Meeting Frequency PCAC in 2019
Number of
Position Tanggal Rapat Kehadiran Persentase
Meetings
Head of Human Capital Management s *ANUARY
8 8 100%
Division *) s &EBRUARY
Head of Internal Audit Division 1) 8 s !PRIL 8 100%
s -AY
Head of Legal Group 1) 3) 4 s *ULY 3#) 75%
Acting Head of Legal Group 1) 4)
4 s !UGUST 2 #)
50%
s /CTOBER
Head of Operations Strategy and s .OVEMBER
8 7#) 87.5%
Development Division - Services 1)
Head of Network Management and
8 7#) ##) 87.5%
Regional Development Division 2)
Notes:
*) Chairman
1) Permanent member
2) Non-permanent members
3) Pension as of July 1, 2019
4) Acting head of legal group since July 1, 2019
#) Unable to attend meetings
##) One meeting was represented by the head of regional and branch performance development subdivision.
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8. Accountability Report CORPORATE SECRETARY
Accountability report on work realization of
the committee’s is reported in: The establishment of the obligatory position of
s -INUTES OF COMMITTEES REGULAR MEETINGS Corporate Secretary at BCA is based on POJK regulation
s -INUTES OF THE SPECIAL COMMITTEE MEETING No. 35/POJK.04/2014 on Corporate Secretary of Issuers
held to discuss certain matters. or Listed Companies. Through the corporate secretary,
BCA strives to improve the disclosure of information
9. Realization of Work Program of PCAC 2019 and communication to all stakeholders. The corporate
In performing its duties throughout 2019, secretary is also responsible for:
the committee held eight meetings, and s %NSURE "#! HAS IMPLEMENTED 'OOD #ORPORATE
realizations of the work program were to Governance principles;
provide input in terms of information, analysis s -ANAGE THE POSITIVE IMAGES AND NECESSITY OF "#!
and consideration to make recommendations s -AINTAIN GOOD RELATIONSHIP WITH ALL STAKEHOLDERS
for actions to be taken by the Board of s 3UPPORT "#!S BUSINESS CONDUCTED BY THE
Directors to resolve violations committed management;
by employees that required the Board of s )MPLEMENT SECRETARIAL DUTIES AND
Directors decision for settlement, including the s %NSURE THE COMPLIANCE OF "#! WITH ALL APPLICABLE
imposition of sanctions and/or improvement regulations.
of systems and operational procedures and/or
legal proceedings.
Structure and Position of the Corporate Secretary
The Corporate Secretary function at BCA is carried out by the Corporate Secretariat and Communications Division.
BCA’s Corporate Secretary has a position as an Executive Vice President (EVP) position under the supervision of the
director in charge of finance, planning and corporate secretary.
The division’s organizational structure is as follows:
GENERAL MEETING OF
SHAREHOLDERS (GMS )
DIRECTOR
BOARD OF
COMMISSIONERS CFO OFFICE
OTHER DIRECTOR
(Director in charge of Corporate Strategy,
DIRECTOR Corporate Secretary and Finance
EXECUTIVE VICE
PRESIDENT ( EVP )
REGIONAL OTHER
OFFICE WORK UNIT
DIVISI CORPORATE
SECRETARY AND FINANCE
CORPORATE
COMMUNICATIONS CORPORATE
STRATEGY &
DIVISION DIVISION
PLANNING
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CORPORATE SECRETARY AND
COMMUNICATIONS DIVISION
SUB DIVISION SUB - DIVISION
CORPORATE INVESTOR RELATION & ENVIRONMENT
COMMUNICATION CORPORATE ACTIONS SUSTAINABILITY
GOVERNANCE ( ESG )
CORPORATE
SUSTAINABILITY
SECRETARY AND FINANCE
INTEGRATED GCG
" : ; Raymon Yonarto (September 1, 2019 - current)
In 2019, BCA appointed Raymon Yonarto as Corporate Appointed as Corporate Secretary since September 1,
Secretary (effective since September 1, 2019) replacing 2019, based on Decree No. 2271/SK/HCM-KP/A/ 2019.
Jan Hendra, who served in this position from October 1,
2016 to August 31, 2019. Raymon Yonarto has held various managerial positions
in BCA as Head of the Finance and Planning Division
Jan Hendra (October 1, 2016-August 31, 2019) (2011-2018), Corporate Secretary (2007-2011) and Head
Appointed as Corporate Secretary since October 1, of Investor Relations (2005-2006). Prior to joining BCA,
2016, based on Decree No. 2235/SK/HCM-KP/A/2016 and he served as vice president in the Indonesia Financial
served until August 31, 2019. Sector Policy Committee (2002-2003), vice president in
the Indonesian Bank Restructuring Agency (1998-2002),
Jan Hendra is an Indonesian citizen and domiciled in banking analyst at PT DBS Securities Indonesia (1996-
Indonesia, and has had a career in the banking industry 1998), and at the accounting, finance and internal audit
since 2005. Prior to serving as corporate secretary of the department, Modern Group (1994-1996).
Company, he held various managerial positions within
the consumer card business group (card center) as the He obtained his title Bachelor of Arts Major in Accounting
Head of Marketing and Product Development (April from Philippines Christian University (1994) and MBA
2013-September 2016), Head of the Consumer Card from Strathclyde University in the United Kingdom,
Portfolio Management (2012-2013), Head of Issuing (2004) where he attended as a Chevening Scholar.
Portfolio Management (2012), and Head of Business
Development (2009-2012). He obtained a bachelor’s
degree in electrical engineering from Trisakti University,
Jakarta (1997), and completed his post-graduate (S2)
study in software systems engineering at University of
Melbourne, Australia (2000).
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Competence Development and Training Programs
In support of the conduct of his duties, the Corporate Secretary has followed the development of competence and
training courses throughout 2019, as follows:
Name Training Topic/Conference Organizer Location Date
Jan Hendra Mandiri Investment Forum Mandiri Sekuritas Jakarta, Indonesia January 31 – February 1,
2019
CFA Level 2 Training Program BINUS Business School Jakarta, Indonesia February 9 – May 25,
2019
UBS Indonesia Conference UBS Jakarta, Indonesia March 5, 2019
Nomura Investment Forum Nomura Singapore May 27 – 28, 2019
13th Annual Indonesia Conference CGS CIMB Bali, Indonesia June 27 – 28, 2019
Agile Leadership & Strategic National University of Bogor, Indonesia July 3 - 5, 2019
Visioning for Driving Innovation Singapore, NUS Business
School
Citi Indonesia Investor Conference Citigroup Jakarta, Indonesia August 6, 2019
th
The 10 Annual Collaborative Daiwa Capital Markets, Tokyo, Japan October 3 - 4, 2019
Indonesia Corporate Day “Best of IDX & PT Bahana
Indonesia 2019” Sekuritas
Raymon 22nd Credit Suisse Asian Credit Suisse Hong Kong March 25 – 26, 2019
Yonarto Investment Conference
Agile Leadership & Strategic National University of Bogor, Indonesia July 3 - 5, 2019
Visioning for Driving Innovation Singapore, NUS Business
School
Asia Pacific CEO-CFO Conference JP Morgan New York, USA September 4 - 5, 2019
The 10th Annual Collaborative Daiwa Capital Markets, Tokyo, Japan October 3 - 4, 2019
Indonesia Corporate Day “Best of IDX & PT Bahana
Indonesia 2019” Sekuritas
Indonesia Knowledge Forum BCA Jakarta, Indonesia October 8 - 9, 2019
18th Annual Asia Pacific Summit Morgan Stanley Singapore November 21 - 22, 2019
Sharing Session “Navigating BCA Jakarta, Indonesia December 6 2019
Change” by HDFC Bank
(Housing Development Finance
Corporation) India
Sharing Session “The Ecosystem” BCA Jakarta, Indonesia December 6 2019
by OVO, Tokopedia, HaloDoc
and Djarum Grup - BCA - Jakarta,
Indonesia.
Corporate Secretary Functions a. Information disclosure to the public, including
In accordance with POJK No. 35/POJK.04/2014, the information available on BCA’s website;
functions of the BCA corporate secretary include: b. Timely reporting to the OJK;
1. To keep updated with the developments in the c. Organization and documentation of general
capital market, especially regarding laws and meeting of shareholders;
regulations applicable to the capital market; d. Organization and documentation of meetings
2. To provide input to the Board of Directors and of the Board of Directors and/or Board of
the Board of Commissioners to comply with the Commissioners;
provisions of capital market laws and regulations; e. Implementation of orientation program
3. To assist the Board of Directors and the Board of for the Board of Directors and/or Board of
Commissioners in the implementation of corporate Commissioners.
governance, covering: 4. To serve as BCA’s liaison with the BCA shareholders,
the OJK, and other stakeholders.
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Based on Board of Directors Decree No. 136/SK/ 2. Conducted Self-Assessment on the Implementation
DIR/2019 dated August 30, 2029 on Implementation of of Corporate Governance and Integrated
Sustainable Finance at PT BCA Tbk, the Secretariat and Governance.
Communications Division, has the following tasks: 3. Prepared the Corporate Governance
1. Build and manage the BCA image and be responsible Implementation Report.
for the secretarial duties of a listed company, 4. Prepared the Corporate Social Responsibility Report
integrated corporate governance, corporate 5. Adjusted the implementation of corporate
communications, and investor relations. governance with the provisions from regulators.
2. Maintain and improve BCA’s credibility and 6. Organized the Porseni in celebration of BCA’s 62nd
financial reputation within the wholesale financial Anniversary.
markets community, so as to facilitate BCA’s access 7. Organized a Public Expose (with investor relations)
to funding from the markets as needed. 8. Organized Press Conference and Analyst Meeting
3. Implement, ensure and monitor all aspects of 9. Organized National Work Meeting (with other
integrated corporate governance as a listed work units).
company in accordance with applicable rules 10. Issued press releases on BCA’s performance and
and regulations; to ensure access to transparent progress
information for shareholders, capital market 11. Conducted reviews and updates on the BCA
authorities, analysts and the general public through corporate communications material and media for
BCA website, periodic and annual reports and other external and internal audience, such as updates on
forms of reporting. the corporate governance and investor relations
4. Develop a sustainable finance culture and to sections at the BCA website, issuer’s reports to
disseminate such culture to all relevant parties regulators, Info BCA magazine, etc.
within the Company in order to achieve a 12. Conducted reviews and updates on BCA’s corporate
sustainable performance. governance-related policies along with other
related units, including updates on BCA’s Corporate
Brief Description of the Implementation of Corporate Governance Guidance, Affiliated Transaction Policy,
Secretary Duties in 2019 Annual Disclosure Policy, etc.
In 2019, the corporate secretary conducted the following
activities, among others:
1. Convened the annual general meeting of
shareholders and the extraordinary general
meeting of shareholders.
Corporate Secretary Report in 2019
Throughout 2019, the corporate secretary discharged the following tasks and responsibilities:
a. To keep abreast of developments in the capital market, especially on laws and regulations applicable to the
capital market
No. Subject Description
1. Corporate actions - Convened the Annual GMS for financial year 2018 on April 11, 2019
- Convened the 2019 Extraordinary GMS on June 20, 2019
- Coordinate the acquisition of PT Bank Royal Indonesia and the acquisition
of PT Rabobank International Indonesia
- Coordinate payment of interim dividend and the cash dividend
2. Implementation of capital market - Implementation of OJK Regulation No. 11/POJK.04/2017 concerning
regulations Report of Ownership or Changes to Ownership of Shares of Listed
Companies
- Coordination with regard to the preparation of Sustainable Finance
Action Plan (RAKB).
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b. To provide input to the Board of Directors and the Board of Commissioners to comply with the provisions of
capital market laws and regulations
No. Subject Description
1. Analysis of Capital Market Analysis on capital market provisions is contained in:
Provisions a. Memos addressed to the Board of Directors and/or the Board of
Commissioners through the secretary to the Board of Directors concerning
fulfillment of good corporate governance implementation, namely
Memorandum No. 237/MO/DCS/2019 dated August 29, 2019.
b. BCA internal portal (MyBCA) in the hotspot section, with links to related
GCG articles:
1. Annual Report.
2. Internal audit charter.
3. Investigations in the Capital Market Sector.
4. Reporting for Commercial Banks OJK Reporting System.
5. Summary of Amendment to OJK Regulation on Pre-emptive rights.
6. Summary of Amendment to the Regulation on the Planning and
Organizing of General Meeting of Shareholders of Public Company.
7. The re-examination for the bank’s primary parties.
8. Buyback of Shares Issued by Public Company.
9. Merger or foundries of Public Company.
10. Special Provision on the Listing of Shares and Equity Securities issued
by listed companies other than Stock at the Accelerated Board.
2. Input/opinion - Review and analyse of Affiliated Transaction at BCA.
- Meetings and training for the Board of Commissioners and Board of
Directors.
- Formulation of the Sustainable Finance Action Plan.
- Follow-up on fulfillment of ASEAN Corporate Governance Scorecard.
3. Adjustment of corporate - Update Corporate Governance Guideline.*
governance implementation - Update Affiliated Transaction Policy.*
with the latest provisions such as - Conduct mapping of the integrated governance within the BCA Financial
Bank Indonesia regulations, OJK Conglomeration.
regulations, and ACGS provisions
* Review and policy formulation conducted in coordination with other
relevant work units.
c. To assist the Board of Directors and the Board of Commissioners in the implementation of corporate governance,
covering:
No. Subject Description
1. Information disclosure to - Review and improvement of the corporate governance section of BCA
the general public, including website.
information available at the - Provision of disclosure of information/investor news for investors and
website of issuer or listed the general public, accessible at BCA’s website
company https://www.bca.co.id/en/Tentang-BCA/Hubungan-Investor/Berita-
Investor.
- Provid of BCA reports on BCA’s website, including:
a. Annual report
(https://www.bca.co.id/en/Tentang-BCA/Hubungan-Investor/Laporan-
Tahunan)
b. Monthly, Quarterly and Annual Financial Statement
(https://www.bca.co.id/en/Tentang-BCA/Hubungan-Investor/Laporan-
Keuangan);
c. Corporate Governance Report
(https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Tata-
kelola)
d. Integrated Governance Implementation Report
(https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-Perusahaan/Tata-
kelola)
e. Sustainability Report and/or Corporate Social Responsibility Report
(https://www.bca.co.id/en/Tentang-BCA/Korporasi/Cari-Tahu-Tentang-
BCA/sustainability-report)
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No. Subject Description
Information disclosure to - Disclosure of information on Recovery Plan 2019 accessible at the BCA
the general public, including website:
information available at the (https://www.bca.co.id/~/media/Files/product-files/20190520-
website of issuer or listed pengungkapan-rp-2019-indonesia)
company (continued) - Disclosure of information related to Corporate Action Acquisition of
Bank Royal
https://www.bca.co.id/~/media/Files/Report/RUPS/20190426-rencana-
rancangan-akuisisi-IN.ashx
- Information disclosure related to the change of Corporate Secretary
https://www.bca.co.id/~/media/Files/gcg/20190903-Keterbukaan%20
Informasi%20Penggantian%20Corsec.ashx
- Disclosure of Information on Affiliated Transaction.
- providing interim dividend payment schedule information and cash
dividends
- provide disclosure of information related to corporate actions
(acquisition of PT Rabobank International Indonesia)
2. Timely reporting to OJK - Conducting the Self Assessment on Corporate Governance
Implementation for the first semester in 30 July 2019 and for the second
Semester in 30 January 2020, and reporting the assessment results to
OJK
- Submitting reports or correspondences related to implementation
of corporate governance and capital market provisions to OJK and
the Indonesia Stock Exchange as described in the section on access to
information in this Annual Report.
- Submitting the Annual Good Corporate Governance Implementation
Report
- Conducting the self-assessment on integrated corporate governance
in financial conglomeration for the first Semester in 14 August 2019
and for the second Semester in 17 February 2020, and reporting the
assessment results to OJK.
- Submitting reports or correspondences related to implementation
of integrated corporate governance to OJK and the Indonesia Stock
Exchange as described in the section on access to information in this
Annual Report.
3. Organization and documentation Organizing the Annual GMS and the Extraordinary GMS, and the proper
of general meeting of documentation of data on BCA Annual GMS and Extraordinary GMS
shareholders (GMS) comprising of the notice, invitation, and results of the Annual GMS and the
Extraordinary GMS, through:
- The BCA website at https://www.bca.co.id/en/Tentang-BCA/Tata-Kelola-
Perusahaan/Aksi-Korporasi.
- Documentation data collection (softcopy and hardcopy) by the
Corporate Secretariat and Integrated GCG Bureau - Corporate Secretary
and Corporate Communication Division.
4. Organization and documentation Meetings of the Board of Directors and/or Board of Commissioners are
of meetings of the Board of documented by the Board of Directors bureau. Quarterly, the bureau
Directors and/or Board of submits the documentation data on such meetings to the Corporate
Commissioners Secretariat and Integrated GCG Bureau - Corporate Secretary and
Corporate Communication Division, for data collection.
The number of meetings of the Board of Directors and/or Board of
Commissioners in 2019 is presented in the section on meetings of the Board
of Directors and Board of Commissioners in this Annual Report.
5. Implementation of orientation An orientation program is provided for new members of the Board of
program for the Board of Directors and /or Board of Commissioners. The report of the orientation
Directors and/or the Board of program is presented in the sections on Board of Directors and Board of
Commissioners Commissioners in this Annual Report.
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d. To serve as BCA’s liaison with the Company’s shareholders, the OJK, and other stakeholders:
No. Subject Description
1. Organization of public expose Conducted a Public Expose (with investor relations) on August 21, 2019,
at the Indonesia Stock Exchange. BCA has reported the proceedings of the
Public Expose to the Indonesia Stock Exchange as per regulations.
2. Organization of press conferences In 2019, Press Conferences and Analyst Meetings were conducted on:
and analyst meetings - February 28, 2019 (regarding the position in quarter IV-2018)
- April 25, 2019 (regarding the position in quarter I-2019)
- July 24, 2019 (regarding the position in quarter II-2019)
- October 28, 2019 (regarding the position in quarter III-2019)
3. Internal communications and - Organized a National Work Meeting on December 5-6, 2019, (with other
events relevant work units).
- Conducted optimum internal communications through internal media
such as updates on news clippings, Info BCA magazine, TV Plasma, etc.
4. Corporate communications - Updated the Corporate Governance section in BCA’s website.
material - Managed and Updated the information presented in the BCA’s website in
accordance with prevailing regulations.
- Issued Press releases on the BCA’s performance and progress. The report on
2019 press releases is presented in the access to information section in this
annual report.
- Conducting corporate communications material such as the Company’s
published financial statements through the mass media, advertisement on
national holidays, and others.
- Developing and implementing the BCA’s sponsorship activities in
accordance with Company policies.
Information Disclosure Report MAIN DUTIES OF INVESTOR RELATIONS
Throughout 2019, BCA has disclosed information to
the public, both in Bahasa and in English, through the Main Duties of Investor Relations
mass media, the BCA’s website, and the IDX website. The main duties of investor relations is representing
BCA has also submitted periodic reports to the IDX, the Board of Directors in its relationship with the community
OJK Capital Market and/or OJK Banking Supervision of investors and capital market, comprising:
Department, and Integrated SPE-IDX e-reporting sites. s #OMMUNICAT TO THE INVESTORS POTENTIAL INVESTORS
The information disclosure report is presented in the analysts, and the capital market community
access to information section in this Annual Report. in general related to the development of
performance, strategies and achievements as well
as other important information of the company in
a proportional, accurate, timely and in accordance
with applicable regulations.
s 0REPARE MATERIAL AND CARRY OUT ROAD SHOW ACTIVITIES
analyst meetings, and conference calls.
s )NFORM VARIOUS ASPECTS RELATED TO "#!S SHARES AND
performance and financial reports to interested
parties, such as analysts, investors, and potential
investors.
s -ANAGE RELATIONSHIPS WITH ANALYSTS FUND MANAGERS
experts, and economic observers (especially stocks).
s -ONITOR AND REPORT TO THE $IRECTORS ON THE RESULTS
of analysts’ evaluations of BCA’s performance and
share price on a regular basis.
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s #OORDINATE THE CORPORATE RATING PROCESS AND Statistics of BCA Investor Relations’ Activities in 2019
provide development proportionally, accurately, and 2018
on time to the performance agencies, strategies 2019 2018
and achievements and other important company Analyst Meeting &
5 5
information to rating agencies Public Expose
s 3UPPORTS THE PREPARATION PUBLISHING AND Non-deal road show 3 3
distribution of annual reports to investors / analysts. Investor’s Conferences
(domestic and 12 13
s 0ROVIDING "#! lNANCIAL DATA AND INFORMATION TO
international)
investors and the capital market community.
Investor’s Visit 135 132
Conference call 45 46
Activities of Investor Relations Total 200 199
Investor Relations maintains communication with the
finance and capital market communities in order to
provide them with precise and accurate perspectives During 2019, the number of participants in investors
on the performance, business prospects and any other visits and conference calls was 364 (three hundred
information deemed necessary for investors to make and sixty four) people, comprising of people from the
decisions. Investor relations activities must continuously following countries:
uphold the principles of confidentiality and equal
Others
treatment for all investors.
10%
BCA always maintain communication with shareholders Hong Kong
Indonesia
through holds an analyst meeting to expose its 10%
32%
performance every quarter. BCA also actively attends
conferences and non deal road shows held by securities United
12%
State of
companies that bring together BCA with domestic and America
global investors. Apart from that, the Company also
12%
receives visits from investors and holds conference calls 24%
in line with investor’s requests.
Europe
Singapore
Remark:
*) Others come from South Korea, the United Arab Emirates, Malaysia, India,
South Africa, Taiwan, etc.
Monthly Frequency of Investor Relations’ Activity in 2019
24 25
18 19
17 17
14 15 15 15
13
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The monthly average of Investor Relations activities in 2019 was 16 (sixteen) activities per month.
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Investor Relations Contact INTERNAL AUDIT FUNCTION
The Company’s Investor Relations can be reached The function of the internal audit unit is carried out by
through : the internal audit division guided by OJK Regulation
PT Bank Central Asia Tbk No. 1/POJK.03/2019 dated January 28, 2019 concerning
th
Menara BCA 20 Floor the Implementation of the Internal Audit Function in
Jl. MH Thamrin No.1 Commercial Banks.
Jakarta
Telp. : +62 21 235 88000 In carrying out its functions, the division carries out
%MAIL INVESTOR?RELATIONS BCACOID independent and objective assurance and consultation
activities to provide added value and improve the
Company’s operations in achieving its objectives, by
evaluating the effectiveness of the risk management
process, internal control, and governance.
Position and Structure of the Internal Audit Division
Internal Audit Division is led by the head of division
and is responsible to the President Director, and can
communicate directly with the Board of Commissioners
and the audit committee.
The division also submits audit reports to the compliance
and risk management director.
The division’s organizational structure is as follows:
GENERAL MEETING OF SHAREHOLDERS
(GMS)
BOARD OF
PRESIDENT DIRECTOR
COMMISSIONERS
AUDIT COMMITTEE
DIRECTOR OF
DIRECTOR OF
COMPLIANCE
SUPERVISORY FOR
& RISK
SUBSIDIARIES
MANAGEMENT
INTERNAL AUDIT
DIVISION
Headquarter and Branch and Information
Subsidiaries Audit Regional Office Technology Audit Quality Control
Audit Sub-Division Credit
Sub-Division*) Sub-Division and Audit
Review
Development
Bureau
Group
Remark:
------ communication line/information delivery
*) Includes the integrated internal audit function
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To support the implementation of integrated Starting her career at PT Bank Central Asia since 1995, she
governance for financial conglomerates, the division has experience in various positions in the internal audit
carries out the integrated internal audit function in division; as credit audit adviser (2006), head office audit
accordance with OJK Regulation No. 18/POJK.03/2014 adviser (2009), head of audit office subdivision (2012),
concerning the Implementation of Integrated head of information technology audit subdivision (2014).
Governance for Financial Conglomerates. Following Since November 1, 2017, she has served as head of the
several initiatives undertaken in the implementation of internal audit division based on Employee Appointment
integrated internal audits: Decree No. 314/SK/HCM-KP/A/2017.
s -ONITOR THE IMPLEMENTATION OF THE SUBSIDIARYS
of internal audit function and provide Competence and Training Programs of Internal Audit
recommendations that provide added value Division Head as follows:
s #ONDUCT AUDIT CHECKS ON SUBSIDIARIES AND PROVIDE - Pacific Rim Bankers Program – Foster School of
recommendations for improvements Business University of Washington (August 11-23,
s 0ROVIDE SUPPORT FOR THE DEVELOPMENT OF THE 2019)
subsidiary’s internal audit function - Indonesia Knowledge Forum – VIII 2019, Nurturing
Mindset for The Next Era of Capital Culture (October
Every semester, the division submits an integrated 8- 9, 2019)
internal audit report to the Board of Commissioners, - Workshop Indonesia Risk in Review – Being a
audit committee and the Board of Directors , on the Smarter Risk Taker in Digital Era, Strengthening the
implementation of duties and accountability for the Three Lines of Defense (October 17, 2019)
integrated internal audit function. - Workshop PwC: Taxation & Infrastructure
(November 14-15, 2019).
Procedure for Appointment/Dismissal of the - Navigating Change: HDFC Bank (Housing
Internal Audit Division Development Finance Corporation) India
The appointment, replacement Head, or dismissal of (December 6, 2019).
the internal audit division is carried out by the President - The Ecosystem: OVO, Tokopedia, HaloDoc dan
Director based on the approval Head of the Board of Djarum Group (December 6, 2019)
Commissioners, and has been reported to the OJK with
taking into account the recommendation of the audit Human Resources of Internal Audit Division
committee As of December 31, 2019, the division had 186 (one
hundred and eighty six) auditors with diverse work
Head of Internal Audit Division experience and professional certification.
Ayna Dewi Setianingrum
Completed her bachelor of economics from The division has a continuous competency development
Tarumanegara University in 1995 and obtained her program with reference to The Institute of Internal
masters in management from the PPM School of Auditors - Competency Framework, which is aligned
Management in 2005. with the Company’s strategy. Auditor competency
development is carried out on an ongoing basis through
knowledge sharing, audit training, workshops and
seminars, both domestically and abroad, to broaden
horizons and keep abreast of business and audit fields
according to best practices.
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Internal auditors are included in various professional certification programs. As of December 31, 2019, as follows:
No. Certification Number of Auditors
1 Certified Information System Auditor (CISA) 4
2 Qualified Internal Auditor (QIA) 21
3 Bank Internal Auditor Certification (SAIB) – Supervisor 19
4 Bank Internal Auditor Certification (SAIB) - Auditor 30
5 Enterprise Risk Management Certified Professional (ERMCP) 2
6 Certified Fraud Examiner (CFE) 1
7 Chartered Accountant (CA) 2
8 Certified General Insurance 1
9 Risk Management Certification (SMR) Level 4 5
10 Risk Management Certification (SMR) Level 3 15
11 Risk Management Certification (SMR) Level 2 30
12 Risk Management Certification (SMR) Level 1 31
Internal Audit Charter Independency
The Internal Audit Division has an internal audit charter To support independence and ensure the effortless
as a frame of reference in carrying out tasks containing operation of the audit and monitoring the follow-
mission, authority, independence and scope of work. up of audit results, the internal audit head division
The charter is updated periodically according to BCA’s is responsible to the President Director. The division
needs. The charter was updated in May 2019. head can communicate directly with the Board of
Commissioners and the audit committee, to inform
on various matters relating to the audit. Throughout
2019, division meetings with the President Director and
the audit committee were held 8 (eight) times, while
meetings with the Board of Commissioners were held 2
(two) times.
The division has authority and responsibility to carry out
operational activities, both at BCA and its subsidiaries.
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Auditor’s Code of Ethics 10. Carry out the role of a consultant for the Company’s
In addition to complying with the BCA code of ethics, internal needs, especially related to the scope of
the division has the auditor’s code of ethics as a standard internal audit tasks.
and reference in conduct and thinking in implementing
their duties and functions as auditors. The code of Audit Implementation Standards
ethics refers to the International Professional Practices Professional standards for internal audit exercises
Framework (IPPF) -The Institute of Internal Auditors (IIA), mandatory guidance established by The Institute of
which consists of integrity, objectivity, confidentiality Internal Auditors. The division also refers to the global
and competence. Annually, all auditors in the division best practices issued by the Information System Audit
make a statement of compliance to the auditor’s code and Control Association (ISACA).
of ethics to increase the mutual commitment and trust
of stakeholders. Review by an independent external party is conducted
at least once in 3 (three) years. The last review by an
Duties and Responsibilities of the Internal Audit external party was carried out in December 2016.
Division
The scope of the assignment of the division covers Implementation of Internal Audit Division Activities
the activities of all branch offices, regional offices, in 2019
headquarters, subsidiaries, and BCA activities that are The focus of the activities of the division in 2019 were
outsourced to third parties, with the following duties as follows:
and responsibilities: 1. Carry out audits of branch offices, regional offices,
1. Assist the President Director, the Board of divisions/work units of headquarters, and subsidiary
Commissioners and the audit committee in carrying companies in accordance with the annual audit plan
out the supervisory function determined based on the results of risk assessment,
2. Prepare and implement a risk-based annual audit including:
plan and report the realization to the President a. Implementation of enterprise security to ensure
Director, the Board of Commissioners and the AC integrated and comprehensive protection and
3. Test and evaluate the adequacy and effectiveness security against the resilience of information
of the risk management process (risk management), technology systems and information security
internal control, governance processes (governance) b. Internet banking is in line with the increase
and provide recommendations for improvements in volume and transactions through these
4. Evaluate the quality of performance and channels
achievement of targets from the work program of c. The procedure of operating an ATM (including
the branch, regional and head offices the use of third parties) is in line with the
5. Carry out continuous credit quality assessments growth of transactions and the number of
6. Monitor, analyze and report on the implementation machines, as well as the addition of features to
of follow-up actions that have been carried out by support operational activities
the auditee on the recommendation of the audit d. Regulatory audit in accordance with BI
results Regulation and OJK Regulation on:
7. Compile and submit reports related to the results s 0AYMENT SYSTEM PROCESSES
of the audit to the Board of Commissioners, the s )NTERNAL CAPITAL ADEQUACY ASSESSMENT
audit committee and the Board of Directors, as process (ICAAP)
well as other reports on the implementation of the s %LECTRONIC MONEY AND PAYMENT TRANSACTION
internal audit function to the OJK processing.
8. Coordinate with work units that perform other
control functions to increase the effectiveness of
the internal control system
9. Carry out the integrated internal audit function
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
2. Increasing the role of early warning systems (EWS) 3. Continue to develop auditor competence and
by implementing continuous auditing and analytic professionalism on an ongoing basis.
data for early detection of potential errors/fraud. 4. Enhancing the integrated internal audit function by
3. Increasing collaboration with other assurance providing support for the development of internal
providers in identifying and mapping the impacts audits of subsidiaries and offering recommendations
and changes in risk in line with changes in business, for improvement.
technology, and providing recommendations for
mitigating possible risks. PUBLIC ACCOUNTING FIRM (EXTERNAL AUDIT)
4. Developing the competence and professionalism
of auditors continually with a focus on increasing The Annual General Meeting of Shareholders on April
specialist auditors, data analytics and constantly 11, 2019 authorized the Board of Commissioners to
updating with business developments and appoint and/or replace the PAF Registered in the OJK
information technology. (including PA Registered in the OJK incorporated in
the Registered PAF) to audit/examine the Company’s
Focus of the 2020 Audit Plan books and records for the year ending December 31,
1. Conducting audits of branch offices, regional 2019, and determine the amount of the honorarium
offices, divisions/work units headquarters, and and other conditions regarding the appointment of a
subsidiary companies in accordance with the annual PAF Registered in the OJK (including PA Registered in
audit plan determined based on the results of risk the OJK incorporated in the Registered PAF) by taking
assessment, focusing among others on: into account the recommendations of the AC and the
a. Future branches to be in line with the wider prevailing laws and regulations.
implementation for service improvement in
meeting customer needs by utilizing latest Based on this power of attorney, the Board of
technological developments. Commissioners appointed the PAF Tanudiredja, Wibisana,
b. Development and marketing of credit cards Rintis & Rekan (a member firm of PwC Global Network)
and EDC businesses to ensure the adequacy of to conduct an audit of BCA’s financial statements for the
business strategies and their implementation financial year ending December 31, 2019.
in line with increasing competition.
c. The reliability of main applications that Name of the PA
support the Bank’s operations (deposits, credit Lucy Luciana Suhenda
and foreign exchange transactions).
d. Regulatory audit in accordance with BI Name of the PAF
Regulation and OJK Regulation, on: PAF Tanudiredja, Wibisana, Rintis & Partners (a member
s 0AYMENT SYSTEM PROCESSES firm of PwC Global Network).
s )NTERNAL CAPITAL ADEQUACY ASSESSMENT
process (ICAAP). The appointment is to carry out the external audit
2. Increasing the role of early warning systems (EWS) function with the existing criteria and regulatory
by continuously expanding the scope of checks provisions. During 2019, BCA did not have former
through continuous auditing and data analytics directors, managerial staff, or employees who were its
and developing predictive analytic tools for early external auditors.
detection of potential errors (fraud)/fraud by
utilizing the latest technology.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BI Circular Letter No. 3/32/DPNP on Relationships 2. BCA restricts the use of audit services to the annual
between Banks, Public Accountants and Bank Indonesia historical financial information from the same PA
stipulates that the appointment of the same PAF can only for the maximum period of 3 (three) consecutive
be carried out for an audit period of 5 (five) consecutive financial reporting years. The Company may
fiscal years, unless it meets certain conditions and upon reappoint the same PA for the audit of annual
approval of the relevant authority. historical financial information after 2 (two)
consecutive years of financial reporting, if not using
In 2019, PAF Tanudiredja, Wibisana, Rintis & Partners such audit services from the same PA.
(a member firm of PwC Global Network) conducted an
audit of BCA for the third time. 3. Appointment of PA and/or PAF shall be carried out
on PA and/or PAF registered at OJK.
Upon the appointment of PAF Tanudiredja, Wibisana,
Rintis & Partners (a member firm of PwC Global Network), 4. The appointment of AP and/or PAF providing audit
BCA submitted a report to the OJK through the Board services on annual historical financial information is
of Directors Letter No. 361/DIR/2019 dated July 8, 2019. decided by the Board of Commissioners considering
This was in accordance with the provisions stipulated the proposal. BCA’s AGM has given the power and
in OJK Regulation No. 13/POJK.03/2017 on the Use of authority to the Board of Commissioners to appoint
Public Accountant and Public Accounting Firm Services PAF (including PA) based on prior recommendations
in Financial Services Activities and OJK Circular Letter from the AC to the Board of Commissioners.
No.36/SEOJK.03/2017 Concerning Procedure for Use of
Services of Public Accountants and Public Accounting 5. The proposal for the appointment of PA and/or PAF
Firms in Financial Service Activities. submitted by the Board of Commissioners considers
the recommendations of the Audit Committee, by
Every year BCA submits an annual publication report taking into account:
accompanied by a Management Letter from the audit a. Independence of PA, PAF and staff of PAF;
of the annual financial report to the OJK no later than 4 b. Scope of the audit;
(four) months after the end of the financial year. c. Audit services fees;
d. Expertise and experience of PA, PAF and Audit
Procedures for Using PA Services Team of PAF;
In order to fulfil the implementation of External Audit e. Methodology, techniques, and audit facilities
function in accordance to OJK Regulation No. 32/ employed by PAF;
POJK.03/2016 on Amendments to OJK Regulation No. 6/ f. Benefits of fresh eye perspectives obtained
POJK.03/2015 on Transparency and Publication of Bank through the replacement of PA, PAF and Audit
Reports and OJK Circular Letter No. 36/SEOJK.03/2017 Team of PAF;
on Use of Services of Public Accountants and Public g. Potential risks for using audit services by the
Accounting Firms in Financial Service Activities (SEOJK same KAP consecutively for a long period of
36/2017): time; and/or
1. BCA uses the services of a PA and/or PAF to carry out h. Evaluation of the implementation of audit
an annual audit of historical financial information services on annual historical financial
based on a work agreement with the KAP. The work information by PA and PAF in the previous
agreement includes the scope of the audit. period.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
6. BCA reports the appointment of PA and/or PAF c. Assessment of the range of services provided
regarding the audit of annual historical financial and the adequacy of quotation tests; and
information by using the form contained in the d. Recommendations for improvements provided
attachment (SEOJK 36/2017), by attaching: by the AP and/or KAP.
a. PA and/or PAF appointment documents
including the Summary of Minutes of General 8. The AC evaluation report is submitted by the Board
Meeting of Shareholders or Minutes of General of Directors of BCA by using the form contained in
Meeting of Shareholders, Work Agreement the attachment (SEOJK 36/2017) and signed by the
between BCA and PAF. AC.
b. Recommendations of the Audit Committee
and considerations used in providing 2019 Audit Fees
recommendations for the appointment of AP PAF Tanudiredja, Wibisana, Rintis & Partners (a
and/or KAP. member firm of PwC Global Network) was appointed
to audit BCA’s financial statements for the year ending
7. The AC evaluates the implementation of audit December 31, 2019, with an estimated service fee of
services on annual historical financial information Rp6,900,000,000.00 (six billion nine hundred million
provided by the PA and/or PAF, at least including: rupiah) excluding VAT.
a. Conformity of the implementation of audit
by the PA and/or PAF with the applicable audit Other Services Provided by PAF/PA Beyond Audit
standards; In 2019, there were no fees for non-audit services paid to
b. Adequacy of time for field work; PAF Tanudiredja, Wibisana, Rintis & Partners (a member
firm of PwC Global Network).
Information on PAF and PA who performed audit services for BCA in the past 5 (five) years:
2019 2018 2017 2016 2015
Public Accounting Firm Tanudiredja, Tanudiredja, Tanudiredja, Siddharta Widjaja Siddharta Widjaja
Wibisana, Rintis & Wibisana, Rintis & Wibisana, Rintis & & Partners & Partners
Rekan Partners Partners
Public Accountant Lucy Luciana Lucy Luciana Lucy Luciana Kusumaningsih Kusumaningsih
Suhenda Suhenda Suhenda Angkawijaya Angkawijaya
COMPLIANCE FUNCTION In response to this issue, BCA has appointed one of the
members of the Board of Directors as Director responsible
In line with the rapid development of IT innovation and for the compliance function. The appointment and
digitalization in the financial industry and as the Bank’s removal of Directors are in charge of the Compliance
business activities are becoming more complex, BCA has Function has met the applicable requirements and
been compelled to move quickly and forward in synergy implemented through the process as determined by the
to face every emerging challenge and business risks, OJK.
including compliance risks. To face any challenge and
the business risks, risk-mitigation efforts are needed to To assist in the task of Director in charge of the compliance
minimize violations that may otherwise cause financial function, the Bank has established a Compliance Unit
loss to BCA. (SKK) as a working unit that is independent and free
from the influence of other work units. Moreover, as
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
the Main Entities in Financial conglomerate BCA and s %NGAGED 3++ HUMAN RESOURCES IN VARIOUS
in order to implement the Integrated Governance for training, seminars, regulatory socialization
Financial conglomerate, BCA has added Aspects of and compliance certification organized by the
Integrated Compliance in the organizational structure Banking Professional Certification Institute
SKK. Thus, SKK is currently responsible in terms of: (LSPP) in order to improve quality, including
s -ONITOR "#!S LEVEL OF COMPLIANCE IN FULlLLING THE active participation in the working group of the
provisions by the OJK and BI, Bank Indonesia (BI), Banking Compliance Director Communication
and other regulators. This includes ensuring that Forum (FKDKP).
the policies, provisions, systems and procedures, as s #ARRY OUT CONSULTATIVE FUNCTIONS RELATED TO
well as BCA’s business activities are in compliance the implementation of applicable regulations
with each of those provisions by regulators; through the provision of advice / response to
s 4HE IMPLEMENTATION OF THE !NTI -ONEY ,AUNDERING questions from the work unit or branch.
and Prevention of Terrorism Funding Program 2. Ensured that BCA’s policies, provisions, systems and
(AML and CFT), i.e. by being responsible to make procedures, as well as business activities complied
an assessment of the risk of AML and CFT program with the provisions:
implementation pursuant to regulators provisions s )DENTIFYING SOURCES OF COMPLIANCE RISK
by regulators; and s -AKING GAP ANALYSIS ANALYZING THE IMPACT
s -ONITOR AND EVALUATE THE COMPLIANCE FUNCTION of any new provision to BCA operations,
implementation of and level of compliance at each and proposing manual adjustments, internal
of the Financial Services Institution (LJK) under the policies and procedures.
BCA Financial Conglomerate, including AML and s 5PDATING THE DATABASE OF APPLICABLE REGULATORY
CFT, to implement Integrated Governance. provisions.
s $EVELOPING A #OMPLIANCE -ATRIX $IARY AS A
To ensure BCA’s compliance function is well monitoring tool to keep BCA’s commitment to
implemented, the Board of Directors and the Board reporting obligations to regulators.
of Commissioners have actively done monitoring via s 2EVIEWING AND PROVIDING OPINIONS TO ENSURE
approvals on policies and procedures, periodic reporting, compliance with applicable regulatory
requests for clarification, and through meetings. provisions for:
Ā the design of new products and activities
The Work Implementation of Compliance Function Ā draft internal regulations to be issued
Work During 2019 Ā adherence to corporate credit releases,
Programs that SKK ran in 2019 to discharge its functions and
are as follows: Ā documents in order to ensure operational
1. Encouraged the creation of a compliance culture readiness for opening, changing addresses
s $ISSEMINATEDINFORMED NEW REGULATIONS FROM and closing office networks.
regulators to the Board of Directors, Board of s #ONDUCTED A COMPLIANCE TEST ON THE APPLICATION
Commissioners, and work units. of provisions at Branch Offices, in collaboration
s 'AVE INFORMATION ABOUT THE REGULATIONS with the Branch Internal Supervisor
enacted by OJK, BI, and other laws and s -ONITORED THE LEVEL OF COMPLIANCE WITH
regulations on BCA’s portal site that can be applicable regulatory provisions pertaining to
accessed by working units. prudential banking principles, such as:
Ā Minimum Capital Requirements (KPMM);
Ā Statutory Reserves (GWM);
Ā Net Open Position (PDN);
Ā Maximum Lending Limit (BMPK);
2019 Annual Report | PT Bank Central Asia Tbk 479
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Ā Non Performing Loans (NPL); and Compliance Indicators in 2019.
Ā Macro prudential Intermediation Ratio Compliance indicators as a form of commitment and
(RIM). BCA’s level of compliance with prevailing rules and
Throughout 2019, BCA operations were run regulations. In 2019, the compliance indicators were as
in compliance with prudential provisions with follows:
the prudential banking principle. s -INIMUM #APITAL !DEQUACY 2ATIO +0-- THAT
s #ONDUCTED MONITORING TOWARDS IF THERE WAS covered credit risk, market risk and operational
any sanctions/fines imposed by the regulator. risk was 23. 80%, higher than the minimum set by
s -ADE A COMPLIANCE RISK ASSESSMENT AND applicable provisions.
compiled a Compliance Risk Profile Report s .0, RATIO NET WAS 1.34%, or within the 5%
in every quarter as an effort to manage (net) maximum limit permitted by the applicable
compliance risk. regulations.
s 0REPARED A #OMPLIANCE -ONITORING 1UARTERLY s .O ,EGAL ,ENDING ,IMIT BOTH TO RELATED PARTIES AND
Report to be submitted to the BoD and BoC. unrelated parties has exceeded the specified limits.
s #OORDINATED WITH WORKING UNITS IN ORDER TO s 3TATUTORY 2ESERVES FOR 2UPIAH '7- WAS
assess the Bank’s risk-based soundness. and Macro Prudential Liquidity Buffer (PLM) was
6.05% or in compliance with applicable regulations.
3. ensure BCA compliance against the commitments s 3TATUTORY 2ESERVES '7- FOR &OREIGN %XCHANGE WAS
made to regulators: 8.52% or in compliance with applicable provisions
s -ONITORED "#!S COMMITMENT TO /*+ ") AND on the reserves.
other regulators in collaboration with the s .ET /PEN 0OSITION 0$. WAS 0.94% of capital or
Internal Audit Division (DAI). well below the 20% maximum as stipulated by
s -ONITORED AND FOLLOWED UP ON REQUESTS FOR applicable provisions.
information/data by OJK and BI in the context s ,IQUIDITY #OVERAGE 2ATIO ,#2 WAS 276.29% or
of bank oversight function. higher than the minimum 100% set by regulators.
4. Monitoring and evaluating the compliance function s #OMMITMENTS TO /*+ ") AND OTHER SUPERVISORY
of each of the Subsidiaries operating under BCA’s authorities have been properly met.
Financial Conglomerate, and preparing integrated
compliance reports to be submitted to the BoD and
BoC.
Table of Compliance Indicators in 2019
No. Compliance Indicator Applicable Provisions Company’s Achievement
1 KPMM Min. 14% until < 15% 23. 80%
2 NPL gross Max. 5% 1.34%
3 BMPK Max. 10% of Equity 0.00%
4 GWM Rupiah Min. 6% 6.05%
5 GWM Foreign Exchange Min. 8% 8.52%
6 PDN Max. 20% 0.94%
7 LCR Min. 100% 276.29%
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Anti-Money Laundering and Terrorism Financing s 2EPORTING SUSPICIOUS lNANCIAL TRANSACTIONS CASH
Prevention Program (AML and CFT) financial transactions, and financial transfers of
BCA is committed to implementing the Anti-Money funds to and from overseas, and submitting data
Laundering and Prevention of Terrorism Funding through the Integrated Service User Information
Program (AML and CFT) in accordance with applicable System (SiPESAT) to Financial Transaction Reports
laws and regulations. BCA has established a Compliance and Analysis Center (PPATK).
Unit as a work unit tasked with coordinating the s #ONTINUOUSLY ENHANCING COMPREHENSION ON !-,
implementation of the AML and CFT Programs at BCA. and CFT through classroom sessions, e-learning,
Activities related to this aspect during 2019 included the video conferencing and internal forums such as
following: the Branch Internal Supervisory Forum and the KCP
s -AKING PERIODIC REPORTS ON THE IMPLEMENTATION OF Head Forum.
AML and CFT to the BoD and BoC. s $EVELOPING TRAINING MATERIALS ON !-, AND #&4
s -ONITORING SUSPICIOUS lNANCIAL TRANSACTIONS USING Implementation.
web-based application named the STIM (Suspicious s $EVELOP AND IMPLEMENT THE RISK AND COMPLIANCE
Transaction Identification Model), developing a awareness program to branch through collaboration
system of applications using the latest technology, with risk management work unit.
and updating parameters that can detect suspicious s -AKING PERIODIC REVIEWS OF INTERNAL REGULATIONS
transactions. related to AML and CFT from regulators, as well as
s #OORDINATION ON CUSTOMER DATA UPDATING THROUGH changes in BCA’s processes or products.
the preparation of targets and monitoring their
realization. Integrated Compliance Function
s 2EVIEWING OF PLANS FOR NEW PRODUCTS AND ACTIVITIES In accordance with OJK applicable rules and in order
to ensure they have paid attention to AML and CFT to implement the Integrated Governance, BCA as
regulations. Major Entities in Financial Conglomeration has also
s 3CREENING CUSTOMER DATA AND TRANSACTIONS RELATED added a compliance function integrated in Compliance
to the List of Terrorist and Terrorist Organizations Unit Organization. The main tasks of the integrated
(DTTOT), and the List of Funding for the Proliferation compliance function in the Compliance Unit is to
of Mass Destruction Weapons (DPPSP) issued by the monitor and evaluate the implementation of the
competent authority whenever a new account was compliance function in each institution in the BCAs
opened, when BCA entered into business relations, Financial Conglomerate, including the implementation
and when changes in the list were identified. of the AML and CFT program.
s )DENTIFYING THE RISK OF APPLYING !-, AND #&4 TO
BCA using a risk-based approach by considering
the factors related to customers, countries or
geographical areas, products and services and
distribution networks.
s #ONDUCTING COMPLIANCE TESTS ON THE IMPLEMENTATION
of AML and CFT at branch offices in collaboration
with branch internal supervisors.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
IMPLEMENTATION OF RISK MANAGEMENT
The Board of Commissioners and Directors of the Company are responsible for implementing risk management
and internal control systems in BCA and Subsidiaries in an integrated manner. Disclosure of the application of the
Company’s risk management includes:
s !CTIVE SUPERVISION FROM THE "OARDS OF #OMMISSIONERS AND $IRECTORS
s !DEQUACY OF RISK MANAGEMENT POLICIES AND PROCEDURES AS WELL AS RISK LIMITS
s !DEQUACY OF PROCESS IN IDENTIFYING MEASURING MONITORING AND CONTROLLING RISK AS WELL AS IN RISK MANAGEMENT
information systems.
s #OMPREHENSIVE INTERNAL CONTROL SYSTEM
Risk Management Organizational Structure
RISK MANAGEMENT
DIRECTOR (INTEGRATED)
RISK MANAGEMENT
WORK UNIT
(INTEGRATED)
ENTERPRISE RISK CREDIT RISK MARKET RISK OPERATIONAL RISK BUSINESS CONTINUITY &
MANAGEMENT MANAGEMENT MANAGEMENT MANAGEMENT CRISIS MANAGEMENT
Risk Management Corporate Credit and Bank Integrated MRO Business Continuity
Asset Liability Aspect
Development Aspect Aspect Development Aspect Management Aspect
Risk Profile and Integrated Commercial, Small & Branch MRO
Forex & Interest Rate in Crisis Management Aspect
Risk Management Policy Medium Enterprise (SME) Implementation Aspect
Trading Book Aspect
Aspect and Micro Credit Aspect
Integrated Risk Head Office MRO
Management Control and Conglomerate BC Aspect
Consumer Credit and Credit Implementation Aspect
Review Aspect Card Aspect
Review of Integrated MRO Employee Work Safety and
Implementation Aspect Health Aspect
Credit Policy Aspect
Reporting of Integrated
MRO Implementation
Aspect
Review of Process, Activity,
and Product Development
Aspect
Analytical Review
Overview of the Company’s Risk Management 2. Have a ROC which aims to ensure the existing risk
System management framework has provided adequate
BCA effectively implements risk management and protection against all BCA’s risks and has the main
internal control systems that are tailored to the duty:
objectives and business policies, size and complexity s 4O PROVIDE RECOMMENDATIONS AND OPINIONS
of BCA’s business activities based on requirements in an independent professional manner
and procedures as stipulated in BI Regulation, OJK regarding the suitability of policies with the
Regulation, and refers to international best practices, implementation of risk management policies
through the following actions: s -ONITOR AND EVALUATE THE IMPLEMENTATION OF
1. Identify and control all risks including those the duties of the RMC and risk management
originating from new products and new activities. unit
3. Have a RMC that has the following key tasks:
s &ORMULATE POLICIES STRATEGIES AND GUIDELINES
for risk management implementation,
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s )MPROVE THE IMPLEMENTATION OF MANAGEMENT Risk Management System
based on the results of evaluation on the In the context of risk control, the Company has
implementation of effective risk management implemented an integrated Risk Management
processes and systems. Framework as outlined in the Basic Risk Management
s $ETERMINE OTHER MATTERS PERTAINING TO BUSINESS Policy. The framework is used as a means of determining
decisions that deviate from normal procedures the strategy, organization, policies and guidelines, as
(irregularities). well as BCA’s infrastructure so that all risks faced by BCA
4. Have an IRMC specifically tasked with providing can be identified, measured, monitored, controlled and
recommendations to the Board of Directors which reported properly.
at least includes:
s 4HE PREPARATION OF INTEGRATED RISK MANAGEMENT In order for the implementation of risk management to
policies. run effectively and optimally, BCA has RMC that has the
s )MPROVEMENT OF COMPLETION OF INTEGRATED RISK authority to review and provide recommendations on
management policies based on the results of matters relating to risk management for decisions from
the implementation evaluation. the Board of Directors.
5. Have a Risk Management Unit formed to ensure
that BCA and its Subsidiaries do integrated risk In addition, BCA has formed several other Committees
mitigation correctly through identification, whose task is to handle risks more specifically, including
measurement, monitoring, control and reporting in CPC, CC and ALCO.
accordance with the risk management framework
and able to deal with emergency situations that BCA always carries out a comprehensive risk assessment
threaten the sustainability of BCA’s business. of the planned issuance of new products and activities in
6. Manage risks and ensure the availability of policies accordance with regulatory provisions.
and determination of risk limits supported by
procedures, reports and information systems that BCA is currently building a technology-based information
provide accurate and timely information and system, which is an Integrated Risk Management
analysis to management, including determining Information System (IRMIS) application that will be used
steps to deal with changing market conditions. to prepare:
7. Ensure that in the process of compiling work s "#! 2ISK 0ROlLE 2EPORT ,02 "#!
systems and procedures it has taken into account s )NTEGRATED 2ISK 0ROlLE 2EPORT ,024
both the operational and business aspects and the s )NTEGRATED #APITAL !DEQUACY 2EPORT ,+04
level of risk that may occur in a work unit.
8. Ensure that the internal control system has been Risks Faced and Managed
implemented in accordance with the provisions. In accordance with OJK Regulation No. 17/POJK.03/2014
9. Monitor BCA’s compliance with the principles concerning the Implementation of Integrated Risk
of sound bank management in accordance with Management for Financial Conglomerates and OJK
applicable regulations through the work unit of the Circular Letter No. 14/SEOJK.03/2015 concerning the
Compliance Unit. Implementation of Integrated Risk Management for
10. Make a quarterly BCA’s Risk Profile Report and Financial Conglomerates, the Company becomes the
Integrated Risk Profile Report every semester and Main Entity of the Company’s Financial Conglomerate,
submit it to the OJK in a timely manner. which integrates managing 10 (ten) types of risks, as
follows:
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
1. Credit Risks s )N THE CONTEXT OF MONITORING AND CONTROLLING
s 2ISK ORGANIZATION CONTINUES TO BE RElNED credit risk that occurs in subsidiaries, BCA
by referring to the four eyes principle where has regularly monitored the credit risk
credit decisions are taken from two sides, of subsidiaries, while ensuring that the
namely business development and credit risk subsidiaries have a good and effective Credit
analysis. Risk Management Policy.
s "#! HAS A BASIC BANK CREDIT POLICY +$0" s )N A FURTHER MONITORING SYSTEM SUCH AS THE
which is constantly refined in line with BCA’s Early Warning System (EWS) was developed,
development, regulatory provisions and in followed by credit provisions in accordance
accordance with the prudential banking with the latest provisions of the regulator and
principles and international best practices. the development of the credit business with
s )MPROVEMENT OF CREDIT RISK MANAGEMENT due attention to the credit business and to the
system and procedures is carried out through principles of prudence and BCA’s risk appetite.
the development of a “Loan Origination s )N THE FOCUS WILL BE ON DEVELOPING A
system on the work flow of crediting credit scoring system with a more advanced
process (from beginning to end) so that an analytics to support sustainable credit growth.
effective and efficient credit process can be
achieved. The development of a debtor risk 2. Market Risk
profile measurement system continues to be s )N MANAGING FOREIGN EXCHANGE RISK THE "#!
developed so that it can be applied as a whole, centralizes the management of Net Open
as well as the process of building a credit Position (NOP) in the Treasury Division,
database that continues to be carried out and which combines daily NOP Reports from all
refined. branches. In general, each branch must close
s 4O MAINTAIN CREDIT QUALITY MONITORING its foreign exchange risk at the end of each
continues to be carried out regularly, both in working day, even though there is a PDN
the credit category (corporation, commercials, tolerance limit for each branch depending on
small and medium Enterprises (SME), the amount of foreign exchange transaction
Consumers and Credit Cards), the industrial activity in the branch. BCA makes daily PDN
sector and the overall credit portfolio and Reports that combine PDN in consolidated
branches that have SME/KPR Credit Card with and administrative account financial position
a DPK 30+ ratio (overdue > 30 days) and a high reports (off-balance sheet accounts).
NPL, close monitoring and control of authority s 4O MEASURE FOREIGN EXCHANGE RISK "#! USES THE
is carried out so that the branch can focus on Value at Risk (VaR) method with the Historical
improving credit quality. Simulation approach for internal reporting
s "#! HAS DEVELOPED CREDIT RISK MANAGEMENT purposes, while for the calculation of reporting
by conducting stress testing analysis of the on the Minimum Capital Provision Obligation,
loan portfolio and monitoring the results of the Company uses standard methods in
the stress testing. In response to conditions of accordance with regulatory provisions.
market changes and economic turmoil, BCA s 4HE MAIN COMPONENTS OF "#!S OBLIGATIONS
periodically conducts stress testing analysis. that are sensitive to movements in interest
Stress testing is useful for BCA as a tool to rates are customer deposits, while sensitive
estimate the magnitude of the risk impact on Company assets are Government Bonds,
“stressful conditions” so that the Company can securities, and loans. ALCO regularly monitors
make appropriate strategies to mitigate these market developments and adjusts deposit and
risks as part of implementing the “contingency credit interest rates.
plan”.
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s "#! DEPOSITS AND CREDIT INTEREST RATES BASED 4. Operational Risk
on market conditions and competition by s ! RELIABLE AND EFFECTIVE /PERATIONAL 2ISK
monitoring the movement of the benchmark Management is a key factor in maintaining
interest rates and interest rates offered by BCA’s position as the leading transaction
competing banks. bank in Indonesia. BCA faces operational risks
caused by human errors, insufficient internal
3. Liquidity Risk processes, system failures, and or external
s "#! ATTACHES GREAT IMPORTANCE TO SAFEGUARDING events.
the adequacy of liquidity in fulfilling its
commitments to customers and other To manage, mitigate, and minimize
parties, both in terms of providing credit, operational risks, BCA has an Operational Risk
repaying customer deposits, and for meeting Management Framework, and has implemented
operational liquidity needs. The overall the Operational Risk Management Information
management function of liquidity needs is System (ORMIS), a web-based application that
carried out by ALCO and operationally by the consists of several tools and methodology, as
Treasury Division. follows:
s 4HE MEASUREMENT AND CONTROL OF LIQUIDITY RISK - Risk Control Self Assessment (RCSA) to all
is carried out by monitoring liquidity reserves branches /regional offices and to work
and liquidity ratios such as Loan to Funding units/divisions at the Head Office that are
Ratio (LFR), Liquidity Coverage Ratio (LCR) and considered to have significant operational
Net Stable Funding Ratio (NSFR), analyzing risks. One of the objectives of RCSA
maturity profiles, cash flow projections, and implementation is to instill a risk culture
stress test regularly to see the impact on BCA’s and increase risk awareness which is the
liquidity in the face of extreme conditions. The main requirement in risk management.
company also has a contingency funding plan - Loss Event Database (LED) as a database
to deal with these extreme conditions. of cases of losses related to operational
s "#! HAS IMPLEMENTED PROVISIONS RELATED risk that occur in all Branch/Regional Office
to liquidity in accordance with regulatory and Work Unit/Division at Head Office.
provisions that require the Bank to maintain The main purpose of implementing LEDs is
Rupiah liquidity (Statutory Reserves (both on as a means of recording operational losses
daily basis and on average for a certain reporting that will be used in calculating the capital
period, which consists of Primary GWM and burden allocation for operational risks,
RIM Demand Deposits (Macroprudential continuous monitoring of events that can
Intermediation Ratio) in the form of Rupiah cause operational losses for BCA, and to
demand deposits at BI, PLM (Macroprudential analyze cases or problems encountered,
Liquidity Buffer) in the form of SBI, SDBI, and so that corrective/preventive actions can
SBN, as well as foreign currency GWM in the be taken to minimize/mitigate the risk of
form of foreign currency demand deposits at operational losses that may arise in the
BI. future.
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- Key Risk Indicator (KRI) which is an 5. Legal Risk
application used to provide an indicator s )NHERENT ,EGAL 2ISK IS ASSESSED BASED ON THE
as a means to be able to provide an potential loss of cases that occur in BCA and
early warning sign of the possibility of Subsidiary Companies that are in the process as
an increase in operational risk in a work well as those that have been completed in court
unit. This KRI is also further developed as compared to capital on a consolidated basis.
Predictive and Risk Management which The parameters used to calculate the potential
can assist the Work Unit in monitoring risk losses for cases currently in process in the court
exposures. are the basis of the claim (case position), case
s )N ACCORDANCE WITH REGULATORS PROVISIONS value, and legal documentation. Meanwhile,
regarding the Minimum Capital Provision the parameters used to calculate losses from a
Obligation, in calculating BCA’s capital claim are losses suffered by the Company and
adequacy ratio (CAR), BCA has allocated capital Subsidiaries based on court decisions that have
for the provision of losses from operational risk permanent legal force.
using the Basic Indicator Approach, excluding s 4O IDENTIFY MEASURE MONITOR AND CONTROL
capital allocation for reserve losses from credit legal risk, the Company has established a Legal
risk and market risk. Group at the Head Office and Legal Work Unit
s 4O ENSURE THAT "#! CAN SERVE A ROUND THE in all Regional Offices.
clock and seamless banking transactions,
the Company runs 2 (two) data centers in In order to mitigate legal risk, the Legal Group
redundancy designed to ensure business has done, among others:
continuity in the event of a system failure in - Creating a Legal Risk Management
one of the two data center locations. Policy, has internal provisions governing
the organizational structure and job
In addition to 2 (two) data centers that work description of the Legal Group as well as
in mirroring, BCA also has a Disaster Recovery standardizing legal documents.
Center (DRC) in Surabaya. At present the - Hold legal communication forums to
Surabaya DRC continues to be developed improve the competence of legal staff.
as part of the Bank’s Business Continuity - Disseminating the impact of the new
Management and is designed to be able to regulations in force on the Company’s
operate as a Crisis and Command Center in the banking activities and various modus
event of a disruption or natural disaster in the operandi of banking crimes and legal
Jakarta area which causes the data center in handling guidelines for branch officials,
Jakarta to be inoperable. Regional Offices and related Head Office
s "#! ALSO HAS A 3ECONDARY /PERATION #ENTER work units.
ready for use in the event of a disturbance/ - Conduct legal defense of civil and criminal
disaster in the building/work location of BCA’s cases involving the Company that is in the
Critical Work Unit. process in court and monitor the progress
of the case.
- Prepare a strategy for credit security
strategies (in collaboration with other
work units, including the Credit Rescue
Unit) in connection with the problem of
bad credit.
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- Registering the assets of BCA, including Management Information System and Human
Intellectual Property Rights (IPR) for BCA’s Resources, and the adequacy of risk control
banking products and services as well as system.
rights to land and buildings owned by
BCA at the competent authority. 8. Compliance Risk
- Monitor and carry out legal actions s #OMPLIANCE RISK IS A TYPE OF RISK THAT MUST BE
for violations of BCA’s assets including managed by the Company, considering that
violations of BCA’s Intellectual Property this risk can cause both financial and non-
Rights (IPR). financial losses.
- Monitor and analyze cases currently s )N ACCORDANCE WITH /*+ 2EGULATION .O
in process in court faced by BCA and POJK.03/2017 dated July 12, 2017 concerning
Subsidiaries. the Implementation of Commercial Bank
- Conduct an inventory, monitor, analyze Compliance Function, BCA has appointed a
and calculate potential losses that may member of the Board of Directors as Director
arise related to legal cases that occur. in charge of the compliance function, who
is responsible for ensuring compliance and
6. Reputation Risk minimizing compliance risk by formulating
s !N ASSESSMENT OF REPUTATION RISK IS CARRIED compliance risk management policies and
out using parameters such as the number of procedures and monitor the implementation.
complaints and negative publications as well In carrying out its duties, the Director in charge
as the achievement of complaints. of the compliance function is assisted by the
s $EVELOPING )NFRASTRUCTURE IE IMPLEMENTATION Compliance Unit (CU) which is independent of
the appropriate software and hardware the operational work unit.
(including: Halo BCA - 24-hour Telephone s )N ASSESSING INHERENT COMPLIANCE RISK THE
Service, BCA CRM Contact Center, Halo BCA parameters used are the type and significant
Mail Application, Interactive Voice Response of violations committed, frequency of
[IVR], Social Media Manager Application, Halo violations committed or track records of
BCA Chat Service through www.bca.co.id), the compliance, and violations of provisions for
development of procedures and better work certain financial transactions. In addition, CU
management in order to facilitate monitoring is also responsible for the implementation of
and management information systems that the Anti-Money Laundering and Prevention
allow speed and quality of organizational of Terrorism Funding Program (AML and CFT),
work. including being responsible for conducting
s 2EPUTATION 2ISK IS MANAGED BASED ON risk assessments on the implementation of the
regulatory provisions. AML and CFT program according to regulatory
provisions.
7. Strategic Risk s "#! HAS COMPLIANCE POLICIES AND PROCEDURES
s )NHERENT STRATEGIC RISK ASSESSMENT IS CARRIED OUT which include, among other things, a
using parameters such as the suitability of the process to always adjust the provisions and
strategy with the conditions of the business internal systems with applicable regulations,
environment, low risk strategies and high risk communicate provisions to related employees,
strategies, BCA’s business position and the conduct a review of new products activities
achievement of the Bank’s Business Plan. conduct periodic compliance tests, and train
s 1UALITY ASSESSMENT ON STRATEGIC RISK employees. The results of supervision of the
management is carried out using parameters Compliance Director are reported quarterly to
such as risk governance, risk management the President Director with a copy to the Board
framework, risk management process, of Commissioners.
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s )N ORDER TO SUPPORT THE BANKS STRATEGIC s 1UALITY ASSESSMENT APPLICATION OF INSURANCE RISK
positioning as a transactional back, specifically management is carried out using parameters
related to preventing money laundering and such as risk governance, risk management
terrorism funding, the Company uses a web- framework, risk management process,
based application called STIM (Suspicious Management Information System and Human
Transaction Identification Model) and Resources, and the adequacy of the risk control
has developed a system for cutting edge system.
application and parameter updates to detect
suspicious transactions. Review/Results Review of Risk Management System
s 4HE #OMPANY ALSO SCREENS CUSTOMER DATA AND Implementation
transactions related to the List of Terrorist Based on the results of self-assessment, BCA had a ‘low
and Terrorist Organizations (DTTOT) and to moderate’ risk profile rating in 2019 both individually
the List of Funding for the Proliferation of and when treated as an integrated entity with its
Mass Destruction Weapons (DPPSP) issued subsidiaries.
by the competent authority whenever an
account is opened, when BCA enters into The risk profile rating was the result of an assessment on
business relations, and s changes to the list are “low to moderate” risk rating and the quality rating of
identified. the implementation of “satisfactory” risk management.
9. Intra-Group Transaction Risk The risk ratings of the 10 (ten) types of risk assessed are
s 4HE ASSESSMENT OF INHERENT INTRA GROUP as follows:
transaction risk is carried out using parameters s 2ISKS THAT WERE RATED AS hLOWv ARE -ARKET
such as the composition of intra group Risk, Liquidity Risk, Legal Risk and Intra-Group
transactions in the Financial Conglomerate, Transaction Risk.
documentation and fairness of transactions s 2ISKS THAT HAD hLOW TO MODERATEv RISK LEVEL WERE
and other information. Credit Risk, Operational Risk, Reputation Risk,
s 1UALITY ASSESSMENT OF THE IMPLEMENTATION Strategic Risk, Compliance Risk and Insurance Risk.
of intra group transaction risk management
is carried out using parameters such as risk BCA was able to achieve “low to moderate” risk rating
governance, risk management framework, because the Company and its Subsidiaries had established
risk management process, Management a quite effective and efficient risk management process
Information System and Human Resources, in all of its activities.
and the adequacy of the risk control system.
BCA expects its inherent risk trend for the coming
10. Insurance Risk periods to be stable since based on the projected results,
s 4HE INHERENT INSURANCE RISK ASSESSMENT IS no significant change in inherent risk is expected to
carried out using parameters such as technical occur.
risk, insurance risk domination of the overall
business line, product risk mix and types of
benefits, and reinsurance structure.
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BCA does not expect the macroeconomic condition in INTERNAL CONTROL SYSTEM
the coming years to give adverse impacts on BCA and
its Subsidiaries. Despite the likely pressures on the BCA’s internal control system abides by OJK Circular
Indonesia’s economy, risks in all business activities across Letter No. 35/SEOJK.03/2017 dated July 7, 2017 on
BCA and its Subsidiaries, BCA will continue endure those Internal Control System Standard Guidelines for
situations on the principle of prudence. Commercial Banks.
The quality of the implementation of risk management The Internal Control System is a monitoring mechanism
in the coming years will be stable because BCA and its established by management on an ongoing basis and
Subsidiaries continuously adjust risk management in all BCA implements the concept of three lines of defense in
their activities with more improvements allowing both the internal control and risk management system, which
to identify, measure, monitor and control any emerging involves all lines of the organization, and oversight
risk. by the Board of Commissioners and The Directors.
The application of the three lines of defenses concept
BCA and its Subsidiaries have implemented integrated (according to the chart below) is described as follows:
risk management covering all risks that may directly s !LL BUSINESS UNITS AND OPERATIONAL UNITS FUNCTION AS
or indirectly affect its business sustainability. What the First Line of Defense, which is responsible for
BCA and its Subsidiaries aim is that they can manage risk managing internal controls and risks related to the
better and determine risk appetite and risk tolerance in work unit (risk owner).
accordance with the complexity and characteristics of s 2ELATED WORK UNITS INCLUDING THE 2ISK -ANAGEMENT
the business. Work Unit (SKMR) and Compliance Work Unit
(SKK), function as the Second Line of Defense that
BCA’s and its subsidiaries’ risk management policies monitors the implementation of risk management
are continually updated to remain compliant with all policies and guidelines in a corporate manner in
applicable regulations, the direction of Basel II and III accordance with regulatory requirements.
Accord development, prudential banking principles and s 4HE )NTERNAL !UDIT $IVISION $!) FUNCTIONS AS
global best practices. the Third Line of Defense in charge of providing
independent assurance of the adequacy and
BCA and its Subsidiaries will continue to attend closely effectiveness of the internal control system, risk
to economic situation and to latest development in the management and governance.
banking industry.
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BCA implements an internal control system that is effectively adapted to the objectives, size and complexity of BCA’s
business activities based on the requirements and procedures as determined by the regulator, with reference to best
practice.
The Three Lines of Defense
BOARDS/AUDIT COMMITTEE
MANAGEMENT
EXTERNAL AUDITOR
REGULATOR
1ST LINE OF 2ND LINE OF 3RD LINE OF
DEFENSE DEFENSE DEFENSE
FINANCIAL
INTERNAL CONTROL
CONTROL
MANAGEMENT
MEASURES
CONTROLS
RISK
INTERNAL
MANAGEMENT
AUDIT
COMPLIANCE
LEGAL
Main Components of Internal Control System Implementation of Internal Control
BCA’s Internal Control consists of 5 (five) main Internal control is implemented through several
components, namely: activities, namely:
1. Management Oversight and Control Culture. a. Financial Control, whereby:
2. Risk Recognition and Assessment. 1) The Board of Directors has prepared strategic
3. Control Activities and Segregation of Duties. plans that have been approved by the Board of
4. Accountancy, Information and Communication. Commissioners. The strategic plans have been
5. Monitoring Activities and Correcting Deficiencies. stipulated in the Bank Business Plan as the Blue
Print of a 3 (three) year business strategy and
The five components are consistent with the Internal Annual Work Plan and budget of BCA, which
Control Integrated Framework that has been developed have been distributed to all relevant officers of
by The Committee of Sponsoring Organizations of the BCA in order to be implemented.
Treadway Commission (COSO). 2) The strategies have been established by
factoring in any impact of strategic risk on
BCA’s capital, in among other areas, capital
projections and the Minimum Capital
Requirement.
3) The Board of Directors actively engages in
discussions or offers input and monitors the
internal situation, and developing external
factors that directly or indirectly would affect
meeting BCA’s business strategic objectives.
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4) BCA has implemented a financial control internal control and corporate
process, both on BCA and on the members governance processes, either at BCA
of BCA’s Financial Conglomerates, in order to or for members of BCA’s Financial
monitor the realization against the budget as Conglomerates.
drafted in periodic reports. BCA has established - Risk Management Work Unit and
a subsidiary monitoring unit to monitor the Legal Group and Compliance Work
performance development of each of its Unit that are independent of risk
subsidiaries. taking units.
b. Operational Control - Anti Fraud Bureau to improve the
1) Each banking operational transaction that effectiveness of Fraud strategy
BCA undertakes has been equipped with a implementation on all activities of
work procedure that is stipulated in work BCA.
manuals. Such work procedure is developed b) Established employee rotation and
by the Operational and Service Development transfer policies.
and Strategy Division and reviewed by various c. Compliance to laws and regulations, whereby:
relevant work units to ensure that operational 1) BCA is committed to comply with the prevailing
risks that may arise have been effectively and laws and regulations and take the necessary
properly mitigated. steps to improve weaknesses found in regard
2) There are several boundaries in place by: to risk, if any.
a) Imposing a limit and authorization for 2) BCA has established a Compliance Work
officers to conduct a transaction. Unit independent of risk taking units and is
b) Utilizing User IDs and passwords as well responsible for monitoring the compliance
as installing finger scan for employees to of BCA and its subsidiaries in an integrated
access computers. manner.
3) To support comprehensive operational risk 3) BCA has:
control, BCA has: Monitoring on Reporting Compliance to BI or
a) Established an organizational structure as OJK or other regulators.
follows: a) Compliance Report of BCA, including
- Segregation of functions so as to Report on the Implementation of AML
avoid conflict of interest. and CFT Program to be submitted to the
- Supervisor oversees the OJK every 6 (six) months.
implementation of internal control at b) Compliance Monitoring Report on the
Branch Offices on daily basis. Prudent Principles of BCA, including
- Branch Internal Supervisor to oversee Report on the implementation of AML and
the implementation of internal CFT Program to be submitted to the Board
control at Branch Offices. of Commissioners, President Director and
- Regional Office/Internal Supervisor Deputy President Director every 3 (three)
to oversee the implementation of months.
internal control at Regional Offices. c) BCA’s Compliance Risk Management
- Head Office internal supervisor Strategy involves the necessary policies
to oversee the implementation of to always comply with applicable
internal control in certain work units regulations which means proactively
at Head Office. taking preventive measures (ex-ante) to
- Internal Audit Division that is minimize the possibilities of violations
independent of risk taking unit to and conducting curative actions (ex-post)
examine and assess the adequacy and for improvements.
effectiveness of risk management,
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Evaluation of Internal Control Systems 2. Background
The adequacy and effectiveness of BCA’s internal control The legal basis of BCA’s anti-fraud policy is OJK
system is evaluated through monitoring and by making regulation No.39/POJK.03/2019 dated December
corrections to irregularities, including: 19, 2019 on the implementation of anti-fraud
1. BCA continuously evaluates and monitors the strategy for Commercial Banks. The OJK regulation
effectiveness of the overall implementation of supersedes BI Circular Letter No. SEBI No. 13/28/
internal control, including in cases where changes DPNP dated December 9, 2011 to strengthen BCA’s
in internal and external conditions that may keep internal control system and to further implement
BCA from achieving its goals are identified. OJK Regulation No.18/POJK.03/2016 dated
2. Monitoring is prioritized on BCA’s key risks and March 22, 2016 on the implementation of Risk
serves as part of daily activities, including through Management for commercial Banks.
periodic evaluations to detect and prevent new
risks, both in operational work units, risk monitoring Based on the OJK regulation, BCA must have and
work units, and in DAI. implement an effective anti-fraud strategy that
3. The adequacy and effectiveness of the internal meets at least the minimum reference, and the
control system is evaluated independently by Company shall take into account as a minimum the
DAI and the results are reported to the Boards following:
of Commissioners and Directors, and the Audit 1) Internal and external factors
Committee. 2) The complexity of business activities
3) Potential, type, and risk of fraud
4) The adequacy of required resources.
APPLICATION OF ANTI-FRAUD STRATEGY
3. Objectives
1. Introduction The objectives of BCA’s anti-fraud strategy are:
BCA already has in place anti-fraud strategy s 4O NURTURE AN ANTI FRAUD CULTURE ACROSS THE
guidelines been ratified by circular letter No.064/ organization
SE/POL/2015 dated April 7, 2015. These guidelines s 4O ENHANCE AWARENESS AND CONCERN FOR THE RISK
reflect management’s commitment to prevent fraud of fraud in BCA’s operations
by implementing an effective and continuous fraud s 4O FUNCTION AS A REMINDER TO ALL PERSONNEL OF
control system. This system directs BCA in taking BCA to comply with applicable procedures and
decisive measures to prevent, detect, investigate, regulations.
and monitor any incidents of fraud.
Fraud is defined as any deliberate act or omission
intentionally committed by anyone working at the
Company to deceive, swindle or manipulate the
Company, its customers, or any other party, or to
misuse office facilities that may lead to suffering
financial loss or where the wrongdoers make either
direct or indirect financial gain. Considered as
fraudulent acts are:
1) Cheating;
2) Fraud;
3) Asset embezzlement;
4) Disclosure of information;
5) Banking felonies.
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Pillar and Implementation of Anti Fraud Strategy
4 Pillars of Anti Fraud
Strategy
Investigation, Observation,
Prevention Detection
Reporting & Sanction Evaluation & Follow-Up
Identify & uncover Extracting information, Monitor & evaluate
Reduce the potential fraud incidents reporting system & fraud incidents as well as
of fraud
imposing sanctions on its necessary follow-up
fraud
Anti Fraud Awareness Whistleblowing Investigation Monitoring
Vulnerability Surprise Audit Reporting Evaluation
Identification
Know Your Employee Surveillance System Impose Sanctions Follow-Up
Circular Letter No.064/SE/POL/2015 Dated April 7, 2015
Concerning Guidelines on the Implementation of Anti Fraud Strategy
The anti-fraud strategy in its application is manifested in 4. Implementation and Internalization
to a fraud control strategy, has four pillars: BCA continuously to strive in increasing its
1) Prevention employees’ awareness and caution against fraud
Set up devises or equipments in order to reduce the through such means like, anti fraud statement,
potential risk of fraud, which encompasses at least, e-learning, comics, posters, videos, socialization
anti fraud awareness, vulnerability identification, and etc.
know your employees.
2) Detection In line with BCA’s vision to become the preferred
Set up devises or equipments in order to detect and reliable bank that serves as an important pillar
fraud incidents in BCA’s business operation which of the Indonesian economy, BCA has formulated an
encompasses at least whistleblowing, surprise anti-fraud statement in which it utterly expresses
audit, and surveillance system mechanism. its commitment to implement zero tolerance
3) Investigation, reporting, and sanctions against fraud. This policy has been implemented
intended to extract information, use reporting by building strong pillars that serve to prevent,
system, and impose sanctions on fraud incidents detect, investigate, and monitor the potential
in BCA’s business operations, which at least risks, indications, and occurrences of frauds in a
encompasses investigative standards, reporting continuous manner.
mechanisms, and imposition of sanctions.
4) Monitoring, evaluation, and follow up
to monitor and evaluate fraud incidents that at
least encompass monitoring, evaluation, and follow
ups.
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BCA’s zero tolerance policy on fraud is outlined below:
Anti-fraud awareness campaign posters:
BCA relays its zero tolerance on fraud to employees through e-learning. In 2019, all employees were required
to assimilate the mandatory e-learning modules accessible on the MyBCA and Mobile Learning internal portals.
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1. Whistleblowing Procedure
A. Media
A whistleblower can report violations in the
designated area on BCA’s official website
https://www.bca.co.id/whistleblowing. The
managing team of the whistleblowing system
will receive the report directly.
Data of Anti-Fraud Awareness in 2019 and 2018
Participant 2019 2018
New Employees 2,914 1,520
Existing Employees 30,628 30,658 B. Acceptable criteria
1) To facilitate and allow a quick follow up
process, a whistleblower must meet the
WHISTLEBLOWING SYSTEM following reporting criteria, where he or
Disclosure of BCA’s whistleblowing system in this Annual she must give information that at least
Report takes into account Chapter III letter g number 16 includes:
of OJK Circular Letter No.30/SEOJK.04/2016 concerning - His or her identity (anonymous
the Issuer’s Annual Report or Public Company. permitted)
- His or her reachable phone number
The whistleblowing system is a means of communication or active email address.
where both internal and external parties can report
fraud or violations presumed to have been committed 2) To provide reliable and accountable
by anyone at BCA. The Reporting must be based on information that indicates any fraudulent
good faith and should not be a personal complaint or a act or violation with attached 4W1H (if
made up story with bad intent. any):
s 7HAT THE ALLEGED FRAUD
BCA’s whistleblowing policy is set forth in BoD Circular s 7HO THE ALLEGED PARTY
Letter No. 146/SK/DIR/2017 dated November 1, 2017. s 7HEN WHEN THE FRAUD WAS ALLEGEDLY
committed;
Objectives of Whistleblowing System s 7HERE WHERE THE FRAUD WAS
The implementation of the whistleblowing system in allegedly committed;
BCA aims to: s (OW n HOW THE FRAUD WAS ALLEGEDLY
s 4O RAISE STAKEHOLDER AWARENESS EMPLOYEES committed.
customers, etc.) for them to willingly report
violations that they think are being committed
in BCA without any fear and anxious, as their
confidentiality is guaranteed.
s $ETECT AND PREVENT FRAUD AT THE EARLIEST STAGE
possible through information disclosed by a
whistleblower.
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3) Types of fraud or violation to be reported:
Fraud Any deliberate act or omission intentionally committed by anyone working at
BCA to deceive, swindle or manipulate BCA, its customers, or any other party or
to misuse office facilities that may lead to suffering financial loss or where the
wrongdoers make either direct or indirect financial gain.
Considered as fraudulent acts are:
1. Deception;
2. Fraud;
3. Embezzlement of assets;
4. Selling corporate disclosure of confidential corporate information;
5. Banking felonies.
Any action that violates BCA’s corporate culture based on positive values, which
has developed and grown across the organization, under the direction of which
Code of ethics violation
all employees act properly, make responsible business decisions, and reach their
common goals.
Any action that may cause an employee to have an interest other than his or her
official ones, whether it is a personal, family-related, or similar interest, preventing
Conflict of interest
the respective employee to act objectively in making business decisions and policies
with which BCA has authorized him or her.
Law violation Any action that violates the applicable laws in Indonesia.
2. Whistleblower Protection
BCA’s whistleblowing system will ensure the confidentiality of the whistleblower’s identity and information
reported.
3. Report Management
The following is an illustration of how a report is handled in BCA’s whistleblowing system:
Work Unit :
Whistleblowing Managing Anti-Fraud Bureau s -AKE A FOLLOW UP INVESTIGATION
Chamber: s 6ERIFY AND ANALYZE DATA s 3UBMIT THE RESULTS OF THE
s 2ECEIVE INFORMATION ON ALLEGED s #OORDINATE AND FOLLOW UP WITH investigation or follow-up to the
fraud and ensure that the fraud relevant work units. decision-making officials (if proven
matches the specific criteria. fraud).
s &ORWARD THE INFORMATION TO THE s )NFORM THE ANTI FRAUD BUREAU OF
anti-fraud bureau. status.
4. Parties Managed the Report
Follow ups on reports are handled carefully with reference to BCA’s internal laws and prevailing laws and
regulations in Indonesia by BCA’s internal team who were appointed by the management.
Imposition of Sanctions
If based on investigation results the alleged party is proven to have committed the alleged fraud or violation,
the decision-making authority shall impose sanctions in accordance with the applicable provisions.
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Disclosure of Internal Fraud and Complaints Internal fraud is defined as fraud committed
Through Whistleblowing System In 2019 by management, supervisors, permanent and
A. Number of Internal Fraud Cases contract employees, or outsourced workers.
The Company discloses internal fraud pursuant Classified as fraud is a case where the financial
to section 64 of OJK Regulation No.55/ loss or potential financial loss exceeds
POJK.03/2016 on the Implementation of GCG Rp100,000,000 (one hundred million).
for Commercial Banks and Section IX item 5 of
OJK Circular Letter No.13/SEOJK.03/2017 in the
Implementation of GCG for Commercial Banks.
Table of Fraud by Management, Permanent Employee, and Non-Permanet Employee
Number of cases committed by:
Contract and Outsourced
Internal Fraud in 1 year Members of BoD and BoC Permanent Employees
Employees
2018 2019 2018 2019 2018 2019
Total Fraud - - 7 7 - -
Settled - - 7 7 - -
In internal settlement - - - - -
process
Settlement process has not - - - - - -
been done
In legal process - - - - - -
B. Number of Alleged Fraud Reported Through Whistleblowing System
The recapitulation of fraud received through the whistleblowing system is submitted to the Board of
Directors periodically. As of December, 2019, 15 (fifteen) cases were reported through the system with the
following status:
Status Number Description
Open (still in process) 0 In the investigation process
Closed (settled) Reporting criteria met:
1 − Proven
2 − Not proven
Reporting criteria unmet:
9 − Mere personal info/complaint
3 − data Inadequate data and more information/data has been
requested
C. Follow-Up on Complaints through the Whistleblowing System
Of the 15 (fifteen) cases reported through the whistleblowing system during 2019, all complaints has been
settled and there is 1 (one) proven complaint BCA made a follow up investigation on the cases, gave fair
sanctions on the employees to follow up the reported cases and has set a settled status for both cases.
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ANTI GRATUITY s !LL PERSONNEL OF "#! ARE PROHIBITED FROM
1. Background requesting or accepting, allowing or
The stakeholders’ and general public’s trust consenting to accept a gift or reward from
towards BCA is strongly influenced by the ethical any third party who obtains or seeks to obtain
behavior of BCA’s entire staff ranging from the work or orders relating to the procurement of
Board of Commissioners, Board of Directors, and goods or services of BCA.
management down to all employees. This trust s )N THE EVENT OF CUSTOMERS PARTNERS AND OTHER
is very important to foster and maintain business parties offer gifts during certain occasions,
relationships with customers and other third parties such as religious celebrations or other kind of
that have relationships with BCA. celebrations, if:
- As a result of the receipt of the parcel/
In practice, the potential of business relationships gifts, it is believed to have a negative
that may lead to matters that are more personal is impact and affect BCA’s decision, and
highly probable, furthermore a business relationship - The value of the parcel/gifts is beyond
that intertwines with personal relationships can reasonable limits.
create conflict between the interest of BCA and The employee receiving the parcel/gifts shall
that of personal interest. immediately return the parcel/gifts along with a
polite explanation that no personnel of BCA are
In this regard, to raise public confidence and to allowed to receive any parcel/gifts.
uphold the Law No. 20 Year 2001 on the Amendment
of the Law No. 31 Year 1999 on the Eradication of The substance of the anti-gratuity policy has been
Corruption and supporting the implementation stated and can be downloaded in BCAs website in
of the principles of Good Corporate Governance, the section on Governance (https://www.bca.co.id/
the Board of Directors considers it necessary to en/Tentang-BCA/Tata-Kelola-Perusahaan/Tata-
stipulate conflict of interest provisions intended to kelola).
provide guidance on BCA’s personnel as individuals
in dealing with customers, partners, fellow co- 3. Joint Commitment
workers. BCA has specific anti-corruption that In relation to the above aforementioned matter
included in BCA Code of Ethics, which can be read and BCA’s commitment in implementing good
in the Code of Ethics chapter of this Annual Report. corporate governance, the Company’s entire staff
is obliged:
2. Anti-gratuity Policy A. To ascertain, comprehend and implement the
The anti-gratuity policy is intended to provide provisions with full responsibility and without
reasonable, credible, and proper conduct guidelines for exception.
the entire organization in engaging with customers, B. To uphold the implementation of such
partners and co-workers, and is not intended to provisions, in which all members of the Board
interfere with employees’ personal lives. of Commissioners, Board of Directors and
employees must make compulsory Annual
These policies, among others, stipulate that: Disclosure containing all circumstances or
s !LL PERSONNEL ARE PROHIBITED FROM REQUESTING conditions that can permit the emergence of
or accepting, allowing or consenting to receive conflict of interest.
a gift or reward f`rom any third party who
obtains or seeks to obtain favours from the
BCA in the form of credit facilities or other
facilities related to BCA’s operational activities.
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4. Sanctions of violation AFFILIATED TRANSACTIONS AND CONFLICT OF
As one of the endeavors to prevent gratuities INTERESTS
prohibited by law and regulation, the Board of
Directors since 2003 has issued a decision backing Disclosure of affiliated transactions and conflicts of
up the anti-gratuity policy to be implemented at all interest is part of efforts to comply with Regulation
levels of BCA. No IX.E.1 attached to the Decree of the Chairman of
Bapepam and LK No. Kep-412/BL/2009 dated November
The anti-gratuity policy is binding and must be 25, 2009 concerning Affiliated Transactions and Conflicts
recognized and implemented earnestly by all of Interest in Certain Transactions and PSAK 7 (Revised
employees as part of the Bankers Code of Conduct 2015).
and in shoring up the implementation of good
corporate governance principles. In the event ; * *
of any policy violation or non-compliance, the = "> +
violator may be liable to sanctions in accordance to BCA has implemented policies related to affiliated
the extent of violation. transactions and conflict of interests, as stipulated in
BoD Decree No. No. 214/SK/DIR/2019 dated December
It has now been adopted as BCA’s culture not to 27, 2019 concerning Affiliated and Conflict of Interest
accept gifts or payment from customer, debtors, Transactions and Circular Letter No.319/SE/POL/2019
vendors, partners, and other third-parties on dated December 27, 2019 on the Guidelines for the
services rendered by BCA’s employee within his/ Implementation of Affiliated and Conflict of Interest
her scope of work. Each individual also has to Transactions. This policy has been referred to the Decree
abide by the Code of Ethics in his/her relationship of Chairman of Bapepam LK No. Kep-412/BL/2009. The
with vendors. The Code of Ethics is stated in the BoD Decree covers the following items:
Guideline of Corporate Governance and can be 1. The definitions of affiliated and conflict of interest
read in this Annual Report. transactions.
2. Affiliated parties.
3. Transaction category.
4. Reporting mechanism.
5. Reporting period and/or information disclosure.
BCA has its Code of Ethics, which explains that all the
decisions it makes are never influenced by any other
party and conflicts of interest. The decisions and cases
of conflicts of interest, if any, are always documented
as evidence. BCA also has a mechanism for handling
conflicts of interest that are binding on each BCA
management team members and all employees.
Documentation is made to allow members of both the
Boards of Directors and Commissioners to give accurate
information on cases of conflict of interest.
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* 3. Any entity operating under BCA Group, which is
Affiliated Parties one that is controlled either directly or indirectly by
Classified as affiliated party to the Bank are: the Bank.
1. Employees, Directors, and Commissioners. 4. Any business entity that has one of more Directors
2. BCA’s key shareholders, whether they are persons or Commissioners who are also members of the
or entities that either directly or indirectly own Bank’s BoC or BoD.
at least 20% of BCA’s shares with voting rights, or 5. Any business entity under the control of BCA’s key
those who own less than that as has been regulated shareholders.
by OJK. 6. Anyone who has a familial relationship due to
marriage or family lines of up to the second degree,
either horizontally or vertically with members of
BCA’s BoD, BoC, and or BCA’s key shareholders.
? * @X
Throughout 2019, BCA made 8 (eight) affiliated transactions with the following details:
No. Date Type of Transaction Affiliated Party Transaction Value Relationship
1 February 28, Rental of Hotel Kempinski PT Grand Indonesia Rp.116,160,000.00
2019 Ballroom for analyst meeting
Q4 2018
2 March 14, Management Rental of Hotel PT Grand Indonesia Rp.147,015,000.00
2019 Kempinski Ballroom for
management lunch
3 April 15, Rental of Hotel Kempinski PT Grand Indonesia Rp.193,600,000.00 Owned by
2019 Ballroom for AGMS 2019 Controlling
4 April 29, Rental of Hotel Kempinski PT Grand Indonesia Rp.123,660,000.00 Shareholders
2019 Ballroom for analyst meeting
Q1 2019
5 June 24, 2019 Rental of Hotel Kempinski PT Grand Indonesia Rp.193,600,000.00
Ballroom for EGMS 2019
6 June 28, 2019 Rental of Sentul dormitory PT Sentral Layanan Rp.497,495,687,255.00
Prima
7 October 28, Rental of Hotel Kempinski PT Grand Indonesia Rp.116,160,000.00
2019 Ballroom for analyst meeting
Q2 2019
8 November 7, Land and building purchases PT BCA Finance Rp.4,000,000,000.00 BCA Subsidiary
2019
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* & ! * " Z"> +
All companies listed in the above table are affiliated During 2019, BCA did not make any transaction that
with BCA, as they are run indirectly by the same entities contained conflict of interest.
as stated in Article 1 1 alphabet (e) Regulation No. 8
Year 1995 regarding Capital Market. Policy Related to Conflicts of Interest
BCA’s policy on conflict of interest regulates that
Fairness of Transaction everyone working for BCA (including members of the
The following are the core principles that BCA must Boards of Directors and Commissioners) must know and
apply when making transactions with affiliated parties: avoid activities that may contain conflict of interests.
1. Must pay attention to the Good Corparate
Governance principles,, which are transparency, To ensure that each transaction is made in the best
accountability, responsibility, independency, and interests of BCA and to prevent conflicts of interest from
fairness taking place in an affiliated transaction, particularly in a
2. The appropriateness and fairness of the value and material transaction with a related party that has been
the requirement of the transaction (arm’s length proposed to the management, BCA has authorized its
transaction). audit committee to examine and provide advice to the
Board of Commissioners on such transactions.
All Affiliated transactions the Bank made during 2019
fell under the category of arm’s length transactions. In incorporating BCA’s policy on conflicts of interest
with integrated governance, the Board of Directors
also ensures that BCA’s intra-group transaction risk
management is free from conflicts of interest that may
occur between BCA and the entities under the Group.
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Disclosure
All transactions containing conflicts of interest are disclosed based on BCA Circular Letter No.03/2017 on GCG
Implementation for Commercial Banks.
Throughout 2019 BCA did not make any transactions that contained conflicts of interest.
Name and position of parties Name and position of decision Type of Value of
Description
that have conflicts of interest makers transaction transaction
- - - - -
[= * "> +
The following illustrates the flow of affiliated and conflict of interest transactions at BCA:
Work Unit informs transaction plan
to DCS
DCS determines category of transaction reporting by
coordinating with GHK and SKK (as needed)
Report: Disclose information to the public: Does not report and
- DCS prepares report - Work unit prepares fairness opinion disclose information to
letter to OJK - If the opinion is fair, preparing approval of public
- Submission of report Board of Directors and Board of Commissioners
letter in accordance with by taking into account recommendation from
the prevailing provisions the Audit Committee. Once approved, DCS will
prepare Information Disclosure to public and
prepare report to OJK. If not approved by the
Board of Directors and Board of Commissioners,
transactions can’t be proceeded further.
- If the opinion is unfair, preparing Independent
GMS.
Completed
Description:
DCS : Secretariat and Corporate Communication Division
GHK : Legal Group
SKK : Compliance Work Unit
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+ "> Company Policy regarding Transaction Review
Interest Transactions Mechanism
In accordance with BCA policy, if a conflict of interest As mentioned above, BCA a policy regarding
transaction is unavoidable, BCA shall appoint an affiliated and conflict of interest transactions. In the
independent party to evaluate the fair value in the implementation, every work unit that is about to make
transaction. a transaction with an affiliated party shall inform
the Bank in writing, herewith to the Secretariat and
If the independent appraiser considers that the Corporate Communication Division, and attach proof to
transaction value is not fair, then the transaction shall the report. The division shall then coordinate a further
be included as one that contains conflict of interest, analysis of the transaction to decide the category under
and hence, collective approval from BCA’s independent which the transaction shall fall. To enhance fairness in
shareholders shall be obtained via an Extraordinary any affiliated or conflict of interest transaction, a review
GMS. of the mechanism and flow of such transactions was
conducted in 2019.
LEGAL CASES
Legal proceedings disclosure is carried out based on item 6 section IX on Transparency on GCG Implementation in OJK
Circular Letter No. 13/SEOJK.03/2017 on Governance Implementation for Commercial Banks.
The legal cases are both criminal and civil, and in 2019, 2018, and 2017 the cases BCA faced are presented in the table
below:
1. Criminal Cases
Details of criminal cases faced by BCA during 2019, 2018 and 2017 are as follows:
Criminal Cases 2019 2018 2017
Legally settled 8 11 5
(a verdict has been issued with legal power)
In settlement process 5 4 4
Total 13 15 9
Criminal cases in the Court of based on reports from BCA against customers, employees, or other third parties
include cases of alleged crimes of theft, embezzlement, embezzlement in positions, falsification of letters,
distributing without rights and/or destruction of electronic documents, but there are no cases of value material
losses above Rp1 billion.
While cases in the Court of reports from customers, employees, or other third parties against BCA are non/zero.
2. Civil Cases
The civil cases faced by BCA during 2019, 2018 and 2017 are detailed below:
Civil Case 2019 2018 2017
Legally settled 123 120 98
(a verdict has been issued with legal power)
In settlement process 144 145 173
Total 267 265 271
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BCA faced civil cases among others as a result of: 7) Lawsuit/appeal filed by BCA on the settlement
1) Lawsuit filed on accounts inherited by late of bad loans and saving collateral.
customers’ heirs. 8) Lawsuit/rebuttal of debtor (husband/wife),
2) Customer claims/appeal against account collateral owner and/or other parties related
blocking by BCA at the request of the Court, to foreclosure, auction and or cleaning up
Tax Office and or other third parties. foreclosed collateral.
3) Lawsuit filed by customers/other third parties 9) Lawsuit/rebuttal of debtor (husband/wife) and
on payment transactions, transfers, balances, or third parties on credit and/or collateral.
and/or disbursement of documents. 10) Lawsuit filed by BCA or its employees on
4) Lawsuit on the use and payment of credit card industrial relations.
bills.
5) Lawsuit filed by third parties on disputes over
BCA properties i.e. land and buildings.
6) Lawsuits on accounts of legal entities that
resulted from disputes on legal entities and/or
association.
The BCA Civil Case that is still in operation in 2019 with a nominal demand of more than Rp10 billion, but the
material value of the case does not exist or does not affect the continuity of BCA’s business, is as follows:
BCA did not face significant risks due to current legal issues as, based on self-assessment results, it had a “low” level
of legal risk.
Case
No. Case Code BCA Position Lawsuit Risk for Bank Value
Status
1. 431/Pdt.G/2017/ Defendant II Lawsuit filed Cassation: Collective Real Case Value:
PN.Bdg. by third parties Adjudicating compensation None
on foreclosed Process payment
collateral for the
reason that the District Court &
foreclosed collateral High Court:
is undistributed Ruled in favor
inheritance of BCA
2. 166/Pdt.G/2019/ Defendant A lawsuit filed by a District Court: Collective Real Case Value:
PN.Sby. VIII customer who has a Adjudication compensation None
joint account “OR” Process payment
on a transaction
made by his partner
without approval
from the former as
the plaintiff
3. 4/Pdt.Bth/2019/ Opposition I Rebuttal filed High Court: Compensation Real Case Value:
PN.Bkl. by a debtor on Adjudication None
auction sales and Process
the cleaning up of
foreclosed collateral District Court:
Ruled in favor of
the Opposition
4. 10/Pdt.G/2018/ Defendant A lawsuit filed by a Cassation: Compensation Real Case Value:
PN.Jmb. Customer/Debtor to Adjudication None
deny credit facilities Process
that he had
received District Court &
and on financial High Court:
transactions made Ruled in favor
in of BCA
his savings account
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Case
No. Case Code BCA Position Lawsuit Risk for Bank Value
Status
5. 912/Pdt.G/2019/ Defendant A lawsuit filed by District Court: Collective Real Case Value:
PN.Jkt.Brt. III a third party (the Adjudicaton compensation None
former owner) on Process payment
collateral with the
reason that the sale
and purchase has
not
been settled and
the
deed of purchase is
allegedly fake
6. 145/Pdt. Opposition I A lawsuit filed by a District Court: Collective Real Case Value:
Bth/2019/ Debtor on the Adjudicaton compensation None
PN.Bpp. emptying of Process payment
collateral
by BCA with reason
that the auction is
invalid the
collateral
is sold at a lower
price than the
market.
7. 297/Pdt.G/2017/ Co A lawsuit filed by a Cassation: Collective Real Case Value:
PN.Jkt.Sel. Defendant customer on check Adjudication compensation None
rejection which Process payment
resulted in the
customer listed in District Court &
the national High Court:
banking Ruled in favor
black list of BCA
8. 485/Pdt.G/2016/ Defendant V A lawsuit filed by a High Court: Collective Real Case Value:
PN.Jkt.Pst. third party on Adjudication compensation None
collateral with Process payment
the reason that
the collateral is District Court:
an undistributed Ruled in favor of
heritance BCA
9. 249/Pdt.G/2018/ Defendant I A lawsuit filed by a Cassation: Collective Real Case Value:
PN.Dps. Debtor on Adjudication compensation None
auction Process payment
with the reason
that the auction District Court &
process violates the High Court:
regulation Ruled in favor
of BCA
SIGNIFICANT CASES AND ADMINISTRATIVE Disclosure of important cases throughout 2019 is
SANCTIONS TOWARD VIOLATIONS described as follows:
1. Important cases faced by BCA, members of Board
Significant cases faced by BCA, subsidiaries, members of of Directors of BCA, and members of Board of
the Board of Directors and Board of Commissioners are Commissioners.
disclosed pursuant to Letter G Chapter III – of OJK Circular Throughout 2019, BCA, none of the members of
Letter No.30/SEOJK.04/2016 on Content of Annual BCA’s Board of Directors and Board of Commissioners
Report on Financial for Issuers or Public Companies of BCA were involved in any important case,
whether criminal and/or civil.
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2. Important cases faced by BCA Subsidiaries
During 2019, BCA Subsidiaries faced the following cases:
Subsidiary Case Status Civil Criminal
PT BCA Finance Resolved with permanent legal force 27 0
In the process of settlement 75 0
PT BCA Multi Finance Resolved with permanent legal force 7 0
(formerly PT Central
Santosa Finance) In the process of settlement 1 0
BCA Finance Ltd Resolved with permanent legal force 0 0
In the process of settlement 0 0
PT Bank BCA Syariah Resolved with permanent legal force 0 0
In the process of settlement 5 0
PT Asuransi Umum BCA Resolved with permanent legal force 0 0
In the process of settlement 0 0
PT Asuransi Jiwa BCA Resolved with permanent legal force 0 0
In the process of settlement 0 0
PT BCA Sekuritas Resolved with permanent legal force 0 0
In the process of settlement 0 0
PT Central Capital Ventura Resolved with permanent legal force 0 0
In the process of settlement 0 0
PT Bank Royal Indonesia Resolved with permanent legal force 1 0
In the process of settlement 2 0
Important Cases Faced by Members of the Boards of ADMINISTRATIVE SANCTIONS FROM RELATED
Directors and Commissioners of BCA Subsidiaries AUTHORITIES
throughout 2019, BCA, none of the members of the
Boards of Directors and Commissioners of BCA and During 2019, there was no administrative sanctions
subsidiaries was involved in an important case, whether that may have impacted the sustainability of BCA’s
criminal and/or civil. business, nor was there one imposed on the members
of its Boards of Directors and or Commissioners from the
All important legal issues and cases faced by BCA relevant authorities.
throughout 2019 did not have a material impact on
BCA’s and its subsidiaries’ financial position and business
sustainability.
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INFORMATION ACCESS AND CORPORATE DATA
To apply the principles of transparency and accountability, BCA maintains effective communications with its
stakeholders: regulators, shareholders, customers, employees, business partners, and the public. BCA makes this
specific effort by having in place a communication policy.
BCA’s Communication policy is set in the communication function and information section and in the information
disclosure section under its GCG Guidelines. To help apply the principle of transparency and policy, BCA provides access
to its corporate data and information to the public through several communication channels as further explained
below.
Stakeholders Involvement
Stakeholders are groups of people who have interests in BCA’s business and significant impacts on its sustainability.
Customers and Clients
Investors and
Shareholders
Media, Interest
Groups and Public
Employees and
Labor Union
Public Community
Business Partners/
Supplier/Vendors
Regulator
BCA works and interacts with the stakeholders BCA also manages various internal communication
through formal processes and necessary engagement. channels to create internal information, allowing
Interactions with the stakeholders are managed by the an intensive and effective socialization process of
Secretariat and Corporate Communication Division. its information, while accelerating the process and
mechanisms in all of its lines.
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Name of Stakeholder Interest Media Frequency
Customers and Clients s 0RODUCT )NFORMATION AND HALO BCA Contact Center At all times
banking services as well as 1500888, website, social
the security of customer media, and ATM
privacy.
s $EVELOPMENT OF
banking solutions starts
with customer needs
and is carried out by
paying attention to the
protection and safety of
the customers, while also
performing it consistently
and continuously.
s 0ROVIDING THE BEST FOR
banking solutions for the
stakeholders.
s 0ROVIDING SOLUTIONS TO
transaction problems, and
to use banking.
Investors and Shareholders Financial results and the 1. GMS 1. Once a year
implementation of the 2. Quarterly Report 2. Quarterly
principle of prudence and 3. Annual Report 3. Once a year
GCG. 4. Sustainability Report 4. Once a year
Regulators, among others: Compliance and the - Monthly Report. According to regulations
Financial Services Authority, implementation of - Quarterly report. (monthly, quarterly, and
Bank Indonesia, Indonesia prudence principle and GCG - Information disclosure incidental)
Stock Exchange implementation. related to the affiliated
transaction.
- Elaboration on information
for mass media.
- Submission of proof
of annual GMS, EGMS,
information, report
summary for the finance
consolidation.
- E-reporting for preliminary
notice, GMS plan, monthly
report, plan for public
expose.
- Delivery of press release
on financial statements,
photocopy of AGMS and
EGMS deeds and newspaper
ads.
- Submission of proof of
preliminary notice for GMS
- Reports and announcement
of the dividend distribution
schedule.
- Report of ownership or
changes in ownership.
Public Communities Programs and opportunities a. Sustainability reports a. Once a year
for empowerment through b. Pilar Bakti BCA: b. At all time
community programs - Solusi Cerdas BCA
and corporate social - Solusi Sinergi BCA
responsibility (CSR). - Solusi Bisnis Unggul BCA
Media, Interest Groups and Information and corporate Pers release If needed
Public data, among others
regarding the financial
condition of the company,
products, and corporate
actions.
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Name of Stakeholder Interest Media Frequency
Business Partners/Suppliers/ s 0ROCUREMENTS OF GOODS - Website If needed
Vendors services, types of needs/ - Beauty contest
specification and company - Code of ethics for vendors
data, criteria for partners. - Logistics and building
s )NPUT ADVICE AND OTHER division
information.
Employees Industrial relations and Internal communication At all time
matters related to welfare, through info BCA, BCA
rights, and obligations of Pemutakhiran, MyBCA, audio
employees visual media, Halo SDM - call
center for BCA employees,
sharing session, GCG series
articles, banking services and/
or facilities
Product Information and Transparency - Access to Information (for customers, the media,
BCA has provided clear, accurate and up-to-date shareholders and the wider community);
information about its banking products and services - BCA website;
pursuant to provisions by the OJK/BI, which its customers - Social media;
can get easily through: - Press releases;
s "#! WEBSITE THAT PROVIDES COMPREHENSIVE AND - Correspondence with OJK, Bank Indonesia and the
up-to-date information on BCA products and/or Indonesia Stock Exchange;
services. - Internal communication;
s ,EAmETS BROCHURES PLASMA 46S OR OTHER WRITTEN - Bakorseni.
tools at each BCA branch office throughout
Indonesia that contain banking product Information Access
information to help customers know more about BCA continues to give convenience to its stakeholders
the information. and the wider community to access its corporate data,
s "#! OFlCERS SUCH AS RELATIONSHIP OFlCERS ACCOUNT information, reporting mechanisms, and/or problem
officers, and customer service at all branch offices, solving, including the Bank’s financial and non-financial
who are keen to give product/service information conditions, banking products, and corporate actions.
and solutions that the customers may need. BCA also places press releases in print and electronic
media.
BCA also provides direct information on its banking
products and/or services to customers. The information BCA information and data can be accessed through:
to customers is given on their prior approval when they 1. Customers can contact:
sign in the approval column during account opening, in Halo BCA call center
which they agree to receive more data. The publication - Phone number: 1500888
of information on BCA products, services, and/or %MAIL ADDRESS HALOBCA BCACOID
banking facilities is done in accordance with regulatory 4WITTER HALOBCA
provisions on transparency of bank product information - Halo BCA Chat: www.bca.co.id
and use of customer personal data. - Video Calls in main branch offices: BSD, SCBD,
Alam Sutera, Thamrin, Matraman, Darmo, and
Media at myBCA
BCA’s business management means more than just - Video Banking at myBCA Gandaria City, Bintaro
earning profits, as it also encompasses consistent efforts Xchange, Central Park, Kota Kasablanka,
to provide the best banking solutions for all of the Bank’s Emporium Pluit, Ciputra World Surabaya,
stakeholders. BCA gives the best banking solutions Grand City Surabaya, BCA Learning Institute
through several communication channels, as follows: Sentul.
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Service Level at Halo BCA 3. Communication in investor relations is done
Service level for receiving customer contacts:: through publications on the Bank’s official website
- Call response time: 20 seconds (www.bca. Co.id) under the investor relations
- Whatsapp response time: 2 minutes section. that is easily accessible to the public and
- Twitter response time: 3 minutes includes information about:
- Halo BCA Chat response time: 2 minutes s &INANCIAL )NFORMATION lNANCIAL HIGHLIGHTS
- Email response time: 1 hour. monthly financial reports, and quarterly
financial reports including analyst meeting
Service Level Agreement (SLA) material and other publications).
The variation duration of problem solving starting s !NNUAL 2EPORT
from 1 (one) working day to 45 (forty five) working s "#! 3HAREHOLDER )NFORMATION
days, according to the type of problem. At present s #REDIT 2ATING
99.41% of the problems raised through Halo s )NVESTOR .EWS
BCA have been resolved in accordance with the
service level agreement. The number of customers The published information is in accordance with
contacting Halo BCA in 2019 is 16,117,845 (sixteen regulatory requirements and based on the needs
million one hundred seventeen thousand eight of investors, the capital market community, and the
hundred forty-five). shareholders. Through the BCA website, investors,
the capital market community, and shareholders
Type of Claims can also subscribe their e-mails to receive quarterly
financial information publications.
16,117,845 16,606,981
4. BCA also provides an investor relations e-mail
37.02%
facility at INVESTOR?RELATIONS BCACOID that allows
44.86%
investors, the capital market community, and
shareholders to communicate with BCA investor
52.14% relations should they have any questions regarding
44.64% Service Request
Delivering Information BCA’s financial and business information, or should
Complaints they need to make suggestions for improvements
10.83% 10.47%
0.01% 0.03% Suggestions in investor relations services. Investor relations can
2019 2018 be contacted via:
Investor Relation Contact
PT Bank Central Asia Tbk Menara BCA L.20
Jl. MH Thamrin No.1
Types of customer complaints are divided into the Jakarta 10310
following criteria: Phone: +62 21 235 88000
a. 37.02% are information delivery. Email: investor_relations@bca.co.id
b. 52.14% are inquiries for customer services (eg
blocking, activation, etc). BCA website
c. 10.83% are complaints filed by customers. Having learnt from the increasingly popular use of
d. 0.01% are suggestions given by customers. smartphones, BCA keeps innovating to give a more
accessible BCA website (www.bca.co.id) tailored to
2. For the media, customers can directly contact the mobile users (mobile responsive design). The BCA
secretariat and corporate communication division, website also provides an online registration form for
the public relations aspect section, via email: customers who are interested in using BCA services,
HUMAS BCACOID, press release, gathering, etc. which BCA’s online customer services will follow up.
This website is intended to facilitate prospective and
existing customers to enjoy BCA banking products and/
or services.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BCA website publishes interesting and useful articles Through these social media accounts, BCA seeks to
which contain financial and banking information and build more solid interactions with its customers and
other information disclosure. The website also presents any member of the public who has not yet become a
corporate activities, such as analyst meetings, financial customer. This testifies BCA’s serious commitment to
reports, and a wide array of BCA corporate social always be there with the community.
responsibility programs. This information is constantly
provided in order for BCA to remain consistent with its In addition to these listening tools, BCA keeps innovating
commitment to always disclose corporate information to hear in real time social media user aspirations, whether
as part of implementing Good Corporate Governance. through criticism or suggestions. Real-time interactions
are available on VIRA or BCA Virtual Assistant Chat
BCA Social Media Banking. VIRA can be accessed through Kaskus Chat,
In today’s digital era, social media is developing rapidly Facebook Messenger BCA bank account, and LINE chat
and becoming an effective means of communication for application in each BCA bank account. Through VIRA,
BCA. BCA’s social media is popular among netizens. BCA customers can get information on recent promotions,
is currently present on various social media platforms check account balances and movements, learn current
such as: exchange rates, get ATM info, credit card info, and
s 4WITTER ACCOUNTS 8PRESI"#! 'OOD,IFE other banking access.
"IZ'UIDE"#! (ALO"#! "ANK"#!
KartuKreditBCA) Throughout 2019, BCA held a long series of activities to
s &ACEBOOK 8PRESI"#! 'OOD,IFE"#! campaign for communications that rely on social media,
BizGuideBCA, / BankBCA, / Credit CardBCA), including:
s 9OU4UBE "#! 3OLUTION 1. Campaigns on updates in BCA banking products to
s 3LIDE3HARE WWWSLIDESHARENET3OLUSI"#! communicate what benefits they offer to potential
s "#! ,INKEDIN markets
s )NSTAGRAM GOODLIFE"#! 2. Educative campaigns on safe banking transactions
s ,INE "ANK"#! for the public
s (ALO "#! #HAT 3. Campaigns on BCA’s recent promotional programs.
s 7HATSAPP
More detailed BCA accounts and social media activities
can be accessed through www.bca.co.id/social media.
BCA consistently seeks to prove its existence to the
wider community.
2019 Annual Report | PT Bank Central Asia Tbk 511
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
List of Press Releases in 2019
BCA’s press releases represent the implementation of good corporate governance principles, particularly the principle
of transparency. During 2019 there were 157 (one hundred and fifty seven) press releases made by BCA, which include:
Remarks
No. Month Date Title
Distribution Face to face
OneKlik from BCA, Completing Alternative Shopping
1 9 - v
Payments at Shopee
BCA to be the SBR005 Distribution Partner to Drive Financial
2 10 - v
Inclusion
Facilitating Water Bill Payment through ATM BCA, BCA
3 15 - v
Collaborates with PDAM Pontianak and Kubu Raya Regency
January Presenting the Spirit of Community Collaboration, Jakarta
4 18 Sneaker Day 2019 “The Rise of Sneaker Culture” is Ready to - v
Go
Realizing Service Excellence, BCA Inagurates New KCU
5 24 v -
Bukittinggi Office
Spurring the Spirit of e-sports Tournament, BCA Supports
6 24 - v
2019 Presidential Cup
Care for Education, BCA Awarded Scholarships to
7 8 - v
Accomplished Students of ITS and UNAIR
BCA Gives Scholarships to Accomplished Students of
8 8 - v
Sriwijaya University
Providing One Stop Services, BCA Expoversary 2019 is Ready
9 8 v -
to be Held
BCA Delivers 218 Food Packages to Pekalongan-Batang
10 11 v -
Flood Victims
AIA and BCA to Launch Edukasi Maksima Protection
11 14 - v
(EduPlan) for Children’s Education Fund Planning Solutions
BCA Earmarks Rp300 Million in Scholarships for
12 15 - v
Accomplished Students of Udayana University
Realizing Healthy Communities, BCA Organizes Health Social
13 20 v -
Service in Duri Utara Before Its 62nd Anniversary
Offering Travellers to Travel with Ease, BCA Once Again
14 22 - v
February Organizes Astindo Travel Fair 2019
Entering Its 62nd Anniversary, BCA Expo Surabaya Returns
15 22 - v
to Fulfill Customers’ Needs
Realizing Customer’s Dreams to Obtain Dream Car & House,
16 22 - v
BCA Expo Palembang 2019 is Officially Opened
Enlivening the 62nd Anniversary of BCA, the BCA
17 22 - v
Expoversary 2019 is Held
18 23 Reward BCA Auction Only at BCA Expoversary 2019 v -
Enjoy the Ease of Transactions While Chatting with BCA
19 23 - v
Keyboard
20 Orphans of Harapan Remaja Orphanage Join the ‘Leather
20 23 v -
Pencil Case Making’ Workshop at BCA Expoversary 2019
People Enthusiastically Participate in Reward BCA Auctions
21 24 v -
at BCA Expoversary 2019
PT Bank Central Asia Tbk Full Year 2018 Results - Positioning
22 28 - v
for Growth
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Remarks
No. Month Date Title
Distribution Face to face
First in Indonesia: BCA Super League Triathlon Bali Presents
23 1 - v
an Unforgettable Multi Sports Festival
24 1 BCA Officially Offers Retail Sukuk SR-011 - v
Followed by More than 100 Participants, BCA Organizes
25 2 - v
Health Charity in Bukit Peramun Belitung
BCA Wins ‘Best Achiever in Private Banking’ Award at the
26 6 v -
2019 Obsession Awards
Entering its 62nd Anniversary, BCA Expo Medan is Held to
27 9 - v
Fulfill Customer Needs
More than 130 Enthused People Joined BCA’s Free Cataract
28 12 v -
Surgery in Kapuas Hulu
Preparing Students to Enter the Workforce, BCA Holds
29 12 - v
Public Lectue to 300 Students of Padjajaran University
30 13 BCA to Receive ISO 9001:2015 Certificate v -
Obedient and Timely Taxpayer, BCA Receives Taxpayer
31 13 v -
Award
Tourism Australia and BCA Bring a Piece of Australia to
32 March 14 v -
Indonesia
BCA Disburses Rp300 Billion Syndicated Loan to PT Buana
33 15 v -
Finance Tbk
BCA Holds a Seminar for 250 Students of Mulawarman
34 16 - v
University
BCA Holds a Seminar for 250 Students of Mulawarman
35 16 v -
University
More than 240 Students and Teachers Pendidik Ikuti Edukasi
36 16 v -
Kesehatan yang Digelar BCA di Desa Kelurahan, Semarang
Preventing Blindness Caused by Cataract, Approximately
37 20 100 Patients Join BCA’s Free Cataract Surgery at RS Masmitra v -
Bekasi
More Than 2,500 Enthused Participants Join BCA Super
38 23 - v
League Triathlon 2019
BCA Successfully Nabs Three International Awards at
39 25 v -
Asiamoney Awards
BCA Launches SYNRGY, Accelerator Program & Community
40 27 - v
Start-up Collaboration Platform
41 4 BCA is Crowned the Forbes World’s Best Banks 2019 v -
Preserving and Protecting Sea Turtles, BCA Provides
42 4 Education on Turtle Conservation to 700 Students and v -
Fishermen in Banyuwangi
BCA Receives 15 Awards at Contact Center Service Excellence
43 9 v -
Award 2019
Opening an Account Becomes Easier, BCA Officially Launches
44 11 - v
Online Savings Account Feature on BCA mobile
April
45 11 BCA Holds Annual General Meeting of Shareholders - v
PT Bank Central Asia Tbk’s 1st Quarter of 2019 Results -
46 25 - v
Managing Growth
BCA Organizes Tour Guide Training: Enhancing Tourists’
47 29 v -
Comfort at Bukit Peramun Village
48 30 BCA Wins Financial Top Leader 2019 v -
Preventing Blindness Caused by Cataract, BCA Holds Free
49 30 v -
Cataract Surgery in Tasikmalaya
2019 Annual Report | PT Bank Central Asia Tbk 513
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Remarks
No. Month Date Title
Distribution Face to face
50 2 BCA Strengthens Financial Inclusion through SimPel BCA v -
Two BCA’s Assited Villages: Bukit Peramun & Aik Rusa’
51 4 Berehun Village are to Offer the Treasure of Belitung’s Local v -
Wisdom
BCA Asserts its Commitment to Smart Farming-Based
52 9 v -
Agricultural Development
Banking and Fintech Contributions in Building a Healthy and
53 9 v -
May Stable National Financial Ecosystem
54 16 BCA Named the Best Issuer at Investor Award 2019 v -
BCA Nabbed 16 Awards at the Infobank 8th Digital Brand
55 16 v -
Awards 2019
BCA Organizes Sahur On the Road 2019: Sahur with 500
56 17 - v
Orphans
BCA Always by Your Side Throughout Eid al-Fitr 2019
57 28 v -
Holiday
58 4 BCA Wins Gallup Great Workplace Award for the Third Time v -
BCA Holds Outbound Guide Training to Ensure Satisfaction
59 17 v -
of Tourists Visiting Tamansari Village
BCA and Digitaraya Announce Eight Startups Picked for
60 19 - v
SYNRGY Accelerator Program
BCA’s EGM Approves Plan to Acquire PT Bank Royal
61 20 - v
Indonesia
BCA Inaugurates Makassar Regional Office to Improve
62 21 v -
June Banking Service
BCA Inaugurates Tangerang City Main Branch Office to
63 24 - v
Ensure Prime Services
BCA Holds Social Service Offering Free Cataract Operation in
64 25 v -
Purwakarta
65 27 BCA to Win the Best Bank in Indonesia and Asia Once More v -
First in Bandung, BCA Supports World’s Largest Book Bazaar,
66 27 - v
Big Bad Wolf (BBW) 2019
67 28 BCA Receives the Best Bank at Investor Bank Award 2019 v -
Supporting Anti-Drug Movement, BCA and BNN Organize
68 5 v -
Anti-Dug Volunteers Training
BCA Wins Eight Awards at the 2019 Service Quality Award
69 9 v -
Event
BCA and KSEI Sign Cooperation Agreement as Customer
70 12 v -
Fund Account Administrator Bank and Payment Bank
More than 100 Patients Enthusiastic to Receive Free Cataract
71 12 v -
Operation in BCA’s Social Service in Ambon
BCA Receives the Private Bank Award at Bisnis Indonesia
72 12 v -
July Award 2019
73 16 Euromoney Crowned BCA the Best Bank v -
74 17 BCA Supports Preservation of Indonesia’s Cultural Diversity v -
75 19 Halo BCA Wins Best Mega Contact Center in Asia Pacific v -
Guaranteeing Service Excellence, BCA Relocates KCP
76 22 v -
Tunjungan Plaza to Pakuwon Tower TP 6
PT Bank Central Asia Tbk First Half 2019 - Results Positioning
77 24 - v
for Better Growth
78 30 BCA Supports Indonesian Students and Youth Savings v -
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Remarks
No. Month Date Title
Distribution Face to face
BCA Launches ‘Teaching Factory: BCA Cash Management
79 1 v -
Academy’ Program
80 13 BCA Holds Press Conference before BCA Expo Bandung 2019 - v
Pioneering BCA Banking Digitalization, President Director of
81 14 v -
BCA Jahja Setiaatmadja Wins ‘Lifetime Achievement’ Award
Jahja Setiaatmadja Wins the Most Outstanding People 2019
82 15 v -
Award
BCA and Helping Hands Foundation Organize Leadership
83 20 v -
Training for Students with Disabilities
84 21 2019 Public Expose: Managing Growth - v
Featured in BrandZ Top 100 World Brands, BCA Ranks First
85 22 v -
for Indonesia’s Most Valuable Brand
August
Providing One Stop Solution, BCA Expo Bandung 2019 is
86 24 - v
Officially Open
Prior to Peak Event, Hundreds of Participants Join BCA
87 24 - v
Finhacks Roadshow 2019 in Jakarta
BCA Expo Semarang 2019 Pampers the Public with One Stop
88 24 - v
Solution
Prior to Peak Event, Hundreds of Participants Join BCA
89 24 - v
Finhacks Roadshow 2019 in Jakarta
BCA Once Agains Supports the Release of Orangutans and
90 26 Organizes ‘Orangutan Goes to School’ Program at Samboja v -
Lestari
Supporting Quality Basic Education, BCA Holds Teacher
91 31 v -
Training
Welcoming National Customer Day, BCA Celebrates National
92 1 v -
Customer Day Parade
Appreciating Loyal Customers, Six BCA’s Directors Serve
93 4 v -
Customers on National Customer Day
BCA Endows Rp250 Million Scholarship Fund to Select
94 5 - v
Accomplished Students of Bogor Institute of Agriculture
95 5 BCA’s Participation in 5th ASEAN Marketing Summit Forum v
BCA Endows Rp400 Million Scholarship Fund to Select
96 6 - v
Accomplished Students of University of Indonesia
BCA Endows Rp400 Million Scholarship Fund to Select
97 7 - v
Accomplished Students of University of Indonesia
BCA Organizes Public Lecture and Gives Rp200 Million
98 10 Scholarship Funds to Select Accomplished Students of - v
Tanjungpura
September
99 10 BCA Wins 47 Awards in Best Contact Center Indonesia v -
Visiting West Nusa Tenggara, BCA Organizes Cataract
100 14 v -
Surgery at RSI Yatofa
Consistenly Supporting Education in Indonesia, BCA
101 18 Channels Rp250 Million Scholarship Funds to Accomplished - v
Students of Mulawarman University
102 19 Eight Select Indonesian Start-ups at SYNRGY Demo Day - v
BCA Holds A Press Conference Before BCA Expo Malang
103 24 - v
2019
For the Seventh Time, BCA Wins International Awards at
104 25 v -
Asiamoney Awards
BCA Gives Leadership Training for Integrated Service Staff of
105 25 - v
Maranatha Christian University
106 25 First in Indonesia, BCA Supports Boba Fest 2019 v -
2019 Annual Report | PT Bank Central Asia Tbk 515
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Remarks
No. Month Date Title
Distribution Face to face
BCA Supports Various Investment Managements through IKF
107 26 - v
VIII to Drive Indonesia’s Economic Growth
BCA Supports Various Investment Managements through IKF
108 26 v -
VIII to Drive Indonesia’s Economic Growth
109 September 26 Bakti BCA Assisted Village: Bukit Peramun Wins ISTA 2019 v -
BCA Channels Rp250 Million Scholarship Fund to
110 27 - v
Accomplished Students of Hasanuddin University
BCA EXPO’s First Launch in Malang City Offering One Stop
111 28 - v
Shopping Service
Improving Human Resources Quality, BCA Organizes a
112 1 Digital Marketing Workshop for Members of Assisted - v
Tourism Villages
Enhancing Knowledge on Wayang, BCA Organizes ‘Wayang
113 2 - v
Day’ in Balikpapan
BCA Channels Rp200 Million Scholarship Funds to
114 4 - v
Accomplished Students of Cendrawasih University
115 7 BCA and Sinar Mas Land Invite the Public to BCA Expo 2019 - v
BCA Launches Wealth Management WELMA Application at
116 8 - v
Indonesia Knowledge Forum VIII 2019
For A Better Service, CS Finance Officially Becomes BCA
117 11 - v
Multi Finance
BCA Holds a Press Conference Ahead of Royale Open
118 14 - v
Tournament 2019
BCA Wins ‘Best Financial Sector’ at the 11th IICD Corporate
119 14 v -
Governance Award 2019
120 18 Kafe BCA: 2020 Economic Outlook, Optimistic of Growth - v
October
Caring for Indonesian Education, BCA Grants Scholarship
121 18 Funds to 38 Select Accomplished Students of Sriwijaya - v
University
Encouraging Outstanding Teacher Competence, BCA Holds
122 21 - v
Teacher Training in Sorong
50 Bright Students of Brawijaya University Received Bakti
123 24 - v
BCA Scholarshop Amounting Rp 350 million
Promoting One Stop Shopping Concept, BCA Expo Returns
124 26 - v
to ICE BSD City
PT Bank Central Asia Tbk First Nine Months 2019 Results -
125 28 - v
Solid and Sustainable Growth
140 Enthused Students Participated in “Wayang for
126 29 - v
Students” Shows and Performances in Bandung
BCA and AIA to Launch Proteksi Retirement Maksima
127 30 - v
(RetirePlan) as Pension Fund Planning Solutions
Maintaining Outstanding Performance, BCA Wins Forbes
128 30 v -
Indonesia’s ‘Best of the Best Awards’ 2019
129 31 BCA Supports CEO Networking 2019 v -
130 2 BCA Wins ASEAN Business Awards 2019 v -
131 6 BCA Supports the Indonesia Banking Expo (IBEX) 2019 v -
Improving the Students’ Competence, BCA Delivers a Public
132 9 - v
Lecture in Bandung Institute of Technology
November
BCA’s Assisted Village: Bukit Peramun Belitung, A Digital-
133 9 - v
Based Tourism Village
BCA and JCB International Indonesia to Launch BCA JCB
134 11 - v
Black Credit Card
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Remarks
No. Month Date Title
Distribution Face to face
Encouraging SMK Students’ Potentials, BCA Cash
135 12 Management Academy Joins Education and Technology - v
Expo (EPITECH)
50 Select Accomplished Students of Sumatera Utara
136 15 - v
University to Receive Bakti BCA Scholarships
50 Select Accomplished Students of Airlangga University to
137 15 - v
Receive Bakti BCA Scholarships Worth Rp250 Million
Enhancing Students’ Insights, BCA Organizes Public Lecture
138 16 - v
in Muhammadiyah Malang University
139 18 BCA’s Cash Recycling Machine (CRM) Breaks MURI Records - v
More Than 700 Enthused Students Joined “Wayang for
140 19 - v
Student” in Semarang
November
BCA Holds Service Standard Refreshment Training for Tour
141 20 - v
Guides of Goa Pindul Yogyakarta
BCA Delivers a Public Lecture and Grants Scholarship Fund
142 22 Amounting Rp 300 million to Bright Students of Udayana v -
University
BCA Increases Outbond Tour Guide Capacity of Pentingsari
143 23 v -
Village and Goa Pindul
BCA’s Deputy President Director Armand W Hartono
144 27 Delivers a Public Lecture in Sepuluh November Institute of - v
Technology Surabaya
145 28 BCA Achievements in 2019 Bank Indonesia Award v -
146 28 Jahja Setiaatmadja Awarded as 2019 Bankers of the Year v -
Consistently Supporting Health Sector, BCA Distributes
147 3 Donations of Cataract Surgery Equipment and Blood Donor - v
Facilities
BCA President Director Jahja Setiaatmadja Awarded the Best
148 4 v -
CEO 2019
BCA Awarded the Best of the Best MArketeer of the Year
149 4 v -
Indonesia 2019
150 6 Halo BCA Won 26 Awards in 2019 World’s Contact Center v -
BCA Distributes Donation to 15,000 Informal Workers
151 10 - v
through BPJS Ketenagakerjaan
152 December 10 BCA Supports Orkes Tiup Johja (OTJ) Event v -
Sucessfully Recorded Excellent Performance, BCA Won Two
153 11 v -
Awards in the 2019 Finance Top Financial Institution
Delivering Remarkable Achievement, BCA’s President
154 12 Director Jahja Setiaatmadja Crowned the ‘Top National v -
Banker’
Making Water Bill Payment Easier through BCA e-Channel,
155 16 - v
BCA Partners Up with PDAM Purwakarta
BCA Always at the Customers’ Side during 2019 Year End
156 17 v -
Holiday
157 27 [Infographic] Fun Year End Holiday Tips v -
2019 Annual Report | PT Bank Central Asia Tbk 517
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Correspondence with OJK and IDX
BCA’s correspondence with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) is part
of the implementation with regards to GCG, particularly of the principles of transparency and accountability. The
correspondences BCA made with the two regulators are listed below:
Financial Services Authority (OJK)
Letter Date Letter No To Subject
January 14 2019 016/DIR/2019 Chief Executive of Capital Report on the Realization of Proceeds from
Market Supervisory Board Sustainable Bank Central Asia Subordinated Bond
Offering Phase I Year 2018 Series A and B as of
December 31, 2018
January 14 2019 017/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 018/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 019/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 020/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 021/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 022/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 023/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 024/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 025/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
January 14 2019 026/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
February 1 2019 10/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
February 1 2019 011/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
February 26 2019 024/DCS/2019 Financial Services Authority Submission of Proof of Announcement of Minutes
(OJK) of Annual General Meeting of Shareholders of
PT Bank Central Asia Tbk
February 28 2019 027/DCS/2019 Financial Services Authority Information Disclosure on Affiliate Transactions
(OJK)
March 1 2019 029/DCS/2019 Financial Services Authority Submission of Q4 2018 Financial Statements
(OJK) unaudited) of PT Bank Central Asia Tbk
(“BCA”)
March 1 2019 030/DCS/2019 Head of Bank 3 Supervision Submission of Q4 2018 Financial Statements
Department unaudited) of PT Bank Central Asia Tbk
(“BCA”)
March 4 2019 031/DCS/2019 Financial Services Authority Submission of Proof of Announcement of
(OJK) Consolidated Financial Statements of PT Bank
Central Asia Tbk and Subsidiaries as of December
31, 2018
March 13 2019 035/DCS/2019 Financial Services Authority Submission of Proof of Invitation for Annual
(OJK) General Meeting of Shareholders of PT Bank
Central Asia Tbk (BCA AGMS 2019)
March 13 2019 036/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Invitation for Annual
Department General Meeting of Shareholders of PT Bank
Central Asia Tbk (BCA AGMS 2019)
March 14 2019 039/DCS/2019 Financial Services Authority Information Disclosure on Affiliate Transactions
(OJK)
April 15 2019 052/DCS/2019 Financial Services Authority Submission of a Copy of Minutes of Meeting of
(OJK) PT Bank Central Asia Tbk (BCA) Annual General
Meeting of Shareholders
518 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Letter Date Letter No To Subject
April 15 2019 053/DCS/2019 Head of Bank 3 Supervision Submission of Copy of Minutes of Meeting of
Department PT Bank Central Asia Tbk (BCA) Annual General
Meeting of Shareholders
April15 2019 056/DCS/2019 Financial Services Authority Submission of Proof of Announcement of Summary
(OJK) of Minutes of Annual General Meeting of
Shareholders of PT Bank Central Asia Tbk
April 15 2019 057/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Announcement of Summary
Department of Minutes of Annual General Meeting of
Shareholders of PT Bank Central Asia Tbk
April 15 2019 059/DCS/2019 Financial Services Authority Information Disclosure on Affiliated Transaction
(OJK)
April 26 2019 063/DCS/2019 Financial Services Authority Submission of Proof of Announcement of Summary
(OJK) Minutes of Extraordinary General Meeting of
Shareholders of PT Bank Central Asia Tbk
April 26 2019 064/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Announcement of Summary
Department of Minutes of Extraordinary General Meeting of
Shareholders of PT Bank Central Asia Tbk
April 26 2019 065/DCS/2019 Financial Services Authority Submission of Proof of Announcement of Summary
(OJK) of Minutes of Extraordinary General Meeting of
Shareholders of PT Bank Central Asia Tbk
April 26 2019 066/DCS/2019 Head of Bank 3 Supervision Submission of Q1 2019 Financial Statement of PT
Department Bank Central Asia Tbk
(“BCA”)
April 26 2019 067/DCS/2019 Financial Services Authority Submission of Proof of Announcement of Summary
(OJK) of Consolidated Financial Statement of PT Bank
Central
Asia Tbk and subsidiaries as of March 31, 2019
April 26 2019 068/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Announcement of Summary
Department of Consolidated Financial Statement of PT Bank
Central Asia Tbk and Subsidiaries as of March 31,
2019
April 29 2019 072/DCS/2019 Financial Services Authority Submission of Proof of Publication for Acquisition
(OJK) Plan
May 13 2019 075/DCS/2019 Financial Services Authority Submission of a Copy of Deed Minutes of Meeting
(OJK) Annual General Meeting of Shareholders of PT
Bank Central Asia TBk (“BCA”) Financial Year 2018
May 13 2019 076/DCS/2019 Head of Bank 3 Supervision Submission of a Copy of Deed Minutes of Meeting
Department Annual General Meeting of Shareholders of PT
Bank Central Asia TBk (“BCA”) Financial Year 2018
May 13 2019 077/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 13 2019 079/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 15 2019 082/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 15 2019 083/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 15 2019 084/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 15 2019 085/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 15 2019 086/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 17 2019 093/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 17 2019 094/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 17 2019 095/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 2019 096/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 17 2019 097/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
2019 Annual Report | PT Bank Central Asia Tbk 519
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Letter Date Letter No To Subject
May 17 2019 098/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 17 2019 099/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 21 2019 106/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 22 2019 107/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
May 2019 135/DCS/2019 Financial Services Authority Submission of Proof of Invitation for Extraordinary
(OJK) General Meeting of Shareholders of
PT Bank Central Asia Tbk (EGMS 2019)
May 29 2019 136/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Invitation for Extraordinary
Department General Meeting of Shareholders of
PT Bank Central Asia Tbk (EGMS 2019)
Juny 24 2019 161/DCS/2019 Financial Services Authority Submission of Proof of Minutes of Meeting for
(OJK) Extraordinary General Meeting of Shareholders of
PT Bank Central Asia Tbk (EGMS 2019)
Juny 24 2019 162/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Minutes of Meeting for
Department Extraordinary General Meeting of Shareholders of
PT Bank Central Asia Tbk (EGMS 2019)
Juny 24 2019 163/DCS/2019 Financial Services Authority Information disclosure on affiliate transaction
(OJK)
July 2 2019 165/DCS/2019 Financial Services Authority Submission of Proof of Information Disclosure on
(OJK) Affiliated Transaction made by PT Bank Central
Asia Tbk
July 2 2019 167/DCS/2019 Financial Services Authority Submission of Copy of Deed of Minutes of Meeting
(OJK) of Extraordinary General Meeting of Shareholders
of PT Bank Central Asia Tbk (BCA)
July 2 2019 168/DCS/2019 Head of Bank 3 Supervision Submission of Copy of Deed of Minutes of Meeting
Department of Extraordinary General Meeting of Shareholders
of PT Bank Central Asia Tbk (BCA)
July 24 2019 173/DCS/2019 Financial Services Authority Information Disclosure on affiliate transaction
(OJK)
July 25 2019 178/DCS/2019 Financial Services Authority Submission of Copy of Deed of Minutes of Meeting
(OJK) of Extraordinary General Meeting of Shareholders
of PT Bank Central Asia Tbk (BCA)
July 25 2019 180/DCS/2019 Financial Services Authority Submission of Proof of Announcement of Summary
(OJK) of Consolidated Financial Statement of PT Bank
Central
July 25 2019 181/DCS/2019 Head of Bank 3 Supervision Submission of Proof of Announcement of Summary
Department of Consolidated Financial Statements of PT Bank
Central
August 6 2019 189/DCS/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
September 3 2019 489/DIR/2019 Financial Services Authority Notification on a Change in Corporate Secretary of
(OJK) PT Bank Central Asia (BCA)
November 4 2019 652/DIR/2019 Financial Services Authority Report on Material Information or Facts
(OJK)
November 7 2019 230/DIR/2019 Financial Services Authority Report on Affiliate Transaction
(OJK)
December 11 2019 246/DCS/2019 Financial Services Authority Report on Information or Material Facts
(OJK)
December 20 2019 774/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
December 20 2019 775/DIR/2019 Financial Services Authority Report of Ownership or Changes in Share
(OJK) Ownership of PT Bank Central Asia Tbk
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Indonesia Stock Exchange
Letter Date Letter No To Subject
February 22 2019 023/DCS/2019 PT Bursa Efek Indonesia (BEI) Explanatory Information in Mass Media
April 15 2019 055/DCS/2019 PT Bursa Efek Indonesia (BEI) Report and Announcement of Schedule and
Procedure of Cash Dividend Distribution for
Financial Year 2018 of PT Bank Central
Asia Tbk (BCA)
April 25 2019 061/DCS/2019 PT Bursa Efek Indonesia (BEI) Submission of Press Release on Information
Summary of Q1 2019 financial performance
(unaudited) of PT Bank Central Asia Tbk (BCA)
Juny 14 2019 155/DCS/2019 PT Bursa Efek Indonesia (BEI) Explanatory Information in Mass Media
July 24 2019 172/DCS/2019 PT Bursa Efek Indonesia (BEI) Submission of Press Release on Information
Summary of Q2 2019 Financial Performance
(unaudited) of PT Bank Central Asia Tbk (BCA
August 26 2019 194/DCS/2019 PT Bursa Efek Indonesia (BEI) Submission of Presentation Results of Issuer
and Press Conference on the Live Event Public
Expose 2019 - Presentation of Listed Companies
Performance (Pubex Live 2019)
August 27 2019 195/DCS/2019 PT Bursa Efek Indonesia (BEI) Unregistered Change in Shares of PT Bank Central
Asia Tbk (BCA)
September 10 2019 198/DCS/2019 PT Bursa Efek Indonesia (BEI) Response to the Unregistered Change in Shares
October 14 2019 210/DCS/2019 PT Bursa Efek Indonesia (BEI) Explanatory Information in Mass Media
October 28 2019 214/DCS/2019 PT Bursa Efek Indonesia (BEI) Submission of Press Release on Information
Summary of Q3 2019 Financial Performance
(unaudited) of PT Bank Central Asia Tbk (BCA)
November 29 2019 237/DCS/2019 PT Bursa Efek Indonesia (BEI) Report and Announcement of Schedule and
Procedure of Interim Dividend Distribution for
Financial Year 2019 of PT Bank Central Asia Tbk
(the Company)
Internal Communication The following are BCA’s internal media communication:
Internal communication plays a pivotal role in building
the character and culture of BCA, and the solidity of the 1. InfoBCA Magazine
working teams. Seamless, intensive and effective internal InfoBCA magazine is an internal monthly magazine
communication in disseminating company information that serves as media for education, socialization,
will accelerate work processes and mechanisms across entertainment and a tool to share knowledge
all of the BCA’s lines, giving positive impacts on overall and experiences, activities within BCA for all
performance. employees. InfoBCA magazine contains company
information, banking products, banking services,
The content of information and media communication networking, internal programs, awards, technology,
are the keys to the success of internal communication. management, and other useful information for
Both will complement each other, providing employees. InfoBCA magazine is published in both
comprehensible information that is, convenient for printed and e-magazine versions (which can be
employees to follow up. downloaded from MyBCA internal portal).
2. MyBCA
With a relatively huge headcount spread across MyBCA is an internet-based internal communication
Indonesia, effective internal communication serves system. The internet network can only be accessed
the BCA as key to achieve its vision and mission. This by internal parties by using the facilities provided
is why BCA recognizes the needs to devise a proper by BCA. MyBCA is managed by the Information
internal communications strategy aimed at creating a Technology Group, in accordance with public
harmonious relationship with all employees. relations aspects and other work units in the head
office. It serves as a tool to convey BCA information,
business unit programs, socialization of banking
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
products, services, learning, and various other 7. Corporate Identity Manual
important information. MyBCA has been developed An internal guide or a set of standards for BCA’s
for its online employment information and internal, especially in the use of the corporate logo,
administration services, including healthcare fees, how the logo is used in different forms, and other
leave request, overtime, business trips, employee corporate materials.
data, compensation, appraisals and others. 8. Facebook Semua Beres
3. Plasma TV BCA uses Facebook as a means of internal
Plasma TV is an internal media communication communication under the Semua Beres Facebook
installed at strategic places within the building account. Subscribed employees are connected
or other premises in BCA offices. This audio visual to one another and can share information and
media contains information regarding BCA, its experiences.
banking products and services, work unit activities, 9. Halo SDM
and other important information. A call center facility for employees which serves as
4. E-mail a communication bridge for all information about
BCA adopts an emailing system for its internal media provisions enacted on human resources The facility
communication. Another internal communication provides an opportunity for every employee to
built through the email system includes a know better, understand and comply with BCA’s
management communication forum. internal rules.
5. Microsoft Lync
Through the Microsoft Lync facility, BCA’s employees
can send data or information via PC (personal
computer) and communicate with each other
similar to chatting features on modern gadgets.
The Microsoft Lync facility is very useful for urgent
matters, because incoming messages directly appear
on the screen along with the incoming message
alert. Other than that, the facility can also be used
to transmit large files and data.
6. Internal Events
Internal communication is also built through various
internal events, such as:
a. BCA anniversary celebrations;
b. Lunch time with the Management;
c. Gatherings, i.e. the celebrations of Christmas/
New Year and Eid al-Fitr and annual gatherings/
recreations, pre-retirement events for retiring
employees, and others;
d. National work meeting;
e. Bakorseni (arts, sport-related);
f. Sessions of knowledge sharing i.e. COP
(community of practice) activities, BCA Open
Source, etc.
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CODE OF ETHICS 6. Build and maintain a harmonious working
environment and healthy competition.
The BCA’s Code of Ethics is an elaboration of BCA’s 7. To not abuse position and powers for personal or
culture formulated based on positive values that grow family interests.
and develop within BCA employees. It is carried out to 8. To not commit any misconduct that may be harmful
achieve the vision and mission that has been set. to the professional image and reputation of the
company in general.
The BCA’s Code of Ethics serves as guidance for BCA 9. To avoid any forms of gambling or speculation.
employees to make decisions and take action in 10. Constantly build knowledge and broaden horizons
professionally carrying out their daily duties and by keeping abreast of developments in the banking
responsibilities. It provides guidelines for what is industry in particular and the business world in
expected of BCA employees in relation to customers, general.
shareholders, other employees, suppliers/partners,
government and the communities where the company Enforcement of Code of Ethics
operates. The BCA’s Code of Ethics is enforced on all BCA employees
members of the Board of Directors, members of the
Any decision and action taken by employees in Board of Commissioners and BCA employees.
representing BCA is required to meet the highest
standards of integrity, even if these standards are Socialization
not covered by the prevailing laws and regulations in Pursuant to the Board of Directors Decree Letter No.
Indonesia. 778/SK/DIR/95 on Code of Ethics for BCA Bankers, this
Code of Ethics applies to members of the Board of
The implementation and application of the Code of Directors, members of the Board of Commissioners, and
Ethics is the responsibility of all BCA employees across BCA employees. The initiatives taken to socialize the
all levels of the organization, and serves as one of Code of Ethics include:
BCA’s commitments in implementing Good Corporate 1. Providing BCA’s Code of Ethics in a pocketbook to
Governance. be distributed to all BCA employees. Employees
should sign a statement stating they understand
The main principles in the BCA’s Code of Ethics are: and promise to comply with and implement BCA’s
1. Professionalism. Code of Ethics as guidance for their conduct and
2. Integrity. behavior, both inside and outside the workplace.
3. Excellent team. In line with the policy to implement BCA’
4. Prime service. whistleblowing system as stipulated in the Board of
5. Social care. Directors Decree Letter No. 146/SK/DIR/2017 dated
November 1, 2017, violations of the code may be
Core of BCA’s Code of Ethics subject to reports in the whistleblowing mechanism.
The core of the BCA’s Code of Ethics comprises: 2. Publishing the BCA’s Code of Ethics on BCA’s internal
1. Comply with prevailing laws and regulations. website portal (MyBCA), Corporate Governance
2. Maintain reputation of the bank and safeguard Guideline under chapter BCA’s Code of Ethics,
corporate assets. and BCA’s website under the section Corporate
3. Maintain the confidentiality of the bank and Governance.
customer data. 3. Facilitating discussions regarding the Code of Ethics,
4. Ensure no conflict between personal interests and among others regarding the bank’s confidentiality,
bank or customer interests. position confidentiality, fraud and other matters
5. Accurately record all transactions according to through sharing sessions or COP (community of
applicable policies. practice) within each division/working unit at BCA.
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Code of Ethics Related to Anti-Corruption Code of Ethics Related to Vendors
BCA complies with the Anti-Corruption regulations In performing their duties, BCA employees often work
to ensure its business activities are in line with with vendors. Therefore, BCA employees will need
the principles of prudence and Good Corporate to observe the Code of Ethics that relates to vendors,
Governance. BCA employees are committed to create a including:
culture of anti-corruption in all aspects of their work.
The fulfilment of such commitment is reflected in 1. In carrying out their duties, all BCA employees must
policies and implementations. maintain the reputation of BCA, including but not
limited to:
Anti-Corruption Policies a. Maintaining self-appearance and behavior
Anti-Corruption policies in the BCA’s Code of Ethics with good ethics and manners (actions and
include: words).
1. Ensure no conflict between personal interests and b. Not compromising excessively during vendor
customer or BCA’s interests. pre-qualifications and vendor bill verification.
2. To not abuse position and powers for personal or c. Avoiding meetings that will influence
family interests. decisions related to the employees’ duties and
3. To not commit any misconduct that may be harmful responsibilities.
to the professional image and the reputation of the 2. Avoiding situations when vendors’ behavior leads
company in general. to personal gain and/or create harm to BCA.
3. Maintaining the confidentiality of BCA and vendor
Implementation Procedures data obtained while performing duties and not
Procedures to implement Anti-Corruption policies and using them for personal gain.
culture can be found in: 4. Proactively providing information to the
1. Whistleblowing System Policy (detailed information Management or the authorities of any family
can be viewed in section Whistleblowing System relationship or affiliation with vendors that may
page 495-497 of this Annual Report). potentially influence objectivity in carrying out
2. Code of Ethics related to Vendors tasks.
3. Anti-Gratuity Policy (detailed information can be 5. Not taking any profit from vendor’s mistakes.
viewed in section Anti-Gratuity page 498 of this 6. Neither asking for nor receiving any form of money/
Annual Report) gift/parcel/services and not binding on any debt
4. Conflict of Interest Policy (detailed information can transactions.
be viewed in section Affiliated Transactions And 7. Oblige to return all forms of money/gift/parcel/
Conflict of Interests page 499-503 of this Annual services in line with prevailing regulations and
Report). proving such returns with a letter signed by the
5. Annual Disclosure (detailed information can be work unit head and a receipt for the return of
viewed in section Internalization page 320 of this goods.
Annual Report). 8. Always preventing the existence of conflict of
interest in dealing with vendors.
BCA implements the internalization of Anti-Corruption
values through sharing sessions, socialization, articles In procuring goods and/or services, the working unit
posted in the internal website portal, plasma TV, Info must apply Good Corporate Governance principles. To
BCA magazine and other internal communications implement the principle of transparency, procurement
media. of goods/services must comply with the following:
1. Ensuring that requirements, authority, and process
of procurement are in line with prevailing internal
and external policies.
524 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
2. The BCA’s procurement policy comprises the Enforcement and Sanctions for Violation of Code of
mechanism of procurement of goods and/or services Ethics
related to information technology and provisions 1. The policy and Code of Ethics are binding in
of procurement of logistics and buildings. nature and must be understood and implemented
3. The logistics and building goods/services wholeheartedly by all BCA employees, to support
procurement procedure is preceded with analysis, the fulfilment of Good Corporate Governance
which covers the preparation of documents, price principles.
quotation, price review and analysis, announcement 2. In the event of a violation or non-compliance with
and issuance of cooperation agreement. provisions in the BCA’s policy and Code of Ethics,
4. The procedure of goods/services procurement the offender is subject to sanctions according to
related to technology comprises, among others, the severity of the wrongdoing. Any decision on
conduct trial and end user computing, implementing this matter shall be made by BCA according to the
multi principal/multi-vendor/multi brand, etc. type and severity of the violation and based on a
5. Main policies of goods/services procurement can be comprehensive evaluation of the individual who
downloaded on the BCA’s website under Corporate committed misconduct.
Governance – Policies/Reports.
6. BCA pays attention to the professionalism and Types of Sanctions for ever Violations
credibility of vendors. Violations of the Code of Ethic are subject to sanctions in
accordance with the severity of the violation. Sanctions
Through 2019, BCA performed the procurement and/ are stipulated in the Collective Labor Agreement,
or appointment process of vendor/supplier/contractor including main sanctions and additional sanctions.
in accordance with the internal policies related to Main sanctions can be in the form of a verbal warning,
procurement of goods/services/information technology a written reprimand, written warning, demotion or
and other regulations. termination. Additional sanctions can be given in the
form of job transfer (rotation), promotion delay, salary
increase delay, revocation of facilities attached to the
offender’s office, dismissal, or other sanctions in line
with the prevailing laws.
Type of Sanctions, Total and Status of Resolution on Code of Ethics Violation in 2019
In 2019, Code of Ethics violations occurred in a total of 800 (eight hundred) cases, with summary as follows:
Year Type of Sanction Total Status of Resolution
2019 Warning Letter I 764 Resolved
Warning Letter II 28 Resolved
Warning Letter III 8 Resolved
The number of cases of violations of the Code of Ethics in 2019 has increased from 2018 due to procedural errors or
reimbursement mechanisms for retirement preparation training facilities. This problem has been resolved and has
been processed in accordance with applicable internal provisions
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
CORPORATE CULTURE Understanding the BCA’s Mission:
1. Building an excellence institution in payment
BCA’s corporate culture consists of its Vision, Mission settlement and financial solutions for businesses
and Values. BCA’s Vision and Mission are set to provide and individuals, meaning that BCA builds excellence
a foundation, direction and guidance for all BCA in all forms of payment, including all payment
employees in carrying out their business activities. activities in the banking business.
BCA Values are then applied as a moral guide for all 2. Understanding diverse customer needs and providing
employees in carrying out the Mission and achieving the the right financial services to optimize customer
Vision. satisfaction, meaning that BCA understands various
customer needs comprehensively in accordance
The Vision, Mission and Values of BCA are as follows: with the customers’ needs.
3. Enhancing the BCA’s franchise and stakeholder
BCA Vision value has a broad meaning that includes the totality
The bank of choice and a major pillar of the Indonesian of BCA values both tangible and intangible. Value
economy. for stakeholders reflects the flexibility of BCA in
accommodating the interests of various parties.
BCA Mission
s 4O BUILD AN EXCELLENCE INSTITUTION IN PAYMENT Socialization of Vision, Mission and Values
settlements and financial solutions for businesses The Vision, Mission and Values socialization program is
and individuals. carried out in the following ways:
s 4O UNDERSTAND DIVERSE CUSTOMER NEEDS AND PROVIDE 1. Socialization involving all work units and all BCA
the right financial services to optimize customer employees, such as COP, team sharing sessions, and
satisfaction. weekly briefings.
s 4O ENHANCE THE VALUE OF "#!S FRANCHISE AND ITS 2. Coordination meetings or quality meetings for all
stakeholder. BCA’s regional offices.
3. Career development programs such as management
BCA Values development programs or manager development
1. Customer Focus programs, special forums such as account officer
Paying attention to, understanding, and providing forums, and special groups such as project
services to meet customers’ specific expectations management offices.
and/or needs. 4. Video on the BCA’s internal portal.
2. Integrity 5. E-learning.
Persistence in upholding honesty, openness, and 6. BCA Info magazine (internal monthly magazine).
consistency in carrying out roles/duties in various 7. Employees’ PC screen saver and mouse pad.
situations and conditions to build customer trust. 8. Internal training.
3. Teamwork 9. Internal culture video clip.
Interaction and synergy based on understanding of 10. BCA Handbook.
the self and others to reach organizational goals. 11. Comic books that are distributed to all employees.
4. Continuous Pursuit of Excellence 12. Games.
Continuous efforts to achieve the best in order to 13. Other media.
provide added value to customers.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Introduction of Corporate Culture for New Employee OTHER CORPORATE ACTIONS
An introduction to BCA’s corporate culture is provided In 2019, BCA conducted other corporate actions with
through an induction program for all new employees the following details:
featuring the introduction of BCA’s Vision, Mission and
Values. Games are among the most effective ways to 1. Disclosure of 2019 Action Plan
introduce them to new employees, who are generations s )N ACCORDANCE WITH !RTICLE OF /*+ 2EGULATION
Y and Z. No. 14/POJK.03/2017 concerning Recovery Plan
for Systemic Banks, BCA as a systemic bank is
The current Vision and Mission of BCA was evaluated by required to draw up and submit the recovery
the Management in 2014. They remain in line with the plan to the OJK.
strategic direction of BCA. s 4HE !'-3 APPROVED THE AMENDMENT TO
the BCA recovery plan in the 2019 BCA recovery
STOCK OPTIONS plan, as recorded in the administration of
During 2019, BCA did not hold a stock options program. OJK supervision based on OJK letter No. S-21/
PB.3/2019 dated 8 March 2019 concerning the
SHARES BUY BACK 2019 Recovery Plan of PT Bank Central Asia
During 2019, BCA did not hold a shares buy back Tbk.
program. s 4HE RECOVERY OPTION FOR THE RECOVERY PLAN WAS
compiled based on four major aspects: recovery
options for the aspects of financing, liquidity,
rentability, and quality of assets.
2. Disclosure of Acquisition of PT Bank Royal Indonesia
In 2019 BCA acquired PT Bank Royal Indonesia. The acquisition was approved at the 2019 EGMS and publication
has been made with the following description:
Disclosure of information/
Date Description:
publication
26 April 2019 s 4HE *AKARTA 0OST s !NNOUNCEMENT OF A SUMMARY OF THE ACQUISITION PLAN AND THE
s "ISNIS )NDONESIA announcement of the 2019 EGMS
s %KONOMI .ERACA $AILY s !NNOUNCEMENT OF THE %'-3 CAN BE DOWNLOADED IN THE CORPORATE
Newspaper. action section on the BCA website (https://www.bca.co.id/).
s "#! 7EBSITE s !NNOUNCEMENT OF THE SUMMARY OF THE ACQUISITION PLAN CAN BE
downloaded in the investor news section on the BCA website (https://
www.bca.co.id/).
29 May 2019 s 4HE *AKARTA 0OST s )NVITATIONS OF THE %'-3 WITH THE APPROVAL MEETING ON THE PLAN TO
s "ISNIS )NDONESIA acquire shares in PT Bank Royal Indonesia by BCA as the agenda.
s "#! 7EBSITE s )NVITATIONS FOR THE %'-3 CAN BE DOWNLOADED IN THE CORPORATE
action section on the BCA website (https://www.bca.co.id/).
20 June 2019 Complying to the Implementation of the 2019 EGMS at the Grand Ballroom, Hotel
provisions on the Indonesia Kempinski, 11th Floor, Jl. M.H. Thamrin No. 1, Jakarta 10310 in
publication of the EGMS which the agenda was: approval of the plan to acquire shares in PT Bank
implementation. Royal Indonesia by BCA.
20 June 2019 Website BCA s !NNOUNCEMENT OF THE SUMMARY OF THE MINUTES OF THE %'-3
s !NNOUNCEMENT OF THE SUMMARY OF THE MINUTES OF THE %'-3 CAN BE
24 June 2019 s 4HE *AKARTA 0OST
downloaded in the corporate action section on the BCA website (https://
s "ISNIS )NDONESIA
www.bca.co.id/).
s 7EBSITE "#!
31 October BCA Website Notification to the OJK that on 31 October 2019, the deed of acquisition has
2019 been executed in order to settle the acquisition of PT Bank Royal Indonesia
transaction.
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Based on the resolutions of the 2019 EGMS related On October 31, 2019, the acquisition of PT Bank
to the agenda of approval of the plan for the Royal Indonesia (Bank Royal) was completed by
acquisition of shares in PT Bank Royal Indonesia by BCA and PT BCA Finance (BCA Finance) (Buyers)
BCA, essentially decided the following: from Bank Royal’s shareholders (Sellers) based on
s !PPROVING THE ACQUISITION PLAN the conditional stock sale and purchase agreement
s !PPROVING THE ACQUISITION DEED CONCEPT dated April 16, 2019 between Buyers and Sellers, as
s !PPROVING "#! ACTION TO PURCHASE SHARES OF 04 amended from time to time (PPJB).
Bank Royal Indonesia;
s 'RANTING THE POWER AND AUTHORIZATION TO Relationship Between the Transacting Parties
the Board of Directors of BCA to implement BCA Finance is a controlled subsidiary that has
the acquisition of shares of PT Bank Royal all of its shares owned by BCA (both directly and
Indonesia. indirectly). The Buyers and Sellers do not have
affiliation relations based on the capital market’s
The acquisition plan will be implemented with the prevailing laws and regulations.
following conditions:
s "#! WILL BUY SHARES FROM THE Therefore, the transaction is not subject to
shareholders of PT Bank Royal Indonesia Bapepam-LK Regulation No. IX.E.1 on Affiliated
representing 99.99% of the total shares that Transactions and Conflicts of Interest of Certain
have been issued and paid up in PT Bank Royal Transactions, Attachment to the Decree of the
Indonesia. Chairman of Bapepam-LK No. KEP-412/BL/2009
s "#! &INANCE WHICH IS A CONTROLLED SUBSIDIARY dated November 25, 2009.
of BCA, will buy one share from PT Royalindo
Investa Wijaya, representing 0.01% of the total Transaction Value
shares that have been issued and paid up in PT A. In accordance with the provisions in the PPJB
Bank Royal Indonesia. and as stated in the deed of acquisition, the
Buyers purchased 2,872,000 shares of Bank
The acquisition plan will be funded through BCA’s Royal, representing all the capital that had
own capital from funds reserved as retained been issued and paid up by the Sellers in Bank
earnings. In this case, BCA also states and guarantees Royal. Accordingly, the current share ownership
that the acquisition funding does not come from composition in Bank Royal is as follows:
the following:
s .OT ORIGINATING FROM LOANS OR lNANCING Number of
Name Nominal Amount
Shares
facilities in any form from a bank or other
BCA 2,871,999 287,199,000,000
party in Indonesia;
BCA Finance 1 1,000,000
s .OT ORIGINATING FROM AND FOR THE PURPOSE OF
money laundering as stipulated in Law No. 8 B. The acquisition amounted to
of 2010 on the Prevention and Eradication of Rp988,046,957,182.00. (nine hundred eighty
Money Laundering Crimes; eight billion forty six million nine hundred fifty
s .OT ORIGINATING FROM BANKING FELONIES seven thousand and one hundred eighty two
s .OT ORIGINATING FROM OTHER FELONIES Rupiah).
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
C. The transaction is not a Material Transaction based on Bapepam-LK Regulation No. IX.E.2 on Material
Transactions and Changes in Main Business Activities, Attachment to the Decree of the Chairman of
Bapepam-LK No. KEP-614/BL/2011 dated November 28, 2011.
3. Disclosure of the Acquisition Plan of PT Bank Rabobank International Indonesia
On December 11, 2019, BCA executed the Conditional Share Sale and Purchase Agreement for the purpose of
purchasing all shares of PT Bank Rabobank International Indonesia, with the following description.
Parties s "UYERS
BCA and PT BCA Finance.
s 3ELLERS
Cooperative of Rabobank UA, PT Aditirta Suryasentosa, PT Antarindo Optima, PT Antariksabuana
Citanagara, and PT Mitra Usaha Kencana Sejati.
Transaction Plan Based on the Agreement, the Buyers will purchase 3,719,070 shares of Rabobank Indonesia representing
all issued and paid up capital of the Sellers in Rabobank Indonesia
Transaction The estimated value of the transaction plan is Rp397 billion, and this value will be adjusted by
Value calculating Rabobank Indonesia’s income or loss on the date of the completion of the transaction plan
(transaction closing).
Following up the matter, BCA has carried out information disclosure to OJK, IDX, and public through the
regulators electronic reporting and BCA website on April 11, 2019.
PROVISION OF FUND TO RELATED PARTY AND The Lending Policy for Board of Directors and Board of
LARGE EXPOSURE Commissioners, among others, regulates that:
- Ensuring Loans to the Board Directors and the
Disclosure regarding provision of fund to Related Parties Board of Commissioners are disbursed based on
(individuals or groups, including Board of Directors, fairness principle or arm’s length basis and
Board of Commissioners, Executive Officers of the - Loans are given at market interest rates;
Bank, as well as other related parties) and provision Thus, in their implementation they must meet the
of large exposure refers to OJK Circular Letter No. 13/ following provisions:
SEOJK.03/2017 concerning the Implementation of s 0ROVISION OF FUNDS TO RELATED PARTIES SHALL NOT
Governance for Commercial Banks under the section the conflict with the general lending regulations and
Implementation of Governance Transparency. procedures and must generate reasonable profits
for BCA.
Lending Policy to Board of Directors and Board of s 4HE CREDIT TERMS TO RELATED PARTIES POLICY PARTICULARLY
Commissioners in regard to credit interest rated and the form or
BCA has policies related to loans for the Board of type of loan will be in accordance with the BCA’s
Directors and Board of Commissioners, which are general credit regulation.
regulated in:
s #REDIT PROVISION GUIDANCE FOR 3-%S COMMERCIALS Especially for material affiliated transactions that have
corporates, and consumers; the potential to contain conflict of interests, will be
s 0OLICY REGARDING CREDIT APPROVAL MECHANISM TO reviewed / examined first by the Audit Committee and
Related Parties; and reported to the Board of Commissioners.
s 4HE "ASIC "ANK ,ENDING 0OLICY 04 "#! 4BK +$0"
issued on July 22, 2019 (hereinafter referred to
as “The Lending Policy for Board of Directors and
Board of Commissioners”).
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Policy on Provisions of Fund to Related Parties The provision of funds to related parties must also be
Provision of funds to related parties and to debtors in decided by the credit committee officer.
large exposure are always carried out with due regard
to the prudence principle, through a review process and During 2019, BCA implemented a policy of provision
mechanism in accordance with BCA policies and fulfilling funds to related parties, large exposure, and to the
the OJK provisions and prevailing laws and regulations, Board of Directors and the Board of Commissioners in
including but not limited to the legal lending limit (LLL). accordance with prevailing regulations.
Provision of Funds to Related Parties and to Main Debtors individuals, and Group (Large Exposure) at BCA during
2019:
Total
Funds Provisioned Nominal
Debtor
(Million Rp)
To Related Parties 512 6,832,021
To Main Debtors:
50 128,490,641
a. Individu
b. Group 30 181,412,374
Detailed information on related party transactions can be viewed in the Financial Report Section 48 Page 733-738 of
this Annual Report.
STRATEGIC PLAN TRANSPARENCY OF BCA FINANCIAL AND
NON-FINANCIAL CONDITIONS UNDISCLOSED
The Board of Commissioners and Board of Directors IN OTHER REPORTS
continue to build active communication in aligning
their views with BCA’s business strategy in the banking BCA has policies and procedures regarding the
sector. The Board of Directors directs the company in procedures for implementing transparency in financial
maintaining business continuity by prioritizing strategic and non-financial conditions in accordance with
goals. The Board of Directors has a process to review, prevailing regulations. Information on BCA’s financial
monitor and supervise the implementation of the condition has been stated clearly and transparently in
BCA’s strategy in accordance with internal policies and a number of reports, both through printed media and
regulatory provisions. BCA’s website, including the following:
Detailed information regarding the exposure of the Transparency of Financial Conditions
BCA’s Strategic Plan is as stated on page 286-288 Chapter 1. Annual Report
Strategic Prospects and Priorities in this Annual Report. a. Highlights of important financial data including
an overview of shares, Board of Commissioners
reports, Board of Directors reports, company
profile, management discussion and analysis on
business and financial performance, corporate
governance, corporate social responsibility and
sustainable finance.
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b. Annual Financial Statements audited by a Transparency of Non-Financial Conditions
Public Accountant and a Public Accountant BCA has provided clear, accurate and up-to-date
Firm registered in OJK. The Annual Financial information about its products and services. Such
Statement is prepared for 1 (one) financial information can be obtained easily by customers,
year and is presented in comparison with 1 including in leaflets, brochures or other written forms
(one) previous financial year, as well as the at each BCA branch office in locations easily accessed by
beginning of the previous comparative year. customers, and/or in the form of electronic information
c. Accountability Statement of the Board provided through a hotline service/call center or BCA
of Commissioners and Board of Directors website.
verifying the contents of the Annual Report.
This is delivered in a statement letter bearing Additionally, BCA also provides and informs customers
the signatures of all members of the Board of regarding procedures for customer complaints and
Commissioners and Board of Directors. dispute resolution, in accordance with regulatory
d. In accordance with OJK Regulation No. 32/ provisions concerning customer complaints and banking
POJK.03/2016 dated August 8, 2016 concerning mediation.
Amendments to the OJK Regulation No. 6/
POJK.03/2015 concerning Transparency In connection with the above mentioned, BCA has taken
and Publication of Bank Reports, and OJK the following actions:
Regulation No. 29/POJK.04/2016 concerning 1. Transparently published financial and non-financial
Annual Reports of Issuers or Public Companies, conditions to stakeholders, including Periodic
BCA has submitted its Annual Report to the Financial Statements, Routine Legal Lending Limit
OJK and shareholders. Report to OJK, Quarterly Published Financial
e. The Annual Report (financial and non- Reports, Governance Implementation Report,
financial) and BCA’s Financial are posted on Analyst Meeting, Press Conference, Public Expose
BCA’s website - www.bca.co.id and published and Road Show, and published them on Quarterly
in widely circulated Indonesian newspapers. Published Reports BCA’s website in accordance with
2. Quarterly Published Report prevailing regulations.
a. BCA has announced its Quarterly Published 2. Prepared and presented the report according to
Reports in accordance with the prevailing OJK procedure, type and scope as stipulated in Bank
Regulation in newspapers and its website. Indonesia regulations concerning Transparency of
b. The consolidation of BCA and its subsidiaries Bank’s Financial Condition.
is carried out in 2 (two) newspapers and the 3. Published BCA product information in accordance
financial statements of the BCA parent entity with Bank Indonesia/Financial Services Authority
are published in 1 (one) newspaper. The regulations regarding Transparency of Bank Product
selected newspapers are printed daily in the Information and Use of Customer Personal Data.
Indonesian language with a wide circulation in 4. Provided procedures for customer complaints and
the domicile of the BCA head office. Quarterly dispute resolution for customers in accordance
Published Financial Reports are signed by the with Bank Indonesia/Financial Services Authority
President Director and 1 (one) member of the regulations governing Customer Complaints and
Board of Directors of BCA. Banking Mediation, such as through the BCA
c. Quarterly Published Reports on the BCA’s website - www.bca.co.id.
website, in the form of Financial Report and 5. Submitted Annual Report to Bank Indonesia/
other reports, are maintained for at least the Financial Services Authority, regulators and other
last 5 (five) financial years. institutions as required or deemed necessary to
3. Monthly Published Reports obtain them.
BCA publishes its Monthly Published Reports in
accordance with the prevailing OJK Regulation
concerning BCA’s website.
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6. Disclosed the Ownership Transparency Structure in Guarantor
the Annual Report and the BCA website. On August 30, 2019, BCA established a special work
7. Compiled internal reports that have been carried unit, the Sustainable Financial Aspect, Environmental
out completely, accurately, and in a timely Sustainability Governance (ESG) Sub-Division. This Sub-
manner, supported by an adequate Management Division is under the responsibility of the Secretariat and
Information System. Corporate Communication Division, and supervised by
8. Provided a reliable BCA management information the Director of Planning and Finance.
system supported by competent human resources
and an adequate IT security system capable The main duty of this work unit is to develop and
of providing complete, accurate and timely implement a sustainable financial culture in an
information to the Board of Directors in supporting appropriate and proper manner in various aspects of
BCA’s business decision making processes. Access to the organization, which will enable it to support BCA’s
information has also been secured by using user-ID sustainability.
and password.
Competency Development for Financial
Sustainability Guarantor
SUSTAINABILITY GOVERNANCE BCA continues to conduct competency development in
a continuous manner to improve the quality of human
BCA is committed to Implement sustainable governance resources, particularly the financial sustainability
pursuant to OJK Regulation No. 51/POJK.03/2017 guarantor team. In terms of competency development
concerning Implementation of Sustainable Finance for the implementation of the referred OJK Regulation
for Financial Services Institutions, Issuers, and Public in 2019, BCA organized the following competency
Companies. In compliance with the regulation, BCA development:
submitted its 2019-2023 Sustainable Finance Action
Plan (RAKB) on November 29, 2019 to the OJK. The
RAKB preparation was conducted involving several
parties, among others the business unit, the credit risk
analysis unit, risk management unit, and the corporate
secretariat and compliance unit.
Date Participants Theme Organizer Location
4 October 2019 Board of Commissioners Overview and Update of POJK BCA and consultant Jakarta,
Board of Directors No. 51/POJK.03/2017 on the Indonesia
Work units directly Implementation of Sustainable
related to sustainable Finance for Financial Services
financing Institutions, Issuers, and Public
Companies.
19 November 2019 All unit heads at the Overview and Update of POJK BCA and consultant Jakarta,
head office No. 51/POJK.03/2017 on the Indonesia
Additional one Implementation of Sustainable
participant from every Finance for Financial Services
work unit at the head Institutions, Issuers, and Public
office Companies.
Representatives of
subsidiaries.
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RAKB Follow Up B. BCA Synergy Solutions:
To ensure the accomplishment of the RAKB, BCA compiled 1. Bakti BCA on Culture
a monitoring and evaluation system to oversee the 2. Bakti BCA on Health
effectiveness of the implementation and achievement 3. Bakti BCA on Environment
of the action program, including actions that must be 4. Bakti BCA on Sports
carried out in case there are issues in implementation 5. Bakti BCA Empathy - Donation to natural
and achievement, both in the short term and in the long disaster victims and sports programs.
term, which include: C. Excellent Business Solutions:
s %MPLOYEES OFlCIALS ANDOR WORK UNITS IN CHARGE OF 1. Tourism village Development
monitoring and evaluation. 2. Community Development
s -ONITORING AND EVALUATION MECHANISMS 3. MSMEs Development.
including methods and phases, such as the time Other than the abovementioned programs, BCA also
determination to measure the realization of RAKB, take part in making donations to other social institutions.
namely monitoring the realization that will be Complete information on BCA’s social activities and
assessed quarterly/every semester/annually through total funding for social activities in 2019 is listed in the
the financing portfolio improvement report on Corporate Social Responsibility chapter in this 2019 BCA
sustainable business activities, internal capacity Annual Report.
improvement report, and others
s &OLLOW UP OF THE 2!+"
s -ITIGATION OF RISKS IN THE EVENT THAT THE 2!+" PROVISION OF FUNDS FOR POLITICAL
cannot be implemented properly or does not ACTIVITIES
accomplish the established objectives. Throughout 2019, and in previous years, BCA has never
made any donations for political activities.
PROVISION OF FUNDS FOR SOCIAL ACTIVITIES
BCA actively contributes towards the improvement
of people’s welfare and the environmental conditions
through its corporate social responsibility (CSR) activities
under the Bakti BCA program.
Bakti BCA is focused on 3 (three) primary pillars:
A. BCA Smart Solutions:
1. Non-Degree Accounting Education Program
(PPA)
2. Non-Degree Informatics Engineering Education
Program (PPTI)
3. Bakti BCA Internship Program
4. Bakti BCA Partner Schools
5. Bakti BCA Scholarship
6. Financial Literacy Education
7. Educational Partnerships.
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IMPLEMENTATION OF INTEGRATED Based on the Decision Letter of the Board of
GOVERNANCE Commissioners No. 037/SK/KOM/2015 concerning the
In implementing Integrated Governance for the Financial Establishment of the Integrated Governance Committee
Conglomerate, BCA refers to : dated 26 February 2016, BCA established the Integrated
- POJK No. 18/POJK.03/2014 concerning Governance Committee with duties and responsibilities
Implementation of Integrated Governance for referred to in the Integrated Governance Committee
Financial Conglomerate, dated 18 November 2014 structure of the Group, as well as referring to Article 7
( “POJK No. 18/POJK.03/2014”); and of POJK No. 18/ POJK.03/2014, BCA, as the main entity, is
- SEOJK No. 15/SEOJK.03/2015 concerning required to implement integrated governance.
Implementation of Integrated Governance for
Financial Conglomerate, dated 25 May 2015 ( In relation to the implementation of integrated
“SEOJK No. 15/SEOJK.03/2015”). governance, BCA has reports to the OJK through the
Letter of the Board of Directors No. 055/DIR/2015 on the
BCA has applied Integrated Governance by implementing Submission of Report regarding the Main Entity and FSI
the following principles: that are Members of the BCA’s Financial Conglomerate.
1. Transparency, namely transparency in disclosing
material and relevant information, as well as The implementation of the above stated Integrated
transparency in implementing the decision-making Governance includes:
process. a. Requirements of the Board of Directors of the main
2. Accountability, namely the clarity of function entity and Board of Commissioners of the main
and implementation of responsibility of organs entity.
in the Financial Conglomerate to ensure effective b. Duties and responsibilities of the Board of
management. Commissioners and Directors.
3. Responsibility, namely the conformity of c. Duties and responsibilities of the Integrated
management between the Main Entity and FSI Governance Committee
with the laws and regulations as well as sound d. Duties and responsibilities of the Integrated
management principles Compliance Unit.
4. Independence or professional, namely the e. Duties and responsibilities of the Integrated Internal
management of the Financial Conglomerate in Audit Unit.
a professional manner without any influence or f. Implementation of a Risk Management
pressure from any party. g. Formulation and implementation of the Integrated
5. Fairness, namely justice and equality in fulfilling Governance Guideline.
stakeholder rights that arise based on the
agreement and prevailing laws and regulations. Requirements of Main Entity’s Board of
Commissioners and Board of Directors
Pursuant to Article 2 and Article 3 of OJK Regulation 1. Requirements for candidates of members of the
No. 18/ POJK.03/2014, a Financial Conglomerate must Board of Commissioners of the Main Entity
implement Integrated Governance in a comprehensive a. Possess knowledge regarding the Main
and effective manner, and have a structure consisting Entity and the Subsidiaries in the Financial
of the Main Entity and Subsidiary and/or Company Conglomerate. Knowledge refers to the
Affiliated, including its subsidiaries. The Financial understanding of the main business activities
Conglomerate includes Financial Services Institutions, and main risks of the subsidiaries in the
such as banks, insurance and reinsurance companies, Financial Conglomerate.
listed companies, and/or financing companies. b. Meet the requirements as referred to in the
OJK Regulation that regulates the Board of
Directors and Board of Commissioners of
Issuers or Public Companies:
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1) Having a good character, morality, and 1) Integrity, including:
integrity. a. Competent in conducting legal
2) Competent in conducting legal actions. actions.
3) Within five years prior to the appointment b. Having good character and morals,
and during service: at least shown by the attitude of
a) Never been declared bankrupt; abiding by the prevailing provisions,
b) Never become a member of the including never been penalized for
Board of Directors and/or Board convicted of committing crimes in a
of Commissioners found guilty of certain period prior to nomination.
causing a company to be declared c. Having commitment to comply with
bankrupt; laws and regulations and to support
c) Never been sanctioned for committing OJK policies.
a crime that is detrimental to state d. Having the commitment for sound
finances and/or related to the Financial Services Institutions
financial sector; e. Not included as the party prohibited
d) Never served as a member of the to be a main party (candidate not
Board of Directors and/or member of listed in the unqualified list).
the Board of Commissioners of whom 2) Financial Reputation, including:
during his/her term: a. Not having non-performing loan and/
s &AILED TO CONVENE AN ANNUAL or financing.
GMS; b. Never been declared bankrupt and/
s (AS HAD HISHER ACCOUNTABILITY or having never been a shareholder,
as a member of the Board of controlling an insurance company
Directors and/or member of that is not a shareholder, member
the Board of Commissioners of the Board of Directors, Board of
refused by the GMS or has not Commissioners who is found guilty
granted his/ her accountability of causing a company to be declared
as a member of the Board of bankrupt within the last five years
Directors and/or member of the prior to the nomination.
Board of Commissioners to the 3) Competency, including:
GMS; and Prospective members of the Board of
s (AS NEVER CAUSED A COMPANY Commissioners shall have:
obtaining a license, approval, a. Adequate banking knowledge that
or registration from the OJK to is relevant to the position, including
fail to fulfill its obligation to knowledge on the regulations and
submit the annual report and/or operations of a commercial bank,
financial statements to the OJK. including the understanding about
4) Having the commitment to comply with risk management.
the rules and regulations. b. Experience in the banking and/or
5) Having the knowledge and/or expertise in financial field.
the field required by the issuer or public
company.
c. Meeting the integrity, competency, and
financial reputation requirements as referred
to in the OJK Regulation:
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2. Requirements for Candidates of members of the 4. Having the commitment to comply with
Board of Directors of the main entity the rules and regulations.
a. Possess knowledge regarding the main 5. Having the knowledge and/or expertise in
entity and subsidiaries in the Financial the field required by the issuer or public
Conglomerate. The word “knowledge” refers company.
to the understanding of the main business c. Meeting the integrity, competency, and
activities and main risks of the Subsidiaries in financial reputation requirements as referred
the Financial Conglomerate. to in the OJK Regulation:
b. Meet the requirements as referred to in the 1) Integrity, including:
OJK Regulation that regulates the Board of a. Competent in conducting legal
Directors and Board of Commissioners of actions;
issuers or public companies, namely: b. Having good character and morals,
1 Having a good character, morality, and at least shown by the attitude of
integrity abiding by the prevailing provisions,
2. Competent in conducting legal actions. including never been penalized or
3. Within five years prior to the appointment convicted of committing crimes in a
and during service: certain period prior to nomination;
a) Never been declared bankrupt c. Having commitment to comply with
b) Never become a member of the laws and regulations and to support
Board of Directors and/or Board OJK policies;
of Commissioners found guilty of d. Having the commitment for
causing a company to be declared developing sound Financial Services
bankrupt Institutions;
c) Never been sanctioned for committing e. Not included as the party prohibited
a crime that is detrimental to state to be a main party (candidate not
finances and/or related to the listed in the unqualified list).
financial sector 2) Financial reputation, including:
d) Never served as a member of the a. Not having a non-performing loan
Board of Directors and/or member of and/or financing.
the Board of Commissioners of whom b. Never been declared bankrupt and/
during his/her term: or having never been a shareholder,
s &AILED TO CONVENE AN ANNUAL controlling an insurance company
GMS; that is not a shareholder, member
s (AS NEVER HAD HISHER of the Board of Directors, Board of
accountability as a member Commissioners who is found guilty
of the Board of Directors and/ of causing a company to be declared
or member of the Board of bankrupt within the last five years
Commissioners refused by the prior to the nomination.
GMS or has not granted his/ 3) Competency, including:
her accountability as a member Prospective member of the Board of
of the Board of Directors and/ Directors.:
or member of the Board of a. Adequate banking knowledge that
Commissioners to the GMS is relevant to the position, including
s (AS NEVER CAUSED A COMPANY knowledge of the regulations and
obtaining a license, approval, operations of a commercial bank,
or registration from the OJK to including an understanding of risk
fail to fulfill its obligation to management;
submit the annual report and/or
financial statements to the OJK.
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b. Knowledge of the duties and 2. Duties and responsibilities of the Board of Directors
responsibilities of the main entity as of the main entity
well as an understanding of the main a. Ensure the implementation of integrated
business activities and main risks governance in the Financial Conglomerate.
of the subsidiaries in the Financial b. In the efforts to ensure the implementation of
Conglomerate; Integrated Governance as mentioned above,
c. Experience and expertise in the at least:
banking and/or financial field; 1) Formulating the integrated governance
d. The ability to perform strategic guidelines;
management in the framework of 2) Direct, monitor, and evaluate the
sound business development. implementation of the Integrated
Governance Guidelines; and
Duties and Responsibilities of Main Entity’s Board of 3) Follow-up the directives or advice from
Commissioners and Board of Directors the Board of Commissioners of the
1. Duties and responsibilities of the Board of Main Entity in the effort to improve the
Commissioners of the Main Entity Integrated Governance Guidelines.
a. Monitoring the implementation of Integrated c. Ensure that audit findings and
Governance; recommendations from the integrated internal
b. In the efforts to monitor the implementation audit unit, external auditors, results of OJK’s
of Integrated Governance as mentioned above, monitoring and/or monitoring results of other
at least: authorities have been followed-up by the
1) Monitor the implementation of Subsidiary.
governance in each Subsidiary in order
to be conformed with the Integrated Duties and Responsibilities of the Integrated
Governance Guidelines; Governance Compliance.
2) Monitor the implementation of duties The integrated governance committee has the following
and responsibilities of the Board of duties and responsibilities:
Directors of the Main Entity, as well as a. Evaluate the implementation of Integrated
providing directives or advice to the Governance at least through the adequacy of
Board of Directors of the Main Entity internal control assessment and the implementation
over the implementation of Integrated of the compliance function in an integrated manner.
Governance Guideline; and b. Provide recommendations to the Board of
3) Evaluate the Integrated Governance Commissioners of the main Entity for the
Guidelines and provide directives for improvement of the Integrated Governance
improvement. Guidelines.
c. Hold a meeting at least once every semester. c. Hold a meeting at least once every semester, the
The meeting can be held through video meeting can be held through video conference.
conference. d. Outlining the resolutions of the Integrated
d. Outlining the meeting resolutions in minutes of Governance Committee meeting in minutes of
the meeting, which is documented well, as well the meeting, which is documented well, as well
as stating the dissenting opinions occurring in as stating the dissenting opinions occurring in the
the meeting clearly in the minutes, complete meeting clearly in the minutes, complete with the
with the reason for the dissenting opinion. reason for the dissenting opinions.
e. Establish the Integrated Governance
Committee.
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Duties and Responsibilities of the Integrated Implementation of Integrated Risk Management
Compliance Unit Integrated Risk Management is a series of methodologies
The integrated compliance unit has the following duties and procedures used to identify, measure, monitor,
and responsibilities: and control risks arising from the business activities of
a. Monitor and evaluate the implementation of the Subsidiaries incorporated in the Financial Conglomerate
compliance function at each Subsidiary. in an integrated manner. All BCA Subsidiaries implement
b. Develop the required methods and processes risk management and governance in a consolidated
to implement Integrated Compliance Risk manner, including its assessment by taking into account
Management. the business scale, characteristics, and complexity.
c. Assess and formulate the integrated compliance Periodically, BCA internally or by appointing an
risk profile in the implementation of integrated risk independent party assesses the implementation of the
management. bank’s governance in a consolidated manner.
d. Prepare and submit the implementation of duties
and responsibilities report of integrated compliance Financial Conglomerates are required to implement
to the Compliance Director of the Main Entity. integrated risk management in a comprehensive and
The compliance director prepares and submits effective manner, adjusted to the business characteristics
the report on the implementation of duties and and complexity of the Financial Conglomerate based
responsibilities of integrated compliance to the on the provisions of the OJK on the implementation
Board of Directors and Board of Commissioners of of Integrated Risk Management for Financial
the Main Entity. Conglomerates.
Duties and Responsibilities of the Integrated Internal Formulation and Implementation of Integrated
Audit Unit Governance Guidelines.
The Integrated Internal Audit Work Unit has the The formulation of the Integrated Governance
following duties and responsibilities: Framework refers to OJK Regulation No. 18/POJK.03/2014
a. Assess the adequacy and effectiveness of risk and the governance provisions prevailing in each FSI
management processes, internal control, and (subsidiary), BCA has implemented measures:
governance of Subsidiaries, as well as providing 1. Formulate the Integrated Governance Guidelines.
improvement recommendations. 2. Establish the Integrated Governance Committee.
b. Monitor the implementation of internal audits in 3. Perform adjustments to the organizational
each Subsidiary. structure:
c. Monitor and evaluate the adequacy of improvement a. Compliance unit that covers integrated
follow-ups of the audit results of Subsidiaries, as well compliance
as submitting the report to the Board of Directors, b. Internal audit unit that covers integrated
Board of Commissioners, and audit committee of internal audit
the Main Entity. c. Risk management unit that covers integrated
d. Submit the integrated internal audit report to risk management.
the director appointed to conduct the function 4. Disseminate the Integrated Governance
of supervision of subsidiaries, the Board of Guidelines and the implementation of Integrated
Commissioners of the main entity, as well as the Governance to members of the Integrated
Director in charge of the compliance function of Governance Committee, work units relating to the
the Main Entity. implementation of Integrated Governance, and all
e. Provide support to Subsidiaries in developing the FSI (Subsidiaries) in the Financial Conglomerate.
internal audit function.
The Integrated Governance Guideline are prepared
by BCA’s Board of Directors and has been approved by
BCA’s Board of Commissioners.
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The Integrated Governance Guideline covers: g. Implementation of the supervisory function of the
a. Integrated Governance Framework for BCA Main Subsidiary by the Board of Commissioners.
Entity. h. Implementation of the supervisory function by the
b. Governance Framework for FSI (Subsidiary) in the Sharia Supervisory Board.
Financial Conglomerate. i. Implementation of the compliance function,
internal audit function, and external audit function;
The formulation of the Integrated Governance j. Implementation of the risk management function;
Framework refers to OJK Regulation No. 18/POJK.03/2014 k. Remuneration policy;
on the provision of governance that applies for each FSI l. Management of conflicts of interest.
(Subsidiary) in the Financial Conglomerate.
Realization of Integrated Governance
The Board of Directors of BCA Main Entity has conveyed 1. Performs adjustments to members of the Integrated
the integrated governance guidelines to the Board of Governance committee due to:
Directors of subsidiaries in the financial conglomerate, a. Changes to the composition of the Board of
as the guidelines for the FSI (subsidiary) in the financial Commissioners of Subsidiaries
conglomerate in formulating the governance guidelines b. Addition of Financial Services Institution
and in implementing governance in each FSI (subsidiary). (subsidiary).
2. Conduct self-assessment on the implementation of
The Integrated Governance Framework for the main Integrated Governance in the first semester and
Entity Consists of: second semester.
a. Requirements of the Board of Directors of the Main 3. Submit routine reporting related to Integrated
Entity and Board of Commissioners of the Main Governance, including:
Entity a. Annual report on the implementation of
b. Duties and responsibilities of the Board of Directors Integrated Governance.
of the Main Entity and Board of Commissioners of b. Self-assessment report on the implementation
the Main Entity of Integrated Governance.
c. Duties and responsibilities of The Integrated c. Integrated risk profile report.
Governance Committee d. Integrated capital adequacy report.
d. Duties and responsibilities of The Integrated 4. Conduct an adjustment to members of the Financial
Compliance Unit Conglomerate, namely the addition of PT Bank
e. Duties and responsibilities of the Integrated Internal Royal Indonesia as a Financial Services Institution
Audit Unit (Subsidiaries) member, due to the acquisition
f. Implementation of Integrated Risk Management. process.
5. Held four Integrated Governance Committee
The Integrated Governance framework for FSI meetings in 2019.
(Subsidiary) in the Financial Conglomerate consists of:
a. Requirements for candidates of members of the Assessment on the Implementation of Integrated
Board of Directors and candidates of members of Governance
the Board of Commissioners; In accordance with the provisions in OJK Regulation No.
b. Requirements for candidates of members of the 18/POJK.03/2014 Article 44 and 45 in Chapter VIII on
Sharia Supervisory Board. Reporting and in accordance with OJK Circular Letter
c. Structure of the Board of Directors and Board of No. 15/SEOJK.03/2015 on Implementation of Integrated
Commissioners. Governance for Financial Conglomerate, dated May 25,
d. Structure of the Sharia Supervisory Board. 2015, as the Main Entity, BCA is required to prepare
e. Independency of the Board of Commissioners’ the assessment report on the integrated governance
actions. implementation periodically (prepared every semester),
f. Implementation of the management function of which will be submitted to the OJK.
the Subsidiary by the Board of Directors.
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The integrated governance assessment is conducted The 2019 Annual Report concerning Implementation of
twice in a year. In 2019, BCA as the Main Entity Integrated Governance of BCA’s Financial Conglomerate
has conducted the assessment on the Integrated of:
Governance implementation of the first semester and 1. Self-Assessment Report on the Implementation of
second semester. The assessment covers three integrated Integrated Governance during the 2019 fiscal year;
governance aspects: Structure, Process, and Results of 2. Structure of the Financial Conglomerate;
Integrated Governance. 3. Share ownership structure of the financial
conglomerate, which illustrates parties who
The assessment on Integrated Governance are shareholders of the FSI in the Financial
Implementation covers at least 7 (seven) assessment Conglomerate up to the ultimate Shareholders;
factors of the implementation: 4. Management structure of BCA as the Main Entity
1. Implementation of duties and responsibilities of and FSI (Subsidiaries) in the Financial Conglomerate.
the Board of Directors of the Main Entity; 5. Inter-Group Transaction Policy, which outlines the
2. Implementation of duties and responsibilities of policies to identify, manage, and mitigate Inter-
the Board of Commissioners of the Main Entity; Group Transactions;
3. Duties and responsibilities of the Integrated 6. BCA’s Governance Implementation Report, which
Governance Committee; consists of:
4. Duties and responsibilities of the Integrated a. Transparency of Governance Implementation,
Compliance Unit; as referred in item IX of OJK Circular Letter No.
5. Duties and responsibilities of the integrated Internal 13/SEOJK.03/2017, dated 17 March 2017
Audit Units; b. Self-Assessment Report on Governance
6. Implementation of Integrated Risk Management; Implementation in 2018, as referred in
7. Formulation and implementation of the Integrated Attachment IV of SEOJK No. 13/ SEOJK.03/2017
Governance Guidelines. dated 17 March 2017.
Results of the assessment on the Integrated Governance In addition to the above stated information, the
Implementation in the first semester and second Integrated Governance Implementation Annual Report
semester of 2019 were given “Rank 2” (“Good”). also discloses the scope of the GCG implementation
Report as regulated in the prevailing rules for commercial
Annual Report on the Implementation of Integrated banks.
Governance
The formulation of the annual report on the
integrated governance implementation of the financial
conglomerate PT Bank Central Asia Tbk (BCA) in 2019
refers to:
1. OJK Regulation No. 18/POJK.03/2014 concerning
Implementation of Integrated Governance for
Financial Conglomerate, dated 18 November 2014
2. OJK Regulation No. 15/SEOJK.03/2015 concerning
Implementation of Integrated Governance for
Financial Conglomerate, dated 25 May 2015
3. OJK Regulation No. 55/POJK.03/2016 concerning
Implementation of Governance for Commercial
Banks, dated 7 December 2016
4. OJK Regulation No. 13/SEOJK.03/2017 concerning
Implementation of Governance for Commercial
Banks, dated 17 March 2017.
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1. Self-assessment report on the implementation of integrated governance
Main Entity: PT Bank Central Asia Tbk
Report Position: December 31, 2019
Self-assessment results of integrated governance implementation
Rank Rank Definition
2 The Financial Conglomerate has implemented Integrated Governance that is generally good. This is
reflected from the adequate fulfillment of the implementation of Integrated Governance principles.
In the event of weaknesses in the implementation of Integrated Governance, the weaknesses are less
significant in general and can be resolved with normal actions by the Main Entity and/or FSI.
2. Structure of BCA’s financial conglomerate
100% 99.576% 99.9999% 75% 75% 99.9997% 90% 90% 99.99997%
PT Central
BCA Finance 0.424% PT BCA 0.0001% PT BCA 25% PT Asuransi 25% PT BCA Multi 0.0003% PT BCA PT Asuransi 0.00003% PT Bank Royal
Capital
Limited Finance Syariah Umum BCA Finance Sekuritas Jiwa BCA Indonesia
Ventura
100% 100% 100% 100% 100% 90% 90% 100%
100%
3. Management structure at PT Bank Central Asia Tbk as the Main Entity and FSI (Subsidiaries) in the Financial
Conglomerate
Robert Budi Hartono Bambang Hartono
(Controlling Shareholder) (Controlling Shareholder)
51.00% 49.00%
PT Dwimuria Investama
Public
Andalan
54.94% 45.06%*
Remark:
Control
Controlling line
* Of the portion of shares belonging to public shareholders, 2.49% is owned by affiliated parties of PT Dwimuria Investama Andalan, 1.76% is
owned by Anthoni Salim. In addition, 0.19% is owned by certain members of the current Board of Commissioners and Board of Directors of BCA.
2019 Annual Report | PT Bank Central Asia Tbk 541
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
] SHARE OWNERSHIP STRUCTURE OF PT BANK BCA SYARIAH
PT Bank Central Asia Tbk
100%
BCA Finance Limited
99.9999% 99.576%
0.424%
PT BCA Finance
0.0001%
PT Bank BCA Syariah
] SHARE OWNERSHIP STRUCTURE OF PT ASURANSI UMUM BCA
PT Bank Central Asia Tbk
100%
BCA Finance Limited
0.424%
99.576%
PT BCA Finance
75% 25%
PT Asuransi Umum BCA
] SHARE OWNERSHIP STRUCTURE OF PT BCA FINANCE
PT Bank Central Asia Tbk
100%
BCA Finance Limited
99.576% 0.424%
PT BCA Finance
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
] SHARE OWNERSHIP STRUCTURE OF PT BCA MULTI FINANCE (FORMERLY PT CENTRAL SANTOSA FINANCE)
PT Bank Central Asia Tbk
100%
BCA Finance Limited
99.576%
75% 0.424%
PT BCA Finance
25%
PT BCA Multi Finance
] SHARE OWNERSHIP STRUCTURE OF BCA FINANCE LIMITED
PT Bank Central Asia Tbk
100%
BCA Finance Limited
] SHARE OWNERSHIP STRUCTURE OF PT BCA SEKURITAS
PT Bank Central Asia Tbk Chandra Adisusanto
90% 10%
PT BCA Sekuritas
] SHARE OWNERSHIP STRUCTURE OF PT ASURANSI JIWA BCA
Chandra Adisusanto
PT Bank Central Asia Tbk
90% 10%
PT Asuransi Jiwa
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] SHARE OWNERSHIP STRUCTURE OF PT CENTRAL CAPITAL VENTURA
PT Bank Central Asia Tbk
100%
99.576% BCA Finance Limited
0.424%
99.99975%
PT BCA Finance
0.00025%
PT Central Capital Ventura
] SHARE OWNERSHIP STRUCTURE OF PT BANK ROYAL INDONESIA
PT Bank Central Asia Tbk
100%
99.576% BCA Finance Limited
0.424%
99.99997%
PT BCA Finance
0.00003%
PT Bank Royal Indonesia
4. Management structure at PT Bank Central Asia Tbk as the Main Entity and FSI (Subsidiaries) in the Financial
Conglomerate
MANAGEMENT STRUCTURE OF PT BANK CENTRAL ASIA Tbk
Board of Commissioners
Position Name
President Commissioner Djohan Emir Setijoso
Commissioner Tonny Kusnadi
Independent Commissioner Cyrillus Harinowo
Independent Commissioner Raden Pardede
Independent Commissioner Sumantri Slamet
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MANAGEMENT STRUCTURE OF PT BANK CENTRAL ASIA Tbk
Board of Directors
Position Name
President Director Jahja Setiaatmadja
Vice President Director Suwignyo Budiman
Vice President Director Armand Wahyudi Hartono
Director Subur Tan
Director Henry Koenaifi
Independent Director Erwan Yuris Ang
Director Rudy Susanto
Director Lianawaty Suwono
Director Santoso
Director (concurrently Compliance Director) Inawaty Handojo
Director Vera Eve Lim
MANAGEMENT STRUCTURE OF PT BANK BCA SYARIAH
Board of Commissioners
Position Name
President Commissioner Tantri Indrawati
Independent Commissioner Suyanto Sutjiadi
Independent Commissioner Joni Handrijanto
Board of Directors
Position Name
President Director John Kosasih
Compliance Director Houda Muljanti
Director Rickyadi Widjaja
Director Pranata
Sharia Supervisory Board
Position Name
Chairman Prof. DR. H. Fathurrahman Djamil, MA
Member Sutedjo Prihatono
MANAGEMENT STRUCTURE OF PT BCA FINANCE
Board of Commissioners
Position Name
President Commissioner Jacobus Sindu Adisuwono
Independent Commissioner David Hamdan
Independent Commissioner Sulistiyowati
Board of Directors
Position Name
President Director Roni Haslim
Director Petrus Santoso Karim
Director Amirdin Halim
Director Lim Handoyo
Director Sugito Lie
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MANAGEMENT STRUCTURE OF PT BCA MULTI FINANCE
Board of Commissioners
Position Name
President Commissioner Roni Haslim
Commissioner Hermanto, SH
Independent Commissioner Mendari Handaya
Board of Directors
Position Name
President Director Herwandi Kuswanto
Director Senjaya Komala
Director Adhi Purnama
Director Parmanto Adhi Tjahjono
Director Suiman Agung
MANAGEMENT STRUCTURE OF PT ASURANSI UMUM BCA
Board of Commissioners
Position Name
President Commissioner Petrus Santoso Karim
Commissioner Liston Nainggolan
Independent Commissioner Gustiono Kustianto
Independent Commissioner Edison Idrus
Board of Directors
Position Name
President Director Hariyanto
Director Hendro Hadinoto Wenan
Director Antonius
Director Sri Angraini
Director Arif Singgih Halim Wijaya
MANAGEMENT STRUCTURE OF PT BCA SEKURITAS
Board of Commissioners
Position Name
President Commissioner Dharwin Yuwono
Independent Commissioner Hendra Iskandar Lubis
Board of Directors
Position Name
President Director Mardy Henko Susanto
Director Imelda Arismunandar
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MANAGEMENT STRUCTURE OF PT ASURANSI JIWA BCA
Board of Commissioners
Position Name
President Commissioner Christina Wahjuni Setyabudhi
Commissioner Eva Agrayani Tjong
Commissioner Pudjianto
Independent Commissioner Hardjono
Board of Directors
Position Name
President Director Rio Cakrawala Winardi
Director Yannes Chandra
Director Antonius Widodo Mulyono
MANAGEMENT STRUCTURE OF BCA FINANCE LIMITED
Board of Directors
Position Name
Director Andy Kwok
Director Edmund Tondobala
Director Rudy Harjono
MANAGEMENT STRUCTURE OF PT CENTRAL CAPITAL VENTURA
Board of Commissioners
Position Name
Commissioner Ina Suwandi
Board of Directors
Position Name
President Director Armand Widjaja
Director Michelle Suteja
MANAGEMENT STRUCTURE OF PT BANK ROYAL INDONESIA
Board of Commissioners
Position Name
President Commissioner Ibrahim Soemedi
Independent Commissioner I Made Soewandi, SH. MH
Independent Commissioner Edison S.T. Marbun
Board of Directors
Position Name
President Director Louis Halilintar Sjahlim
Director Diana Annarita
Director Sabtiwi Enny Sulastri
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5. Policy on inter-group transaction, containing Types of inter-group transactions
policies to identify, manage, and mitigate inter- Inter-group transaction risk can arise from, among
group transactions others:
Ownership and/or control relationships in various a. Cross ownership between FSI in Financial
financial service sectors may influence the business Conglomerate.
sustainability of FSI, which is due to risk exposures b. Centralized management of short-term
that arise or the dependence of an FSI both directly liquidity.
and indirectly from the business activities of FSI that c. Collateral, loans, and commitments given
is incorporated in one Financial Conglomerate. or obtained by an FSI from other FSI in the
Financial Conglomerate.
BCA, as the Main Entity of the BCA Financial d. Exposure to controlling shareholders, including
Conglomerate, is required to manage the inter- loan exposure and off-balance sheet exposures,
group transaction risk and monitor inter-group such as guarantees and commitments.
transactions in an integrated manner. e. Purchase or sale of assets to other FSI in one
Financial Conglomerate.
Formulation of the Inter-Group Transaction Risk f. Risk transfer through reinsurance.
Management Policy in BCA refers to: g. Transaction to shift third party risk exposure
a. OJK Regulation No. 17/POJK.03/2014 between FSI in the Financial Conglomerate.
concerning Implementation of Risk
Management for Financial Conglomerate. Scope of inter-group transaction risk management
b. OJK Circular Letter No. 14/SEOJK.03/2015 policy
concerning Implementation of Integrated Risk The implementation of inter-group risk
Management for Financial Conglomerates. management in the Financial Conglomerate
c. Decree of the Board of Directors No. 178/SK/ includes:
DIR/2015 concerning the Issuance of the Basic a. Supervision of the Board of Commissioners and
Policy on Integrated Risk Management of BCA Board of Directors.
Financial Conglomerate. b. Adequacy of inter-group transaction policies,
procedures, and determination of risk limits.
Definition of Inter-Group Transaction Risk c. Adequacy in the process of identification,
Inter-group transaction risk is the risk that is due measurement, monitoring, and risk control,
to the dependency of an entity, both directly as well as the inter-group transaction risk
and indirectly, to other entities in a Financial management information system.
Conglomerate in the context of fulfilling the d. A comprehensive internal control system for
obligations of a written or unwritten agreement the implementation of inter-group transaction
that is followed by a transfer of funds and/or not risk management.
followed by a transfer of funds.
6. Supervision of the Board of Commissioners and
Objective of inter-group transaction risk Board of Directors
management Supervision by the Board of Commissioners and
The main objectives of the inter-group risk Board of Directors is required to ensure the
management include: effectiveness of the implementation of inter-group
a. To manage and supervise inter-group transaction risk management and compliance with
transactions of the financial conglomerate the applicable regulations.
based on the prudence principle.
b. To ensure that the risk management process
can minimize the possibility of negative
impacts caused by the dependency of a FSI,
directly or indirectly, to other FSI in one
Financial Conglomerate.
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Authority and responsibilities of the Board of integrated manner. The risks willing to be taken
Commissioners are reflected in the business strategies and
The authority and responsibilities of the Board of objectives.
Commissioners in the implementation of inter- b. Risk tolerance is the maximum level of risk that
group transaction risk management include: is willing to be taken.
a. Approve the inter-group transaction risk c. The risk appetite and risk tolerance must be in
management policies. line with the business strategy, risk profile, and
b. Evaluate the accountability of the Board of capital plan of the Financial Conglomerate.
Directors and provide improvement directives
for the implementation of inter-group Policy and procedure
transaction risk management policies. Several matters that need to be considered in the
policies and procedures related to the risk of inter-
Authority and responsibilities of the Board of group transaction include:
Directors a. Financial Conglomerate policy must comply
Authority and responsibilities of the Board of with the applicable regulations relating to
Directors in the management of inter-group inter-group transactions.
transaction risk include: b. Financial Conglomerate must ensure the
a. Understand the inherent risks of inter-group fulfillment of the arm’s length (fairness of
transactions in the Financial Conglomerate. transaction) principle relating to inter-group
b. Formulate and establish the inter-group transactions.
transaction risk management policies. c. Inter-group transaction risk management
c. Responsible for the implementation of inter- procedures contain at least:
group transaction risk management. 1) Accountability and clear level of delegation
d. Ensure that each entity in the Financial of authority in the implementation of
Conglomerate implements inter-group inter-group transaction risk management
transaction risk management. 2) Implementation of periodic reviews on the
e. Monitor the risk of inter-group transactions procedures
regularly. 3) Adequate documentation of procedures,
f. Develop a risk culture as part of the namely complete and easy written
implementation of inter-group transaction risk documentation for audit trail.
management.
g. Ensure that the implementation of inter-group Inter-group transaction risk limits
transaction risk management is free from The Financial Conglomerate must ensure that the
conflicts of interest between the Financial establishment of inter-group transaction limits
Conglomerate and individual FSI. is in accordance with the applicable regulatory
provisions.
7. Adequacy of Inter-Group Transaction Policies,
Procedures, and Determination of Risk Limits 8. Adequacy in the process of identification,
Inter-group transaction policies, procedures, measurement, monitoring, and risk control, as well
and determination of risk limits refer to policies, as the inter-group transaction risk management
procedures, and limit determination as stated in information system
the Integrated Risk Management Basic Policy. In the implementation of inter-group transaction
risk management, BCA as the Main Entity is
Risk appetite and risk tolerance required to conduct the process of identification,
The risk appetite and risk tolerance in inter-group measurement, monitoring and risk control to all
transactions are described as follow. significant risk factors in an integrated manner, and
a. Risk appetite is the risk that is willing to be supported by an adequate inter-group transaction
taken in the effort to achieve targets in an risk management information system.
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Identification of inter-group transaction risks Measurement of inter-group transaction risk
Inter-group transaction risk identification is carried Measurement of the inter-group transaction risk
out through: aims to rank the risk level of inter-group transaction
a. Identification of the composition of inter-group of the Financial Conglomerate. In addition,
transactions in the Financial Conglomerate. BCA as the Main Entity is required to prepare
b. Identification of transaction documentation the inter-group transaction risk profiles in an
and arm’s length. integrated manner with members of the Financial
c. Identification of other information. Conglomerate.
The following are measurements that must be conducted to obtain the risk profile for integrated inter-group
transactions:
Measurement Description Measurement Result
Inherent risk In determining the inherent risk level, the Main Entity must 1. Low
conduct a comprehensive analysis using all relevant quantitative 2. Low to Moderate
and qualitative indicators. 4. Moderate
Covering three aspects: 5. Moderate to High
1. Composition of inter-group transactions in the Financial 6. High
Conglomerate
2. Documentation and obligation of transaction
3. Other information.
Quality of risk Measurement of the quality implementation of integrated risk 1. Strong
management management. Covering four aspects: 2. Satisfactory
implementation 1. Supervision of the Board of Commissioners and Board of 3. Fair
Directors. 4. Marginal
2. Adequacy of inter-group transaction policies, procedures, and 5. Unsatisfactory
determination of risk limits.
3. Adequacy in the process of identification, measurement,
monitoring, and risk control of inter-group transaction risk
management.
4. A comprehensive internal control system for the
implementation of inter-group transaction risk management.
Risk rating
Risk rating is a combination of the inherent risk measurement and the quality of risk management implementation
results.
Mapping of the inter-group transaction risk rating can be viewed in the following matrix:
Result of Assessment Rank of Risk Management Implementation Quality (KPMR)
Rank of Level
Integrated Risk Strong Satisfactory Fair Marginal Unsatisfactory
Rank Risk Inherent Low Low Low Low to Moderate Moderate
in Integrated Moderate
Manner
Low to Low Low to Low to Moderate Moderate to
moderate Moderate Moderate High
Moderate Low to Low to Moderate Moderate to Moderate to
Moderate Moderate High High
Moderate to Low to Moderate Moderate to Moderate to High
high Moderate High High
High Moderate Moderate Moderate to High High
High
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Monitoring of inter-group transaction risk The implementation of the internal control system
Monitoring of inter-group transaction risk is carried is as follows:
out by considering the following: a. BCA is required to implement an inter-group
a. Composition of inherent risk parameters in transaction risk internal control system
intra-group transactions in the integrated risk effectively by referring to the established
profile report. policies and procedures.
b. Complete documentation of inter-group b. The internal control system was structured to
transactions. ensure:
c. Adequacy of the inter-group transaction 1) Compliance with internal policies or
d. Other information relating to inter-group provisions as well as laws and regulations.
transactions. 2) The effectiveness of risk culture in the
Financial Conglomerate organization
Control of inter-group transaction riskp as a whole to identify weaknesses and
The control of inter-group transaction risk is carried deviations early and to reassess the
out by ensuring: fairness of policies and procedures in the
a. Adequacy of inter-group transaction of the Financial Conglomerate on an ongoing
Financial Conglomerate. basis.
b. Existence of documentation for every inter- c. Review of the measurement of inter-group
group transaction. transaction risk, including:
c. Every inter-group transaction must meet the 1) Conformity of policy, organizational
prevailing law/regulator provisions. structure, resource allocation, design of
inter-group transaction risk management
Inter-group transaction risk information processes, information system, and risk
management system reporting in accordance with the business
The internal control system for inter-group needs of the Financial Conglomerate, as
transaction risk refers to internal control as stated well as the development of regulations
in the basic integrated risk management policy. and best practices related to inter-group
transaction risk management
9. A comprehensive internal control system for 2) Complete and adequate documentation
the implementation of inter-group transaction risk on the scope, operational procedures,
management audit findings, and responses of
Internal control system for inter-group risk the management of the Financial
transaction referred to the internal control Conglomerate based on audit results.
as stipulated under the Integrated Risk
Management Main Policy.
The process of implementing effective inter-
group transaction risk management must be
complemented by a comprehensive internal
control system. Effective implementation
of internal control system is expected to be
able to safeguard the assets of the Financial
Conglomerate, ensure the availability of
reliable reporting, increase compliance with
the laws and regulations, and reduce the risk
of losses, irregularities and violations of the
prudence aspect.
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FULFILMENT INDEX OF GOVERNANCE RECOMMENDATIONS
Reference:
- Appendix OJK Circular Letter No. 32/SEOJK.04/2015 concerning Governance Guidelines for Public Companies.
- Appendix OJK Circular Letter No. 13/SEOJK.03/2017 concerning Implementation of Governance for Commercial
Banks.
- Appendix OJK Circular Letter No. 30/SEOJK.04/2016 concerning the Form and Content of Annual Report of Issuer
or Public Companies.
- ASEAN Corporate Governance Scorecard
- Annual Report Awards Criteria.
OJK Circular Letter No. 32/SEOJK.04/2015 concerning Governance Guidelines for Public Companies
No Reference Fulfilment
A Relationship of public company with its shareholders in Explained on page 314 - 319 of this Annual
guaranteeing shareholder rights Report.
B Function and role of the Board of Commissioners
C Function and role of the Board of Directors
D Participation of stakeholders
E Information disclosure
OJK Circular Letter No. 13/SEOJK.03/2017 concerning Implementation of Governance for Commercial Banks.
The Corporate Governance Implementation Report consists of:
No References Fulfilment
A Transparency of Bank Governance Implementation
a. Performance of duties and responsibilities of Board of
Commissioners and Board of Directors:
(1) The number, composition, criteria, and independence Page 360 - 362, 372 - 373 and page 75, 378,
of members of the Board of Directors and Board of 404 - 405
Commissioners
(2) The duties and responsibilities of the Board of Directors Page 357, 374
and Board of Commissioners, and
(3) The Board of Commissioners recommendations. Page 37 - 44
b. Completeness and performance of duties of the committees, Committees under the Board of Commissioners:
consisting of: page 420 -440
Executive committees under the Board of
(1) The structure, membership, expertise and independence of Directors: page 441 - 464
committee members;
(2) Committee duties and responsibilities;
(3) Frequency of committee meetings; and
(4) Committee work program and its realization.
c. Implementation of compliance, internal audit, and external
audit functions:
(1) Compliance function Page 478
(2) Internal audit function Page 472
(3) External audit function Page 476
d. Implementation of risk management including internal control Page 482 - 492
systems:
(1) Active supervision of the Board of Directors and Board of
Commissioners;
(2) Adequacy of risk management policies and procedures and
risk limit determination;
(3) Adequacy of the process of identifying, measuring,
monitoring, and controlling risk and the risk management
information system;
(4) A comprehensive internal control system.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
No References Fulfilment
e. Provision of funds to related parties and large exposure. Page 529
The Bank’s strategic plan. Page 286
Transparency of the Bank’s financial and non-financial conditions Page 530
that have not been revealed in other reports.
Other information related to Bank Governance includes, owner N/A
intervention, internal disputes or problems that arise as a result of
the remuneration policies on the Bank.
Share ownership of members of the Board of Directors and mem- Page 366, 387
bers of the Board of Commissioners that reach 5% (five percent) or
more of paid-in capital.
Financial relationships and family relationships of members of the Page 403
Board of Directors and Board of Commissioners with other mem-
bers of the Board of Directors, other members of the Board of Com-
missioners, and/or the controlling shareholders of the Bank.
Frequency of Board of Commissioners’ meetings. Page 393 - 396
Amount of internal fraud. Page 497
Legal issues. Page 503
Transactions containing conflict of interest. Page 499 - 503
Buy back of shares and/or bank bonds. Page 527
Provision of funds for social activities and/or political activities Page 533
during the reporting period.
B Self-assessment report on the implementation of governance ac- Page 323 - 324
cording to the assessment period of bank soundness in the last year.
C The action plan and its implementation, along with the time of Page 307 - 308
completion and constraints or obstacles to completion (if any).
OJK Circular Letter No. 30/SEOJK.04/2016 concerning the Form and Content of Annual Report of Issuer or Public
Companies.
Disclosure of implementing Good Corporate Governance (GCG) at least comprises of:
No References Fulfilment
1 Board of Directors, encompasses among others:
a) Duties and responsibilities of the Board of Directors; Page 374
b) Statement that the Board of Directors has a guideline or a Page 374
charter;
c) Procedure, basis for appointment, structure and amount of Page 411 - 413
remuneration for each member of the Board of Directors, and
the relationship between remuneration and the performance
of the issuer of the public company;
d) Policy and implementation pertaining to the frequency Page 397 - 403
of meetings, including joint meetings of the Board of
Commissioners, meeting attendance of members of the Board
of Directors;
e) Information regarding the decisions of the previous general Page 341 - 354
meeting of shareholders (GMS):
(1) GMS decisions that are realized in the financial year; and
(2) Reasons in the case of a decision that has not been
realized;
f) Information regarding the resolution of the GMS in the Page 341 - 355
financial year:
(1) GMS decisions that are realized in the financial year; and
(2) Reasons for a decision that has not been realized;
g) Assessment of the performance of the committee that supports Page 33, 389
the performance of duties of the Board of Directors;
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Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
No References Fulfilment
2 Board of Commissioners, encompasses among others:
a) Duties and responsibilities of the Board of Commissioners and Page 357, 374
the Board of Directors;
b) Statement that the Board of Commissioners has a guideline or Page 357
a charter;
c) Procedure, basis for appointment, structure and amount of Page 409 - 411
remuneration for each member of the Board of Commissioners;
d) Policy and implementation pertaining to the frequency of Page 393 - 402
meetings, including joint meetings of the Board of Directors,
meeting attendance of members the Board of Commissioners;
e) Issuer or public company policy regarding performance Page 407 - 409
assessment of members of the Board of Commissioners and
members of the Board of Directors and the implementation
include:
(1) Procedures for implementing performance assessment;
(2) Criteria used;
(3) The parties conducting the assessment.
f) Performance assessment of the committee that supports the Page 369
performance of duties of the Board of Commissioners; and
g) In the event that the Board of Commissioners does not form N/A
a nomination and remuneration committee, the information
contains at least:
(1) Reasons for not establishing a committee;
(2) Procedures for nomination and remuneration carried out in
the financial year.
3 Audit committee Page 420
a. Name and position in committee membership;
b. Age;
c. Nationality;
d. Educational background;
e. Position/work history;
f. Member period and term of office;
g. Independency statement;
h. Policy and implementation pertaining to the frequency of
meetings and attendance level of members;
i. Education and/or training (if any);
j. Audit committee activities conducted in the financial year.
4 Other committees to support the functions and duties of the Page 426, 431, and 435
Board of Directors and/or the Board of Commissioners, consist of:
a. Name and position in committee membership;
b. Age;
c. Nationality;
d. Educational background;
e. Position/work history;
f. Member period and term of office;
g. Job description;
h. Statement of having a guideline or a charter;
i. Independency statement;
j. Policy and implementation pertaining to frequency of
meetings and attendance level of members;
k. Education and/or training (if any);
l. A brief description of the activities conducted in the financial
year.
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No References Fulfilment
5 Corporate secretary, encompasses among others: Page 464
a. Corporate secretary profile (name, position, age, nationality,
educational background, occupational history/work
experience);
b. Legal basis of appointment;
c. Education and/or training;
d. A brief description of the tasks performed in the financial year.
6 Internal Audit Unit, encompasses among others: Page 472
a. Name of Head of Unit;
b. Position/work history;
c. Qualification/certificate in internal audit profession (if any);
d. Job description;
e. Education and/or training;
f. Description of duties and responsibilities;
g. Statement of having a guideline or a charter;
h. Brief description of the task performed in the financial year.
7 A description of the internal control system applied by the Page 489
Company, at least concerning:
a. Financial and operational controls;
b. Review of the effectiveness of the internal control system.
8 Risk management system applied by BCA, at least concerning: Page 482
a. General description of BCA’s risk management system;
b. Type of risk and method of management; and
c. Review of the effectiveness of the risk management system.
9 Important cases faced by Issuers or Public Companies, Subsidiaries, Page 503
members of the Board of Directors and members of the Board of
Commissioners (if any), encompass among others:
a. Principal cases/lawsuits;
b. Status of settlement of cases/lawsuits; and
c. Effect on the condition of the Issuer or Public Company.
10 Information regarding administrative sanctions imposed Page 505 - 506
against issuers or public companies, members of the Board of
Commissioners and Directors, by the capital market authorities
and other authorities in the financial year (if any).
11 Information regarding the code of ethics of the Issuer or Public Page 523
Company:
a) Main points of the code of ethics;
b) Forms of socialization of the code of ethics and its
enforcement; and
c) Statement that the code of ethics applies to members of the
Board of Directors, Board of Commissioners, and employees of
Issuers or Public Companies.
12 Information about corporate culture or company values (if any). Page 526
13 Description of the share ownership program by employees and/or Page 413 - 419
management carried out by the Issuer or Public Company (if any),
concerning among others:
a) Number of shares and/or options;
b) Implementation period;
c) Eligible employees and/or management requirements; and
d) Implementation price.
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No References Fulfilment
14 Description of whistleblowing system in Issuers or Public Company Page 495 - 497
(if any), including among others:
a) procedure in submitting reports of violations;
b) protection for reporters;
c) complaint management ;
d) The party who manages the complaint; and
e) The results of complaints managed including:
(1) number of complaints submitted and processed in the
financial year; and
(2) follow-up complaints.
15 Implementation of the Public Company Governance Guideline for Page 314 - 319
Issuers that issue Equity-Type Securities or Public Companies:
a) Statement regarding recommendations that have been
implemented; and/or
b) Explanation of recommendations that have not been
implemented, accompanied by reasons and alternative
implementation (if any);
ASEAN Corporate Governance Scorecard
The principles of corporate governance from OECD are as follows:
No Principles and Recommendations Page
A Rights of Shareholders
A.1 Basic Shareholder Rights
A.1.1 Does the company pay (interim and final/annual) dividends in an equitable and timely manner;
that is, are all shareholders treated equally and paid within 30 days after being (i) declared for
342, 355
interim dividends and (ii) approved by shareholders at general meetings for final dividends? If
the company has offered a scrip dividend, did it pay the dividend within 60 days
A.2 Right to participate in decisions concerning fundamental corporate changes
Do shareholders have the right to participate in:
A.2.1 Amendments to the company’s constitution? 326
A.2.2 The authorization of additional shares? 326
A.2.3 The transfer of all or substantially all assets, which in effect results in the sale of the company? 326
A.3 Right to participate effectively in and vote in general shareholder meeting, and should be
informed of the rules, including voting procedures that govern general shareholder meetings
A.3.1 Do shareholders have the opportunity, evidenced by an agenda item, to approve remuneration
(fees, allowances, benefits in kind and other emoluments), or any increases in remuneration for 345
the non-executive directors/commissioners?
A.3.2 Does the company provide non-controlling shareholders a right to nominate candidates for the
326
Board of Directors/Commissioners?
A.3.3 Does the company allows shareholders to elect directors/commissioners individually? 326
A.3.4 Does the company disclose the voting procedures used before the start of meeting? 338
A.3.5 Do the minutes of the most recent AGM record that the shareholders were given the
opportunity to ask questions, and the questions raised by shareholders and answers given 340
recorded?
A.3.6 Does the company disclose the voting results, including approving, dissenting, and abstaining
340
votes for all resolutions/each agenda item for the most recent AGM?
A.3.7 Does the company disclose the list of board members who attended the most recent AGM? 327 - 329,
332
A.3.8 Does the company disclose if all board members and the CEO (if they are not a board member) 327 - 329,
attended the most recent AGM? 332
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A.3.9 Does the company allow voting in absentia? 337 - 339
A.3.10 Did the company vote by poll (as opposed to by show of hands) for all resolutions at the most
337 - 339
recent AGM?
A.3.11 Does the company disclose that it has appointed an independent party (scrutineers/inspectors)
340
to count and/or validate the votes at the AGM?
A.3.12 Does the company make publicly available by the next working day the results of the votes 330, 334,
taken during the most recent AGM/EGM for all resolutions? 336
A.3.13 Does the company provide at least 21 days’ notice for all AGMs and EGMs? 330 - 331
A.3.14 Does the company provide the rationale and explanation for each agenda item which requires 330, 333,
shareholder approval in the notice of AGM/circulars and/or the accompanying statement? 335
A.3.15 Does the company give the opportunity for shareholders to place item/s on the agenda of
326
AGM?
A.4 Markets for corporate control should be allowed to function in an efficient and transparent
manner
A.4.1 In cases of mergers, acquisitions and/or takeovers requiring shareholder approval, does the
board of directors/commissioners of the company appoint an independent party to evaluate the 340
fairness of the transaction price?
A.5 The exercise of ownership rights by all shareholders, including institutional investors, should be
facilitated
A.5.1 Does the company disclose its practices to encourage shareholders to engage the company
507
beyond the AGM?
B Fair Treatment to Shareholders
B.1 Shares and Voting Rights
B.1.1 Do the company’s ordinary or common shares have one vote for one share? 330
B.1.2 Where the company has more than one class of shares, does the company publicize the voting
rights attached to each class of shares (eg,, through the company website reports/the stock N/A
exchange/the regulator’s website)?
B.2 Notice of AGM
B.2.1 Does each resolution in the most recent AGM deal with only one item, ie, there is no bundling
341 - 354
of several items into the same resolution?
B.2.2 Are the company’s notice of the most recent AGM/circulars fully translated into English and
330, 332
published on the same date as the local language version?
Do the notice of AGM/circulars have the following details:
B.2.3 Are the profiles of directors/commissioners (at least age, academic qualification, date of
Website
appointment, experience, and directorships in other listed companies) in seeking election/re-
Perseroan
election included?
B.2.4 Are the auditors seeking appointment/re-appointment clearly identified? 346
B.2.5 Were the proxy documents made easily available? 330
B.3 Insider trading and abusive self-dealing should be prohibited
B.3.1 Does the company have policies and/or rules prohibiting directors/commissioners and employees
311
from benefiting from knowledge which is not generally available to the market?
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B.3.2 Are the directors/commissioners required to report their dealings in company shares within
366, 387
three business days?
B.4 Related party transactions by directors and key executives
B.4.1 Does the company have a policy requiring directors/commissioners to disclose their interest in
312, 499
transactions and any other conflicts of interest?
B.4.2 Does the company have a policy requiring a committee of independent directors/commissioners
to review material RPTs to determine whether they are in the best interests of the company and 503
shareholders?
B.4.3 Does the company have a policy requiring board members (directors/commissioners) to abstain
393 - 397
from participating in the board discussion on a particular agenda when they are conflicted?
B.4.4 Does the company have policies on loans to directors and commissioners, either forbidding this
529
practice or ensuring they are being conducted on an at arm’s length basis and at market rates?
B.5 Protecting minority shareholders from abusive actions
B.5.1 Does the company disclose that RPTs are conducted in such a way as to ensure they are fair and
529
at arms’ length?
B.5.2 In case of related party transactions requiring shareholder approval, is the decision made by
503
disinterested shareholders?
C Role of Stakeholders
C.1 The rights of stakeholders established by law or through mutual agreements are to be
respected
Does the company disclose a policy and practices that address:
C.1.1 The existence and scope of the company’s efforts to address customer welfare? 507 - 509
C.1.2 Supplier/contractor selection procedures? 524
C.1.3 The company’s efforts to ensure its value chain is environmentally friendly or is consistent with Sustainability
promoting sustainable development? Report
C.1.4 The company’s efforts to interact with the communities in which they operate? Sustainability
Report
C.1.5 The company’s anti-corruption programmes and procedures? 498
C.1.6 How creditor rights are safeguarded? 318
C.1.7 Does the company have a separate report/section that discusses its efforts on environment/ Sustainability
economy and social issues? Report
C.2 Where stakeholder interests are protected by law, stakeholders should have the opportunity to
obtain effective redress for violation of their rights
Does the company provide contact details via the its website or annual report which
C.2.1 stakeholders (eg, customers, suppliers, general public etc) can use to voice their concerns and/or 508-509
complaints for possible violation of their rights?
C.3 Mechanisms for employee participation should be permitted to develop
Does the company explicitly disclose its policies and practices on health, safety and welfare to its Sustainability
C.3.1 Report
employees?
Does the company explicitly disclose the policies and practices on training and development
C.3.2 573
programmes to its employees?
Does the company have a reward/compensation policy that accounts for the performance of the
C.3.3 413
company beyond short-term financial measures?
Stakeholders, including individual employees and their representative bodies, should be able to
C.4 freely communicate their concerns about illegal or unethical practices to the board, and their
rights should not be compromised for doing this
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Does the company have a whistleblowing policy which includes procedures for complaints
C.4.1 by employees and other stakeholders concerning alleged illegal and unethical behavior, and 495 - 497
provide contact details via its website or annual report
Does the company have a policy or procedures to protect an employee/person who reveals
C.4.2 495 - 497
alleged illegal/unethical behavior from retaliation?
D Disclosure and Transparency
D.1 Transparent Ownership Structure
Does the information on shareholdings reveal the identity of beneficial owners, holding 5%
D.1.1 355 - 356
shareholding or more?
Does the company disclose the direct and indirect (deemed) shareholdings of major and/or
D.1.2 355 - 356
substantial shareholders?
Does the company disclose the direct and indirect (deemed) shareholdings of directors
D.1.3 367, 388
(commissioners)?
Does the company disclose the direct and indirect (deemed) shareholdings of senior Website
D.1.4
management? BCA
Does the company disclose details of the parent/holding company, subsidiaries, associates, joint
D.1.5 541 - 544
ventures and special purpose enterprises/vehicles (SPEs)/(SPVs)?
D.2 Quality of annual report
Does the company’s annual report disclose the following items:
D.2.1 Corporate objectives 58
D.2.2 Financial performance indicators 14 - 17, 263
D.2.3 Non-financial performance indicators 5 - 7, 52, 116
D.2.4 Dividend policy 291
Biographical details (at least age, academic qualifications, date of first appointment,
D.2.5 relevant experience, and any other directorships of listed companies) of all directors/ 64 - 79
commissioners
Attendance details of each director/commissioner in all directors/commissioners meetings held
D.2.6 393, 397
during the year
D.2.7 Total remuneration of each member of the board of directors/commissioners 409
Corporate governance confirmation statement
Does the annual report contain a statement confirming the company’s full compliance
D.2.8 with the code of corporate governance, and, where there is non-compliance, identify and 310
explain reasons for each such issue?
D.3 Disclosure of related party transactions (RPT)
D.3.1 Does the company disclose its policy covering the review and approval of material RPTs? 503
D.3.2 Does the company disclose the name, relationship, nature and value for each material RPT? 500
D.4 Director and commissioner dealings in company shares
D.4.1 Does the company disclose trading in its shares by insiders? 311, 317
D.5 External auditor and auditor report
Where the same audit firm is engaged for both audit and non-audit services
D.5.1 Are the audit and non-audit fees disclosed? 476 - 478
D.5.2 Does the non-audit fee exceed the audit fee? 478
D.6 Medium of communication
Does the company use the following modes of communication?
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D.6.1 Quarterly reporting 531
D.6.2 Company website 111, 507
D.6.3 Analyst meeting 470
D.6.4 Media briefings/press conferences 512
D.7 Timely filing/release of annual/financial reports
Are the audited annual financial report/statement released within 120 days of the financial
D.7.1 588
year end?
D.7.2 Is the annual report released within 120 days of the financial year end? 588
Is the true and fairness/fair representation of the annual financial statement/report
D.7.3 affirmed by the board of directors/commissioners and/or the relevant officers of the 588
company?
D.8 Company website
Does the company have a website disclosing up to date information on the following:
D.8.1 Financial statements/reports (latest quarterly) 484 - 485
D.8.2 Materials provided in briefings to analysts and media 512
Website
D.8.3 Downloadable annual report
BCA
D.8.4 Notice of AGM and/or EGM 333, 335
D.8.5 Minutes of AGM and/or EGM 334, 336
Website
D.8.6 Company’s constitution (by-laws, memorandum and articles of association)
BCA
D.9 Investor relations
Does the company disclose the contact details (eg, telephone, fax, and email) of the officer/
D.9.1 472
office responsible for investor relations?
E Board Duties and Responsibilities
E.1 Board Duties and Responsibilities
Clearly defined board responsibilities and corporate governance policy
310, 357,
E.1.1 Does the company disclose its corporate governance policy/board charter?
374
E.1.2 Are the types of decisions requiring Board of Directors/Commissioners’ approval disclosed? 359
E.1.3 Are the roles and responsibilities of the Board of Directors/Commissioners’ clearly stated? 357, 374
Corporate vision/mission
E.1.4 Does the company have an updated vision and mission statement? 526 - 527
Does the Board of Directors play a leading role in the process of developing and reviewing
E.1.5 287, 530
the company’s strategy at least annually?
Does the Board of Directors have a process to review, monitor and oversee the
E.1.6 287, 530
implementation of the corporate strategy?
E.2 Board structure
Code of ethics or conduct
E.2.1 Are the details of the code of ethics or conduct disclosed? 523 - 525
Are all directors/commissioners, senior management and employees required to comply
E.2.2 523 - 525
with the code/s?
Does the company have a process to implement and monitor compliance with the code/s of
E.2.3 523 - 525
ethics or conduct?
Do independent directors/commissioners make up at least 50% of the board of directors/
E.2.4 362
commissioners?
Does the company have a term limit of nine years or less or two terms of five years each for its
E.2.5 373
independent directors/commissioners?
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Has the company set a limit of five board seats that an individual independent/non-
E.2.6 368, 388
executive director/commissioner may hold simultaneously?
Does the company have any executive directors who serve on more than two boards of
E.2.7 N/A
listed companies outside of the group?
E.2.8 Does the company have a nominating committee? 431
E.2.9 Is the nominating committee comprised of a majority of independent directors/commissioners? 431
E.2.10 Is the chairman of the nominating committee an independent director/commissioner? 431
Does the company disclose the terms of reference/governance structure/charter of the
E.2.11 431
nominating committee?
Is the meeting attendance of the nominating committee disclosed and if so, did the
E.2.12 434
committee meet at least twice during the year?
E.2.13 Does the company have a remuneration committee? 431
Is the remuneration committee comprised of a majority of independent directors/
E.2.14 431
commissioners?
E.2.15 Is the chairman of the remuneration committee an independent director/commissioner? 431
Does the company disclose the terms of reference/governance structure/charter of the
E.2.16 431
remuneration committee?
Is the meeting attendance of the remuneration committee disclosed and, if so, did the
E.2.17 434
committee meet at least twice during the year?
E.2.18 Does the company have an audit committee? 420
Is the audit committee comprised entirely of non-executive directors/commissioners
E.2.19 420
with a majority of independent directors/commissioners?
E.2.20 Is the chairman of the audit committee an independent director/commissioner? 420
Does the company disclose the terms of reference/governance structure/charter of the
E.2.21 420
audit committee?
Does at least one of the independent directors/commissioners of the committee have
E.2.22 80 - 81, 421
accounting expertise (accounting qualification or experience)?
Is the meeting attendance of the audit committee disclosed and, if so, did the committee
E.2.23 424
meet at least four times during the year?
Does the audit committee have primary responsibility for recommendation on the
E.2.24 423, 473
appointment, and removal of the external auditor?
E.3 Board processes
Board meetings and attendance
E.3.1 Are the Board of Directors meetings scheduled before the start of the financial year? 393 - 403
E.3.2 Does the Board of Directors/Commissioners meet at least six times during the year? 393 - 403
Has each of the directors/commissioners attended at least 75% of all the board meetings
E.3.3 393 - 403
held during the year?
Does the company require a minimum quorum of at least two/three for board
E.3.4 393 - 403
decisions?
Did the non-executive directors/commissioners of the company meet separately at least
E.3.5 393 - 403
once during the year without any executives present?
Access to information
Are board papers for Board of Directors/Commissioners’ meetings provided to the board at
E.3.6 394, 397
least five business days in advance of the board meeting?
Does the company secretary play a significant role in supporting the board in discharging
E.3.7 464 - 470
its responsibilities?
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Is the company secretary trained in legal, accountancy or company secretarial practices and
E.3.8 464 - 470
kept abreast of relevant developments?
Board appointments and re-election
E.3.9 Does the company disclose the criteria used in selecting new directors/commissioners? 361, 376
Did the company describe the process followed in appointing new directors/
E.3.10 361, 376
commissioners?
E.3.11 Are all directors/commissioners subject to re-election every three years; or five years for
listed companies in countries whose legislation prescribes a term of five years2 each?
2 363, 378
The five years term must be required by legislation which pre-existed the introduction of
the ASEAN Corporate Governance Scorecard in 2011
Remuneration matters
Does the company disclose its remuneration (fees, allowances, benefits in kind and other
E.3.12 emoluments) policy/practices (ie, the use of short term and long term incentives and 411
performance measures) for its executive directors and CEO?
E.3.13 Is there disclosure of the fee structure for non-executive directors/commissioners? 409 - 413
Do the shareholders or the Board of Directors approve the remuneration of the executive
E.3.14 345
directors and/or the senior executives?
Does the company have measurable standards to align the performance-based
E.3.15 remuneration of the executive directors and senior executives with long-term interests of 409 - 413
the company, such as claw back provisions and deferred bonuses?
Internal audit
E.3.16 Does the company have a separate internal audit function? 472
Is the head of internal audit identified or, if outsourced, is the name of the external firm
E.3.17 473
disclosed?
Does the appointment and removal of the internal auditor require the approval of the
E.3.18 473
audit committee?
Risk oversight
Has the company established a sound internal control procedures/risk management
E.3.19 482, 489
framework, and does it periodically review the effectiveness of that framework?
Does the annual report/annual corporate governance report disclose that the board
E.3.20 of directors/commissioners has conducted a review of the company’s material controls 488
(including operational, financial and compliance controls) and risk management systems?
Does the company disclose the key risks to which it is materially exposed (ie financial,
E.3.21 483
operational including IT, environmental, social, economic)?
Does the annual report/annual CG report contain a statement from the board of directors/
E.3.22 commissioners or audit committee commenting on the adequacy of the company’s internal 482, 489
controls/risk management systems?
E.4 People on the board
Board chairman
E.4.1 Do different persons assume the roles of chairman and CEO? 363, 379
E.4.2 Is the chairman an independent director/commissioner? 363
E.4.3 Are any of the directors a former CEO of the company in the past two years? 379
E.4.4 Are the roles and responsibilities of the chairman disclosed? 358
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Lead independent director
If the chairman is not independent, has the board appointed a lead/senior independent
E.4.5 378
director and has his/her role been defined?
Skills and competencies
Does at least one non-executive director/commissioner have prior working experience
E.4.6 64 - 79
in the major sector that the company is operating in?
E.5 Board performance
Director development
E.5.1 Does the company have orientation programmes for new directors/commissioners? 364, 381
Does the company have a policy that encourages directors/commissioners to attend on-
E.5.2 364, 381
going or continuous professional education programmes?
CEO/executive management appointments and performance
Does the company disclose the process of how the Board of Directors/Commissioners plans
E.5.3 376
for the succession of the CEO/managing director/president and key management?
Does the Board of Directors/Commissioners conduct an annual performance assessment of
E.5.4 408 - 409
the CEO/managing director/president?
Board appraisal
Did the company conduct an annual performance assessment of the Board of Directors/
E.5.5 407 - 409
Commissioners and disclose the criteria and process followed for the assessment?
Director appraisal
Did the company conduct an annual performance assessment of the individual directors/
E.5.6 407 - 409
commissioners and disclose the criteria and process followed for the assessment?
Committee appraisal
Did the company conduct an annual performance assessment of the board committees and
E.5.7 369, 389
disclose the criteria and process followed for the assessment?
Good Corporate Governance and Bad Corporate During 2019, BCA did not practice any bad corporate
Governance Practices governance. Practices of bad corporate governance
BCA continues to implement regulations or provisions of includes being reported as a company that pollutes the
corporate governance in capital market and international environment; important cases faced by the company,
best practices, and also submits Sustainability Report subsidiaries, current members of the Board of Directors
prepared based on internationally accepted standards and/or members of the Board of Commissioners, that
(GRI sustainability reporting standards). Report regarding are not disclosed in the Annual Report; no disclosure
the regulations or provisions of corporate governance in of operating segments in listed companies; and
capital market and international best practices can be discrepancies between the hardcopy of the Annual
seen on page 314 in the Fulfilment Index of Corporate Report and its softcopy.
Governance Recommendations section of this Annual
Report. The Sustainability Report is a separate report
and complements this Annual Report. Furthermore,
reports relating to Corporate Social Responsibility (CSR)
can be seen on page 565 in the Social and Environmental
Responsibility section of this Annual Report.
2019 Annual Report | PT Bank Central Asia Tbk 563
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CORPORATE
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2019 Annual Report | PT Bank Central Asia Tbk 565
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
CORPORATE SOCIAL
RESPONSIBILITY
Through corporate social We have sustainability strategy to support the
implementation of sustainable finance. It involves the
responsibility activities, BCA
following
supports sustainable development s 4O INCREASE THE lNANCING PORTFOLIO FOR SUSTAINABLE
goals and the implementation of activities
s 4O IMPROVE INTERNAL CAPACITY AND
s 4O ADJUST THE ORGANIZATION ITS RISK MANAGEMENT
corporate governance, and/or standard operational
procedures.
Corporate social responsibility (CSR) activities
represent BCA’s commitment to its stakeholder and the 4HE SUSTAINABLE lNANCE VISION AND MISSION WERE
environment. In doing so we add value for our formulated and approved by the Board of Directors
stakeholders, in line with one mission and our CSR and Board of Commissioners meeting on November 26,
initiatives to support sustainable development goals 2019 and Board of Directors’ Decision Letter No.196/SK/
(SDGs) and sustainable finance programs. DIR/2019 dated November 29, 2019, and are included in
the sustainable finance action plan.
VISION AND MISSION OF SUSTAINABLE FINANCE
Vision Mission
Sustainable Sustainable
Finance Finance
4O BE THE BANK 4O ALIGN ALL OUR
of choice and a corporate activities
MAJOR PILLAR OF THE with the principles of
Indonesian economy, sustainable finance.
that aligns with
Indonesia’s sustainable
development.
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4ECHNOLOGY IMPLEMENTATION IN ONE OF "#!S ASSISTED VILLAGE
POLICY AND IMPLEMENTATION STRATEGY BAKTI BCA AS THE IMPLEMENTATION OF CSR
STRATEGIES
4O ENABLE US TO IMPLEMENT #32 POLICIES AND STRATEGIES
according to our sustainable finance vision and mission, Bakti BCA is a community empowerment program
a front-full synergy working between internal and that is a key part of CSR strategy implementation
EXTERNAL PARTIES HAVE RESULTED IN A NUMBER OF JOINT #32 approach. Designing and implementing Bakti BCA is
activities. Overall aim was to continue making a positive the responsibility of the Corporate Social Responsibility
contribution to the community through Bakti BCA Work Unit, delivered through three pillars that are both
community empowerment program. complementary and interconnected:
One of CSR implementation channel is through the Bakti Smart Solutions (Solusi Cerdas)
BCA community empowerment program. Activities relating to education
Synergy Solutions (Solusi Sinergi)
Activities relating to culture, health, and the environment
Excellence Business Solutions (Solusi Bisnis Unggul)
Activities that support the development of Micro,
3MALL -EDIUM 3IZE %NTERPRISE -3-%S AS WELL AS THE
empowerment of communities.
2019 Annual Report | PT Bank Central Asia Tbk 567
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
Bakti BCA
Main s $EVELOPMENT OF HUMAN RESOURCES
Targets s 0RESERVATION OF ENVIRONMENT AND CULTURE
s %MPOWERMENT OF SUSTAINABLE ECONOMY
Excellence
Smart Synergy
Business
Solutions Solutions
Solutions
s 3CHOOLS !SSISTANCE s #ULTURAL s #OMMUNITY AND
s 3CHOLARSHIPS preservation village partner
s &INANCIAL LITERACY s (EALTH development
!CTIVITIES
education improvement s -3-% DEVELOPMENT
s 00! AND 004) s %NVIRONMENTAL
s )NTERNSHIPS preservation
s 0ARTNERSHIPS
0HILANTHROPY 0ROGRAMS
-AIN 3$'S
4 3,7,8,13 5,8
SDGs:
3 : Good health and well-being 7 : Affordable and clean energy
4 : Quality education 8 : Decent work and economic growth
5 : Gender equality 13 : Climate action
CORPORATE SOCIAL RESPONSIBILITY Due Diligence Method and Scope on Social, Economic
GOVERNANCE and Environment Impact of Bank Activities
4HE %NVIRONMENT 3USTAINABILITY 'OVERNANCE %3'
Commitment for Social Responsibility sub-division was formed through Board of Directors’
BCA is committed to carrying out CSR activities that Decree No. 136/SK/DIR/2019, with the key role of building
support the implementation of sustainable finance and implementing a culture of sustainable finance,
AND 3$'S 4HIS IS IN LINE WITH 0/*+ .O 0/*+ INVOLVING ALL AREAS OF THE OF ORGANIZATION AND ENSURING
concerning the implementation of sustainable finance the company’s own sustainability.
FOR &INANCIAL 3ERVICES )NSTITUTIONS )SSUERS AND 0UBLIC
Companies. 4HE %3' SUB DIVISION IN 3ECRETARY AND #OMMUNICATION
$IVISION IS RESPONSIBLE TO THE %XECUTIVE 6ICE
0RESIDENT OF #ORPORATE &INANCE AND 3ECRETARY
#OMMUNICATION $IVISION UNDER THE &INANCE AND
Corporate Planning Director, who will reports
PERFORMANCE TO THE 0RESIDENT $IRECTOR 4HE
implementation of sustainable governance should be
considered the responsibility of all BCA employees.
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: ^ _ +>! ; BCA actively supports the implementation of government
Impact of Bank’s Activities, and Important Social, INCLUSION AND lNANCIAL LITERACY PROGRAMS 4HESE PROGRAMS
Economic and Environment Issues Related to the ARE PART OF #32 ACTIVITIES 4HE "ANK HAS ALSO DEVELOPED
Bank Activities Impact and implemented its own community empowerment
BCA takes great care to map out the stakeholders program, which is explained in the next chapter of this
impacted or influenced by the it’s operational activities. report.
Stakeholder mapping is aligned with important issues
related to social, economic and environment condition so The Bank’s Strategies and Work Programs to Manage
that appropriate strategy can be formulated as well as Social, Economic and Environment Issues, and Engage
ASSOCIATED WORK PROGRAMS 4HIS MAPPING OF STAKEHOLDERS Stakeholders as well as Increasing Stakeholders and
can be seen in the 2019 sustainability report. Shareholder Value
4HE IMPLEMENTATION OF "#!S #32 ACTIVITIES ALSO INVOLVES
Corporate Social Responsibility scope, both Obligatory ITS STAKEHOLDERS 4HESE INCLUDE COMMUNITIES CUSTOMERS
or Beyond Compliance and Programs that Exceeded partners and local government. We believe that
the Minimum Responsibilities and Relevance to stakeholders can benefit from our CSR activities, and
Bank’s Business thereby strengthen their engagement with the Bank.
BCA always complies with the prevailing regulations,
such as Limited Liability Law No 40 Year 2008, article 1 3OCIAL 2ESPONSIBILITY &UNDING AND "UDGET
Nomor 3, related to social and environment responsibility "#! ALLOCATES A #32 BUDGET EVERY YEAR "UDGET REALIZATION
4*3, 4HE "ANK ADHERES TO THE ,AW REGARDING #32 for Bakti BCA in 2019 was Rp122.8 billion.
implementation, despite there being no specific
explanation of CSR activities for the Bank.
Good Corporate Governance Structure
0RESIDENT
$IRECTOR
#ORPORATE 3OCIAL
2ESPONSIBILITY
$EPUTY 0RESIDENT $EPUTY 0RESIDENT
$IRECTOR $IRECTOR
(UMAN #APITAL Finance & #OMPLIANCE
#ORPORATE SME & Commercial .ETWORK $ISTRIBUTION #REDIT ,EGAL
Management #ORPORATE 0LANNING Risk Management
"ANKING $IRECTOR "ANKING $IRECTOR $IRECTOR $IRECTOR
$IRECTOR $IRECTOR $IRECTOR
%XECUTIVE 6ICE %XECUTIVE 6ICE %XECUTIVE 6ICE %XECUTIVE 6ICE
0RESIDENT 0RESIDENT 0RESIDENT 0RESIDENT
0ROCUREMENT Strategic /PERATION #ORPORATE
#ORPORATE "ANKING SME & Commercial ,EARNING
& Facility )NFORMATION Strategy Secretary & #REDIT !NALYSIS Risk Management
Transaction & Finance Business $EVELOPMENT
Management 4ECHNOLOGY $EVELOPMENT Communication
%3' 3UB $IVISION
Sustainable
&INANCE !SPECT
Reporting/responsibility line
Coordination line
Note: 4HE BROKEN LINE IN THE CHART ABOVE REPRESENTS DEVELOPMENTSPROGRESS IN THE SUSTAINABLE lNANCE APPLICATION REPORTING MECHANISM
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CORPORATE SOCIAL RESPONSIBILITY RELATED CORPORATE SOCIAL RESPONSIBILITY RELATED
TO HUMAN RIGHTS TO FAIR OPERATIONS
Commitment and Social Responsibility Policy for Fair
Operations
BCA respects human rights, 4HE IMPLEMENTATION OF FAIR OPERATIONS IS ONE OF "#!S
supports gender equality and COMMITMENTS THROUGHOUT ITS BANKING OPERATIONS 4HE FAIR
operations initiative was implemented through activities
relating to labor, financing, services and relationships
with stakeholders.
Commitment and Policy for Human Rights Social Planning and Implementation of Fair Operations
Responsibility &AIR ACTIVITIES IMPLEMENTATION INCLUDES OFFERING EQUAL
Under ISO 26000 guidelines, guidance for social opportunities to all employees. Promotion is conducted
RESPONSIBILITY HUMAN RIGHTS (!- IS ONE OF THE KEY AREAS WITH TRANSPARENCY AND OBJECTIVELY BASED ON THE FAIRNESS
OF SOCIAL RESPONSIBILITY (UMAN RIGHTS ARE COVERED BY THE principle.
MANAGEMENT OF LABOR OR HUMAN RESOURCES (2 %MPLOYEE
rights and obligations are outlined in the collective labor 4HE FACT THAT WOMEN HAVE THE OPPORTUNITY TO REACH THE
agreement (CLA) 2019-2021. highest position in their career path is a reflection of the
#OMPANYS SUPPORT FOR GENDER EQUALITY 4HERE ARE THREE
Planning and Implementation of Human Rights WOMEN DIRECTORS OF TOTAL MEMBERS OF THE "OARD
Initiatives OF $IRECTORS AND WOMEN BRANCH HEADS OF
As stated in the Collective Labor Agreement (CLA), BCA TOTAL BRANCH HEADS ACROSS )NDONESIA 4HE ASSIGNMENT OF
ensures that every employee is treated fairly, both during women to the highest positions is based purely on their
performance appraisal and evaluation, as well as career achievement and required performance, without any
advancement. Performance appraisal is conducted for discrimination.
every employee regardless of their gender, age, ethnicity,
religion, race or other discriminatory factors. "#! HAS AN ENTERPRISE BACKOFlCE INTEGRATION %")
application procurement system covering everything
BCA provides lactation facilities in some regional offices from budgeting, procurement, PO/contract preparation
and head offices, demonstrating its support and respect or rental, building maintenance, procurement through
for human rights of female employees. All female TO PAYMENT 4HIS SYSTEM ALSO SUPPORTS FAIR VALUE CHAIN
employees receive health allowances for their husband and procurement practices. BCA applies fair contracts
AND CHILDREN 4OTAL FEMALE EMPLOYEES OF TOTAL provides equal treatment, and complys with good
employees. corporate governance principles.
4HERE WERE NO SIGNIlCANT COMPLAINTS IN ON THE As part of its implementation of good corporate
implementation of human rights initiatives. governance (GCG), BCA also has procedures and
mechanisms to deal with conflict related to fair
OPERATIONS 4HE PREVENTION OF CONmICT IS CARRIED OUT BY
implementing appropriate policies and procedures as well
as adequate internal control. Current ongoing initiatives
ARE THE APPLICATION OF ANTI GRATIlCATION SOCIALIZATION OF
anti-fraud, enhancement of the data security system and
strengthening the awareness of whistleblowing system.
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
BCA develops and executes financial literacy education CORPORATE SOCIAL RESPONSIBILITIES FOR
programs for the public without discrimination over their THE ENVIRONMENT
backgrounds. In line with that, there is no discrimination
in providing excellence services to all customers and BCA
takes into account fulfillment of creditor rights.
BCA received a Constituent of
BCA also gives opportunities for disabled people so Sustainable Investment (SRI)-
that they may gain training and working experience. In
!"# #$
2019, BCA employed 15 disabled people as outsource
STAFF WORKING AT ITS DIGITAL SERVICES CENTER 4HIS REmECTS the KEHATI Foundation for its
our commitment to the provision of equal employment & '
opportunities, as well as support for government
programs, particularly Government Regulation or PP
No. 43 year 1998 concerning initiatives to improve the Commitment and policy on corporate social
welfare of disabled persons. responsibilities for labor, health, and work safety.
In 2019, fair operations ran well in accordance with the 4HE 7ORLD %CONOMIC &ORUM IN IDENTIlED lVE
DUTIES AND AUTHORITIES OF EACH EMPLOYEE 4HERE WERE risks that influence global economic conditions. One
no complaints from employees or customers over unfair IS ENVIRONMENTAL RISK ESPECIALLY GLOBAL WARMING 4HE
practices with a material impact. impact of global warming, as a result of climate change,
is experienced by many people. It has become a global
BCA continuously carries out fair banking operations issue and concern for all parties, including businesses in
to strengthen engagement with all customers, and to the banking sector.
provide security and comfort in the working environment.
4HE IMPLEMENTATION OF THE "AKTI "#! PROGRAM IS BCA, as one of the largest national private banks in
expected to enhance the Bank’s contribution and support Indonesia, actively promotes effort to preserve the
to community welfare improvement programs. ENVIRONMENT 4HIS IS PART OF COMMITMENT TO AND SUPPORT
for reducing global warming. BCA employs policies
that promote environmental preservation, including
the application of energy management in offices and
branches.
$EPUTY 0RESIDENT $IRECTOR OF "#! !RMAND 7 (ARTONO
Signing of BCA’s CLA of 2019-2021
greeted customers on Customer Day
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%NVIRONMENTAL PRESERVATION EFFORTS ARE ALSO CARRIED 4HE EFlCIENCY OF BUSINESS TRIPS TRAINING TRIPS AND
out by actively involving BCA employee in the process. DOCUMENTS DISPATCHING ARE ACHIEVED BY UTILIZING
BCA continuously conducts education through internal technology. Such as tele and video conferencing,
communication media. e-learning, carpooling and e-mail usage, intranet portals,
MY"#! AND TRACKING SYSTEM APPLICATIONS 4HESE ACTIVITIES
"#! PROVIDES lNANCING TO SEVERAL PROJECTS THAT COMPLY are designed to supports environmental sustainability.
with regulations and encompass environmental, social
AND GOVERNANCE PERSPECTIVES 4HIS IS IN ACCORDANCE BCA encourages customers to support environmental
WITH /*+ REGULATIONS ON SUSTAINABLE lNANCE AND 3$'S conservation efforts, through e-statement system for
achievements. savings, current accounts and credit card bills; choice
OF WITHDRAWING WITHOUT RECEIPT AT !4- !4- 34!2
Environment Planning, Implementation and e-branch; and digital banking solutions (m-BCA, Klik
Achievement BCA, and Sakuku). in 2019, the latest BCA’s perbankan
BCA implements environmentally friendly lifestyle solution is online account opening through Mobile BCA.
EDUCATION PROGRAM FOR ITS EMPLOYEES 4O ENSURE OUR
eco-friendly environment, BCA has an ‘agent of change BCA’s commitment to environmental management
PROGRAM IN EACH WORKING UNIT 4HEY ARE EQUIPPED WITH IS REmECTED IN ITS COLLABORATION WITH "/3& "ORNEO
know how and tools to drive eco-friendly activities for /RANGUTAN 3URVIVAL &OUNDATION "/3& IS AN ORGANIZATION
day to day banking operations and services. that actively develops conservation programs for
orangutan habitats. Orangutans are one of Kalimantan’s
An environmentally friendly culture is also carried out endemic fauna protected by law and must therefore be
in the Bank’s operational activities, as a green office preserved.
effort. Programs include regulating the temperature of
air conditioners, turning off the lights during recess or BCA consistently promotes turtle conservation through
in unused areas, and water-saving campaigns. Campaigns THE "ANYUWANGI 3EA 4URTLE &OUNDATION "34& 4HE
are continuously intensified, including reducing the use program’s activities include education for fishermen and
OF STYROFOAM AND PAPER TURNING OFF THE LIGHTS ON %ARTH the release of hatchlings under the Save and Preserve Sea
(OUR $AY AND THE 'REEN 2AMADAN MOVEMENT 4URTLES PROGRAM
'REEN /FlCE SOCIALIZATION TO "#!S WORK UNITS "#! PARTNERED WITH "/3& IN ORANGUTAN RELEASE PROGRAM
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"#! SUPPORTS THE PRESERVATION OF 5JUNG +ULON .ATIONAL Planning, implementation and achievement of labor,
0ARK UNDER THE .%7TREES 0ROGRAM INITIATED BY 77& health and work safety initiatives.
)NDONESIA 4HIS PROMOTES GREENING THE SHORELINE AND !CTIVITIES TO SUPPORT LABOR AND PROMOTE /(3 PRACTICES
planting mangrove trees to prevent abrasion. include:
A 'ENDER %QUALITY AND *OB /PPORTUNITIES
Going forward, BCA will continue to focus on reducing BCA provides equal opportunities for every
environmental risks and promote compliance with employee, regardless their ethnics, religion, race,
ENVIRONMENTAL REGULATIONS 4HE "ANK ALSO SUPPORTS CLASS OR GENDER %MPLOYEE PLACEMENT POLICIES ALWAYS
debtors who want to obtain environmental certification EMPHASIZE THE COMPETENCE AND PERFORMANCE
for their businesses. of the individual concerned, ensuring there are
opportunities for female employees to occupy the
CORPORATE SOCIAL RESPONSIBILITY RELATED highest levels of management.
TO EMPLOYMENT, OCCUPATIONAL HEALTH
AND SAFETY PRACTICES B %DUCATION ANDOR TRAINING
BCA regularly provides training to improve employee
competency and performance. Competency
development is carried out through workshops or
One way to support gender IN CLASS TRAINING E LEARNING ON THE JOB TRAINING
equality for women is by providing coaching and mentoring. While training and
education materials are primarily oriented toward
health facilities to them and their
the banking industry, soft skills development
materials are also available, including leadership,
personality and environmental preservation.
Commitment and policy on corporate social C ,ABOR #OMPLAINTS -ECHANISM
responsibilities for labor, health, and work safety. BCA has developed several means of maintaining
(UMAN RESOURCES (2 HAS A SIGNIlCANT ROLE TO PLAY IN COMMUNICATION WITH EMPLOYEES 4HIS INCLUDES THE
influencing company performance. BCA is committed (ALO 3$- WHICH CAN BE ACCESSED THROUGH
to focusing on the welfare and career development the internal telephone network and provides
of employees, including creating a healthy, safe and information about employment and industrial
comfortable work environment (occupational health and RELATIONS 4HE "ANK MAINTAINS THE CONlDENTIALITY
SAFETY/(3 OF EMPLOYEE INFORMATION AND DATA WHEN (ALO 3$-
services are used.
"#! EMPLOYS A COMPREHENSIVE STAFlNG POLICY 4HIS
includes: transparency of information for employees, D 7ORK &ACILITIES AND 3AFETY
implementation of the Collective Labor Agreement (CLA), 4HE DEVELOPMENT OF "#!S WORKING ENVIRONMENT
personal and career development, equal employment focuses on: safety and comfort, the completeness and
opportunities, and compensation and benefits programs. appropriateness of work facilities, environmental
hygiene, spatial harmony and the appropriateness
of security facilities. Periodically, BCA conducts
EVACUATION DRILLS %MPLOYEES AT HEADQUARTERS
regional and branch offices are trained in how
TO FACE FORCE MAJEURE SITUATIONS SUCH AS lRES OR
earthquakes.
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E %MPLOYEE HEALTH In order to maintain trust and meet our customers’ needs,
4O ENSURE THE HEALTH OF EMPLOYEES AND THEIR FAMILIES THE OPERATIONS STRATEGY DEVELOPMENT DIVISION ENSURES
BCA provides medical benefits, including in-patient, staff have adequate service sector competence, adhering
out-patient, maternity, optical, dental, laboratory, TO OUR SERVICE STANDARD NAMELY 3-!24 3OLUTIONS "#! HAS
MEDICAL CHECKUPS AND PAP SMEARS 4HE "ANK ALSO also developed a complete and reliable digital banking
participates in the government medical service service to respond to the dynamic needs of customers.
program by facilitating employees and their families
IN "0*3 +ESEHATAN 4HIS POLICY IS EXPECTED TO MAKE A BCA also implements policy in product and services
positive contribution to employee well-being. development to meet customer needs, paying attention
to convenience and security. Innovations in banking
SOCIAL RESPONSIBILITY TO CUSTOMERS solutions always refer to prevailing regulations. Before
launching, the products are carefully evaluated by the
Commitment and policy of corporate social respective work units.
responsibilities to customers
BCA implements its corporate social responsibilities to 4HE IMPLEMENTATION OF SOCIAL RESPONSIBILITY ACTIVITIES FOR
customers in accordance with prevailing policies and customers is done through the publication of educational
regulations in Indonesia as follows: materials for banking solutions. News columns in the
/*+ 2EGULATION .O 0/*+ CONCERNING MEDIA SUCH AS "ERITAGAR +OMPASCOM )$.4IMESCOM AND
#ONSUMER 0ROTECTION IN THE &INANCIAL 3ERVICES 3ECTOR Kumparan.com. are used to communicate to customers.
2. Bank Indonesia Regulation No. 7/7/PBI/2005
concerning Settlement of Customer Complaints, BCA also routinely holds gatherings with customers
which has been amended by PBI No. 10/10/PBI/2008 to promote banking and financial solutions and share
Regarding customer protection. KNOWLEDGE ON CURRENT lNANCIAL TOPICS 4HIS IS ALSO A WAY
of allowing customers to share their experiences with
Planning, implementation and achievement of one another, connecting BCA and its customers, and
corporate social responsibilities to customers NETWORKING 4HE CLOSENESS OF THE "ANK TO ITS CUSTOMERS IS
Customer trust is one of BCA’s most valuable assets, of one of the keys to its success in building harmonious and
WHICH OUR EMPLOYEES ARE A MAJOR COMPONENT 4HIS IS mutually supportive relationships.
REmECTED IN OUR VALUES NAMELY &OCUS ON #USTOMER
)NTEGRITY 4EAMWORK AND CONTINUOUS PURSUIT OF EXCELLENCE
/UR VALUES ARE SOCIALIZED TO EMPLOYEES AND ARE AN INTEGRAL
part of our induction program for new employees.
0RESIDENT $IRECTOR OF "#! *AHJA 3ETIAATMADJA GREETED CUSTOMERS
"#! %XPOVERSARY FOR "#!S LOYAL CUSTOMERS in Customer Day
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
Bakti BCA scholarships
Bakti BCA Scholarship participant in team building activity 4EAM BULDING ACTIVITY FOR "AKTI "#! 3CHOLARSHIP PARTICIPANT
Customers can use several means to contact BCA: the CORPORATE SOCIAL RESPONSIBILITY IN
(ALO "#! HOUR CONTACT CENTER SERVICE % MAIL SOCIAL AND COMMUNITY DEVELOPMENT
halobca@bca.co.id AND 4WITTER (ALO"#!
BCA has developed its Bakti BCA corporate social
4HE MANAGEMENT AND RESOLUTION OF "#! CUSTOMER responsibility (CSR) program, to empower communities.
complaints follows our service level standard, which Bakti BCA is implemented through three pillars: Solusi
defines the maximum period allowed for problem Cerdas (Smart Solutions), Solusi Sinergi (Synergy Solutions)
RESOLUTION 4HE PERIOD FOR RESOLVING COMPLAINTS DEPENDS AND 3OLUSI "ISNIS 5NGGUL %XCELLENCE "USINESS 3OLUTIONS
on the type and complexity of the problem. Service level
FULlLLMENT IS MONITORED VIA AN ELECTRONIC SCREEN AT (ALO SMART SOLUTIONS
BCA. %DUCATION IS THE MAIN TOOL IN DEVELOPING QUALITY HUMAN
RESOURCES 4HEREFORE "#! CONTINUES TO DEVELOP #32
In 2019, the number of suggestions and complaints programs that improve education for the community.
THROUGH (ALO"#! WAS TELEPHONE CALLS 4HIS PROGRAM IS DEVELOPED FOR THE LONG TERM THROUGH THE
CONSISTING OF OF CUSTOMER COMPLAINTS Smart Solutions pillar under Bakti BCA.
RELATED TO DEMAND RELATED TO CUSTOMER NEEDS FOR
INFORMATION ON "#! BANKING SOLUTIONS AND IN THE Smart Solutions focuses on providing educational support
FORM OF ADVICE 4HE MOST COMPLAINTS WERE RELATED TO CARDS for people with financial constraints. It also focuses on
STUCK AT !4- MACHINES MONEY STUCK AT !4-S DEBITED improving education in low-income areas by supporting
accounts but the money is not received by customers, and an education equality program. Programs that have so
declined credit cards. far been carried out include:
s .ON DEGREE !CCOUNTING %DUCATION 0ROGRAM 00!
BCA continuously develops and provides banking s .ON DEGREE 4ECHNOLOGICAL )NFORMATION %DUCATION
solutions that are safe, convenient, reliable and easily 0ROGRAM 004)
ACCESSIBLE %XCELLENCE IN PROVIDING COMPREHENSIVE AND s "AKTI "#! INTERNSHIP PROGRAM
exceptional service made the Bank the largest market s "AKTI "#! 3CHOOLS !SSISTANCE
CAPITALIZATION BANK IN 3OUTHEAST !SIA AT YEAR END s "AKTI "#! SCHOLARSHIPS
BCA also received awards from various independent s %DUCATIONAL PARTNERSHIPS
institutions. s &INANCIAL LITERACY EDUCATION
&OR THE BEST COMMITMENT IN PROVIDING SERVICES TO
customers, BCA achieved a customer engagement index
of 4.67 from a scale of 1-5.
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.ON DEGREE !CCOUNTING %DUCATION 0ROGRAM 00! Although the non-degree PPA program has no official
4HE NON DEGREE 00! PROGRAM HAS BEEN CONTINUOUSLY working commitment, alumni have the opportunity
running since 1996. It is designed for high school, to work at BCA in accordance with the needs and
vocational or equivalent graduates who perform conditions of the Company. During 2019, there were
academically, but have financial constraints that limit 392 PPA participants who were studying. Between
them in continuing their education to a higher level. 1996 and 2019, there were 1,488 non-degree PPA
4HE PARTICIPANTS COME FROM A WIDE RANGE OF REGIONS graduates who chose to become BCA employees. In
across Indonesia to study accounting for 30 months. 2019, there were 114 PPA graduates, of which 113,
OR CHOSE TO BECOME "#! EMPLOYEES
Non-degree PPA Participants
378 376 392
.ON DEGREE 00! 0ARTICIPANTS
2019 2018 2017
Number of people 392 376 378 2017 2018 2019
Non-degree PPA Alumni
134
129
114
.ON DEGREE 00! !LUMNI
2019 2018 2017
Number of people 114 134 129 2017 2018 2019
.ON DEGREE 4ECHNOLOGICAL )NFORMATION %DUCATION 0ROGRAM 004)
4HE NON DEGREE 004) PROGRAM IS DESIGNED FOR HIGH SCHOOL VOCATIONAL OR EQUIVALENT GRADUATES WHO EXCEL AND ARE
INTERESTED IN IMPROVING THEIR CAPABILITY IN THE )4 lELD 4HE PROGRAM LASTS FOR MONTHS AND USES A DROPOUT SYSTEM
with a relatively high passing grade.
!T THE END OF THERE WERE NON DEGREE 004) PARTICIPANTS STUDYING 3OME SUCCESSFULLY COMPLETED THEIR
education, with 26 graduates choosing to become BCA employees.
.ON DEGREE 004) 0ARTICIPANTS
147
106
99
.ON DEGREE 004) 0ARTICIPANTS
2019 2018 2017
Number of people 147 106 99 2017 2018 2019
.ON DEGREE 004) !LUMNI
33
28 28
.ON DEGREE 004) !LUMNI
2019 2018 2017
Number of people 28 33 28
2017 2018 2019
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"AKTI "#! )NTERNSHIP 0ROGRAM
Since 2002, BCA has run an internship program covering everyone from high school students to bachelor’s degree
GRADUATES WHO GO THROUGH A RIGOROUS SELECTION PROCESS 4HIS PROGRAMS AIM IS TO IMPROVE THE QUALITY OF OUR HUMAN
resources, especially among Indonesia’s younger generation. In 2019, there were 4,602 participants in the program,
AN INCREASE OF COMPARED TO THAT OF THE PREVIOUS YEAR
Bakti BCA
Internship Program (people)
4,602
4,190
3,766
"AKTI "#! )NTERNSHIP 0ROGRAM
2019 2018 2017
Number of people 4,602 4,190 3,766 2017 2018 2019
"AKTI "#! 3CHOOLS !SSISTANCE 4EACHER WITH %XCEPTIONS !WARD BY 3ERANG -UNICIPAL
Bakti BCA Schools Assistance program was developed 3-!. 0ONJONG WAS NAMED THE .ATIONAL !DIWIYATA
to support government programs in improving the School 2018; SMPN Serang 6 was named Serang City
quality, access, and development of educational 3CHOOL OF 2EFERENCE AND 3$. 0ONJONG EARNED THE
infrastructure. highest average UN score in the district.
4HE PROGRAM PROVIDES TRAINING TO INCREASE TEACHERS BCA assists 17 schools in Lampung, Serang and
knowledge and capacity to cope with the current Yogyakarta with 539 beneficiaries and 8,694
NEEDS AND CHALLENGES THEY FACE 4HIS INCLUDES students. Partner schools are expected to facilitate
increasing knowledge about the curriculum, soft access for children to quality schools that are near
skills and hard skills in teaching to create a creative their homes.
and effective learning environment, and mentoring
programs to improve student performance. In "AKTI "#! 3CHOLARSHIP
developing this training program, BCA works closely 4HE "AKTI "#! SCHOLARSHIP IS DESIGNED FOR BACHELORS
with institutions that have specific competencies in degree (S1) students who perform academically
these areas of expertise. In 2019, training conducted but have financial constraints. BCA also facilitates
included: 21st century learning for Bakti BCA soft skills development programs for scholarship
elementary school teachers in Serang, Lampung and recipients, including: leadership training,
9OGYAKARTA 4HE TEACHER TRAINING PROGRAM LASTS FOR entrepreneurship sharing sessions, and mentoring.
one year and involves three meetings, with the aim 3CHOLARSHIP RECIPIENTS ARE EXPECTED TO RECOGNIZE
of providing a more comprehensive understanding and develop their highest potential through a series
of inquiry-based learning. OF PROGRAMS 4HE "ANK PROVIDES COMMUNICATION
FACILITIES VIA &ACEBOOK AND ,INE GROUP 3AHABAT "#!
BCA also provides assistance in the form of
FACILITIES AND INFRASTRUCTURE CONSTRUCTION 4HIS In 2019, BCA disbursed scholarships funds of Rp5.3
includes: assisting in the development of computer billion to 731 students in 18 state universities,
LABORATORIES PROCUREMENT OF ,#$ PROJECTORS ALONG including the University of North Sumatra (Medan),
with screens, laptops, servers, and library books, as 3RIWIJAYA 5NIVERSITY 0ALEMBANG 5NIVERSITY OF
well as developing other infrastructure to support )NDONESIA *AKARTA "OGOR !GRICULTURAL 5NIVERSITY
teaching and learning activities. At present, most "OGOR "ANDUNG )NSTITUTE OF 4ECHNOLOGY AND
of the Bakti BCA schools assistance with a “good” 0ADJADJARAN 5NIVERSITY "ANDUNG $IPONEGORO
AND hVERY GOODv ACCREDITATION 4HE ACHIEVEMENTS OF 5NIVERSITY 3EMARANG 'ADJAH -ADA 5NIVERSITY
schools assistance under the Bakti BCA program are: (Yogyakarta), Sepuluh Nopember Institute of
3-!. +ARANGMOJO WON ST PLACE IN THE 0ROVINCIAL 4ECHNOLOGY AND !IRLANGGA 5NIVERSITY 3URABAYA
Library Competition; SMAN 3 Serang was awarded "RAWIJAYA 5NIVERSITY -ALANG 5DAYANA 5NIVERSITY
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(Bali), Mulawarman University (Samarinda), 300 teachers, to improving teaching skills in the
4ANJUNGPURA 5NIVERSITY 0ONTIANAK 3AMRATULANGI class.
5NIVERSITY -ANADO (ASANUDDIN 5NIVERSITY s %XCELLENT SERVICE TRAINING ATTENDED BY )NTEGRATED
-AKASSAR #ENDERAWASIH 5NIVERSITY *AYAPURA 3ERVICES 5NIT STAFF OF 0ADJADJARAN 5NIVERSITY AND
"ANDUNG )NSTITUTE OF 4ECHNOLOGY 4HIS AIMS TO
BCA also cooperates with other institutions in improve the quality of staff services to students.
channeling the scholarships. In 2019, the Bank s "#! CONTRIBUTE TO DEVELOPE MINIBANK FOR
PARTNERED WITH +ARYA 3ALEMBA %MPAT &OUNDATION ‘Sekolah Vokasi UGM’, also renovation and
+3% THE )NDONESIAN #OOPERATIVE )NSTITUTE )+/0). DEVELOPMENT OF CASHLESS CANTEENS FOR 'ADJAH
to distribute scholarships to students at various Mada University and Bandung Institute of
universities in Indonesia. 4ECHNOLOGY *ATINAGOR
s 3UPPORTING THE DEVELOPMENT OF BANKING
0ARTNERSHIP WITH %DUCATIONAL )NSTITUTIONS LABORATORIES AT THE &ACULTY OF %CONOMICS AND
BCA actively cooperates with educational institutions "USINESS &%" 'ADJAH -ADA 5NIVERSITY 4HIS
and universities across Indonesia, to support the has been carried out since 2015, in the form of
DEVELOPMENT OF )NDONESIAN EDUCATION 4HE PROGRAM library building repairs, procurement of room
is carried out continuously, and involves: facilities for music education programs.
s &ACILITATING SEMINARS AND PUBLIC LECTURES %ARLY #HILDHOOD $EVELOPMENT
AT UNIVERSITIES 0ADJADJARAN 5NIVERSITY s "#! HAS A PARTNERSHIP WITH THE 5NITED .ATIONS
University of Indonesia, Sepuluh Nopember #HILDRENS &UND 5.)#%& SPECIlCALLY IN THE
)NSTITUTE OF 4ECHNOLOGY "RAWIJAYA 5NIVERSITY )NDONESIAN CHILDRENS EDUCATION PROGRAM 4HE
Muhammadiyah University of Malang, partnership is a continuation of the previous
Udayana University, Mulawarman University, year’s program. In 2019, BCA disbursed donations
4ANJUNGPURA 5NIVERSITY AND 3AM 2ATULANGI OF 2P MILLION FOR 5.)#%& 4HE FUNDS WERE
5NIVERSITY 4HIS AIMS TO PREPARE STUDENTS TO used to implement quality integrated holistic
enter the workforce. EARLY CHILDHOOD DEVELOPMENT )( %#$ SERVICES
s 7ORKING CLOSELY WITH $IPONEGORO 5NIVERSITY IN THE 3ORONG AND 2AJA !MPAT DISTRICTS IN 7EST
Semarang, BCA facilitates the Bloomberg Papua.
FACILITY AT THE &ACULTY OF %CONOMICS AND "USINESS s 4HIS BROUGHT POSITIVE IMPACTS SUCH AS IMPROVING
&%" TO SUPPORT LECTURE AND STUDENT RESEARCH the quality of teachers and school principals,
activities. and strengthening the government and local
s "#! CONDUCTED TRAINING FOR TEACHERS OF %AST community’s commitment to ensure children
Indonesia, held in Kupang, Mataram and receive the benefits of education, health,
3ORONG 4HE PROGRAM WAS PARTICIPATED IN BY NUTRITION AND PROTECTION FROM )( %#$
4RAINING FOR "AKTI "#! 3CHOLARSHIP PARTICIPANT 4RAINING FOR TEACHERS FROM EASTERN )NDONESIA
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&INANCIAL ,ITERACY %DUCATION FOR SEVERAL ELEMENTARY SCHOOLS Wayang student performance
&INANCIAL ,ITERACY %DUCATION s &INANCIAL LITERACY EDUCATION IN INCREASING
BCA implements a number of programs that strive to ,!+5 "#! PRODUCTS BCA provides training on
improve the literacy index and financial inclusion of financial management and the introduction
THE )NDONESIAN PEOPLE 4HESE INCLUDE OF ,!+5 "#! PRODUCTS TO HOUSEWIVES 3-%S
s &INANCIAL LITERACY EDUCATION FOR STUDENTS is farmers and employees. Activities were carried
conducted to improve financial management OUT IN 7EST *AVA +UNINGAN #IAMIS #IREBON
SKILLS EARLY ON IN LIFE 4HE PROGRAM WAS -AJALENGKA AND 4ASIKMALAYA #ENTRAL *AVA
implemented in several schools, being attended (Demak, Kudus, Grobogan, and Wonogiri) and
by 6,304 students, including those from the Bakti 9OGYAKARTA 'UNUNG +IDUL 4HE PROGRAM WAS
BCA partner schools. Students are expected to attended by 98,072 participants, an increase of
gain basic financial knowledge such as pocket COMPARED TO IN
money management, and a saving culture s "#! ACTIVELY SUPPORTS SEVERAL &INANCIAL LITERACY
through SimPel (student saving) products. EDUCATION WITH lNANCIAL LITERACY CARS 3I-/,%+
4HE PROGRAM USES GAMIlCATION METHODOLOGY INITIATED BY THE &INANCIAL 3ERVICES !UTHORITY
INVOLVING A GAME BOARD 4HIS APPROACH MEANS /*+ to increase the financial literacy and
that students learn in a pleasant atmosphere, inclusion index in regions with inadequate
so that the material is readily absorbed. It INFRASTRUCTURE %DUCATIONAL PARTICIPANTS CAME
is complemented by an expo of banking FROM VARIOUS GROUPS SUCH AS 3-%S PRIVATE
financial products that is packaged in the form sector employees, civil servants, lecturers and
of edutainment, such as puppet culture in STUDENTS 4HERE WERE PARTICIPANTS OF THIS
Bandung, Semarang. event.
s &INANCIAL LITERACY EDUCATION FOR THE FAMILIES
OF )NDONESIAN MIGRANT WORKERS 3ABA $ESA SYNERGY SOLUTIONS
introduces financial management, knowledge
OF lNANCIAL PRODUCTSSERVICES AND SOCIALIZATION Synergy Solutions is a pillar of Bakti BCA that supports
of financial institution remittance cash payment community development in the fields of culture, health,
facilities. Saba Desa was carried out on PMI environment and empathy across Indonesia. BCA
(Indonesian migrant workers) enclaves in SYNERGIZES WITH INSTITUTIONS THAT HAVE COMPETENCE AND
THREE CITIES 3UKALUYU #IANJUR 3OUTH -ALANG CREDIBILITY IN THEIR RESPECTIVE lELDS WHEN ORGANIZING THE
(Malang), and Luwungbata Village (Brebes). PROGRAM 4HE PROGRAM INCLUDES
4HEY WERE ATTENDED BY TO VISITORS
per city.
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"AKTI "#! FOR #ULTURAL (120 patients); Singaparna Medika Citra Utama
Shadow puppets (wayang) are part of Indonesia’s (OSPITAL 4ASIKMALAYA PATIENTS #IKALONG
CULTURAL HERITAGE AND RECOGNIZED BY 5.%3#/ 3INCE 7ETAN 2EGIONAL (OSPITAL 0URWAKARTA
2012, the Bank has been actively developing the patients) - with 613 patients in total, an increase
BCA for Indonesian Wayang program, which aims from the previous year.
to encourage young people to learn about wayang
and to understand the values of wayang art in order BCA also supports the procurement of cataract
TO ENSURE ITS PRESERVATION FOR THE FUTURE %DUCATION surgery facilities such as microscopes, which
programs Wayang for Students and Wayang Day are were donated to SPBK Perdami and Perdami DKI
delivered as puppeteer training, wayang training, *AKARTA "RANCH AND ALSO PHACOEMULSIlCATION
wayang assembling workshops, puppeteering facilities to Perdami Riau Branch.
workshops, exhibitions and performances.
s "AKTI "#! "LOOD $ONOR
Wayang for Students events in Bandung and BCA has been working with the Indonesian Red
3EMARANG WERE ATTENDED BY AROUND JUNIOR Cross (PMI) to conduct blood donor activities
high, high school and vocational high school since November 1990. Blood donations are
students. Wayang Day was held in Balikpapan and carried out a maximum of four times per year
was attended by 492 elementary students. in one location. During 2019, they were held 33
TIMES IN *AKARTA AND OTHER REGIONS IN )NDONESIA
"AKTI "#! FOR (EALTH and 3,004 blood bags were collected.
BCA’s concern for the community is reflected in its
provision of health care facilities, including: s (EALTHCARE 3ERVICE
s #ATARACT 3URGERY BCA works closely with the Bakti Medika Clinic
BCA has been working with the Cataract and the Duri Utara doctors to provide quality
Blindness Prevention Section of the Indonesian HEALTH CARE FACILITIES AT AN AFFORDABLE COST 4O
Ophthalmologist Association (SPBK Perdami) the end of 2019, Duri Utara doctors received
SINCE AND THE +ICK !NDY &OUNDATION SINCE 13,422 patients and Bakti Medika Clinic received
2017 to carry out cataract surgery services. PATIENTS A TOTAL OF (EALTH SERVICES
provided include medical measures and family
During 2019, cataract operations were carried PLANNING &0 PROGRAM CONSULTATIONS
out in six hospitals: Putussibau Regional
(OSPITAL 7EST +ALIMANTAN PATIENTS In 2019, the Bakti Medika Clinic in collaboration
-ASMITRA (OSPITAL "EKASI 0ATIENTS 4+ )) WITH !LZHEIMERS )NDONESIA BECAME A REFERRAL
(OSPITAL 0ROF $R *! ,ATUMENTEN !MBON clinic for patients to detect early dementia.
PATIENTS 9ATOFA (OSPITAL #ENTRAL ,OMBOK
BCA employees participated in Bakti BCA blood donation BCA has cooperated with SPBK Perdami since 2001 to carry
out cataract operations
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Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
"#! SUPPORTS MANGROVE PLANTATION UNDER .%7TREES 3INCE "#! COLLABORATING WITH "/3& IN ORANGUTAN
PROGRAM BY 77& )NDONESIA releasing program
Coinciding with BCA’s 62nd birthday, free STUDENTS AND TEACHERS 4HE PUBLIC AWARENESS AND
medical activities were held in Bukit Peramun, publicity program also used specially designed
$URI 5TARA #LINIC AND "AKTI -EDIKA #LINIC 4HIS &LAZZ CARDS AND VIDEOS ABOUT ORANGUTAN
benefited 100 people at Bukit Peramun, 150 conservation on the big screen at Menara BCA
at the Duri Utara Clinic, and 300 at the Bakti in welcoming International Orangutan Day.
Medika Clinic.
s "IODIVERSITY #ONSERVATION
s (EALTH %DUCATION "#! SUPPORTS THE .%7TREES 0ROGRAM INITIATED BY
BCA provides education on health awareness to 77& )NDONESIA TO PRESERVE THE ENVIRONMENT BY
STUDENTS AT 0!5$ +ASIH "UNDA 4+ $HARMA PLANTING MANGROVES IN THE 5JUNG +ULON .ATIONAL
Wanita, and SDN Isdiman. Park. Some 20,200 mangrove tree seedlings have
been planted since 2017 with total planted area
%NVIRONMENTAL #ONSERVATION of 12 hectares and it is estimated that 164,240
s /RANGUTAN 2ELEASE g eq CO2 will be absorbed and will continue to
BCA has also contributed to the preservation GROW AS THEY GROW 4HE MANGROVE PLANTING IS
of Indonesia’s fauna by providing donations also expected to support habitat conservation
and support to the Borneo Orangutan Rescue in coastal areas.
&OUNDATION "/3 &OUNDATION SINCE
)N 4HE "ANK DONATED 2P MILLION BCA also supports turtle conservation through
to support orangutan conservation. BCA, THE "ANYUWANGI 3EA 4URTLE &OUNDATION "34&
TOGETHER WITH THE "/3 &OUNDATION RELEASED SIX 4HIS PROGRAM INCLUDES THE RELEASE OF HATCHLINGS
orangutans from the Orangutan Rehabilitation IN THE 3AVE AND 0RESERVE 4URTLE 3ELAMATKAN AND
#ENTER IN 3AMBOJA ,ESTARI "/3& 3AMBOJA Lestarikan Penyu) program. In 2019, BCA and
,ESTARI TO THE +EHJE 3EWEN &OREST IN %AST +UTAI "34& RELOCATED TURTLE NESTS TO SUPPORT THE
District. SURVIVAL OF TURTLES 4HE PROGRAM ALSO INCLUDES
maintenance of semi-natural hatchery nests,
"#! AND THE "/3 &OUNDATION ALSO CONDUCT as well as education on turtle conservation for
orangutan conservation education through 625 students, 160 fishermen, and communities
the Orangutan Goes to School program. around Banyuwangi.
Information on the importance of orangutans
and habitat conservation efforts were conveyed 4HE TOTAL DISTRIBUTION OF FUNDS FOR #32 ACTIVITIES
TO SCHOOLS IN #ENTRAL +ALIMANTAN AND %AST in the environmental amounted Rp685.0 million
Kalimantan, that was participated in by 1,761 in 2019.
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%MPATHY 0ROGRAM 0ENTINGSARI 4OURISM 6ILLAGE
4HE EMPATHY PROGRAM COMPRISES AID FOR PEOPLE 0ENTINGSARI 4OURISM 6ILLAGE $EWI 0ERI IS LOCATED ON
AFFECTED BY NATURAL DISASTERS 4HE DISTRIBUTION OF the slopes of Mount Merapi, Cangkringan, Sleman,
assistance is conveyed through partners who have Yogyakarta. It covers nature, cultural, and agriculture
capability and competence in disaster management. tourism and provides the opportunity to live in the
countryside with local residents.
In 2019, BCA channeled emergency assistance funds
to people affected by natural disasters such as the BCA provides assistance in the development
tsunami in Lampung and Serang; the floods in of facilities and infrastructure as well as the
Pekalongan, Kendari, Sentani, and Samarinda; the MENTORING OF HOMESTAY STANDARDIZATION TRAINING
earthquake in Ambon; the forest fires in Pekanbaru, AND REFRESHMENT 4O THE END OF THE NUMBER
4ESSO .ILO .ATIONAL 0ARK IN 2IAU 3EBANGAU .ATIONAL OF HOMESTAYS INCREASED TO FROM 4HE ECONOMIC
Park in Central Kalimantan, Londerang Giam impact was also felt by a number of residents who
3IAK +ECIL *AMBI 4HE TOTAL EMERGENCY ASSISTANCE OPENED FOOD STALLS AND VEHICLE RENTAL BUSINESSES 4HE
amounted to Rp441.5 million. development of tourism potential in Pentingsari can
improve the welfare of the village community.
EXCELLENCE BUSINESS SOLUTIONS
%XCELLENCE "USINESS 3OLUTIONS 3OLUSI "ISNIS 5NGGUL IS A @7AYANG 7UKIRSARI 4OURISM 6ILLAGE
community empowerment program based on economic @7AYANG 7UKIRSARI 4OURISM 6ILLAGE IN )MOGIRI
ACTIVITIES SPECIlCALLY FOR MICRO SMALL AND MEDIUM SIZED District, Yogyakarta, which has been a Bakti BCA
ENTERPRISES -3-%S RURAL COMMUNITIES AND COMMUNITY partner village since 2015. It is known for its art
community empowerment groups. of sungging (leather craft) in the form of shadow
puppets and other leather crafts. It has become an
/NE OF THE OBJECTIVES OF THE PROGRAM IS TO OPEN UP art learning destination for local and foreign tourists.
BUSINESS OPPORTUNITIES AND CREATE JOBS FOR THE LOCAL
community. Since 2013, it has been implemented through "#! PROVIDES ASSISTANCE TO LOCAL 3-%S IN MAKING
partnerships with communities in several regions. In PUPPETS AND MARKETING THE PRODUCTS 4HE 3-%S OF
the future, the communities are expected to become Wukirsari were also involved in several exhibitions,
independent and able to support the development of the SUCH AS THE *AKARTA &AIR 02* AND THE )NDONESIA
national economy in the long run. +NOWLEDGE &ORUM )+& 7UKIRSARI ALSO PROVIDES
cultural education in the context of preserving
4O THE END OF PARTNERSHIP PROGRAMS WITH traditional puppets for the younger generation.
communities included:
@7IRAWISATA 'OA 0INDUL @+AMPUNG "ATIK 'EMAH 3UMILIR
@7IRAWISATA 'OA 0INDUL LOCATED IN "EJIHARJO 6ILLAGE BCA has been assisting the communities in the
+ARANGMOJO 'UNUNG +IDUL 9OGYAKARTA IS A TOURIST ‘Kampung Batik Gemah Sumilir’ village, located in
destination of a cave with a river that can be sailed 350 +AJEN 0EKALONGAN 2EGENCY #ENTRAL *AVA SINCE
meters long and 5 meters wide. BCA, together with It has tourism potential as a batik center offering
the Gelaran II Wirawisata Association, developed the BATIK EDUCATION AND RESEARCH FACILITIES 4HE VILLAGE
village to empower the local community, thereby development plan will be focused more on batik
CREATING JOBS AND BUSINESS OPPORTUNITIES education reaching a wider community of various
ages and professions.
4HE YOUTH OF "EJIHARJO 6ILLAGE WERE PROVIDED WITH
training in developing human resource capacity and BCA also provides training and opportunities to
assistance in developing tourist facilities, in the form market batik products in various exhibitions in cities
of improved access to the tourist attractions. of Indonesia.
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$OESOEN +OPI 3IRAP Positive benefits experienced include developing
Doesoen Kopi Sirap is a partner village on the slopes insights regarding tourism development, financial
of Mount Kelir, Semarang since September 8, 2019. management and customer services. Overall,
It has tens of hectares of coffee cultivation. In people’s income increased due to among others,
$OESOEN 3IRAP *AMBU $ISTRICT THERE IS THE 7ARUNG business opportunities and new work opportunities
Ndeso coffee shop, which was established by the such as in the food business and car rentals.
CHILDREN OF COFFEE FARMERS )T OFFERS A h&UN #OFFEE IN
Scenic Nature of Doesoen Kopi Sirap” tour. Visitors 0UCAK 4INGGAN 4OURISM 6ILLAGE
gain knowledge about the cultivation, processing 0UCAK 4INGGAN 4OURISM 6ILLAGE $EWI #AKTI IS IN
AND SERVING OF COFFEE WHILE ENJOYING THE NATURAL Pelaga, Petang, Badung, Bali. It is a religious tourism
beauty of Doesoen Kopi Sirap. DESTINATION FOR (INDUS ESPECIALLY THE CHARISMA OF
0UCAK -ANGU 4EMPLE 4HE NATURAL AND CULTURAL
In 2019, BCA provided training standards for tour ATTRACTION OF 4INGGAN ALSO HAS ITS OWN CHARM
guides, and assistance in the development of coffee
and barista research and development facilities. Since 2016, BCA has been assisting the village by
providing excellent service training for village
6. Tamansari Tourism Village ADMINISTRATORS 4O COMPLEMENT THE TOURISM SERVICE
4AMANSARI IS LOCATED IN THE FOOTHILLS OF -OUNT )JEN facilities, the Bank provides assistance in the form
Licin, Banyuwangi. It is a tourism village that offers of information boards, signage for each tourist
life experiences such as farming, coffee, clove and location, direction boards, construction of toilets
cocoa cultivation; as well as sulfur mining. It is also in the trekking area, garden tidying, as well as trial
known for its cultural show featuring the Gandrung services.
dance.
'UNONG ,UMUT
BCA continued to provide assistance in 2019 in the Since 2018, this protected forest area has been
form of a train the trainer program for outbound assisted by BCA. It has the rich potential of the
guides, homestay refreshment, and digital mORA OF %AST "ELITUNG WHICH IS SPREAD OVER
marketing. Some 30 village/youth leaders took part hectares, with the highest peak 1,210 meters above
in the training. BCA assists in the development of sea level.
FACILITIES AND INFRASTRUCTURE SUCH AS A JOGLO PUBLIC
toilets, Sendang Seruni gate and footpaths.
3ENDANG 3ERUNI AT 4AMANSARI ONE OF "AKTI "#! !SSISTED 6ILLAGE
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At an altitude of 70 meters before the peak of the As a continuation of its assistance, Bukit Peramun
mountain, there is expanse of moss in various shapes officially became a Bakti BCA assisted village in 2019.
and types covering the surface of the ground, rocks 4HE "OARD OF $IRECTORS SYMBOLICALLY SIGNED A PLAQUE
AND TREES 6ISITORS CAN ALSO ENJOY ORCHIDS WITH UNIQUE at the time of inauguration.
types, shapes and colors.
!IK 2USA "EREHUN 4OURISM 6ILLAGE
"UKIT 0ERAMUN !IK 2USA "EREHUN 4OURISM 6ILLAGE IS SITUATED IN
Bukit Peramun is situated at an elevation of 129 4ERONG 7EST "ELITUNG +NOWN AS A CREATIVE VILLAGE
meters above sea level in West Belitung. It has a for its success in transforming the area that was once
wealth of flora, particularly medicinal plants and A DISUSED MINE INTO A TOURISM DESTINATION 4OURISTS
fauna. Bukit Peramun’s name derives from the CAN ENJOY DINING ON FOOD UNIQUE TO "ELITUNG ALSO
numerous local plants that are processed into KNOWN AS "EDULANG 6ISITORS CAN ALSO ENJOY VIEWING
medicines by its inhabitants. THE SITES AT "UKIT 4EBALU A MANGROVE AND VEGETABLE
farm, water-based tourism, camping ground and
Natural beauty is the main attraction and potential homestay.
for tourists. Management has also developed a
number of locations for photo spot, which include Since 2018, BCA has provided assistance to the
the hobbit house, red bridge, twin rocks, and flying management of Aik Rusa Berehun in training and
car. Bukit Peramun is a digital-based village wherein equipping management in areas such as services,
its managers have applied a QR Code system as creative selling skills, and leadership. BCA also
AN INFORMATION TOOL PERTAINING TO THE TREES 4HE helped in developing the cooking demo kitchen,
information provided relates to the type and benefits selfie spot, bridge and others. Assistance that
of the plant at Bukit Peramun, as well as a virtual continued to be in 2019 by BCA included training
GUIDE IN TWO LANGUAGES )NDONESIAN AND %NGLISH on digital marketing and inaugurating Aik Rusa
Berehun as a BCA assisted village by the Board of
BCA began extending its assistance in 2018, initially $IRECTORS 4HROUGH THE DEVELOPMENT THAT HAS BEEN
providing training facilities in the areas of service, carried out by various parties, the number of visitors
creative selling, and leadership. In regard to increased, thereby having a positive impact on the
assistance in the form of facilities and infrastructure, village’s economy and social aspects.
BCA provided assistance by constructing a mushola,
digital information system, monuments/plaques. @+AMPUNG !DAT 3IIJUNJUNG
4HIS TRADITIONAL VILLAGE IS INTERESTING BECAUSE THE
villagers preserve the Minangkabau culture by
MAINTAINING THE SHAPE OF A GADANG HOUSE 4OURISTS
can learn the customs and culture of Minangkabau.
Wide variety of moss on Gunong Lumut, one of Bukit Peramun, one of Bakti BCA Assisted Village
Bakti BCA Assisted Village
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Since 2018, it has been a BCA partner village. 4HROUGHOUT "#! PROVIDED TRAINING ASSISTANCE
4HE TRADITIONAL VILLAGE ADMINISTRATORS WERE GIVEN AND INFRASTRUCTURE DEVELOPMENT 4HE "ANK WILL
training in service excellence, as well as some tourism continue to increase the empowerment of the
MATERIAL REFRESHMENTS 4HE TRAINING IS TO IMPROVE THE village through partnerships with the local tourism
ABILITY TO MANAGE TOURISM 4HE "ANK ALSO PROVIDES office. It is expected its potential can be developed
infrastructure assistance, and a village video profile more optimally so it can attract more visitors.
as supporting promotional material.
Philanthropic Activities
12. Nagari Silokek "#! PROVIDES DONATIONS FOR ORGANIZATIONS THAT SHOW
Nagari Silokek is a national geopark area in West dedication and integrity in developing the nation’s
Sumatra. It offers exotic panoramas, geological culture, education, environmental, social, sports, etc.
heritage, and a diversity of flora and fauna. In 2019, the Bank distributed philanthropic funds totaling
Rp20,1 billion.
In conducting mentorship, BCA has developed
a training program for the tourism village Funds for Implementation of Bakti BCA
administrators, as well as assistance in tourism &UNDS FOR THE IMPLEMENTATION OF "AKTI "#! ACTIVITIES
facilities and infrastructure such as carving and during 2019, including donations, totaled Rp122.8 billion,
CLEANING EQUIPMENT 4HE "ANK ALSO PROVIDED an increase of compared to 2018. totaled Rp105.6 billion .
assistance in the production of Silokek tourism videos
and donations to the sepak takraw (kick volleyball)
sports championship of the Kemenpora RI trophy in
Pasir Putih, Silokek.
&UND 5TILIZATION OF "AKTI "#! )MPLEMENTATION
in billion Rupiah
50.8
49.1
2019
1. BCA Smart Solutions Rp 50.8 billion
2. BCA Synergy Solutions Rp 49.1 billion 20.1
"#! %XCELLENCE "USINESS 3OLUTION Rp 2.8 billion
2.8
4. Philanthropy Rp 20.1 billion
4/4!, 2P billion
1 2 3 4
Comprehensive INFORMATION ON CORPORATE SOCIAL RESPONSIBILITY and IMPLEMENTATION OF
Sustainable Finance is presented in the 3USTAINABILITY 2EPORT OF "#!.
2019 Annual Report | PT Bank Central Asia Tbk 585
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Statement of Members of the Board of Commissioners and the Board of Directors
regarding Responsibility for the 2019 Annual Report of
PT Bank Central Asia Tbk
7E THE UNDERSIGNED HEREBY DECLARE THAT ALL INFORMATION IN THE !NNUAL 2EPORT OF 04 "ANK #ENTRAL !SIA 4BK
for the year 2019 has been presented in its entirety, and that we assume full responsibility for the accuracy
of the contents of this Annual Report.
4HIS STATEMENT IS DULY MADE IN ALL INTEGRITY
*AKARTA -ARCH
Members of the Board of Commissioners
Djohan Emir Setijoso
President Commissioner
Tonny Kusnadi Cyrillus Harinowo Raden Pardede Sumantri Slamet
Commissioner Independent Commissioner Independent Commissioner Independent Commissioner
Members of the Board of Directors
Jahja Setiaatmadja Suwignyo Budiman Armand Wahyudi Hartono
President Director Deputy President Director Deputy President Director
Subur Tan Henry Koenaifi Erwan Yuris Ang Rudy Susanto
Director Director Independent Director Director
Lianawaty Suwono Santoso Inawaty Handojo Vera Eve Lim
Director Director Director Director
586 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
04 "!.+ #%.42!, !3)! 4BK
!.$ 35"3)$)!2)%3
#/.3/,)$!4%$ &).!.#)!, 34!4%-%.43
$ECEMBER AND
2019 Annual Report | PT Bank Central Asia Tbk 587
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588 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
2019 Annual Report | PT Bank Central Asia Tbk 589
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 1/1
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
31 December
Notes 2019 2018
ASSETS
2b,2g,5,38,41,
Cash 44 25,421,406 21,691,443
2b,2g,2i,6,38,
Current accounts with Bank Indonesia 41,44 47,904,674 43,548,309
2b,2g,2i,7,38,
Current accounts with other banks 41,44 10,521,687 8,497,938
2b,2g,2j,8,38,
Placements with Bank Indonesia and other banks 41,44 30,948,274 31,682,811
2g,2k,9,38,41,
Financial assets held for trading 44 5,910,146 5,841,824
Acceptance receivables - net of allowance for
impairment losses of Rp 176,622 as of 31 December 2019 2g,2l,10,38,41,
(31 December 2018: Rp 335,850) 44 9,492,755 11,582,285
Bills receivable - net of allowance for impairment losses of
Rp 2,734 as of 31 December 2019
(31 December 2018: Rp 5,674) 2g,11,38,41,44 7,909,020 8,600,709
Securities purchased under agreements to resell - net of allowance
for impairment losses of Rp 1,733 as of 31 December 2019
(31 December 2018: Rp nil) 2g,2n,12,38,44 9,575,565 9,212,684
Loans receivable - net of allowance for impairment losses of
Rp 14,905,584 as of 31 December 2019 (31 December 2018: 2g,2m,13,38,41,
Rp 13,568,986) 44,
Related parties 2ak,48 4,227,386 3,213,328
Third parties 567,806,613 521,317,134
Consumer financing receivables - net of allowance for impairment
losses of Rp 473,097 as of 31 December 2019
(31 December 2018: Rp 364,028) 2g,2o,14,38,44 10,532,424 7,613,709
Investment in finance leases - net of allowance for impairment losses
of Rp 3,147 as of 31 December 2019
(31 December 2018: Rp 3,619) 2g,2p,38,44 149,428 174,212
Assets related to sharia transactions - net of allowance for
impairment losses of Rp 146,132 as of 31 December 2019
(31 December 2018: Rp 75,732) 2g,2q 5,499,287 4,824,013
Investment securities - net of allowance for impairment losses of
Rp 70,420 as of 31 December 2019 (31 December 2018: 2g,2r,15,38,41,
Rp 91,458) 44 142,982,705 109,080,663
Prepaid expenses 16
Related parties 2ak,48 211,012 224,409
Third parties 1,325,468 1,149,582
Prepaid tax 21a 7,045 6,663
Fixed assets - net of accumulated depreciation of
Rp 11,021,327 as of 31 December 2019
(31 December 2018: Rp 10,115,889) 2h,2s,17 20,852,301 19,336,901
Intangible assets - net of accumulated amortisation of
Rp 1,424,329 as of 31 December 2019
(31 December 2018: Rp 1,103,604) 2e,2u,18 1,377,452 679,331
Deferred tax assets - net 2ai,21h 3,184,290 3,147,666
Other assets - net of allowance for impairment losses of
Rp 902 as of 31 December 2019 2g,2h,2t,
(31 December 2018: Rp 10,401) 19,41,44
Related parties 2ak,48 7,758 8,036
Third parties 13,142,616 13,354,294
TOTAL ASSETS 918,989,312 824,787,944
The accompanying notes to the consolidated financial statements form an integral part of these consolidated
financial statements.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 1/2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
31 December
Notes 2019 2018
LIABILITIES, TEMPORARY SYIRKAH DEPOSITS, AND EQUITY
LIABILITIES
2g,2v,20,38,41,
Deposits from customers 44
Related parties 2ak,48 1,326,903 2,489,190
Third parties 697,653,165 627,322,827
Sharia deposits 2g,2w 1,035,526 621,315
2g,2v,20,38,41,
Deposits from other banks 44 6,717,474 6,494,491
2g,2k,9,38,41,
Financial liabilities held for trading 44 106,260 188,934
2g,2l,10,38,41,
Acceptance payables 44 5,321,249 5,843,486
2g,2n,15,38,41,
Securities sold under agreements to repurchase 44 113,249 48,111
Debt securities issued 2g,2y,22,38,44 1,347,523 239,735
Tax payable 2ai,21b 1,635,469 1,165,336
Borrowings 2g,23,38,41,44 2,332,870 2,093,475
Accrued expenses and other liabilities 2g,2ab,24,41,44 14,022,369 15,025,822
Post-employment benefits obligation 2ah,39 7,955,070 6,406,057
Subordinated bonds 2g,2z,25,38,44 500,000 500,000
TOTAL LIABILITIES 740,067,127 668,438,779
TEMPORARY SYIRKAH DEPOSITS 2x 4,779,029 4,595,738
EQUITY
Equity attributable to equity holders of the parent entity
Share capital - par value per share of Rp 62.50 (full amount)
Authorised capital: 88,000,000,000 shares
Issued and fully paid-up capital:
24,655,010,000 shares 1c,26 1,540,938 1,540,938
Additional paid-in capital 1c,2e,2ad,27 5,548,977 5,548,977
Revaluation surplus of fixed assets 2s,17 9,520,945 8,751,748
Foreign exchange differences arising from translation of
financial statements in foreign currency 2f 364,984 380,422
Unrealised gains (losses) on available-for-sale financial
assets - net 2g,2r,8,15 1,951,554 (132,647)
Retained earnings
Appropriated 37 1,955,604 1,697,052
Unappropriated 2ah 153,158,544 133,871,809
Other equity components 2e 1,385 1,385
Total equity attributable to equity holders of the parent entity 174,042,931 151,659,684
Non-controlling interest 1d,2e,47 100,225 93,743
TOTAL EQUITY 174,143,156 151,753,427
TOTAL LIABILITIES, TEMPORARY SYIRKAH DEPOSITS, AND EQUITY 918,989,312 824,787,944
The accompanying notes to the consolidated financial statements form an integral part of these consolidated
financial statements.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 2/1
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
Notes 2019 2018
OPERATING INCOME AND EXPENSES
Interest and sharia income 2ae,2ak,29,48
Interest income 63,215,353 56,181,959
Sharia income 622,442 584,841
Total interest and sharia income 63,837,795 56,766,800
Interest and sharia expense 2ae,2ak,30,48
Interest expense (13,063,276) (11,218,960)
Sharia expense (297,071) (257,295)
Total interest and sharia expense (13,360,347) (11,476,255)
NET INTEREST AND SHARIA INCOME 50,477,448 45,290,545
OTHER OPERATING INCOME
Fee and commission income - net 2af,31 13,608,381 11,996,340
Net trading income - net 2ag,32 3,456,342 2,807,349
Others 4,080,378 2,939,986
Total other operating income 21,145,101 17,743,675
Impairment losses on assets 2g,33 (4,591,343) (2,676,602)
OTHER OPERATING EXPENSES
Personnel expenses 2ah,2ak,34,39,48 (13,337,264) (12,143,106)
General and administrative expenses 2ak,17,35,48 (14,115,175) (13,026,592)
Others (3,289,769) (2,481,856)
Total other operating expenses
(30,742,208) (27,651,554)
INCOME BEFORE TAX 36,288,998 32,706,064
INCOME TAX EXPENSE 2ai,21c (7,719,024) (6,854,404)
NET INCOME 28,569,974 25,851,660
OTHER COMPREHENSIVE INCOME:
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit liability 2ah,39 (341,292) 409,898
Income tax 2ai 70,080 (284,061)
(271,212) 125,837
Revaluation surplus of fixed assets 2s,17 769,197 2,164,251
497,985 2,290,088
Items that will be reclassified to profit or loss:
Unrealised gains (losses) on available-for-sale
financial assets 2j,2r,8,15 2,604,958 (1,864,674)
Income tax 2ai (519,218) 456,639
Unrealised gains (losses) on available-for-sale
financial assets - net of tax 2,085,740 (1,408,035)
Foreign exchange differences arising from translation of
financial statements in foreign currency 2f (15,438) 28,322
2,070,302 (1,379,713)
OTHER COMPREHENSIVE INCOME,
NET OF INCOME TAX 2,568,287 910,375
TOTAL COMPREHENSIVE INCOME (Carried forward) 31,138,261 26,762,035
The accompanying notes to the consolidated financial statements form an integral part of these consolidated
financial statements.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 2/2
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
Notes 2019 2018
TOTAL COMPREHENSIVE INCOME (Brought forward) 31,138,261 26,762,035
NET INCOME ATTRIBUTABLE TO:
Equity holders of parent entity 28,565,053 25,855,154
Non-controlling interest 2e,47 4,921 (3,494)
28,569,974 25,851,660
COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Equity holders of parent entity 31,131,779 26,766,431
Non-controlling interest 2e,47 6,482 (4,396)
31,138,261 26,762,035
BASIC AND DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO EQUITY HOLDERS OF
THE PARENT ENTITY (full amount of Rupiah) 2ac,36 1,159 1,049
The accompanying notes to the consolidated financial statements form an integral part of these consolidated
financial statements.
2019 Annual Report | PT Bank Central Asia Tbk 593
594
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 3/1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
Financial Highlights
2019
Attributable to equity holders of the parent entity
Foreign
exchange
differences
arising from Unrealised Total equity
translation of gains (losses) attributable to
financial on equity
Issued and Additional Revaluation statements in available-for- holders Non-
fully paid- paid-in surplus of foreign sale financial Retained earnings Other equity of the parent controlling
2019 Annual Report | PT Bank Central Asia Tbk
Notes up capital capital fixed assets currency assets - net Appropriated Unappropriated components entity interest Total equity
Balance, 31 December 2018 1,540,938 5,548,977 8,751,748 380,422 (132,647) 1,697,052 133,871,809 1,385 151,659,684 93,743 151,753,427
Net income for the year - - - - - - 28,565,053 - 28,565,053 4,921 28,569,974
Management Report
Revaluation surplus of fixed assets 2s - - 769,197 - - - 3,997 - 773,194 - 773,194
Foreign exchange differences arising
from translation of financial
statements in foreign currency 2f - - - (15,438) - - - - (15,438) - (15,438)
Unrealised gains on
available-for-sale
financial assets - net 2j,2r,8,15 - - - - 2,084,201 - - - 2,084,201 1,539 2,085,740
Remeasurements of defined
benefit liability - net 39 - - - - - - (271,234) - (271,234) 22 (271,212)
Total comprehensive income
for the year - - 769,197 (15,438) 2,084,201 - 28,297,816 - 31,135,776 6,482 31,142,258
Corporate Profile
General reserve 37 - - - - - 258,552 (258,552) - - - -
Cash dividends 37 - - - - - - (8,752,529) - (8,752,529) - (8,752,529)
Balance, 31 December 2019 1,540,938 5,548,977 9,520,945 364,984 1,951,554 1,955,604 153,158,544 1,385 174,042,931 100,225 174,143,156
Management Discussion and Analysis
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements.
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 3/2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2018
Attributable to equity holders of the parent entity
Foreign
Corporate Governance
exchange
differences
arising from Unrealised Total equity
translation of gains (losses) attributable to
financial on equity
Issued and Additional Revaluation statements in available-for- holders Non-
fully paid- paid-in surplus of foreign sale financial Retained earnings Other equity of the parent controlling
Notes up capital capital fixed assets currency assets - net Appropriated Unappropriated components entity interest Total equity
Balance, 31 December 2017 1,540,938 5,548,977 6,587,497 352,100 1,274,336 1,463,952 114,534,370 1,385 131,303,555 98,139 131,401,694
Net income for the year - - - - - - 25,855,154 - 25,855,154 (3,494) 25,851,660
Revaluation surplus of fixed assets 2s,17 - - 2,164,251 - - - - - 2,164,251 - 2,164,251
Foreign exchange differences arising
from translation of financial
statements in foreign currency 2f - - - 28,322 - - - - 28,322 - 28,322
Unrealised (losses) on
available-for-sale
financial assets - net 2j,2r,8,15 - - - - (1,406,983) - - - (1,406,983) (1,052) (1,408,035)
Remeasurements of defined
benefit liability - net 39 - - - - - - 125,687 - 125,687 150 125,837
Corporate Social Responsibility
Total comprehensive income
for the year - - 2,164,251 28,322 (1,406,983) - 25,980,841 - 26,766,431 (4,396) 26,762,035
General reserve 37 - - - - - 233,100 (233,100) - - - -
Cash dividends 37 - - - - - - (6,410,302) - (6,410,302) - (6,410,302)
Balance, 31 December 2018 1,540,938 5,548,977 8,751,748 380,422 (132,647) 1,697,052 133,871,809 1,385 151,659,684 93,743 151,753,427
2019 Annual Report | PT Bank Central Asia Tbk
Consolidated Financial Statements
The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements.
595
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 4/1
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
Notes 2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts of interest and sharia income, fees and commissions 76,539,139 67,188,173
Other operating income 4,019,391 3,105,023
Payments of interest and sharia expenses, fees and commissions (13,523,795) (11,364,783)
Payments of post-employment benefits 39 (239,230) (675,161)
Losses from foreign exchange transactions - net 1,864,822 (402,658)
Other operating expenses (27,088,835) (24,574,455)
Payment of tantiem to Board of Commissioners and Board of Directors 37 (413,500) (354,950)
Other increases/decreases affecting cash:
Placements with Bank Indonesia and other banks - mature
more than 3 (three) months from the date of acquisition 580,463 2,975,091
Financial assets held for trading 1,242,920 1,449,674
Acceptance receivables 2,248,758 (1,602,067)
Bills receivable 523,988 (1,760,866)
Securities purchased under agreements to resell (118,822) 48,942
Loans receivable (52,792,003) (71,291,269)
Consumer financing receivables (3,316,911) 606,838
Investments in finance leases - net 25,193 5,446
Assets related to sharia transactions (854,413) (824,972)
Other assets 1,065,298 (3,205,118)
Deposits from customers 70,428,018 46,025,884
Sharia deposits 414,211 142,617
Deposits from other banks 287,817 647,637
Acceptance payables (522,237) 43,009
Accrued expenses and other liabilities (702,168) 4,126,653
Temporary syirkah deposits 183,291 618,023
Net cash provided by operating activities before
income tax 59,851,395 10,926,711
Payment of income tax (7,909,355) (6,014,149)
Net cash provided by operating activities 51,942,040 4,912,562
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of investment securities (113,341,023) (80,019,462)
Proceeds from sales of investment securities 189,740 115,679
Proceeds from investment securities that matured
during the year 81,979,747 102,856,627
Payment for acquisition activities 4 (924,002) -
Cash dividends received from investment in shares 1,445 11,640
Acquisition of fixed assets (2,675,281) (2,347,223)
Proceeds from sale of fixed assets 17 36,960 10,393
Net cash (used in) provided by investing activities (34,732,414) 20,627,654
The accompanying notes to the consolidated financial statements form an integral part of these consolidated
financial statements.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 4/2
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
Notes 2019 2018
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from subordinated bonds 25 - 500,000
Proceeds of debt securities issued 1,346,617 -
Payment of debt securities issued (240,000) (370,764)
Proceeds from borrowings 88,649,720 66,872,390
Payment of borrowings (88,406,964) (67,830,206)
Payment of cash dividends 37 (8,752,529) (6,410,302)
Increase in securities sold under agreements
to repurchase 698,016 1,460,662
Decrease in securities sold under agreements
to repurchase (629,756) (1,519,429)
Net cash used in financing activities (7,334,896) (7,297,649)
NET INCREASE IN CASH AND CASH EQUIVALENTS 9,874,730 18,242,567
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 103,311,560 83,377,439
EFFECT OF FOREIGN EXCHANGE RATE FLUCTUATIONS
ON CASH AND CASH EQUIVALENTS (118,745) 1,691,554
CASH AND CASH EQUIVALENTS, END OF YEAR 113,067,545 103,311,560
Cash and cash equivalents consist of:
Cash 5 25,421,406 21,691,443
Current accounts with Bank Indonesia 6 47,904,674 43,548,309
Current accounts with other banks 7 10,521,687 8,497,938
Placements with Bank Indonesia and other banks - mature within
3 (three) months or less from the date of acquisition 8 29,219,778 29,573,870
Total cash and cash equivalents 113,067,545 103,311,560
The accompanying notes to the consolidated financial statements form an integral part of these consolidated
financial statements.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL
a. Establishment and general information of the Bank
PT Bank Central Asia Tbk (the “Bank”) was established in the Republic of Indonesia based
on the Notary Deed No. 38 of Raden Mas Soeprapto dated 10 August 1955 under the
name of “N.V. Perseroan Dagang Dan Industrie Semarang Knitting Factory”. This deed of
establishment was approved by the Minister of Justice in its decision letter No. J.A.5/89/19
dated 10 October 1955 and was published in Supplement No. 595 to State Gazette of the
Republic of Indonesia No. 62 dated 3 August 1956. The name of the Bank has been
changed several times with the latest change became PT Bank Central Asia based on the
Notary Deed No. 144 of Wargio Suhardjo, S.H., the substitute of Notary Public Ridwan
Suselo, dated 21 May 1974.
The Bank’s Articles of Association have been amended several times, including
amendments in relation to the Initial Public Offering of the Bank’s shares in May 2000,
which among others, changed its status to a publicly-listed company and its name to
PT Bank Central Asia Tbk. These amendments were made based on Notary Deed No. 62
of Hendra Karyadi, S.H., dated 29 December 1999, which was approved by the Minister
of Justice in its decision letter No. C-21020 HT.01.04.TH.99 dated 31 December 1999 and
published in Supplement No. 1871 to the State Gazette of the Republic of Indonesia No.
30 dated 14 April 2000.
The amendment made in relation to the issuance of new shares under the Management
Stock Option Plan (“MSOP”), for which the options were exercised up to 31 December
2006, was made based on Notary Deed No. 1 of Hendra Karyadi, S.H., dated 9 January
2007. This deed was approved by the Minister of Justice and Human Rights under its
decision letter No. W7-HT.01.04-797 dated 18 January 2007 and published in Supplement
No. 185 to the State Gazette of the Republic of Indonesia No. 15 dated
20 February 2007.
The latest amendment to all articles in the Bank’s Articles of Association was made based
on Notary Deed No. 125 of Dr. Irawan Soerodjo, S.H., Msi. dated 18 April 2018. This deed
was approved by the Minister of Justice and Human Rights in its decision letter No. AHU-
AH.01.03-0153848 dated 18 April 2018.
The Bank started its commercial operations in the banking business since 12 October
1956. According to Article 3 of the Bank’s Articles of Association, the Bank operates as a
commercial bank. The Bank is engaged in banking activities and other financial services
in accordance with the prevailing regulations in Indonesia. The Bank obtained its license
to conduct these activities under the Minister of Finance Decision Letter No. 42855/U.M.II
dated 14 March 1957. The Bank obtained its license to engage in foreign exchange
activities based on the Directors of Bank Indonesia Decision Letter No. 9/110/Kep/Dir/UD
dated 28 March 1977.
The Bank is domiciled in Jakarta with its head office located at Jalan M.H. Thamrin No. 1.
As of 31 December 2019 and 2018, the number of branches and representative offices
owned by the Bank was as follows:
2019 2018
Domestic branches 1,012 1,002
Overseas representative offices 2 2
1,014 1,004
The domestic branches are located in major business centers all over Indonesia.
The overseas representative offices are located in Hong Kong and Singapore.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/2
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
b. Recapitalisation
Based on the Indonesian Bank Restructuring Agency (“IBRA”) Decision Letter
No. 19/BPPN/1998 dated 28 May 1998, IBRA took over the operations and management
of the Bank. Accordingly, the Bank’s status was changed into a Bank Taken Over (“BTO”).
The Bank was determined as a participant of the bank recapitalisation program under the
Minister of Finance and the Governor of Bank Indonesia joint decision No.
117/KMK.017/1999 and No. 31/15/KEP/GBI dated 26 March 1999 regarding the
implementation of the bank recapitalisation program for Bank Taken Over.
In conjunction with the recapitalisation program, on 28 May 1999 the Bank received a
payment of Rp 60,877,000 from the Government of the Republic of Indonesia. This
amount consisted of (i) the principal amount of loans granted to affiliated companies that
were transferred to IBRA (consisting of Rp 47,751,000 transferred effectively on
21 September 1998 and Rp 4,975,000 transferred effectively on 26 April 1999), and (ii)
accrued interest on the loans granted to affiliated companies calculated from their
respective effective transfer dates up to 30 April 1999, amounted to Rp 8,771,000, minus
(iii) the excess of outstanding Liquidity Support from Bank Indonesia (including interest)
amounted to Rp 29,100,000 over the recapitalisation payment from the government
through IBRA of Rp 28,480,000. On the same date, the Bank used such proceeds to
purchase newly issued government bonds of Rp 60,877,000 (consisted of fixed-rate
government bonds amounted to Rp 2,752,000 and variable-rate government bonds
amounted to Rp 58,125,000 through Bank Indonesia).
Pursuant to the Chairman of IBRA Decision Letter No. SK-501/BPPN/0400 dated 25 April
2000, IBRA returned the Bank to Bank Indonesia effective on that date. To fulfill the
requirement of Bank Indonesia Regulation (“PBI”) No. 2/11/PBI/2000 dated 31 March
2000, Bank Indonesia announced in its press release Peng. No. 2/4/Bgub dated 28 April
2000, that the recovery program including the restructuring of the Bank had been
completed and the Bank had been returned to be under the supervision of Bank Indonesia.
c. Public offering of the Bank’s shares and subordinated bonds
Public Offering of the Bank’s Shares
Based on the Letter of the Chairman of the Capital Market Supervisory Agency No. S-
1037/PM/2000 dated 11 May 2000, the Bank through an Initial Public Offering, offered its
662,400,000 shares with total par value of Rp 331,200 (offering price of Rp 1,400 (full
amount) per share), which represents 22% (twenty two percent) of the issued and paid-
up share capital, as part of the divestment of shares owned by the Republic of Indonesia
as represented by IBRA. This public offering was registered at the Jakarta Stock
Exchange and the Surabaya Stock Exchange on 31 May 2000 (both exchanges have
been merged and now named the Indonesia Stock Exchange).
The Bank’s shareholders through the Extraordinary General Meeting of Shareholders
(“EGMS”) held on 12 April 2001 (with the minutes prepared by Notary Public Hendra
Karyadi, S.H., in Deed No. 25) resolved to conduct a stock split from Rp 500 (full amount)
per share to Rp 250 (full amount) per share and to increase the issued shares through the
issuance of 147,199,300 shares (or equivalent to 294,398,600 shares after the stock split)
under the Management Stock Option Plan (“MSOP”). The stock split was made under the
Notary Deed No. 30 of Hendra Karyadi, S.H., dated 12 April 2001, which was approved
by the Minister of Justice and Human Rights on 18 April 2001.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/3
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of the Bank’s shares and subordinated bonds (continued)
Public Offering of the Bank’s Shares (continued)
Based on the Letter of the Chairman of the Capital Market Supervisory Agency No. S-
1611/PM/2001 dated 29 June 2001, the Bank offered additional 588,800,000 shares with
total par value of Rp 147,200 (at an offering price of Rp 900 (full amount) per share), which
represents 10% (ten percent) of the issued and paid-up share capital, as part of the
divestment of shares owned by the Republic of Indonesia as represented by IBRA. This
public offering was registered at the Jakarta Stock Exchange and the Surabaya Stock
Exchange on 10 July 2001.
The Bank’s shareholders through the Annual General Meeting of Shareholders (“AGMS”)
held on 6 May 2004 (with the minutes prepared by Notary Public Hendra Karyadi, S.H., in
Deed No. 16) approved the stock split from Rp 250 (full amount) per share to Rp 125 (full
amount) per share. The stock split was made under the Notary Deed No. 40 of Hendra
Karyadi, S.H., dated 18 May 2004, which was approved by the Minister of Justice and
Human Rights on 26 May 2004.
EGMS held on 26 May 2005 (with the minutes prepared by Notary Public Hendra Karyadi,
S.H., in Deed No. 42) approved the buy back of the Bank’s shares, provided that the buy
back of shares has been approved by Bank Indonesia, whereby the number of shares to
be bought back should not exceed 5% (five percent) of the Bank’s total issued shares as
of 31 December 2004, i.e. in total of 615,160,675 shares, and total fund to buy back the
shares should not exceed Rp 2,153,060. With Letter No. 7/7/DPwB2/PwB24/Rahasia
dated 16 November 2005, Bank Indonesia expressed no objection on the Bank’s plan to
buy back its shares.
EGMS held on 15 May 2007 (with the minutes prepared by Notary Public Hendra Karyadi,
S.H., in the Deed No. 6) approved the buy back of the Bank’s shares stage II, provided
that the buy back of shares has been approved by Bank Indonesia and executed from
time to time during the period of 18 (eighteen) months after the date of the meeting,
whereby the number of shares to be bought back should not exceed 1% (one percent) of
the Bank’s total issued shares as of 27 April 2007 or in total of 123,275,050 shares and
the total fund to buy back the shares should not exceed Rp 678,013. With Letter No.
9/160/DPB 3/TPB 3-2 dated 11 October 2007, the Bank has received an approval from
Bank Indonesia in relation to buy back of shares stage II.
EGMS held on 28 November 2007 (with the minutes prepared by Notary Public Hendra
Karyadi, S.H., in Deed No. 33), approved to conduct a stock split of the Bank’s shares
from Rp 125 (full amount) to Rp 62.50 (full amount) per share and therefore decided to
amend note 1, note 2 and note 3 of Article 4 of the Bank’s Articles of Association. The
Amendments of the Bank’s Articles of Association by the Deed of Notary Public Hendra
Karyadi, S.H., dated 11 December 2007 were received and recorded by the Department
of Law and Human Rights of the Republic of Indonesia by the Receipt Report of the Deed
on Amendment of the Articles of Association No. AHU-AH.01.10-0247 dated 3 January
2008.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/4
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
c. Public offering of the Bank’s shares and subordinated bonds (continued)
Public Offering of the Bank’s Shares (continued)
Based on Letter No. 038/IQ-ECM/LTR/HFJ/XI/2008.TRIM dated 26 November 2008, the
buy back of shares stage II for the period of 11 February 2008 to 13 November 2008 had
been performed with the number of shares bought back in total of 397,562 lot or
198,781,000 shares at the average acquisition cost of Rp 3,106.88 (full amount) per share.
Therefore, the total shares bought back as of 13 November 2008 were 289,767,000
shares with a total amount of Rp 808,585.
On 7 August 2012, the Bank sold 90,986,000 shares of its treasury stocks at Rp 7,700
(full amount) per share, with total net sales amounted to Rp 691,492. The difference
between the acquisition costs and the selling price of treasury stocks amounted to
Rp 500,496 was recorded as “additional paid-in capital from treasury stock transactions”,
which is part of additional paid-in capital (see Note 27). As of 31 December 2012, total
treasury stocks of the Bank were 198,781,000 shares with a total amount of Rp 617,589.
On 7 February 2013, the Bank sold 198,781,000 shares of its treasury stocks at Rp 9,900
(full amount) per share, with total net sales amounted to Rp 1,932,528. The difference
between the acquisition costs and the selling price of treasury stocks amounted to Rp
1,314,939 was recorded as “additional paid-in capital from treasury stock transactions”,
which is part of additional paid-in capital (see Note 27). As of 31 December 2013, the
Bank did not have any treasury stocks.
The Company’s immediate parent company is PT Dwimuria Investama Andalan, which
was incorporated in Indonesia, the owner of 54.94% of Bank’s shares as of 31 December
2019 and 2018. The ultimate shareholders of the Bank are Mr. Robert Budi Hartono and
Mr. Bambang Hartono.
Public Offering of Subordinated Bonds
Bank Central Asia Continuous Subordinated Bonds I Phase I Year 2018 were offered at
par value. Interest will be paid on a quarterly basis based on interest payment due
date.The first payment is on 5 October 2018, while the last payment of interest will be paid
on the maturity date of the bond’s principal.
The Bank entered into a Trustee Agreement with PT Bank Rakyat Indonesia (Persero)
Tbk. (act as the Bond’s Trustee) of Bank Central Asia Continuous Subordinated Bonds I
Phase I Year 2018 based on Trusteeship Agreement No. 27 dated 22 March 2018, of
Notary Public Aulia Taufani, S.H., in Jakarta. This agreement were amended due to several
changes which had been legalised on Amendment I No. 5 dated 5 June 2018 and
Amendment II No. 2 dated 3 July 2018.
As of 31 December 2019 and 2018, the rating of Bank Central Asia Continuous
Subordinated Bonds I Phase I Year 2018 based on Pefindo was idAA. On 26 June 2018,
the bonds were listed on the Indonesian Stock Exchange (see Note 25).
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. The Subsidiaries
The Subsidiaries, directly and non-directly owned by the Bank as of 31 December 2019
and 2018, were as follows:
Year of
Starting the Percentage of
Name of the Commercial Ownership Total assets
Company Operation Type of Business Domicile 2019 2018 2019 2018
PT BCA Finance 1981 Investment financing, Jakarta 100% 100% 10,873,175 8,126,576
working capital
financing,
multipurpose
financing, operating
lease, other
financing activities
based on approval
from authorised
agency
BCA Finance Limited 1975 Money lending and Hong Kong 100% 100% 783,743 772,181
remittance
PT Bank BCA Syariah 1991 Sharia banking Jakarta 100% 100% 8,634,374 7,064,008
PT BCA Sekuritas 1990 Securities brokerage Jakarta 90% 90% 762,320 626,169
dealer and
underwriter for
issuance of
securities
PT Asuransi Umum 1988 General or loss Jakarta 100% 100% 2,060,362 1,765,349
BCA insurance
PT BCA Multi Finance 2010 Investment financing, Jakarta 100% 100% 1,358,022 1,404,536
(previously working capital
PT Central financing,
Santosa Finance) multipurpose
financing, operating
lease, other financing
activities based on
approval from
authorised agency
PT Asuransi Jiwa 2014 Life insurance Jakarta 90% 90% 1,154,689 902,875
BCA
PT Central Capital 2017 Venture capital Jakarta 100% 100% 404,054 205,022
Ventura
PT Bank Royal 1965 Banking Jakarta 100% - 2,808,300 -
Indonesia
PT BCA Finance
PT BCA Finance, a company domiciled in Indonesia and located at Wisma BCA Pondok
Indah, 2nd Floor, Jalan Metro Pondok Indah No. 10, South Jakarta, is engaged in
investment financing, working capital financing, multipurpose financing, operating lease,
other financing activities based on approval from authorised agency.
PT BCA Finance was established in 1981 under the name of PT Central Sari Metropolitan
Leasing Corporation (“CSML”). At its inception, the shareholders of CSML were PT Bank
Central Asia and Japan Leasing Corporation.
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31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. The Subsidiaries (continued)
PT BCA Finance (continued)
In 2001, PT Central Sari Metropolitan Leasing Corporation changed its name to
PT Central Sari Finance (“CSF”), followed by the change in the composition of its
shareholders, where PT Bank Central Asia Tbk became the majority shareholder, and the
change in its business focus to motor vehicles financing activities, particularly in vehicles
with four or more wheels. Further, based on the Decision Letter of Minister of Law and
Human Rights of the Republic of Indonesia No.C-08091 HT.01.04.TH.2005 dated
28 March 2005, PT Central Sari Finance’s name was changed to PT BCA Finance.
BCA Finance Limited
BCA Finance Limited, a company domiciled in Hong Kong and located at The Center, 47th
Floor, Unit 4707, 99 Queen’s Road Central, Hong Kong, is engaged in money lending and
remittance and has been operated commercially since 1975.
PT Bank BCA Syariah
PT Bank BCA Syariah, a company domiciled in Indonesia and located at Jalan Raya
Jatinegara Timur No. 72, East Jakarta, is engaged in sharia banking activities and has
been operated commercially since 1991.
Based on the Deed of Resolutions in lieu of General Meeting of Shareholders of PT Bank
UIB No. 49, of Notary Public Ny. Pudji Redjeki Irawati, S.H., dated 16 December 2009,
PT Bank UIB changed its business activities to become sharia bank and changed its name
to PT Bank BCA Syariah. The deed of amendment was approved by the Minister of Justice
of the Republic of Indonesia in its Decision Letter No. AHU-01929.AH.01.02 dated
14 January 2010.
The change in business activities of this subsidiary from conventional bank into sharia
bank was approved by the Governor of Bank Indonesia through its Decision Letter
No. 12/13/KEP.GBI/DpG/2010 dated 2 March 2010. Through this approval, on 5 April
2010, PT Bank BCA Syariah officially operated as a sharia bank.
PT BCA Sekuritas
PT BCA Sekuritas, a company domiciled in Indonesia and located at Menara BCA, Grand
Indonesia, 41st Floor, Suite 4101, Jalan M.H. Thamrin No. 1, Jakarta, is engaged as
securities brokerage dealer and underwriter for issuance of securities since 1990.
On 2 October 2012, based on the Deed of Minutes of Extraordinary General Meeting of
Shareholders of PT Dinamika Usaha Jaya No. 5, of Notary Public Dr. Irawan Soerodjo,
S.H., Msi., PT Dinamika Usaha Jaya changed its name to PT BCA Sekuritas. This change
was approved by the Minister of Law and Human Rights of the Republic of Indonesia in
its Decision Letter No. AHU-54329.AH.01.02 dated 22 October 2012.
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31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. The Subsidiaries (continued)
PT Asuransi Umum BCA
PT Asuransi Umum BCA, a company domiciled in Indonesia and located at Sahid
Sudirman Center Building, 10th Floor/unit E, F, G, H Jalan Jendral Sudirman Kav. 86,
Jakarta, is engaged in insurance activities, particularly in general or loss insurance
activities.
PT Asuransi Umum BCA was established in 1988 under the name of PT Asuransi
Ganesha Danamas. In 2006, PT Asuransi Ganesha Danamas changed its name to
PT Transpacific General Insurance and later in 2011, this subsidiary’s name was changed
to PT Central Sejahtera Insurance.
On 5 December 2013, based on the Deed of Minutes of Extraordinary General Meeting of
Shareholders of PT Central Sejahtera Insurance No. 7, of Notary Public Veronica Sandra
Irawaty Purnadi, S.H., PT Central Sejahtera Insurance changed its name to PT Asuransi
Umum BCA. This change was approved by the Minister of Law and Human Rights of the
Republic of Indonesia in its Decision Letter No. AHU-64973.AH.01.02 dated 11 December
2013.
PT BCA Multi Finance (previously PT Central Santosa Finance)
PT BCA Multi Finance (previously PT Central Santosa Finance), a company domiciled in
Indonesia and located at WTC Mangga Dua, 6th Floor, Block CL No. 001, Jalan Mangga
Dua Raya No. 8, Kelurahan Ancol, Kecamatan Pademangan, Jakarta, is engaged in
investment financing, working capital financing, multipurpose financing, operating lease,
other financing activities based on approval from authorised agency.
PT Central Santosa Finance was incorporated in the Republic of Indonesia with Deed of
Notary Public Fransiscus Xaverius Budi Santosa Isbandi, S.H., dated 29 April 2010
No. 95. The deed was approved by the Minister of Law and Human Rights of
the Republic of Indonesia in its Decision Letter No. AHU-23631.AH.01.01 dated
10 May 2010.
On 27 May 2019, based on the Deed of Minutes of Extraordinary General Meeting of
Shareholders of PT Central Santosa Finance No. 54 of Notary Public Veronica Sandra
Irawaty Purnadi, S.H., PT Central Santosa Finance changed its name to PT BCA Multi
Finance. This change was approved by Minister of Law and Human Rights of Republic of
Indonesia in its Decision Letter No. AHU-0029530.AH.01.02 dated 29 May 2019.
PT Asuransi Jiwa BCA
PT Asuransi Jiwa BCA, a company domiciled in Indonesia and located at Chase Plaza
Building, 22nd floor, Jalan Jenderal Sudirman Kav 21, Jakarta 12920, is engaged in life
insurance activities, including life insurance with sharia principle.
PT Asuransi Jiwa BCA was incorporated in the Republic of Indonesia with Deed of Notary
Public of Dr. Irawan Soerodjo, S.H., Msi., dated 16 October 2013 No. 90. The deed was
approved by the Minister of Law and Human Rights of the Republic of Indonesia in its
Decision Letter No. AHU-56809.AH.01.01 dated 7 November 2013.
The Subsidiary obtained business permit in life insurance activities from the Chairman of
the Board of Commissioner of Financial Services Authority through Decision Letter
No. KEP-91/D.05/2014 dated 14 July 2014.
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31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. The Subsidiaries (continued)
PT Central Capital Ventura
PT Central Capital Ventura, a company domiciled in Indonesia and located at Office
8 Building, 16th floor, Unit F, SCBD Lot 28, Jalan Jenderal Sudirman Kav 52-53, Kelurahan
Senayan, Kecamatan Kebayoran Baru, South Jakarta, is engaged in venture capital
activities.
PT Central Capital Ventura was incorporated in the Republic of Indonesia with Deed of
Notary Public Veronica Sandra Irawaty Purnadi, S.H., dated 25 January 2017 No. 15. The
deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia
in its Decision Letter No. AHU-0004845.AH.01.01 dated 2 February 2017. The Subsidiary
obtained venture capital business permit based on Copy of Decision of Board
of Commissioner of Financial Services Authority number: KEP-39/D.05/2017 dated
19 June 2017.
PT Bank Royal Indonesia
PT Bank Royal Indonesia, a company domiciled in Indonesia and located at Jalan
Suryopranoto No.52, Central Jakarta, Indonesia, is engaged in banking and has been
operated since 1965.
PT Bank Royal Indonesia was established under the name of PT Bank Rakjat
Parahyangan based on Notarial Deed No. 35 of Notary Public R. Soerojo Wongsowidjojo,
SH., dated 25 October 1965. Based on Amendments to the Articles of Association No. 19
dated 21 August 1982, of Notary Public R. Soerojo Wongsowidjojo, SH., PT Bank Rakjat
Parahyangan changed its name to PT Bank Pasar Rakyat Parahyangan. The deed of
establishment was approved by Ministry of Justice of the Republic of Indonesia in its
Decision Letter No. C2-1092-HT.01.01.TH.82 dated 3 September 1982.
On 1990, based on the Deed of Resolution of PT Bank Pasar Rakyat Parahyangan No.
68 dated 8 January 1990, of Notary Public Misahardi Wilamarta, S.H., PT Bank Pasar
Rakyat Parahyangan changed its name to PT Bank Royal Indonesia, with status and
activity of conventional Bank, and the location changed to Jakarta.
PT Bank Royal Indonesia obtained its conventional banking license from the Minister of
Finance of the Republic of Indonesia through its letter No. 1090/KMK.013/090 dated 12
September 1990 and as foreign currency trader from Bank Indonesia through its letter No.
30/182/UOPM dated 13 November 1997 which was extended through Decree of Banking
Licensing and Information of Bank Indonesia No. 5/7/KEP.Dir.PIP.2003 dated 24
December 2003, as set out in Letter of Bank Indonesia No. 10/449/DPIP/Prz dated 2 May
2008.
Based on the deed of Minutes of Extraordinary General Meeting of Shareholders of
PT Bank Central Asia No. 62 dated 20 June 2019, of Notary Public Christina Dwi Utami,
S.H., M.Hum., M.Kn., the Bank has decided to acquire PT Bank Royal Indonesia.
Acquisition of PT Bank Royal Indonesia was approved by Financial Services Authority
(“OJK”) through its Letter No. SR-60/PB.33/2019 dated 22 October 2019.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
d. The Subsidiaries (continued)
PT Bank Royal Indonesia (lanjutan)
Based on the Deed of Minutes of Extraordinary General Meeting of PT Bank Royal
Indonesia No. 308 dated 31 October 2019, of Notary Public Christina Dwi Utami, S.H.,
M.Hum., M.Kn., the shareholders approved the transfer of all issued shares in PT Bank
Royal Indonesia owned by PT Royalindo, Mr. Leslie, Mr. Ibrahim, Mr. Herman, Mr.
Sugiarto, and Mr. Nevin to the Bank and PT BCA Finance (Subsidiary) amounted to
99.99% and 0.01%, respectively (see Note 4). This deed was approved by the Minister of
Law and Human Rights of the Republic of Indonesia in its Decision Letter No. AHU-
AH.01.03-0356474 dated 7 November 2019.
e. Board of Commissioners and Board of Directors
The compositions of the Bank’s management as of 31 December 2019 and 2018 are as
follows:
2019
Board of Commissioners
President Commissioner : Djohan Emir Setijoso
Commissioner : Tonny Kusnadi
Independent Commissioner : Cyrillus Harinowo
Independent Commissioner : Raden Pardede
Independent Commissioner : Sumantri Slamet
Board of Directors
President Director : Jahja Setiaatmadja
Deputy President Director : Armand Wahyudi Hartono
Deputy President Director : Suwignyo Budiman**)
Director : Tan Ho Hien/Subur Tan
Director : Henry Koenaifi
Independent Director : Erwan Yuris Ang
Director : Rudy Susanto
Director : Lianawaty Suwono
Director : Santoso
Director : Inawaty Handojo*) **)
Director : Vera Eve Lim
*)
Compliance Director
**)
Effective since 3 October 2019
The composition of the Bank’s management as of 31 December 2019 based on the Deed
of Resolution of PT Bank Central Asia No. 100 dated 10 October 2019, of Notary Public
Christina Dwi Utami, S.H., M.Hum., M.kn., Notary in Jakarta.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
e. Board of Commissioners and Board of Directors (continued)
2018
Board of Commissioners
President Commissioner : Djohan Emir Setijoso
Commissioner : Tonny Kusnadi
Independent Commissioner : Cyrillus Harinowo
Independent Commissioner : Raden Pardede
Independent Commissioner : Sumantri Slamet
Board of Directors
President Director : Jahja Setiaatmadja
Deputy President Director : Eugene Keith Galbraith
Deputy President Director : Armand Wahyudi Hartono
Director : Suwignyo Budiman
Director : Tan Ho Hien/Subur Tan*)
Director : Henry Koenaifi
Independent Director : Erwan Yuris Ang
Director : Rudy Susanto
Director : Lianawaty Suwono
Director : Santoso
Director : Inawaty Handojo
Director : Vera Eve Lim**)
*)
Compliance Director
**)
Effective since 20 April 2018
The composition of the Bank’s management as of 31 December 2018 based on the Deed
of Resolution No. 180 dated 26 April 2018, of Notary Public Dr. Irawan Soerodjo, S.H.,
Msi., Notary in Jakarta.
f. Audit Committee
The Bank’s Audit Committee as of 31 December 2019 and 2018 are as follows:
Chairman : Cyrillus Harinowo
Member : Ilham Ikhsan
Member : Tjen Lestari
The establishment of the Bank’s Audit Committee was in line with Financial Services
Authority Regulation (“POJK”) No. 55/POJK.04/2015 dated 23 December 2015 regarding
Establishment and Implementation Guidelines on Audit Committee Work.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
1. GENERAL (continued)
g. Internal Audit Division and Corporate Secretary
The Head of the Bank’s Internal Audit Division as of 31 December 2019 and 2018 is as
follows:
Internal Audit Division Head : Ayna Dewi Setianingrum
The Corporate Secretary of the Bank as of 31 December 2019 and 2018 is as follows:
2019 2018
Corporate Secretary : Raymon Yonarto Jan Hendra
h. Number of employees
As of 31 December 2019 and 2018, the Bank and Subsidiaries had 25,877 and 27,561
permanent employees.
Key management personnel of the Bank consists of members of Board of Commissioners
and Board of Directors.
i. Changes in regulation and supervision of capital market sectors and banking
sectors
Effective since 31 December 2012, functions, duties, and regulatory authorities and
supervisory in capital market sectors have been transferred from Bapepam-LK Ministry of
Finance to Capital Market and Financial Institutions Agency section in OJK. Effective since
31 December 2013, functions, duties, and regulatory authorities and supervisory in
banking sectors shift from Bank Indonesia to OJK.
j. Completion of the consolidated financial statements
The Bank’s Management is responsible for the preparation of these consolidated financial
statements, which were authorised for issuance on 6 February 2020.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, consistently applied in the preparation of the consolidated
financial statements of the Bank and Subsidiaries (“the Group”) as of 31 December 2019 and
2018, are as follows:
a. Statement of compliance
The consolidated financial statements of the Group have been prepared and presented
in accordance with Indonesian Financial Accounting Standards (“SFAS”) which
include Statement and Interpretation issued by the Financial Accounting Standard
Board of Indonesian Institute of Accountant and Bapepam-LK Regulation
No. KEP-347/BL/2012 dated 25 June 2012, Regulation No. VIII.G.7 regarding
“Presentation and Disclosure of Public Company’s Financial Statements”.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a. Statement of compliance (continued)
Financial statements of PT Bank BCA Syariah (Subsidiary) are presented in accordance
with Sharia Financial Accounting Standards and other Financial Accounting Standards
issued by Indonesian Institute of Accountant.
b. Basis for preparation of the consolidated financial statements
These consolidated financial statements are presented in Rupiah, which is the functional
currency. Except as otherwise stated, the financial information presented has been
rounded to the nearest million of Rupiah.
The consolidated financial statements have been prepared under the historical cost
convention, except for fixed assets - land, financial assets classified as available-for-sale,
and financial assets and liabilities (including derivative instruments) held at fair value
through profit or loss, which are measured at fair value.
The consolidated financial statements have been prepared based on the accrual basis,
except for the consolidated statements of cash flows.
The consolidated statements of cash flows present the changes in cash and cash
equivalents from operating, investing and financing activities, and are prepared using the
direct method. For the purpose of the presentation of the consolidated statements of cash
flows, cash and cash equivalents consist of cash, current accounts with Bank Indonesia,
current accounts with other banks, placements with Bank Indonesia and other banks
mature within 3 (three) months from the date of acquisition, as long as they are not being
pledged as collateral for borrowings nor restricted.
c. Use of judgments, estimates and assumptions
The preparation of consolidated financial statements in conformity with Indonesian
Financial Accounting Standards (“SFAS”) requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Although these estimates
are based on management’s best knowledge of current events and activities, actual results
may differ from those estimates.
In order to provide understanding of the financial performance of Bank and Subsidiaries,
due to the significance of their nature or amount, several items of income or expense have
been presented separately.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate are revised and
in any future periods affected.
Information about significant areas of estimation uncertainty and critical judgments in
applying accounting policies that have significant effect on the amount recognised in the
consolidated financial statements are described in Note 3.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d. Changes in accounting policies
Financial Accounting Standard Board of Indonesian Institute of Accountant (DSAK-IAI)
has issued the following relevant, amendments and interpretations which were effective
on or after 1 January 2019 as follows:
- ISFAS 33 "Foreign Currency Transactions and Advance Consideration";
- ISFAS 34 "Uncertainty over Income Tax Treatment";
- The amendments to SFAS 24 “Employee Benefits: Plan Amendment, Curtailment or
Settlement”;
- Annual Improvements 2018 to SFAS 22 “Business Combination”;
- Annual Improvements 2018 to SFAS 26 “Borrowing Cost”;
- Annual Improvements 2018 to SFAS 46 “Income Taxes”; and
- Annual Improvements 2018 to SFAS 66 “Joint Arrangements”.
The implementation of the above amendments and interpretations standards do not have
substantial changes to the accounting policies and have no material effect on the
consolidated financial statements for the current or prior financial years.
e. Basis of consolidation
The consolidated financial statements consist of financial statements of the Bank and
Subsidiaries (PT BCA Finance, BCA Finance Limited, PT Bank BCA Syariah, PT BCA
Sekuritas, PT Asuransi Umum BCA, PT BCA Multi Finance (previously PT Central
Santosa Finance), PT Asuransi Jiwa BCA, PT Central Capital Ventura and PT Bank Royal
Indonesia) together “the Group”. Subsidiaries are all entities over which the Bank has
control.
Subsidiaries are all entities (including structured entities) over which the Group has
control. The Group controls an entity when the Group is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully consolidated from the date
on which control is transferred to the Group. They are de-consolidated from the date on
which that control ceases.
The Group applies the acquisition method to account for business combinations. The
consideration transferred for the acquision of a Subsidiary is the fair value of the assets
transferred, the liabilities incurred to the former owners of the acquiree and the equity
interests issued by the Group. The consideration transferred includes the fair value of any
asset or liability resulting from a contingent consideration arrangement. Identifiable assets
acquired and liabilities and contingent liabilities assumed in a business combination was
measured initially at their fair values at the acquisition date.
The Group recognises any non-controlling interest in the acquiree on a acquisition-by-
acquisition basis, either at fair value or at the non-controlling interest’s proportionate share
of the acquiree’s net assets. Non-controlling interest is reported as equity in the
consolidated statement of financial position, separate from the owner of the parent’s
equity.
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31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e. Basis of consolidation (continued)
The excess of the consideration transferred, the amount of any non-controlling interest in
the acquiree and the fair value at the acquisition date of any previous equity interest in the
acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill.
If those amount are less than the fair value of the net identifiable assets of the business
acquired, in the case of a bargain purchase, the difference is recognised directly in the
consolidated statement of profit or loss.
Any contingent consideration to be transferred by the Group is recognised at fair value at
the acquisition date. Subsequent changes to the fair value of the contingent consideration
that is deemed to be an asset or liability is recognised in accordance with SFAS 55
(Revised 2014) “Financial lnstrument: Recognition and Measurement” in the statement of
profit or loss. Contingent consideration that is classified as equity that is not remeasured,
and its subsequent settlement is accounted for within equity.
Acquisition-related costs are expensed as incurred.
The Group recognises any non-controlling interest in the acquiree on an acquisition-by-
acquisition basis at the non-controlling interest’s proportionate share of the acquiree’s net
assets.
Non-controlling interests are recognised on the date of business combination and
subsequently adjusted to the proportion of the changes in equity of Subsidiary.
Non-controlling interests are presented in equity in the consolidated statements of
financial position, separate from equity, which can be attributed to the owner, and
expressed as the proportion of non-controlling shareholders for current year earnings and
equity that can be attributed to non-controlling interests based on ownership percentage
of non-controlling shareholders in the Subsidiary.
If the Group losses control of a Subsidiary, the Group:
a. Derecognises the assets and liabilities of the former Subsidiary from the consolidated
statements of financial position.
b. Recognises any investment retained in the former Subsidiary at fair value on the date
when control is lost and subsequently accounts for it and for any amounts owed by or
to the former Subsidiary in accordance with the relevant financial accounting standard.
That fair value is regarded as the fair value on initial recognition of a financial asset in
accordance with SFAS No. 55, “Financial Instruments: Recognition and
Measurement”.
c. Recognises the gain or loss associated with the loss of control attributable to the
former controlling interest.
Changes affected the Bank’s ownership interest and equity of Subsidiary that do not result
in the loss of control are accounted for as equity transactions and presented as other
equity components within equity in the consolidated statements of financial position.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e. Basis of consolidation (continued)
Business combination of entities under common control transactions, such as transfer of
business in relation to reorganisation of entities within the same business group, is not a
change of ownership in terms of economic substance, therefore such transaction cannot
generate any gains or losses for the Group as a whole as well as the individual entity
within the business group.
Business combination of entities under common control transactions, according to
SFAS No. 38 (Revised 2012), “Business Combination under Common Control”, is
recognised at its carrying amount based on pooling-of-interest method. Entity that
receives the business as well as the entity that disposes the business recognises the
difference between the proceeds transferred/received and carrying amount arising from a
business combination under common control transaction as part of equity in the additional
paid-in capital account and will never be recognised as realised profit or loss or reclassified
into retained earnings in the future.
f. Translation of transactions in foreign currencies
Items included in the consolidated financial statements of the Group are measured using
the currency of the primary economic environment in which the entity operates (the
"functional currency").
The Group domiciled in Indonesia maintained its accounting record in Rupiah, which is
the functional and presentation currency of the Group. Transactions denominated in
foreign currencies are translated into Rupiah at the exchange rates prevailing at the date
of the transaction. At the reporting date, year-end balances of monetary assets and
liabilities denominated in foreign currencies are translated into Rupiah at the exchange
rates prevailing at the date of consolidated statements of financial position.
For consolidation purposes, foreign currency financial statements of the Bank's overseas
Subsidiary are translated into Rupiah based on the following basis:
(1) Assets and liabilities, commitments and contingencies are translated using the
Reuters spot rates at 16:00 WIB at the statement of financial position date.
(2) Income, expenses, gains and losses represent the accumulated amount from monthly
profit or loss balance during the year, are translated into Rupiah using the average
Reuters middle rate for the respective month.
(3) Equity accounts are translated using historical rates.
(4) Statements of cash flows is translated using the Reuters spot rate at 16:00 WIB at the
statement of financial position date, except for profit or loss accounts which are
translated using the average middle rates and equity accounts which are translated
using historical rates.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f. Translation of transactions in foreign currencies (continued)
Differences arising from the above translation are presented as "foreign exchange
differences arising from translation of financial statements in foreign currency" under the
equity section of the consolidated statements of financial position.
Exchange gains or losses arising from transactions in foreign currencies and from the
translation of monetary assets and liabilities in foreign currencies are recognised in the
current year consolidated profit or loss.
Summarised below are the major exchange rates as of 31 December 2019 and 2018,
using Reuters middle rate at 16:00 WIB (full amount of Rupiah):
Foreign currencies 2019 2018
1 United States Dollar (USD) 13,882.5 14,380.0
1 Australian Dollar (AUD) 9,725.4 10,162.4
1 Singapore Dollar (SGD) 10,315.1 10,554.9
1 Hong Kong Dollar (HKD) 1,782.8 1,836.3
1 Great Britain Poundsterling (GBP) 18,238.1 18,311.5
100 Japanese Yen (JPY) 12,781.0 13,062.0
1 Euro (EUR) 15,570.6 16,440.7
g. Financial assets and liabilities
g.1. Financial assets
The Group classifies their financial assets in the following categories at initial
recognition (a) at fair value through profit or loss, (b) loans and receivables, (c)
held-to-maturity, and (d) available-for-sale. This classification depends on the
purpose of obtaining these financial assets. Management determines the
classification of financial assets at the time of initial recognition.
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31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.1. Financial assets (continued)
(a) Financial assets recognised at fair value through profit or loss
This category has 2 (two) sub-classifications, i.e. those designated as such
upon initial recognition and those classified as held for trading and financial
assets which at the initial recognition have been determined by the Bank to be
measured at fair value through profit or loss.
Held for trading are those financial assets that the Group acquired or incurred
principally for the purpose of selling or repurchasing in the near term, or held
as part of a certain financial instrument portfolio that is managed together for
short-term profit (short term profit-taking). Derivatives are also categorised as
trading groups, except derivatives that are designated and effective as
hedging instruments.
Financial instruments grouped into this category are recognised at their fair
value at initial recognition; transaction costs are recognised directly in the
consolidated statements of profit or loss. Gains and losses arising from
changes in fair value and sale of financial instruments are recognised in the
consolidated statements of profit or loss and recorded as respectively “Gains
(losses) from changes in fair value of financial instruments” and “Gains
(losses) from the sale of financial instruments”. Interest income from financial
instruments in the trading group is recorded as “Interest income”.
(b) Loans and receivables
Loans and receivables are non-derivative assets with fixed or determinable
payments and fixed maturity did not have quotation in active market, unless:
those that the Group intends to sell immediately or in the short term, which
are classified as held for trading, and those that the Bank upon initial
recognition designates as at fair value through profit or loss;
those that upon initial recognition designates as available-for-sale; or
those for which the holder may not recover substantially all of its initial
investment, other than because of deterioration of loans and receivables.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.1. Financial assets (continued)
(b) Loans and receivables (continued)
Loans and receivables are initially recognised at fair value plus transaction
costs and subsequently measured at amortised cost using the effective
interest rate method less allowance for impairment losses. Interest income on
financial assets classified as loans and receivables is included in the
consolidated statements of profit or loss and reported as “Interest income”. In
the case of impairment, the impairment loss is reported as a deduction from
the carrying value of the financial assets classified as loan and receivables
and recognised in the consolidated statement of profit or loss as “Allowance
for impairment losses on financial assets”.
(c) Held-to-maturity financial assets
Held-to-maturity financial assets are non-derivative financial assets with fixed
or determinable payment and fixed maturities that the Group has the positive
intention and ability to held to maturity other than:
those that upon initial recognition designated as at fair value through profit
or loss;
those that the Group designated as available-for-sale; and
those that met the definition of loans and receivables.
Held-to-maturity financial assets are initially recognised at fair value including
transaction costs and subsequently measured at amortised cost, using the
effective interest rate method less allowance for impairment losses.
Interest income on held-to-maturity investments is recorded in the statements
of comprehensive income and reported as “Interest income”. In the case of
impairment, the impairment loss is been reported as a deduction from the
carrying value of the investment and recognised in the financial statements as
“Allowance for impairment losses as financial assets”.
(d) Financial assets available-for-sale
Available-for-sale financial assets are financial assets that are intended to be
held for certain period of time, which may be sold in response to needs for
liquidity or changes in interest rates or exchange rates or that are not classified
as loans and receivables, held-to-maturity financial assets or financial assets
at fair value through consolidated statements of profit or loss.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/19
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.1. Financial assets (continued)
(d) Financial assets available-for-sale (continued)
Available-for-sale financial assets are initially recognised at fair value, plus
transaction costs, and subsequently measured at fair value with gains and
losses being recognised in the statements of comprehensive income, except
for impairment losses and foreign exchange gains or losses, until the financial
assets is derecognised. If an available-for-sale financial asset is determined
to be impaired, the cumulative gain or loss previously recognised in other
comprehensive income (expense) will be recognised as the profit or loss.
Interest income is calculated using the effective interest rate method, and
foreign currency gains or losses on monetary assets classified as available-
for-sale are recognised in the consolidated statements of profit or loss.
(e) Recognition
The Group uses trade date accounting for regular way contracts when
recording financial assets transactions. Financial assets that are transferred
to a third party but do not qualify for derecognition are presented in the
consolidated statements of financial position as “Pledged assets”, if the
transferee has the right to sell or repledge them.
g.2. Financial liabilities
The Group classifies its financial liabilities in the category of (a) financial liabilities
at fair value through profit or loss and (b) financial liabilities measured at amortised
cost. Financial liabilities are derecognised when they have redeemed or otherwise
extinguished or expired.
(a) Financial liabilities measured at fair value through profit or loss
This category comprises two subcategories: financial liabilities classified as
held for trading and financial liabilities designated by the Group as at fair value
through profit or loss upon initial recognition. At the initial and subsequent
recognition, this is recorded at fair value.
A financial liability is classified as held for trading if it is acquired or incurred
principally for the purpose of selling or repurchasing it in the near term or if it
is part of a portfolio of identified financial instruments that are managed
together and for which there is evidence of a recent actual pattern of short-
term profit taking. Derivatives are also categorised as held for trading
instrument unless they are designated and effective as hedging instruments.
Gains and losses arising from changes in fair value of financial liabilities
classified held for trading are included in the consolidated statements of profit
or loss and reported as “Gains (losses) from changes in fair value of financial
instruments”. Interest expenses on financial liabilities held for trading are
recorded as “Interest expenses”.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.2. Financial liabilities (continued)
(a) Financial liabilities measured at fair value through profit or loss (continued)
If the Group designs certain debt securities upon initial recognition as at fair
value through profit or loss (fair value option), then this designation cannot be
changed subsequently. According to SFAS 55 (Revised 2014), the fair value
option is applied on the debt securities consists of debt host and embedded
derivatives that otherwise must be separated.
Fair value changes related to financial liabilities designated at fair value
through profit or loss are recognised in “Gains/(losses) from changes in fair
value of financial instruments”.
(b) Financial liabilities measured at amortised cost
Financial liabilities that are not classified as at fair value through profit and loss
fall into this category and are measured as amortised cost.
Financial liabilities at amortised cost are initially recognised at fair value plus
transaction costs (if any).
After initial recognition, the Group measures all financial liabilities at amortised
cost using effective interest rate method.
g.3. Determination of fair value
Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date in the principal market or, in its absence, the most advantageous market to
which the Group has access at that date. The fair value of a liability reflects its non-
performance risk.
When available, the Group measures the fair value of a financial instrument using
the quoted price in an active market for that instrument.
A financial instrument is regarded as quoted in an active market if quoted prices
are readily and regularly available from an exchange, dealer, broker, industry
group, pricing service or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. If the above
criteria are not met, the active market is regarded as being unavailable. Indications
that a market is inactive are when there is a wide bid-offer spread or significant
increase in the bid-offer spread or there are few recent transactions.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.3. Determination of fair value (continued)
The best evidence of the fair value of a financial instrument at initial recognition is
normally the transaction price, i.e., the fair value of the consideration given or
received. If the Group determines that the fair value at initial recognition differs from
the transaction price and the fair value is evidenced neither by a quoted price in an
active market for an identical asset or liability nor based on a valuation technique
that uses only data from observable markets, then the financial instrument is initially
measured at fair value, adjusted to defer the difference between the fair value at
initial recognition and the transaction price. After initial recognition, the difference
is amortised and recognised in the profit or loss over the life of the instrument, but
not longer than the valuation date supported by observable market data or when
the transactions are closed.
For financial instruments with no quoted market price, a reasonable estimate of the
fair value is determined by referencing to the current market value of another
instrument which substantially have the same characteristic or calculated based on
the expected cash flows of the underlying net asset base of the marketable
securities.
For all other financial instruments, fair value is determined using valuation
techniques. In these techniques, fair values are estimated from observable data in
respect of similar financial instruments, using models to estimate the present value
of expected future cash flows or other valuation techniques, using inputs (for
example, LIBOR yield curve, foreign exchange rates, volatilities and counterparty
spreads) existing at the dates of the statement of financial position.
g.4. Derecognition
Financial assets are derecognised when the contractual rights to receive the cash
flows from these assets have ceased to exist or the assets have been transferred
and substantially all the risks and rewards of ownership of the assets are also
transferred (that is, if substantially all the risks and rewards have not been
transferred, the Group tests control to ensure that continuing involvement on the
basis of any retained powers of control does not prevent derecognition). Financial
liabilities are derecognised when they have been redeemed or otherwise
extinguished or expired.
g.5. Reclassification of financial assets
Financial assets that are no longer held for trading or repurchase of financial assets
in the near future could be reclassified as loans and receivables if it met the
definition of loans and receivables and entity has the intention and ability to hold
the financial assets for foreseeable future or until maturity date.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.5. Reclassification of financial assets (continued)
The Group shall not classify any financial assets as held-to-maturity if during the
current financial year or during the two preceding financial years, the Group has
sold or reclassified more than an insignificant amount of held-to-maturity
investments before maturity (more than insignificant in relation to the total amount
of held-to-maturity investments) other than sales or reclassifications that:
(a) are so close to maturity or the financial asset's call date that changes in the
market rate of interest would not have a significant effect on the financial
asset's fair value;
(b) occur after the Group has collected substantially all of the financial asset’s
original principal through scheduled payments or prepayments; or
(c) are attributable to an isolated event that is beyond the Group control, is non-
recurring and could not have been reasonably anticipated by the Group.
Reclassification of financial assets from held-to-maturity classification to available-
for-sale are recorded at fair value. Unrealised gains or losses shall be recognised
in other comprehensive income until the financial assets is derecognised, at which
time the cumulative gain or loss previously recognised in other comprehensive
income shall be reclassified from equity to statement of profit or loss as a
reclassification adjustment.
g.6. Classification of financial assets and liabilities
The Group classifies the financial assets and liabilities into classes that reflects the
nature of information and take into account the characteristic of those financial
instruments. The classification can be seen in the table below.
Category of financial assets and Classes (as determined by
Subclasses
liabilities the Group)
Financial assets at Securities
Financial assets held for
fair value through Placement with other Banks
trading
profit or loss Derivative assets
Cash
Current accounts with Bank Indonesia
Current accounts with other banks
Placements with Bank Indonesia and other banks
Acceptance receivables
Bills receivable
Securities purchased under agreements to resell
Financial Loans receivable
assets Consumer financing receivables
Loans and
receivables Investment in finance leases
Assets related to sharia transactions - murabahah receivables
Interest receivables
Transactions related to ATM
and credit card
Unaccepted bills receivables
Other assets
Receivables from customer
transactions
Receivables from insurance
transactions
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.6. Classification of financial assets and liabilities (continued)
The Group classifies the financial assets and liabilities into classes that reflects the
nature of information and take into account the characteristic of those financial
instruments. The classification can be seen in the table below. (continued)
Category of financial assets and Classes (as determined by
Subclasses
liabilities the Group)
Held-to-maturity
Investment securities
Financial investments
assets Placements with Bank
Available-for-sale Certificates of Deposits
(continued) Indonesia and other banks
financial assets
Investment securities
Financial liabilities at
Financial liabilities held for
fair value through Derivative liabilities
trading
profit or loss
Deposits from customers
Sharia deposits
Deposits from other banks
Acceptance payables
Securities sold under agreements to repurchase
Financial Debt securities issued
liabilities Borrowings
Financial liabilities at
amortised cost Accrued interest expenses
Liabilities related to ATM and
credit card transactions
Accrued expenses and other
Liabilities from customer
liabilities
transactions
Liabilities from insurance
transactions
Subordinated bonds
Unused credit facilities
Commitment and
Irrevocable letters of credit
contingencies
Bank guarantee issued
g.7. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the
consolidated statements of financial position when there is a legally enforceable
right of set-off and there is an intention to settle on a net basis, or realise the asset
and settle the liability simultaneously. In certain situations, even though master
netting agreements exist, the lack of management intention to settle on a net basis
results in the financial assets and liabilities being reported gross on the
consolidated statements of financial position.
g.8. Financial guarantee contracts and other commitment receivables
Financial guarantee contracts are contracts that require the issuer to make
specified payments to reimburse the holder for a loss incurred because a specified
debtor defaulted to make payments when due, in accordance with the terms of a
debt instrument. Such financial guarantees are given to banks, financial institutions
and other institutions on behalf of customers to secure loans and other banking
facilities, and unused provision of funds facilities.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.8. Financial guarantee contracts and other commitment receivables (continued)
Financial guarantees are initially recognised in the consolidated financial
statements at fair value on the date the guarantee was given. The fair value of a
financial guarantee at inception is likely to equal the premium received because all
guarantees are agreed on arm’s length terms and the initial fair value is amortised
over the life of the financial guarantees.
Subsequently, they are measured at the higher of amortised amount and the
present value of any expected payment (when a payment under the guarantee has
become probable) and the difference is charged to other operating expense in
consolidated statement of profit or loss.
Allowance for impairment losses on financial guarantee contracts that have credit
risk are calculated based on historical losses.
g.9. Allowance for impairment losses of financial assets
(a) Financial assets carried based at amortised cost
At each reporting date, the Group assess whether there is objective evidence
that financial assets not carried at fair value through profit or loss are impaired.
Financial assets are impaired when objective evidence demonstrates that a
loss event has occurred after the initial recognition of the assets and the loss
event has an impact on the future cash flows on the assets that can be
estimated reliably.
When a loan is uncollectible, it is written off against the related allowance for
impairment losses. Such loans are written off after all the necessary
procedures have been completed and the amount of the loss has been
determined. Impairment charges relating to financial assets category as held-
to-maturity and loans and receivables are classified in “Allowance for
impairment losses”.
If, in a subsequent year, the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment
was recognised (such as an improvement in the debtor’s credit rating), the
previously recognised impairment loss is reversed by adjusting the allowance
account. The amount of the reversal is recognised in the consolidated
statements of profit or loss.
Subsequent recoveries of loans written off are credited to the allowance for
impairment losses account.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.9. Allowance for impairment losses of financial assets (continued)
(a) Financial assets carried based at amortised cost (continued)
Objective evidence that financial assets are impaired can include default or
delinquency by a borrower, restructuring of a loan by the Group on terms that
the Group would not otherwise consider, indications that a borrower or issuer
will enter into bankcruptcy, the disappearance of an active market for a
security due to financial difficulties, or other observable data relating to a group
of assets such as adverse changes in the payment status of borrowers or
issuers in the group, or economic conditions that correlate with defaults in the
group.
The Group considers evidence of impairment for financial assets at both
individual and collective level. All individually significant financial adssets are
assessed for individual impairment.
All individually significant financial assets not to be individually impaired are
then collectively assessed for any impairment that has been incurred but not
yet identified. Financial assets that are not individually significant are
collectively assessed for impairment by grouping together such financial
assets with similar risk characteristics. Financial assets that are individually
assessed for impairment and for which an impairment loss is recognised are
no longer included in a collective assessment of impairment.
In assessing collective impairment, the Group uses statistical modelling of
historical trends of the probability of default, timing of recoveries and the
amount of loss incurred, adjusted for management judgement as to whether
current economic and credit conditions are such that the actual losses are
likely to be greater or less than suggested by statistical modelling. Default
rates, loss rates and the expected timing of future recoveries are regularly
benchmarked against actual outcomes to ensure that they remain appropriate.
Impairment losses on financial assets carried at amortised cost are measured
as the difference between the carrying amount of the financial assets and the
present value of estimated future cash flows discounted at the financial assets
original effective interest rate.
622 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g. Financial assets and liabilities (continued)
g.9. Allowance for impairment losses of financial assets (continued)
(a) Financial assets carried based at amortised cost (continued)
The calculation of the present value of the estimated future cash flows of a
collateralised financial asset reflects the cash flows that may result from
foreclosure less costs for obtaining and selling the collateral. Losses are
recognised in the current year consolidated profit or loss and reflected in an
allowance account against financial assets in the consolidated statements of
financial position. Interest on the impaired financial asset continues to be
recognised using the rate of interest used to discount the future cash flows for
the purpose of measuring the impairment loss. When a subsequent event
causes the amount of impairment loss to decrease, the impairment loss is
reversed through the current year consolidated profit or loss.
(b) Available-for-sale financial assets
Impairment losses on available-for-sale marketable securities are recognised
by transferring the cumulative losses that have been recognised directly as
other comprehensive income to profit or loss as a reclassification adjustment.
The cumulative losses that are reclassified from other comprehensive income
to profit or loss are the difference between the acquisition cost, net of any
principal repayment and amortization, and the current fair value, less any
impairment loss previously recognised to consolidated profit or loss. Changes
in impairment provisions attributable to time value are reflected as a
component of interest income.
If, in a subsequent year, the fair value of an impaired available-for-sale debt
security increases and the increase can be objectively related to an event
occurring after the impairment loss is reversed, with the amount of reversal
recognised in current year consolidated profit or loss.
If the terms of a loan, receivable, or investment are renegotiated or otherwise
modified because of financial difficulties of the borrower or issuer, impairment
is measure using the original effective interest before the modification ot
terms.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h. Allowance for impairment losses on non-financial assets
The carrying amounts of the Group non-financial assets are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication
exists then the asset’s recoverable amount is estimated.
For the purpose of impairment testing, non-financial assets are allocated to the smallest
group of assets that generate cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets or cash generating
unit (“CGU”).
The recoverable amount of a non-financial assets or CGU is the greater of its value in
use and its fair value less costs to sell. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset
or the CGU.
An impairment loss is recognised if the carrying amount of a non-financial asset or CGU
exceeds the recoverable amount.
Impairment losses recognised in the previous period are evaluated at each financial
reporting date whether there are indications that losses have decreased or no longer
existed. An impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount. Impairment losses are reversed only to the extent
of the carrying value of non-financial assets does not exceed the carrying value, net of
depreciation or amortisation, if no impairment loss had been recognised.
An impairment loss in respect of goodwill is not reversed.
i. Current accounts with Bank Indonesia and other banks
Current accounts with Bank Indonesia and other banks are stated at face value or the
gross value of the outstanding balance, less allowance for impairment losses, where
appropriate. Current accounts with Bank Indonesia and other banks are classified as loans
and receivables. Refer to Note 2g for accounting policy for loans and receivables.
j. Placements with Bank Indonesia and other banks
Placements with Bank Indonesia and other banks are classified as loans and receivables,
and available-for-sale. Refer to Note 2g for accounting policy for loans and receivables
and available-for-sale.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/28
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k. Financial assets and liabilities held for trading
Financial assets and liabilities held for trading consist of securities traded in the money
market such as Certificates of Bank Indonesia (“SBI”), Bank Indonesia Treasury Bills
(“SBBI”), Government Treasury Bills (“SPN”), Sharia Government Treasury Bills (“SPNS”),
Corporate Bonds, derivative financial instruments, and securities traded on the stock
exchanges.
Financial assets and liabilities held for trading are classified as financial assets and
liabilities at fair value through profit or loss. Refer to Note 2g for the acccounting policy of
financial assets and liabilities held for trading.
Derivative financial instruments
Derivative instruments are initially recognised at fair value on the date of which a derivative
contract is entered into and are subsequently measured at their fair values. Fair values
are obtained from quoted market prices in active markets, including recent market
transactions and valuation techniques, including discounted cash flow and options pricing
models, as appropriate. All derivatives are carried as assets when fair value is positive
and as liabilities when fair value is negative.
Investment in sukuk measured at fair value through profit or loss
The Group initially recognises the investment in sukuk measured at fair value through
profit or loss at acquisition cost. Such cost does not include transaction costs. Subsequent
to initial recognition, the difference between fair value and the carrying amount is
recognised in the consolidated profit or loss.
The fair value of investment is determined by referencing to the following order:
quoted price (without adjustments) in active market, or
input other than quoted price in the observable active market.
Investment in sukuk measured at fair value through profit or loss is presented in the
consolidated statement of financial position as part of financial assets held for trading.
l. Acceptance receivables and payables
Acceptance receivables are classified as loans and receivables, while acceptance
payables are classified as financial liabilities measured at amortised cost. Refer to Note
2g for the accounting policy of loans and receivable and financial liabilities measured at
amortised cost.
m. Loans receivable
Loans receivable are classified as loans and receivables. Refer to Note 2g for the
accounting policy of loans and receivable.
Syndicated, joint financing and channeling loans are stated at amortised cost in
accordance with the portion of risks borne by the Bank.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
m. Loans receivable (continued)
The Group records restructure of troubled debt in accordance with the restructured type.
In troubled debt restructuring which involves a modification of terms, reduction of portion
of loan principal and/or combination of both, the Group records the effect of the
restructuring prospectively and do not change the carrying value of receivables at the time
of restructuring, unless the amount exceeds the present value of the total future cash
receipts specified in the new terms. If the present value of the total future cash receipts
specified in the new terms is lower than the recorded receivables balance prior to
restructuring, the Group should reduce the loan balance to the amount equal to the
present value of the total future cash receipts. The amount of the reduction is recognised
as individual impairment losses in the current year consolidated profit or loss.
n. Securities purchased under agreements to resell and securities sold under
agreements to repurchase
Securities purchased under agreements to resell (reverse repo) are presented as
receivables and stated at the agreed resell price less the difference between the purchase
price and the agreed resale price. The difference between the purchase price and the
agreed resale price is amortised using the effective interest method as interest income
over the period commencing from the acquisition date to the resell date. Securities
purchased under agreements to resell (reverse repo) are classified as loans and
receivables. Refer to Note 2g for the accounting policy of loans and receivables.
Securities sold under agreements to repurchase (repo) are presented as liabilities and
stated at the agreed repurchase price less the unamortised interest expense. Unamortised
interest expense is the difference between selling price and agreed repurchase price and
is recognised as interest expense during the period from the securities are sold until the
securities are repurchased. Securities sold are still recorded as assets in the consolidated
statements of financial position because the securities ownership remains substantially
with the Bank as a seller. Securities sold under agreements to repurchase (repo) are
classified as financial liabilities. Refer to Note 2g for the accounting policy of financial
liabilities measured at amortised cost.
o. Consumer financing receivables
Consumer financing receivables are stated at net of joint financing, unearned consumer
financing income and allowance for impairment losses. Consumer financing receivables
are classified as loans and receivables. Refer to Note 2g for the accounting policy of the
loans and receivables.
Unearned consumer financing income represents the difference between total
installments to be received from the consumer and the principal amount financed, plus or
deducted with the unamortised transaction cost (income), which will be recognised as
income over the term of the contract using effective interest rate method of the related
consumer financing receivables.
Unamortised transaction cost (income) are financing administration income and
transaction expense which are incurred at the first time and directly attributable to
consumer financing.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o. Consumer financing receivables (continued)
Early termination of a contract is treated as a cancellation of an existing contract and the
resulting gain is recognised in the current year consolidated profit or loss.
Consumer financing receivables will be written-off when they are overdue for more than
150 (one hundred and fifty) days for four-wheeled motor vehicles and 180 (one hundred
and eighty) days for two-wheeled motor vehicles, and based on management of case by
case basis.
Joint financing
All joint financing agreements entered by the Subsidiary are joint financing without
recourse in which only the Subsidiary’s financing portion of the total installments are
recorded as consumer financing receivables in the consolidated statements of financial
position (net approach). Consumer financing income is presented in the consolidated
statements of profit or loss after deducting the portions belong to other parties participated
to these joint financing transactions.
Receivables from collateral vehicles reinforced
Receivables from collateral vehicles reinforced represent receivables derived from motor
vehicle collaterals owned by customers for settlement of their consumer financing
receivables, which is presented as part of consumer financing receivables.
In case of default, the customer gives the right to the Group to sell the motor vehicle
collaterals or take any other actions to settle the outstanding receivables.
Consumers are entitled to the positive differences between the proceeds from sales of
foreclosed collaterals and the outstanding consumer financing receivables. If the
differences are negative, the resulting losses are charged to the current year consolidated
profit or loss.
Expenses in relation with the acquisition and maintenance of receivables from collateral
vehicles reinforced are charged to the current year consolidated profit or loss when
incurred.
p. Accounting for finance leases
Leases are classified as finance leases if such leases transfer substantially all the risks
and rewards related to the ownership of the leased assets. Leases are classified as
operating leases if the leases do not transfer substantially all the risks and rewards related
to ownership of the leased assets.
Assets held under finance lease are recognised in the consolidated statements of financial
position at an amount equal to the net investment in the lease. Receipts from lease
receivables are treated as repayments of principal and financing lease income. The
recognition of finance lease income is based on a pattern reflecting a constant periodic
rate of return on the Subsidiary’s net investment as lessor in the finance lease.
Finance leases are classified as loans and receivables. Refer to Note 2g for the
accounting policy of loans and receivables.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q. Assets related to sharia transactions
Assets related to sharia transactions is financing activities carried out by PT Bank BCA
Syariah, a subsidiary, in the form of murabahah receivables, funds of qardh, mudharabah
financing, musyarakah financing and assets acquired for ijarah.
Brief explanation for each type of sharia financing is as follows:
Murabahah is a financing agreement to sell or purchase of goods, in which the selling
price equals to the cost of goods plus a pre-agreed profit margin and the seller should
disclose its cost to the buyer. Murabahah receivables is stated at balance of receivables
less deferred margin and allowance for impairment losses.
Ijarah is a lease agreement for goods and/or services, including the right to use, between
the owner of a leased object (lessor) and lessee, to generate income from the leased
object. Ijarah muntahiyah bittamlik is a lease agreement between lessor and lessee to
obtain income from the leased object with an option to transfer the ownership title of leased
object through purchase/sale or as a gift (hibah) at certain period as agreed in the lease
agreement (akad). Ijarah muntahiyah bittamlik assets are stated at the acquisition costs
less accumulated depreciation. Ijarah receivable is recognised at maturity date based on
unearned lease income and presented at net realisable value, i.e. balance of the
receivables less allowance for impairment losses.
Mudharabah is an investment of funds from the owner of fund (malik, shahibul maal, or
sharia bank) to a fund manager (amil, mudharib, or customer) for a specific business
activity, under a profit or revenue sharing agreement between the two parties at a pre-
agreed ratio (nisbah). Mudharabah financing is stated at financing balance less allowance
for impairment losses.
Musyarakah is an investment of funds from the owners of funds to combine their funds for
a specific business activity, for which the profits are shared based on a pre-agreed nisbah,
while losses are borne proportionally by the fund owners.
Permanent musyarakah is a musyarakah for which the amount of funds contributed by
each party is fixed until the end of the agreement. Declining musyarakah (musyarakah
mutanaqisha) is musyarakah with a condition that the amount contributed by a party will
be declining from time to time as it is transferred to another party, such that at the end of
the agreement, the other party will fully own the business. Musyarakah financing is stated
at financing balance less allowance for impairment losses.
The Subsidiary determines the allowance for impairment losses of sharia financing
receivables in accordance with the quality of each financing receivable by referring to the
requirements of Financial Services Authority, except for murabahah receivables for which
the identification and measurement of impairment losses follows SFAS 55.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r. Investment securities
Investment securities consist of traded securities in the money market and stock exchange
such as Government Bonds, Sukuk, Corporate Bonds, Certificates of Bank Indonesia,
mutual funds, medium term notes and shares. Investment securities are classified as
financial assets held-to-maturity and available-for-sale. Refer to Note 2g of the accounting
policy for financial assets held-to-maturity and available-for-sale.
Investments in sukuk measured at cost and measured at fair value through other
comprehensive income
The Group determine the classification of their investment in sukuk based on business
model in accordance with SFAS 110 “Accounting for Sukuk” as follows:
x Measured at cost
If the investment is held within a business model that aims to acquire assets in order
to collect contractual cash flows and there is a contractual requirement to determine
the specific date of principal payments and/or the result.
At the initial measurement, the investment is recorded at acquisition cost which
includes the transaction cost. After the initial recognition, the investment in sukuk is
measured at amortised cost. The difference between acquisition cost and nominal
value is amortised using straight-line method during the period of the sukuk
instrument.
x Measured at fair value through other comprehensive income
At the initial recognition, the investment in sukuk is presented at acquisition cost which
includes transaction cost.
After initial recognition, the investment in sukuk is recognised at-fair-value. The
difference between fair value and recorded amount is recognised in other
comprehensive income. The difference between acquisition cost and nominal value is
amortised using straight-line method during the period of the sukuk instrument and
recognised in profit or loss.
s. Fixed assets
Fixed assets are initially recognised at cost. Cost includes expenditures directly attributable
to bring the assets for their intended use. Except for land, subsequent to initial
measurement, all fixed assets are measured using cost model, which is cost less
accumulated depreciation and accumulated impairment losses. Land is not depreciated.
In 2016, the Group changed its accounting policy related to subsequent measurement of
land from cost model to revaluation model. The change of accounting policy is implemented
prospectively.
Land is presented at fair value, based on valuation performed by external independent
valuers which are registered with OJK. Valuation of land is carried out by appraisers who
have professional qualifications. Revaluation is carried out with sufficient regularity to ensure
that the carrying amount of revalued assets does not differ materially from their fair values
at the reporting date.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s. Fixed assets (continued)
Increases arising on the revaluation are credited to “revaluation surplus of fixed assets” as
part of other comprehensive income. However, the increase is recognised in profit or loss
up to the amount of the same asset impairment from revaluation previously recognised in
the consolidated statements of profit or loss. Decreases that offset previous increases of the
same asset are debited against ”revaluation surplus of fixed assets” as part of other
comprehensive income, all other decreases are charged to the consolidated statements of
profit or loss.
Costs relating to the acquisition of legal titles on the land rights are recognised as part of
acquisition cost of land and not amortised, except there is evidence which indicates that the
extension or renewal of land rights is probable or certainly not be obtained. The costs of
extension or renewal of legal titles on the land rights are charged to consolidated profit or
loss as incurred because the amount is not significant.
Buildings are depreciated using the straight-line method over their estimated useful lives of
20 (twenty) years. Other fixed assets are depreciated over their estimated useful lives
ranging from 2 (two) to 8 (eight) years using the double-declining balance method for the
Bank and PT BCA Finance, and straight-line method for other Subsidiaries. The effect of
such different depreciation method is not material to the consolidated financial statements.
For all fixed assets, the Group has determined residual values to be “nil” for the calculation
of depreciation.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be measured reliably. The
carrying amount of replaced part is derecognised. All other repairs and maintenance are
charged to the consolidated statement of profit or loss during the financial period in which
they are incurred.
Buildings under construction are stated at cost. The accumulated costs will be transferred
to the buildings account when construction is completed and the buildings are ready for their
intended use.
When assets are disposed, their acquisition cost and the related accumulated depreciation
are eliminated from the consolidated statements of financial position, and the resulting gain
or loss on the disposal of fixed assets is recognised in the current year consolidated
statements of profit or loss. When revalued assets are sold, the amounts included in equity
are transferred to retained earnings.
At each reporting date, residual value, useful life and depreciation method are reviewed,
and if required, will be adjusted and applied in accordance with the requirement of prevailing
Financial Accounting Standards.
When the carrying amount of fixed assets is greater than its estimated recoverable amount,
it is written down to its recoverable amount and the impairment loss is recognised in the
consolidated statements of profit or loss.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
t. Other assets
Other assets include accrued interest income and fees and commissions receivables,
foreclosed assets, abandoned properties, interoffice accounts and others.
Foreclosed assets represent assets acquired by the Group, both from auction and non-
auction based on voluntary transfer by the debtor or based on debtor’s approval to sell the
collateral when the debtor could not fulfill their obligations to the Group. Foreclosed assets
represent loan collateral that were taken over as part of loans settlement and presented in
“Other Assets”.
Abandoned properties represent the Group is fixed assets in the form of properties which
were not used for the Group business operational activity.
Foreclosed assets and abandoned properties are presented at their net realisable values.
Net realisable value is the fair value of the repossessed assets less estimated costs to
sale the foreclosed assets. Differences between the net realisable value and the proceeds
from disposal of the foreclosed assets are recognised as current year gain or loss at the
year of disposal.
Expenses for maintaining repossessed assets and abandoned properties are recognised
in the current year consolidated statements of profit or loss and other comprehensive
income as incurred. Any permanent impairment loss that occurred will be charged to the
current year consolidated statements of profit or loss and other comprehensive income.
Refer to Note 2h for changes in accounting policy to determine impairment losses on
repossessed assets and abandoned properties.
u. Intangible assets
Intangible assets consist of software and goodwill.
Software
Software is stated at cost less accumulated amortisation and accumulated impairment
losses. Acquired computer software licences are capitalised on the basis of the costs
incurred to acquire and bring to use the specific software. Costs associated with
maintaining computer software programs are recognised as an expense as incurred.
Development costs that are directly attributable to the design and testing of identifiable
and unique software products controlled by the Group are recognised as software. Other
development expenditures that do not meet these criteria are recognised as an expense
as incurred. Development costs previously recognised as an expense are not recognised
as an asset in a subsequent period. Amortisation is recognised in consolidated statements
of profit or loss using a double-declining balance method over the estimated useful
economic life of 4 (four) years.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
u. Intangible assets (continued)
Intangible assets consist of software and goodwill. (continued)
Goodwill
Goodwill represents the excess of the aggregate of the consideration transferred and the
amounts of net identifiable assets acquired and the liabilities assumed at the date of
acquisition. Goodwill is not amortised, but tested at each reporting date for impairment.
For the purpose of impairment testing, goodwill acquired in a business combination is
allocated to each cash-generating unit (CGU), or group of CGUs, that is expected to benefit
from the synergies of the business combination. Each unit or group of units to which the
goodwill is allocated represents the lowest level within the entity at which the goodwill is
monitored for internal management purposes. Goodwill is monitored at the operating segment
level. For Group accounting policy of impairment losses refer to Note 2h.
v. Deposits from customers and other banks
Deposits from customers are the fund trusted by customers (exclude banks) to the Bank
based on fund deposits agreements. Included in this accounts are current accounts,
saving accounts, time deposits and certificates of deposits.
Deposits from other banks represent liabilities to other banks, both domestic and overseas
banks, in the form of current accounts, saving accounts, time deposits, and interbank call
money.
Deposits from customers and deposits from other banks are classified as financial
liabilities at amotised cost. Incremental costs directly attributable to acquisition of deposits
from customers and deposits from other banks are deducted from the amount of deposits
from customers and deposits from other banks. Refer to Note 2g for the accounting policy
of financial liabilities at amortised cost.
w. Sharia deposits
Sharia deposits are deposits from third parties in form of wadiah demand deposits and
wadiah savings. Wadiah demand deposits can be used as payment instrument, and can
be withdrawn using cheque and payment slip. Wadiah demand deposits and wadiah
savings are entitled to receive bonus in accordance with Subsidiary’s policy. Wadiah
demand deposits and wadiah savings are stated at nominal amount of deposits from
customers. Sharia deposits are classified as financial liabilities measured at amortised
cost.
x. Temporary syirkah deposits
Temporary syirkah deposit is an investment with mudharabah muthlaqah agreement,
where the owner of funds (shahibul maal) gives flexibility to fund manager
(mudharib/Subsidiary) in managing the investment with the purpose that the returns are
to be shared based on a pre-agreed basis.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
x. Temporary syirkah deposits (continued)
Temporary syirkah deposits consist of mudharabah saving deposit, mudharabah time
deposits and Sertifikat Investasi Mudharabah Antarbank (“SIMA”). These funds obtained
by Subsidiary which has the right to manage and invest fund, according to Subsidiary’s
policy or limitation from fund holders, whereby gains are to be shared based on the
agreement. In case that the decrease of temporary syirkah deposits was caused by
normal losses, and not caused by willful default, negligence or breach of the agreement,
the Subsidiary has no obligation to return or cover the fund losses or deficit.
Mudharabah saving deposits are deposits from third parties which are entitled to receive
sharing revenue from Subsidiary for the utilisation of the funds with a pre-agreed and
approved nisbah. Mudharabah saving deposits are stated at the liabilities to customers.
Mudharabah time deposits are deposits from third parties which can only be withdrawn at
a specific time based on the agreement between holder of mudharabah time deposits and
the Subsidiary. Mudharabah time deposits are stated at nominal amount based on the
agreement between holder of mudharabah time deposits and the Subsidiary.
Temporary syirkah deposits can not be classified as liability. When the Subsidiary incurs
losses, the Subsidiary does not possess any liability to return the initial fund amount from
the fund owners except from negligence or default of the Subsidiary. Temporary syirkah
deposits can not be classified as equity because it has maturity date and owners and it
does not possess any ownership rights equal to shareholders as voting rights and rights
of gain realisation from current assets and non-investment assets.
Temporary syirkah deposits is one of the elements of consolidated financial statements,
it in accordance with sharia principle which give rights to Subsidiary to manage the fund,
including blending the funds with other funds.
Owners of temporary syirkah deposits obtain part of gain as agreed and incur losses
based on the amount from each parties. Revenue sharing of temporary syirkah deposits
can be done by revenue sharing concept or profit sharing concept.
y. Debt securities issued
Debt securities issued by Subsidiary which consists of medium-term notes payable and
bonds payable, are classified as other financial liabilities measured at amortised cost.
Issuance costs in connection with the issuance of debt securities are recognised as
discounts and directly deducted from the proceeds of debt securities issued and amortised
over the period of debt securities using the effective interest method. Debt securities
issued is classified as financial liabilities at amortised cost. Refer to Note 2g for the
accounting policy of financial liabilities measured at amortised cost.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
z. Subordinated bonds
Subordinated bonds are classified as financial liabilities measured at amortised cost.
Incremental costs directly attributable to the issuance of subordinated bonds are deducted
from the amount of subordinated bonds received. Refer to Note 2g for the accounting
policy for financial liabilities at amortised cost.
aa. Provision
A provision is recognised if, as a result of a past event, the Group has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Provisions are measured at the
present value of management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. Provisions are determined by
discounting the estimated future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability.
ab. Accrued expenses and other liabilities
Accrued expenses and other liabilities consist of accrued interest expense, liabilities
related to customer and insurance transactions, security deposits, unearned revenue and
others.
ac. Earnings per share
Basic earnings per share is computed based on net income for the current year
attributable to equity holders of parent entity divided by the weighted average number of
outstanding issued and fully paid-up common shares during the year after considering the
treasury stocks.
As of 31 December 2019 and 2018, there were no instruments which could potentially
result in the issuance of common shares. Therefore, diluted earnings per share is
equivalent to basic earnings per share.
ad. Treasury stocks
The Bank uses cost method in recording the treasury stocks. Treasury stocks are
recorded at re-acquisition cost and presented as a deduction of equity in the consolidated
statements of financial position.
When treasury stocks are sold, the Bank records the difference between re-acquisition
price and selling price of treasury stocks as additional paid-in capital from treasury stock
transaction which is part of additional paid-in capital.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ae. Interest income and expenses & sharia income and expenses
Interest income and expenses
Interest income and expenses are recognised in the consolidated statements of profit or
loss using the effective interest method. The effective interest rate is the rate that exactly
discounts the estimated future cash payments and receipts through the expected life of
the financial asset or financial liability (or, where appropriate, a shorter period) to the
carrying amount of the financial asset or financial liability. When calculating the effective
interest rate, the Group estimates future cash flows by considering all contractual terms
of the financial instrument but not future credit losses.
The calculation of the effective interest rate includes transaction costs (see Note 2g) and
all fees and points paid or received that are an integral part of the effective interest rate.
Interest income and expenses presented in the consolidated statements of profit or loss
and other comprehensive income include:
x interest on financial assets and liabilities at amortised cost calculated using the
effective interest method; and
x interest on available-for-sale investment securities calculated using the effective
interest method.
x Interest income on all trading financial assets are considered to be incidental to the
Bank’s trading operations and are presented as part of net trading income.
x Interest income on the impaired financial assets continues to be recognised using the
rate of interest used to discount the future cash flows for the purpose of measuring
the impairment losses.
Sharia income and expenses
Sharia income consists of murabahah profit, ijarah revenue (leases), and profit sharing
from mudharabah and musyarakah financing.
Recognition of murabahah transaction profit with deferred payment or installments is
carried out during the contractual period in accordance with effective (annuity) method.
Ijarah revenue is recognised proportionally during the contractual period.
Musyarakah revenue sharing which is entitled to passive partner is recognised during the
period in which the revenue occurs according to agreed nisbah.
Mudharabah revenue sharing is recognised during the period in which revenue sharing in
accordance to agreed nisbah occurs, and not allowed to recognise revenue from projected
business result.
Sharia expenses consist of mudharabah expense and wadiah bonus expense. Sharia
expenses consist of expense for profit distribution on third party funds which are calculated
using profit distribution principle in accordance with agreed sharing ratio (nisbah) based
on wadiah, mudharabah muthlaqah and mudharabah muqayyadah principles.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
af. Fees and commission income and expenses
Significant fees and commission income and expenses that are integral to the effective
interest rate on a financial asset or liability are included in the measurement of the effective
interest rate.
Other fees and commission income and expenses, including bancassurance activity
related fees, export-import related fees, cash management fees, service fees and/or
related to a specific period and the amount is significant, are recognised as unearned
income/prepaid expenses and amortised based on the straight-line method over the terms
of the related transactions; otherwise, they are directly recognised as the related services
are performed. Loan commitment fees are recognised on a straight-line method over the
commitment period.
Other fees and commission expenses which are mainly related to interbank transaction
fees are expensed as the services are received.
ag. Net trading income
Net trading income comprises of net gains or losses related to financial assets and
liabilities held for trading, including interest income and expenses from all financial
instruments held for trading and all realised and unrealised fair value changes and foreign
exchange differences.
ah. Post-employment benefits obligation
ah.1. Short-term liability
Liabilities for wages and salaries, including non-monetary benefits and accumulating
sick leave that are expected to be settled wholly within 12 months after the end of
the period in which the employees render the related service are recognised in
respect of employees’ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit obligations in the consolidated
statements of financial position.
ah.2. Pension obligation
Entities in the Group operate various pension schemes. The Group has both defined
benefit and defined contribution plans. A defined contribution plan is a pension plan
under which the Group pays fixed contributions into a separate entity. The Group
has no legal or constructive obligations to pay further contributions if the fund does
not hold sufficient assets to pay all employees the benefits relating to employee
service in the current and prior periods. A defined benefit plan is a pension plan that
is not a defined contribution plan. Typically, defined benefit plans define an amount
of pension benefit that an employee will receive on retirement, usually dependent
on one or more factors such as age, years of service, and compensation.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ah. Post-employment benefits obligation (continued)
ah.2. Pension obligation (continued)
The liability recognised in the consolidated statements of financial position in respect
of defined benefit pension plans is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by independent actuaries using the
projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates of
Government Bonds (considering currently there is no deep market for high-quality
corporate bonds) that are denominated in the currency in which the benefits will be
paid, and that have terms to maturity approximating to the terms of the related
pension obligation.
The net interest cost is calculated by applying the discount rate to the net balance
of the defined benefit obligation and the fair value of plan assets. This cost is
included in employee benefit expense in the consolidated statements of profit or
loss.
Remeasurement gains and losses arising from experience adjustments and
changes in actuarial assumptions are charged or credited to equity in other
comprehensive income in the period in which they arise. They are included in
retained earnings in the consolidated statements of changes in equity and in the
consolidated statements of profit or loss.
Changes in the present value of the defined benefit obligation resulting from plan
amendments or curtailments are recognised immediately in the consolidated
statements of profit or loss as past service costs.
For defined contribution plans, the Group pays contributions to pension plans on a
mandatory, contractual or voluntary basis. However, since Labour Law No. 13 of
2003 requires an entity to pay to a worker entering into pension age a certain amount
based on, the worker’s length of service, the Group is exposed to the possibility of
having to make further payments to reach that certain amount in particular when the
cumulative contributions are less than that amount. Consequently for financial
reporting purposes, defined contribution plans are effectively treated as if they were
defined benefit plans.
ah.3. Other post-employment obligations
Bank provide post-retirement healthcare benefits to their employees. The
entitlement to these benefits is usually conditional on the employee remaining in
service up to retirement age and the completion of a minimum service period. The
expected costs of these benefits are accrued over the period of employment using
projected unit credit method. These obligations are valued annually by independent
qualified actuaries.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ah. Post-employment benefits obligation (continued)
ah.4. Termination benefits
Termination benefits are payable when employment is terminated by the Group
before the normal retirement date, or whenever an employee accepts voluntary
redundancy in exchange for these benefits. The Group recognises termination
benefits at the earlier of the following dates: (i) when the Group can no longer
withdraw the offer of those benefits; and (ii) when the Group recognises costs for a
restructuring that is within the scope of SFAS 57 and involves the payment of
termination benefits. In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured based on the number of
employees expected to accept the offer. Benefits falling due more than 12 months
after the reporting date are discounted to their present value.
ai. Current and deferred income tax
Income tax expense comprises of current and deferred taxes. Income tax expense is
recognised in the consolidated statements of profit or loss except to the extent that it
relates to items recognised directly in other comprehensive income or equity. In this case,
the tax is also recognised in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period in the countries where the Group
operate and generate taxable income. Management periodically evaluates positions taken
in annual tax returns with respect to situations in which applicable tax regulation is subject
to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences
which arise from the difference between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, deferred tax liabilities
are not recognised if they arise from the initial recognition of goodwill. Deferred income
tax is also not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when
the related deferred income tax asset is realised or the deferred income tax liability is
settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will
be available to utilise those temporary differences and losses.
638 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ai. Current and deferred income tax (continued)
Deferred tax liabilities are not recognised for temporary differences between the carrying
amount and tax bases of investments in foreign operations where the company is able to
control the timing of the reversal of the temporary differences and it is probable that the
differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets and liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities are offset where the entity
has a legally enforceable right to offset and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
aj. Operating segment
An operating segment is a component of the entity that engages in business activities
from which it may earn revenues and incur expenses, including revenues and expenses
that relate to transactions with any of the entity’s other components, whose operating
results are reviewed regularly by the chief operating decision-maker to make decisions
about resources allocated to the segment and assess its performance, and for which
discrete financial information is available. Segment results that are reported to the chief
operating decision-maker include items directly attributable to a segment as well as those
that can be allocated on a reasonable basis. Unallocated items mainly comprise of head
office expenses, fixed assets, income tax assets/liabilities, including current and deferred
taxes.
The Group manages their businesses and identify reporting segment based on
geographic region and product. Several regions have similar characteristics, have been
aggregated and evaluated regularly by management. Gains/losses from each segment is
used to assess the performance of each segment.
ak. Related parties transactions
The Group has transactions with related parties. In accordance with SFAS 7 (Revised
2015) - Related Party Disclosure, the meaning of a related party is a person or entity that
is related to a reporting entity as follow:
a. A person or a close member of that person’s family is related to a reporting entity if
that person:
i. has control or joint control over the reporting entity;
ii. has significant influence over the reporting entity; or
iii. is member of the key management personnel of the reporting entity or a parent of
the reporting entity;
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ak. Related parties transactions (continued)
The Group has transactions with related parties. In accordance with SFAS 7 (Revised
2015) - Related Party Disclosure, the meaning of a related party is a person or entity that
is related to a reporting entity as follow: (continued)
b. An entity is related to a reporting entity if any of the following conditions applies:
i. the entity and the reporting entity are members of the same group (which means
that each parent, subsidiary and fellow subsidiary is related to the others);
ii. one entity is an associate or joint venture of the other entity (or an associate or
joint venture of member of a company of which the other entity is a member);
iii. both entities are joint ventures of the same third party;
iv. one entity is a joint venture of a third entity and the other entity is an associate of
the third entity;
v. the entity is a post-employment benefit plan for the benefit of employees of either
the reporting entity or an entity related to the reporting entity;
vi. the entity controlled or jointly controlled by a person identified in (a);
vii. a person identified in (a) (i) has significant influence over the entity or is a member
of the key management personel of the entity (or of a parent of the entity).
The nature of transactions and balances of accounts with related parties are disclosed in
the Note 48.
3. USE OF ESTIMATES AND JUDGMENT
This disclosure supplements the commentary on financial risk management (see Note 43).
a. Key sources of estimation uncertainty
a.1. Allowance for impairment losses of financial assets
Financial assets accounted for at amortised cost are evaluated for impairment on
the basis described in Note 2g.
The specific counterparty component of the total allowances for impairment applies to
claims evaluated individually for impairment and is based upon management’s best
estimate of the present value of the cash flows that are expected to be received. In
estimating these cash flows, management makes judgments about the counterparty’s
financial situation and the net realisable value of any underlying collateral. Each
impaired asset is assessed on its merits, and the workout strategy, and estimated
cash flows considered recoverable are independently approved by the credit risk unit.
Collectively assessed impairment allowances cover credit losses inherent in
portfolios of receivables with similar economic characteristics when there is an
objective evidence to suggest that they contain impaired receivables, but the
individual impaired items cannot yet be identified. In assessing the need for
collective allowances, management considers factors such as credit quality, portfolio
size, credit concentrations and economic factors.
640 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
3. USE OF ESTIMATES AND JUDGMENT (continued)
This disclosure supplements the commentary on financial risk management (see Note 43).
(continued)
a. Key sources of estimation uncertainty (continued)
a.1. Allowance for impairment losses of financial assets (continued)
In order to estimate the required allowance, assumptions are made to define the way
inherent losses are modeled and to determine the required input parameters, based
on historical experiences and current economic conditions. The accuracy of the
allowances depends on how well these estimated future cash flows for specific
counterparty allowances and the model assumptions and parameters are used in
determining collective allowances.
a.2. Determining fair values of financial instruments
In determining the fair value of financial assets and liabilities for which there is no
observable market price, the Group must use the valuation techniques as described
in Note 2g for financial instruments that trade infrequently and have little price
transparency, fair value is less objective and requires varying degrees of judgment
depending on liquidity, concentration, uncertainty of market factors, pricing
assumptions and other risks.
a.3.Post-employment benefits obligations
Present value of retirement obligations depends on several factors which determined
by actuarial basis using several assumptions. Assumptions used to determine
expenses (revenues) of net pension including discount rate and future salary growth.
Any changes on these assumptions will affect the recorded amount of pension
obligations.
b. Critical accounting judgments In applying the Group accounting policy
Critical accounting judgments made in applying the Group accounting policies include:
b.1. Valuation of financial instruments
The Group accounting policies on fair value measurements are discussed in Note
2g.
Information regarding the fair value of financial instruments is disclosed in Note 38.
b.2. Financial asset and liability classification
The Group’s accounting policies provide scope for assets and liabilities to be
designated at the inception into different accounting categories in accordance with the
prevailing accounting standards and based on certain circumstances:
x In classifying financial assets as “held for trading”, the Group has determined
that the financial assets meet the description of trading assets as set out in Note
2g.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
3. USE OF ESTIMATES AND JUDGMENT (continued)
b. Critical accounting judgments in applying the Group accounting policy
(continued)
Critical accounting judgments made in applying the Group accounting policies include:
(continued)
b.2. Financial asset and liability classification (continued)
The Group’s accounting policies provide scope for assets and liabilities to be
designated at the inception into different accounting categories in accordance with the
prevailing accounting standards and based on certain circumstances: (continued)
x In classifying financial assets as “held-to-maturity”, the Group has determined that
the Group has both the positive intention and ability to hold
those assets until their maturity date as required (see Note 2g).
x In classifying investment in sukuk as “measured at cost” and “measured at fair
value through other comprehensive income”, the Group has determined that the
investment meets the classification requirements as set out in Note 2r.
4. BUSINESS COMBINATIONS
Acquistion of PT Bank Royal Indonesia
On 31 October 2019, the Bank and PT BCA Finance (Subsidiary) acquired 100% shares of
PT Bank Royal Indonesia ("Bank Royal") through ownership of 99.99% and 0.01%, with total
consideration of Rp 988,047. PT Bank Royal Indonesia is commercial banking and the Bank
plans to develop Bank Royal's business in digital banking, and conduct alliances and business
synergies with the Group's business activities.
The following table is the reconciliation of cash flow payment and received from the acquistion
of Bank Royal.
31 October 2019
Cash consideration paid 988,047
Less balance of cash and cash equivalents acquired:
Cash and cash equivalents (64,045)
Cash and cash equivalents outflow - investing activities 924,002
The fair value of the net identifiable assets acquired and goodwill arising from the acquisition
at the date of acquisition are as follows:
31 October 2019
Purchase price 988,047
Fair value of the net indentifiable assets acquired (299,842)
Goodwill 688,205
642 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
4. BUSINESS COMBINATIONS (continued)
Acquistion of PT Bank Royal Indonesia (continued)
Acquisition-related cost of Rp 6,270 are charged to administrative expenses in the
consolidated statements of profit or loss for the year ended 31 December 2019.
The acquisition of PT Bank Royal Indonesia has been conducted in accordance with
Bapepam-LK Regulation No. KEP-347/BL/2012 dated 25 June 2012, Regulation No. VIII.G.7
regarding “Presentation and Disclosure of Public Company’s Financial Statements”.
Acquistion of PT Bank Rabobank International Indonesia
In addition of acquiring PT Bank Royal Indonesia, the Bank plans to acquire PT Bank
Rabobank International Indonesia ("Rabobank Indonesia") which located in Indonesia. On 11
December 2019, the Bank and PT BCA Finance (Subsidiary) signed a Conditional Shares
Sale and Purchase Agreement with Cooperative Rabobank UA, PT Aditirta Suryasentosa,
PT Antarindo Optima, PT Antariksabuana Citanagara and PT Mitra Usaha Kencana Sejati
(hereinafter referred to as "Sellers"), where Sellers agree to sell and transfer all of the Sellers’
shares at Rabobank Indonesia to the Buyers on the effective date which will be determined
later. The purpose of this acquisition is to support the Indonesian banking architecture
program and to further develop existing business of Subsidiaries.
Because the valuation process for Rabobank Indonesia's business acquisition has not been
completed as at the date of the financial statements, the initial recognition for this business
combination has not yet been fulfilled.
5. CASH
2019 2018
Rupiah 23,928,010 20,864,362
Foreign currencies 1,493,396 827,081
25,421,406 21,691,443
The balance of cash in Rupiah includes cash in Automatic Teller Machines (“ATM”) amounting
to Rp 9,644,181 and Rp 10,419,800 as of 31 December 2019 and 2018, respectively.
6. CURRENT ACCOUNTS WITH BANK INDONESIA
2019 2018
Rupiah 43,257,848 38,663,678
Foreign currencies 4,646,826 4,884,631
47,904,674 43,548,309
Weighted average effective interest rates per annum of current accounts with Bank Indonesia
denominated in Rupiah as of 31 December 2019 and 2018 were nil and 0.68%, respectively.
The balance of current accounts with Bank Indonesia is maintained to fulfill the Minimum
Statutory Reserve (“GWM”) from Bank Indonesia.
2019 Annual Report | PT Bank Central Asia Tbk 643
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
6. CURRENT ACCOUNTS WITH BANK INDONESIA (continued)
As of 31 December 2019 and 2018, GWM ratios are calculated based on Bank Indonesia
Regulation (“PBI”) No. 15/15/PBI/2013 dated 24 December 2013 regarding Minimum Reserve
Requirements of Conventional Bank in Rupiah and foreign currency for Conventional Bank,
as amended several times with PBI No. 18/3/PBI/2016 dated 10 March 2016, PBI No.
18/14/PBI/2016 dated 18 August 2016, PBI No. 19/6/PBI/2017 dated 17 April 2017, PBI No.
20/3/PBI/2018 dated 29 March 2018, Board Member of Governor Regulation (“PADG”) No.
20/30/PADG/2018 dated 30 November 2018 and PADG No. 21/14/PADG/2019 dated 26 June
2019. Macro-prudential Liquidity Buffer (“PLM”) ratio is calculated based on PADG No.
21/5/PADG/2019 dated 29 March 2019 regarding The Third Amendment of PADG No.
20/11/PADG/2018 dated 31 May 2018 regarding Macro-prudential Intermediation Ratio (RIM)
and PLM for Conventional Bank, Sharia Bank, and Sharia Business Units. The fulfillment of
all ratios above are determined as follows:
2019 2018
Rupiah
- Primary GWM 6.00% 6.50%
(i) GWM on daily basis 3.00% 3.50%
(ii) GWM on average basis 3.00% 3.00%
- GWM PLM (previously Secondary GWM) 4.00% 4.00%
Foreign Currencies
- Primary GWM 8.00% 8.00%
(i) GWM on daily basis 6.00% 6.00%
(ii) GWM on average basis 2.00% 2.00%
Primary GWM is a minimum reserve that should be maintained by the Bank in the form of
current accounts with Bank Indonesia. PLM is a minimum liquidity reserves that should be
maintained by Bank, in form of Bank Indonesia Certificates (SBI), Bank Indonesia Deposit
Certificates (SDBI), Treasury Bills (SBN) which is determined by Bank Indonesia at certain
percentage of the Bank’s Third Party Fund.
As of 31 December 2019 and 2018, the Bank has fulfilled the GWM ratios in Rupiah and
foreign currency as follows:
2019 2018
Rupiah
- Primary GWM 6.05% 6.55%
(i) GWM on daily basis 3.00% 3.50%
(ii) GWM on average basis 3.05% 3.05%
- GWM PLM (previously Secondary GWM) 13.51% 11.88%
Foreign Currencies
- Primary GWM 8.52% 8.41%
(i) GWM on daily basis 6.00% 6.00%
(ii) GWM on average basis 2.52% 2.41%
Based on PBI No. 20/4/PBI/2018 dated 29 March 2018, Loan to Funding Ratio (LFR) has
changed to RIM, and obligation of GWM RIM was effective on 16 July 2018. GWM RIM is a
minimum reserve that should be maintained by the Bank in the form of current accounts with
Bank Indonesia at certain percentage of Third Party Fund which is calculated based on
difference between RIM owned by Bank and RIM Target.
644 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
6. CURRENT ACCOUNTS WITH BANK INDONESIA (continued)
GWM RIM is required if Bank’s RIM is below the minimum Bank Indonesia’s RIM Target at
84% (2018: 80%); or Bank’s RIM is above the maximum Bank Indonesia ‘s RIM Target at 94%
(2018: 92%) with the Bank’s Capital Adequacy Ratio (CAR) is less than Bank Indonesia’s
CAR Incentive at 14%. As of 31 December 2019 and 2018, the Bank’s GWM RIM is 0.43%
and nil, respectively.
Information on the classification and fair value of current account with Bank Indonesia is
disclosed in Note 38. Information on the maturity of current account with Bank Indonesia is
disclosed in Note 44.
7. CURRENT ACCOUNTS WITH OTHER BANKS
2019 2018
Rupiah 2,888 10,535
Foreign currencies 10,518,799 8,487,403
10,521,687 8,497,938
Details of current accounts with other banks by counterparty as of 31 December 2019 and
2018 were as follows:
2019 2018
JPMorgan Chase Bank 3,649,852 3,596,278
Wells Fargo Bank, N.A. 2,607,679 978,948
United Overseas Bank Limited, Co. 1,066,227 698,008
The Bank of New York Mellon Corporation 542,958 253,468
DBS Bank 327,277 654,832
PT Bank Mandiri (Persero) Tbk 290,726 150,547
Oversea-Chinese Banking Corporation Limited 288,321 196,919
Sumitomo Mitsui Banking Corporation 284,528 201,751
GBC International Bank 277,444 284,087
PT Bank ICBC Indonesia 155,497 57,826
Euroclear Bank 145,906 68,846
Bank of China 128,244 251,571
National Australia Bank Limited 109,772 47,788
Citibank, N.A. 76,770 63,216
Standard Chartered Bank 76,242 197,707
Royal Bank of Scotland PLC 49,352 66,354
PT Bank Mizuho Indonesia 48,497 35,076
ING Bank NV 46,635 121,090
MUFG Bank, Ltd. 45,263 51,213
KB Kookmin Bank 43,186 35,586
Westpac Banking Corporation 39,173 132,434
The Hongkong and Shanghai Banking Corporation
Limited 27,179 40,059
Barclays Bank PLC 17,100 97,230
Public Bank Berhad 9,599 23,204
Bank of America, N.A. 7,111 27,566
Others 161,149 166,334
10,521,687 8,497,938
2019 Annual Report | PT Bank Central Asia Tbk 645
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
7. CURRENT ACCOUNTS WITH OTHER BANKS (continued)
As of 31 December 2019 and 2018, the Bank did not have balances of current accounts with
other banks from related party.
Weighted average effective interest rates per annum of current accounts with other banks
were as follows:
2019 2018
Rupiah 5.15% 5.22%
Foreign currencies 1.93% 1.38%
All current accounts with other banks as at 31 December 2019 and 2018 were classified as
current and management believes that the impairment losses of current accounts with other
banks as of 31 December 2019 and 2018 were not required.
Information on the classification and fair value of current accounts with other banks is
disclosed in Note 38. Information on the maturity of current accounts with other banks is
disclosed in Note 44.
8. PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS
Details of placements with Bank Indonesia and other banks by type and contractual period
at initial placement were as follows:
2019
Up to >1-3 >3-6 > 6 - 12 More than
1 month months months months 12 months Total
Bank Indonesia:
Rupiah 2,019,439 - - - - 2,019,439
Foreign currencies 6,247,125 18,047,250 - - - 24,294,375
Call money:
Rupiah 100,000 1,425,000 - - - 1,525,000
Foreign currencies 948,276 - - - - 948,276
Time deposits:
Rupiah 214,445 211,990 192,749 57,100 - 676,284
Foreign currencies 1,344 4,813 4,820 - - 10,977
Certificates of deposits:
Rupiah - - 49,655 336,860 1,087,312 1,473,827
Others:
Foreign currencies 96 - - - - 96
9,530,725 19,689,053 247,224 393,960 1,087,312 30,948,274
2018
Up to >1-3 >3-6 > 6 - 12 More than
1 month months months months 12 months Total
Bank Indonesia:
Rupiah 15,892,892 - - - - 15,892,892
Foreign currencies 2,876,000 2,401,460 - - - 5,277,460
Call money:
Rupiah 4,590,000 1,620,000 - - - 6,210,000
Foreign currencies 948,600 602,633 - - - 1,551,233
Time deposits:
Rupiah 551,705 84,200 25,000 - - 660,905
Foreign currencies 1,386 4,893 41,674 - - 47,953
Certificates of deposits:
Rupiah - - - 576,608 1,465,659 2,042,267
Others:
Foreign currencies 101 - - - - 101
24,860,684 4,713,186 66,674 576,608 1,465,659 31,682,811
646 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
8. PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS (continued)
Details of placements with Bank Indonesia and other banks by counterparty as of
31 December 2019 and 2018 were as follows:
2019 2018
Bank Indonesia 26,313,814 21,170,352
PT Bank BTPN Tbk*) 1,280,000 1,374,990
MUFG Bank, Ltd. - Indonesia Branch 606,905 220,000
MUFG Bank - Singapore Branch 498,063 -
PT Bank Mandiri Taspen 273,830 50,000
PT Bank Commonwealth 259,100 140,775
PT Bank Pembangunan Daerah Jawa Tengah Tbk 237,550 146,400
PT Bank Pan Indonesia Tbk 208,238 -
PT Bank Negara Indonesia (Persero) Tbk 196,592 1,074,330
PT Bank Rakyat Indonesia (Persero) Tbk 150,815 281,000
PT Bank Pembangunan Daerah
Jawa Barat & Banten Tbk 124,090 555,629
Landesbank Baden-Wverttemberg 103,150 -
PT Bank ICBC Indonesia 100,000 -
PT Bank Panin Dubai Syariah Tbk 100,000 -
PT Bank Mizuho Indonesia 99,310 97,080
PT Bank Maybank Indonesia Tbk 98,550 92,860
PT Shinhan Bank Indonesia 81,749 298,600
PT Bank DKI 66,710 530,000
PT Bank KEB Hana Indonesia 40,633 530,577
PT Bank CTBC Indonesia 34,800 359,100
PT Bank Mandiri (Persero) Tbk - 1,516,280
PT Bank HSBC Indonesia - 800,000
Mizuho Bank, Ltd. Hongkong Branch - 575,200
PT Bank Woori Saudara Indonesia 1906 Tbk - 389,485
Sumitomo Mitsui Banking Corporation - Singapore - 315,033
PT Bank Pembangunan Daerah Riau Kepri - 270,000
Citibank, N.A. - Indonesia Branch - 220,000
PT Bank Pembangunan Daerah Jambi - 150,000
PT Bank Tabungan Negara (Persero) Tbk - 145,950
PT Bank DBS Indonesia - 100,101
Bangkok Bank Public Company Limited Indonesia - 100,000
Others 74,375 179,069
30,948,274 31,682,811
*) Effective since 1 February 2019, PT Bank Tabungan Pensiunan Nasional and PT Bank Sumitomo Mitsui Indonesia have merged and
change the name to PT Bank BTPN Tbk.
2019 Annual Report | PT Bank Central Asia Tbk 647
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
8. PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS (continued)
As of 31 December 2019 and 2018, the Group did not have balances of placements with other
banks from related party.
The movement of unrealised gains (losses) from the change in fair value of available-for-sale
placements with other banks was as follows:
2019 2018
Balance, beginning of year - before deferred
income tax (3,869) 43,160
Addition of unrealised gains (losses)
during the year - net 20,124 (47,292)
Realised (gains) losses during
the year - net (402) 263
Total before deferred income tax 15,853 (3,869)
Deferred income tax (Note 21) (3,171) 774
Balance, end of year - net 12,682 (3,095)
Weighted average effective interest rates per annum of placements with Bank Indonesia and
other banks were as follows:
2019 2018
Bank Indonesia and call money:
Rupiah 5.77% 5.46%
Foreign currencies 2.24% 2.05%
Time deposits:
Rupiah 6.37% 5.80%
Foreign currencies 3.01% 2.96%
Certificates of deposits:
Rupiah 7.56% 7.04%
The range of contractual interest rates of time deposits owned by the Bank in Rupiah currency
during the years ended 31 December 2019 and 2018 were 4.00% - 9.00% and 3.10% - 8.50%,
respectively, while the range of contractual interest rates of time deposits owned by the Bank
in foreign currencies were 1.00% - 3.25% and 1.00% - 3.70%, respectively, during the years
ended 31 December 2019 and 2018.
As of 31 December 2019 and 2018, there were no placements with Bank Indonesia and other
banks which were used as collateral for securities trading transaction.
As of 31 December 2019 and 2018, all placements with Bank Indonesia and other banks were
classified as current and management believes that the impairment losses of placements with
Bank Indonesia and other banks as of 31 December 2019 and 2018 were not required.
648 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
8. PLACEMENTS WITH BANK INDONESIA AND OTHER BANKS (continued)
Information on the classification and fair value of placements with Bank Indonesia and other
banks is disclosed in Note 38. Information on the maturity of placements with Bank Indonesia
and other banks is disclosed in Note 44.
9. FINANCIAL ASSETS AND LIABILITIES HELD FOR TRADING
Financial assets and liabilities held for trading consist of:
2019 2018
Nominal value Fair value Nominal value Fair value
Financial assets:
Securities
Government bonds 256,747 265,868 130,075 131,332
Certificates of Bank Indonesia 798,516 783,393 - -
Bank Indonesia Treasury Bills 2,012,963 1,996,290 1,438,000 1,421,693
Government Treasury Bills 222,308 221,323 3,101,588 3,083,474
Sharia Government Treasury Bills - - 60,000 59,670
Sukuk 108,507 111,347 21,266 20,986
Corporate bonds 132,000 132,990 40,550 40,616
Shares - 68,619 - 24,321
3,531,041 3,579,830 4,791,479 4,782,092
Placements with other banks
Certificates of Deposits 400,000 394,720 20,000 19,776
Derivative assets
Forward 60,958 112,569
Currency swap 1,871,037 921,192
Spot 3,601 6,195
1,935,596 1,039,956
5,910,146 5,841,824
Financial liabilities:
Derivative liabilities
Forward 75,092 74,695
Currency swap 27,622 102,778
Spot 3,546 11,461
106,260 188,934
As of 31 December 2019 and 2018, the Group did not have balances of financial assets and
liabilities held for trading from and to related party.
During the years ended 31 December 2019 and 2018, the Bank reclassified the available-for-
sale investment securities to financial assets held for trading amounting to Rp 132,000 (fair
value of Rp 133,003) and Rp nil, respectively.
Information on the classification and fair value of financial assets and liabilities held for trading
is disclosed in Note 38. Information on the maturity of financial assets and liabilities held for
trading is disclosed in Note 44.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
10. ACCEPTANCE RECEIVABLES AND PAYABLES
a. The details of acceptance receivables
2019 2018
Rupiah
Non-bank debtors 2,275,034 3,440,583
Other banks 217,999 261,490
2,493,033 3,702,073
Less:
Allowance for impairment losses (33,086) (120,959)
2,459,947 3,581,114
Foreign currencies
Non-bank debtors 6,918,002 8,001,645
Other banks 258,342 214,417
7,176,344 8,216,062
Less:
Allowance for impairment losses (143,536) (214,891)
7,032,808 8,001,171
Total acceptance receivables - net 9,492,755 11,582,285
b. The details of acceptance payables
2019 2018
Rupiah
Non-bank debtors 280,956 392,508
Other banks 570,549 459,880
851,505 852,388
Foreign currencies
Non-bank debtors 258,343 214,417
Other banks 4,211,401 4,776,681
4,469,744 4,991,098
Total acceptance payables - net 5,321,249 5,843,486
c. The movement of allowance for impairment losses of acceptance receivables
2019
Rupiah Foreign currencies Total
Balance, beginning of year (120,959) (214,891) (335,850)
Reversal of allowance during the year 87,873 68,689 156,562
Exchange rate difference arising from
allowance for impairment losses
denominated in foreign currencies - 2,666 2,666
Balance, end of year (33,086) (143,536) (176,622)
650 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
10. ACCEPTANCE RECEIVABLES AND PAYABLES (continued)
c. The movement of allowance for impairment losses of acceptance receivables (continued)
2018
Rupiah Foreign currencies Total
Balance, beginning of year (159,091) (257,551) (416,642)
Reversal of allowance during the year 38,132 46,992 85,124
Exchange rate difference arising from
allowance for impairment losses
denominated in foreign currencies - (4,332) (4,332)
Balance, end of year (120,959) (214,891) (335,850)
Management believes that the allowance for impairment losses provided was adequate to
cover possible losses on uncollectible acceptance receivables.
As of 31 December 2019 and 2018, the Bank did not have balances of acceptance receivables
and payables from and to related party.
Information on the classification and fair value of acceptance receivables and payables is
disclosed in Note 38. Information on the maturity of acceptance receivables and payables is
disclosed in Note 44.
11. BILLS RECEIVABLE
a. The details of bills receivable
2019 2018
Rupiah
Non-bank debtors 90,508 368,336
Other banks 5,660,501 5,554,928
5,751,009 5,923,264
Less:
Allowance for impairment losses (127) (60)
5,750,882 5,923,204
Foreign currencies
Non-bank debtors 620,714 824,427
Other banks 1,540,031 1,858,692
2,160,745 2,683,119
Less:
Allowance for impairment losses (2,607) (5,614)
2,158,138 2,677,505
Total bills receivables - net 7,909,020 8,600,709
2019 Annual Report | PT Bank Central Asia Tbk 651
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
11. BILLS RECEIVABLE (continued)
b. The movement of allowance for impairment losses of bills receivables
2019
Rupiah Foreign currencies Total
Balance, beginning of year (60) (5,614) (5,674)
(Addition) reversal of allowance during the year
Exchange rate difference arising from (67) 2,207 2,140
allowance for impairment losses
denominated in foreign currencies - 800 800
Balance, end of year (127) (2,607) (2,734)
2018
Rupiah Foreign currencies Total
Balance, beginning of year (126) (4,696) (4,822)
Reversal of allowance during the year 66 606 672
Exchange rate difference arising from
allowance for impairment losses
denominated in foreign currencies - (1,524) (1,524)
Balance, end of year (60) (5,614) (5,674)
Management believes that the allowance for impairment losses provided was adequate to
cover possible losses on uncollectible bills receivables.
As of 31 December 2019 and 2018, the Bank did not have balances of bills receivables from
and to related party.
Weighted average effective interest rates per annum of bills receivable were as follows:
2019 2018
Rupiah 7.20% 9.76%
Foreign currencies 3.29% 3.11%
Information on the classification and fair value of bills receivables is disclosed in Note 38.
Information on the maturity of bills receivables is disclosed in Note 44.
12. SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL
This account represents receivables to Bank Indonesia, other banks and third party for
securities purchased with agreements to resell with details as follows:
2019
Allowance for
Range of Deferred impairment
purchase date Range of sale date Resell price interest income losses Carrying value
Transactions with Bank Indonesia:
Underlying instruments:
Government bonds 2 - 18 Oct 19 2 Jan - 16 Oct 20 9,137,326 (158,871) - 8,978,455
Government Treasury Bills 26 - 31 Dec 19 2 - 7 Jan 20 168,759 (86) 168,673
9,306,085 (158,957) - 9,147,128
Transactions with other banks:
Underlying instruments:
Government bonds 12 Nov 19 6 Nov 20 305,329 (14,882) - 290,447
305,329 (14,882) - 290,447
Transactions with third parties:
Underlying instruments:
Shares 4 - 30 Dec 19 4 Mar - 17 Dec 20 147,965 (8,242) (1,733) 137,990
147,965 (8,242) (1,733) 137,990
9,759,379 (182,081) (1,733) 9,575,565
652 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
12. SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL (continued)
This account represents receivables to Bank Indonesia, other banks and third party for
securities purchased with agreements to resell with details as follows: (continued)
2018
Allowance for
Range of Deferred impairment
purchase date Range of sale date Resell price interest income losses Carrying value
Transactions with Bank Indonesia:
Underlying instruments:
Government bonds 24 Aug 18 22 Feb 19 4,021,479 (35,099) - 3,986,380
4,021,479 (35,099) - 3,986,380
Transactions with other banks:
Underlying instruments:
Government bonds 10 - 27 Dec 18 2 - 21 Jan 19 4,114,010 (7,457) - 4,106,553
Certificates of Bank Indonesia 11 Dec 18 11 Jan 19 85,941 (174) - 85,767
Government Treasury Bills 10 - 18 Dec 18 10 - 18 Jan 19 1,006,016 (2,698) - 1,003,318
5,205,967 (10,329) - 5,195,638
Transactions with third parties:
Underlying instruments:
Shares 4 Sep - 26 Dec 18 4 Sep - 30 Dec 19 33,976 (3,310) - 30,666
33,976 (3,310) - 30,666
9,261,422 (48,738) - 9,212,684
The movement of allowance for impairment losses on securities purchased under
agreements to resell was as follows:
2019 2018
Balance, beginning of year - (2,859)
(Addition) reversal of allowance during the year (1,733) 2,859
Balance, end of year (1,733) -
Management believes that the allowance for impairment losses provided was adequate to
cover possible losses on uncollectible securities purchased under agreements to resell.
All securities purchased under agreements to resell as of 31 December 2019 and 2018 were
denominated in Rupiah currency.
As of 31 December 2019 and 2018, the Group did not have balances of securities purchased
under agreements to resell with related party.
Weighted average effective interest rates per annum of securities purchased under
agreements to resell for the years ended 31 December 2019 and 2018 were 6.08% and
5.59%, respectively.
Information on the classification and fair value of securities purchased under agreements to
resell is disclosed in Note 38. Information on the maturity of securities purchased under
agreements to resell is disclosed in Note 44.
2019 Annual Report | PT Bank Central Asia Tbk 653
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
13. LOANS RECEIVABLE
Loans receivable consisted of:
a. By type and currency
2019 2018
Rupiah
Related parties:
Working capital 2,177,595 3,155,730
Investment 2,040,865 40,891
Consumer 14,662 15,772
4,233,122 3,212,393
Third parties:
Working capital 256,839,251 230,316,130
Investment 158,899,381 137,788,190
Consumer 118,501,479 118,761,632
Credit card 14,105,502 12,893,102
Employee loans 2,945,929 2,927,120
551,291,542 502,686,174
555,524,664 505,898,567
Foreign currencies
Related parties:
Investment - 3,870
Third parties:
Working capital 19,360,794 21,850,656
Investment 12,054,125 10,346,355
31,414,919 32,197,011
31,414,919 32,200,881
Total loans receivable 586,939,583 538,099,448
Less: Allowance for impairment losses
Rupiah (13,826,649) (12,911,461)
Foreign currencies (1,078,935) (657,525)
(14,905,584) (13,568,986)
Total loans receivable - net 572,033,999 524,530,462
654 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
13. LOANS RECEIVABLE (continued)
Loans receivable consisted of: (continued)
b. By economic sector and Bank Indonesia’s collectability
2019
Allowance for
Special impairment
Current mention Sub-standard Doubtful Loss losses Total
Rupiah
Manufacturing 105,931,000 2,303,019 397,208 30,423 779,168 (3,369,108) 106,071,710
Business services 67,728,211 1,259,279 2,155 27,935 65,766 (881,011) 68,202,335
Trading, restaurants
and hotels 134,515,965 2,116,305 149,308 172,597 3,581,860 (6,010,033) 134,526,002
Agriculture and
agricultural facilities 26,096,930 64,795 107,327 14,026 7,894 (366,871) 25,924,101
Construction 17,579,351 54,815 5,766 22,141 259,002 (597,880) 17,323,195
Transportation, warehousing
and communications 25,810,896 226,072 67,487 3,526 144,782 (527,516) 25,725,247
Social/public services 9,865,729 57,202 1,178 2,051 31,414 (141,118) 9,816,456
Mining 2,477,142 10,825 70 - 448 (23,390) 2,465,095
Electricity, gas, and water 17,941,989 19,747 - 4,179 - (49,203) 17,916,712
Others 129,129,377 4,962,714 248,341 258,004 989,245 (1,860,519) 133,727,162
537,076,590 11,074,773 978,840 534,882 5,859,579 (13,826,649) 541,698,015
Foreign currencies
Manufacturing 11,993,341 221,278 328,555 - 5,421 (565,328) 11,983,267
Business services 2,675,902 - - - - (2,985) 2,672,917
Trading, restaurants
and hotels 4,267,154 289,745 - - 17,534 (290,048) 4,284,385
Agriculture and
agricultural facilities 7,931,423 - - - - (36,771) 7,894,652
Construction 19,552 - - - - - 19,552
Transportation, warehousing
and communications 761,759 - - 152,115 - (156,300) 757,574
Social/public services 12,633 - - - - (58) 12,575
Mining 580,610 - - - - (4,091) 576,519
Electricity, gas, and water 2,157,897 - - - - (23,354) 2,134,543
30,400,271 511,023 328,555 152,115 22,955 (1,078,935) 30,335,984
Total 567,476,861 11,585,796 1,307,395 686,997 5,882,534 (14,905,584) 572,033,999
2019 Annual Report | PT Bank Central Asia Tbk 655
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
13. LOANS RECEIVABLE (continued)
Loans receivable consisted of: (continued)
b. By economic sector and Bank Indonesia’s collectability (continued)
2018
Allowance for
Special impairment
Current mention Sub-standard Doubtful Loss losses Total
Rupiah
Manufacturing 94,884,475 1,975,019 25,022 26,273 251,742 (2,647,524) 94,515,007
Business services 58,591,295 924,538 663 40,189 281,987 (1,002,303) 58,836,369
Trading, restaurants
and hotels 121,948,367 1,613,053 1,102,113 799,393 1,707,866 (4,862,646) 122,308,146
Agriculture and
agricultural facilities 24,034,460 110,208 541 4,360 17,134 (300,829) 23,865,874
Construction 14,524,648 48,321 380 5,619 574,674 (870,985) 14,282,657
Transportation, warehousing
and communications 21,799,519 284,773 94,721 35,206 624,572 (1,039,353) 21,799,438
Social/public services 7,684,885 90,995 1,641 3,143 16,047 (125,542) 7,671,169
Mining 1,489,447 1,392 - - 15,848 (31,198) 1,475,489
Electricity, gas, and water 15,629,828 6,445 - 76 18,478 (55,969) 15,598,858
Others 128,477,188 4,557,597 249,534 271,201 1,053,691 (1,975,112) 132,634,099
489,064,112 9,612,341 1,474,615 1,185,460 4,562,039 (12,911,461) 492,987,106
Foreign currencies
Manufacturing 12,752,288 53,549 - - - (186,868) 12,618,969
Business services 3,309,989 - - - - (3,793) 3,306,196
Trading, restaurants
and hotels 5,419,735 716 34,298 - 18,830 (128,968) 5,344,611
Agriculture and
agricultural facilities 6,885,573 - - - - (15,605) 6,869,968
Construction 20,050 - - - - (1) 20,049
Transportation, warehousing
and communications 724,347 - 168,815 - 149,997 (307,948) 735,211
Social/public services 18,276 - - - - (142) 18,134
Mining 2,305,291 - - - - (10,421) 2,294,870
Electricity, gas, and water 339,127 - - - - (3,779) 335,348
31,774,676 54,265 203,113 - 168,827 (657,525) 31,543,356
Total 520,838,788 9,666,606 1,677,728 1,185,460 4,730,866 (13,568,986) 524,530,462
c. By maturity
Loans receivable by maturity period based on loan agreements:
2019 2018
Rupiah
Up to 1 year 81,946,749 195,172,663
> 1 - 5 years 236,052,755 97,618,748
> 5 years 238,319,036 213,866,760
556,318,540 506,658,171
Foreign currencies
Up to 1 year 7,098,437 16,080,959
> 1 - 5 years 13,233,986 7,852,752
> 5 years 11,083,868 8,264,430
31,416,291 32,198,141
Total loans receivable 587,734,831 538,856,312
Less:
Deferred provision and commission income*) (795,248) (756,864)
Allowance for impairment losses (14,905,584) (13,568,986)
Total loans receivable - net 572,033,999 524,530,462
*) Deferred provision and commission income represent all provisions, commissions and other fees received by the Bank on
loan agreements, which are integral part of effective interest rate.
656 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
13. LOANS RECEIVABLE (continued)
Loans receivable consisted of: (continued)
d. Syndicated loans
Syndicated loans represent loans provided to debtors under syndication agreements
with other banks. Syndicated loans with risk sharing participation to the Bank’s financing
were as follows:
2019 2018
Bank's participation as participant, ranged between
2.78% - 50.00%, for the years ended
31 December 2019 and 2018,
with outstanding balance of Rp 21,216,619 and
USD 174,835,195 (full amount) as of
31 December 2019 (2018: Rp 15,277,584 and
USD 81,823,569 (full amount)) 23,643,769 16,454,207
Bank's participation as arranger, ranged between
15,10% - 64,28% and 10.86% - 85.00% respectively,
for the years ended 31 December 2019 and 2018,
with outstanding balance of Rp 17,065,452 and
USD 84,896,704 (full amount) as of
31 December 2019 (2018: Rp 15,382,064 and
USD 50,242,545 (full amount)) 18,244,030 16,104,552
41,887,799 32,558,759
e. Restructured loans
The amount of restructured loans by the Bank as of 31 December 2019 and 2018
amounting to Rp 9,148,143 and Rp 7,985,984, respectively. Credit restructuring carried
out by modifying credit terms, deduction, or amnesty of part of outstanding credit balance
and/or both. For the restructured credit, Bank is not committed to provide additional credit
facilities.
Below are the amount of restructured loans based on Bank Indonesia’s collectibility:
2019 2018
Current 3,145,217 2,903,323
Special mention 3,360,446 2,746,858
Sub-standard 895,114 1,167,816
Doubtful 208,402 173,430
Loss 1,538,964 994,557
9,148,143 7,985,984
2019 Annual Report | PT Bank Central Asia Tbk 657
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
13. LOANS RECEIVABLE (continued)
Loans receivable consisted of: (continued)
e. Restructured loans (continued)
Total restructured loans and under non-performing loans (NPL) category as of December
2019 and 2018 are amounting to Rp 2,642,480 and Rp 2,335,803, respectively.
f. The movement of allowance for impairment losses on loans receivable
2019
Collective impairment losses Individual impairment losses
Foreign Foreign
Rupiah currencies Sub-total Rupiah currencies Sub-total Total
Balance, beginning of year (9,459,984) (324,180) (9,784,164) (3,451,477) (333,345) (3,784,822) (13,568,986)
Beginning balance of new
acquired Subsidiary (5,027) - (5,027) - - - (5,027)
Addition of allowance
during the year (2,690,969) (335,964) (3,026,933) (1,122,408) (119,449) (1,241,857) (4,268,790)
Loans written-off during the year 1,674,277 10,676 1,684,953 1,259,952 7,415 1,267,367 2,952,320
Recoveries on loans
previously written-off (29,597) - (29,597) (1,416) - (1,416) (31,013)
Exchange rate difference - 11,521 11,521 - 4,391 4,391 15,912
Balance, end of year (10,511,300) (637,947) (11,149,247) (3,315,349) (440,988) (3,756,337) (14,905,584)
2018
Collective impairment losses Individual impairment losses
Foreign Foreign
Rupiah currencies Sub-total Rupiah currencies Sub-total Total
Balance, beginning of year (9,311,601) (320,787) (9,632,388) (3,257,423) (354,058) (3,611,481) (13,243,869)
(Addition) reversal of
allowance during the year (1,133,631) 15,567 (1,118,064) (1,532,403) 5,410 (1,526,993) (2,645,057)
Loans written-off during the year 1,083,709 - 1,083,709 1,382,109 31,832 1,413,941 2,497,650
Recoveries on loans
previously written-off (98,461) - (98,461) (43,760) (4,968) (48,728) (147,189)
Exchange rate difference - (18,960) (18,960) - (11,561) (11,561) (30,521)
Balance, end of year (9,459,984) (324,180) (9,784,164) (3,451,477) (333,345) (3,784,822) (13,568,986)
Management believes that allowance for impairment losses provided was adequate to
cover possible losses on uncollectible loans receivable.
As of 31 December 2019 and 2018, allowance for collective impairment losses on loans
receivable to related parties amounting to Rp 5,736 and Rp 2,935, respectively.
g. Joint financing
The Bank entered into joint financing agreements with PT BCA Finance and PT BCA Multi
Finance (previously PT Central Santosa Finance), the Subsidiaries, for financing the
purchase of vehicles. All risks from the loss arising from these joint financing facilities will
be borne proportionally by both parties based on respective financing participation
(without recourse). The Bank’s portion of outstanding balance of joint financing receivable
facilities as of 31 December 2019 and 2018 were Rp 42,551,484 and Rp 45,715,510,
respectively.
658 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
13. LOANS RECEIVABLE (continued)
Loans receivable consisted of: (continued)
h. The carrying amount of loans receivable at amortised cost are as follows:
2019 2018
Loans receivable (Note 13c) 587,734,831 538,856,312
Accrued interest income 2,349,170 2,226,779
Deferred provision and commission income (795,248) (756,864)
Allowance for impairment losses (Note 13f) (14,905,584) (13,568,986)
574,383,169 526,757,241
i. Other significant information relating to loans receivable
As of 31 December 2019 and 2018, the Bank had no loans receivable which were pledged
as collaterals.
Demand deposits, saving deposits and time deposits pledged as collateral for loans
receivable amounting to Rp 13,295,914 and Rp 11,647,739, respectively, as of
31 December 2019 and 2018 (see Note 20).
As of 31 December 2019 and 2018, the Bank at individual level and at consolidated level,
complied with Legal Lending Limit (“LLL”) requirements for both related parties and third
parties.
Employee loans are loans given to Bank’s employees with interest rate at 4% per annum
for housing loans, motor vehicle loans, and loans for other purposes and the terms
between 8 years to 20 years. Repayment of principal and interest which will be effected
through monthly salary deductions. The difference between the rate and market rate will
be recognised as subsidy and recorded as other assets, also amortised over the life of the
loans.
Weighted average effective interest rates per annum of loans receivable were as follows:
2019 2018
Rupiah 9.24% 9.18%
Foreign currencies 4.67% 3.95%
Ratio of small enterprises loans to loans receivable provided by Bank as of 31 December
2019 and 2018 was 1.95% and 1.84%, respectively.
The Bank’s non-performing loans (classified as sub-standard, doubtful and loss) as of
31 December 2019 and 2018 amounting to Rp 7,876,926 and Rp 7,593,637, respectively.
As of 31 December 2019, the ratio of gross non-performing loan (“NPL”) and net NPL was
1.34% and 0.47% (2018: 1.41% and 0.45%), which was calculated based on prevailing
Bank Indonesia Regulations.
Information on the classification and fair value of loans receivable is disclosed in Note 38.
Information on the details of loans receivable by geographic region is disclosed in Note
42. Information on the maturity of loan receivables is disclosed in Note 44.
2019 Annual Report | PT Bank Central Asia Tbk 659
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
14. CONSUMER FINANCING RECEIVABLES
The Subsidiaries’ consumer financing receivables at amortised cost were as follows:
2019 2018
Consumer financing receivables
- Self-financing by Subsidiaries 10,361,580 6,708,817
- Share in joint financing with related
party without recourse 6,462,450 6,538,859
Unamortised transaction cost - net (602,360) (602,375)
Unearned consumer financing income (5,216,149) (4,667,564)
Consumer financing receivables, before allowance
for impairment losses 11,005,521 7,977,737
Less:
Allowance for impairment losses (473,097) (364,028)
Total consumer financing receivables - net 10,532,424 7,613,709
Contractual interest rates per annum for consumer financing during 2019 and 2018 were
6.50% - 31.99% and 6.13% - 32.75%, respectively.
The Subsidiaries extend consumer financing contracts for 4 (four) wheel vehicles with terms
ranging from 3 (three) months to 6 (six) years, while consumer financing contracts for 2 (two)
wheel vehicles ranging from 1 (one) year to 4 (four) years.
The movement in the allowance for impairment losses on consumer financing receivables
was as follows:
2019 2018
Balance, beginning of year (364,028) (377,520)
Addition of allowance during the year (398,196) (286,436)
Written-off during the year 289,127 299,928
Balance, end of year (473,097) (364,028)
The collection of consumer financing receivables previously written-off amounting to
Rp 17,799 and Rp 29,682 for the years ended 31 December 2019 and 2018, respectively.
Writen-off consumer financing receivables were receivables which overdue for more than 150
(one hundred and fifty) days for 4 (four) wheels vehicles and more than 180 (one hundred
and eighty) days for 2 (two) wheels vehicles. The write-offs are execute based on
management case by case assessment.
As of 31 December 2019 and 2018 consumer financing receivables, before deduction of
unearned income, amounting to Rp 1,178,714 and Rp 1,797,146, respectively, were pledged
as collateral to borrowings and overdraft, and debt securities issued.
660 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
14. CONSUMER FINANCING RECEIVABLES (continued)
The consumer financing receivables are secured by the related certificates of ownership
(“BPKB”) of the vehicles financed by the Subsidiaries.
Management believes that the allowance for impairment losses is adequate to cover possible
losses arising from uncollectible consumer financing receivables.
Information on the classification and fair value of consumer financing receivables is disclosed
in Note 38. Information on the maturity of consumer financing receivables is disclosed in Note
44.
15. INVESTMENT SECURITIES
The details of investment securities by type and currency as of 31 December 2019 and 2018
were as follows:
2019
Unamortised Allowance for
premium Unrealised impairment
Description Nominal amount (discount) (loss) gain losses Carrying value
Rupiah
Held-to-maturity:
Government bonds,
non-recapitalisation 3,461,041 87,061 - - 3,548,102
Certificates of Bank Indonesia 34,111 (76) - - 34,035
Sharia Certificates of
Bank Indonesia 310,000 - - - 310,000
Sukuk 10,937,381 (19,415) - - 10,917,966
Mutual fund units 50,000 - - (500) 49,500
Corporate bonds 1,007,000 (260,000) - - 747,000
Medium-term notes 15,000 - - - 15,000
Money market securities 100,000 - - (1,000) 99,000
Others 19,738 - - - 19,738
Available-for-sale:
Government bonds,
non-recapitalisation 15,769,089 255,484 408,173 - 16,432,746
Certificates of Bank Indonesia 4,055,181 (26,682) 4,453 - 4,032,952
Sharia Government
Treasury Bills 80,357 (747) (65) - 79,545
Sukuk of Bank Indonesia 294,132 - 205 - 294,337
Sukuk 45,794,534 351,170 714,726 (2,763) 46,857,667
Mutual fund units 14,271,353 30,566 1,234,189 (4,558) 15,531,550
Corporate bonds 15,081,944 (50,268) (21,442) - 15,010,234
Medium-term notes 150,000 - 1,275 - 151,275
Investment in shares 702,174 - - (58,646) 643,528
Others 74,833 - (149) - 74,684
112,207,868 367,093 2,341,365 (67,467) 114,848,859
Foreign currencies
Held-to-maturity:
Government bonds,
non-recapitalisation 319,235 5,082 - (132) 324,185
Sukuk 41,647 (393) - - 41,254
Available-for-sale:
Government bonds,
non-recapitalisation 1,513,193 (2,220) 62,211 - 1,573,184
Bank Indonesia Treasury Bills 26,099,100 (189,995) 416 - 25,909,521
Sukuk 180,611 (11,512) 15,558 - 184,657
Corporate bonds 97,178 (384) 4,251 - 101,045
Investment in shares 2,821 - - (2,821) -
28,253,785 (199,422) 82,436 (2,953) 28,133,846
Total investment
securities 140,461,653 167,671 2,423,801 (70,420) 142,982,705
2019 Annual Report | PT Bank Central Asia Tbk 661
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
The details of investment securities by type and currency as of 31 December 2019 and 2018
were as follows: (continued)
2018
Unamortised Allowance for
premium Unrealised impairment
Description Nominal amount (discount) (loss) gain losses Carrying value
Rupiah
Held-to-maturity:
Government bonds,
non-recapitalisation 3,419,041 120,859 - - 3,539,900
Sharia Certificates of
Bank Indonesia 170,000 - - - 170,000
Sukuk 8,504,381 20,944 - - 8,525,325
Medium-term notes 15,000 - - - 15,000
Corporate bonds 567,000 (2) - (765) 566,233
Money market securities - 140,000 - - 140,000
Available-for-sale:
Government bonds,
non-recapitalisation 12,874,257 163,665 (172,696) - 12,865,226
Sharia Government
Treasury Bills 900,000 (5,748) 798 - 895,050
Sukuk 30,793,582 (147,591) (285,157) (3,066) 30,357,768
Mutual fund units 13,095,081 - 747,422 (4,519) 13,837,984
Corporate bonds 14,414,290 (91,378) (508,641) - 13,814,271
Medium-term notes 450,000 (46) 761 - 450,715
Investment in shares 643,245 - - (36,966) 606,279
85,845,877 200,703 (217,513) (45,316) 85,783,751
Foreign currencies
Held-to-maturity:
Government bonds,
non-recapitalisation 330,839 7,101 - (143) 337,797
Sukuk 503,300 1,484 - - 504,784
Medium-term notes 71,913 98 - (43,190) 28,821
Available-for-sale:
Government bonds,
non-recapitalisation 1,567,420 (990) 45,240 - 1,611,670
Bank Indonesia Treasury Bills 20,060,100 (74,533) (2,119) - 19,983,448
Sukuk 589,723 (16,050) 10,390 - 584,063
Corporate bonds 244,460 (698) 2,567 - 246,329
Investment in shares 2,809 - - (2,809) -
23,370,564 (83,588) 56,078 (46,142) 23,296,912
Total investment
securities 109,216,441 117,115 (161,435) (91,458) 109,080,663
As of 31 December 2019, investment securities include government bonds with carrying value
amounting to Rp 120,173 (nominal amount of Rp 117,978), which according to the
agreements on 13 March 2020 and 17 October 2023, the Bank is required to repurchase the
respective government bonds. Total liabilities at carrying value (“securities sold under
agreements to repurchase”) in the consolidated statements of financial position as of
31 December 2019 amounting to Rp 113,249.
As of 31 December 2018, investment securities include government bonds with carrying value
amounting to Rp 52,542 (nominal amount of Rp 50,345), which according to the agreements
on 17 October 2023, the Bank is required to repurchase the respective government bonds.
Total liabilities at carrying value (“securities sold under agreements to repurchase”) in the
consolidated statements of financial position as of 31 December 2018 amounting to
Rp 48,111.
662 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
As of 31 December 2019 and 2018, the Bank did not have investment securities pledged as
collateral.
During the years ended 31 December 2019 and 2018, the Bank reclassified certain held-to-
maturity investment securities to available-for-sale investment securities amounting to
Rp nil (fair value of Rp nil) and Rp Rp 1,806,993 (fair value of Rp 1,808,098), respectively.
The reclassifications were made for investment closed to its maturity date (will be matured in
less than six months) and fulfill the reclassification requirements in SFAS 55.
Management believes that changes of interest rate will have no significant impact to the fair
value of those investment securities. The balance of available-for-sale securities reclassified
from held-to-maturity as of 31 December 2019 and 2018 were Rp nil and Rp 926,049,
respectively.
The detail of investment in mutual funds owned by the Group by name and total units owned
as of 31 December 2019 and 2018 are as follows:
2019 2018
Total Carrying Total Carrying
Investment in mutual funds units amount units amount
Reksa Dana Terproteksi Schroders IDR
Income Plan V 1,000 1,081,485 1,000 1,020,505
Reksa Dana Terproteksi Trimegah
Terproteksi Dana Berkala 5 950 992,919 - -
Reksa Dana Tram Pundi Kas 2 733 979,184 500 630,573
Reksa Dana Danareksa Gebyar Dana
Likuid II 503 716,364 376 504,811
Reksa Dana Batavia Dana Kas Gebyar 493 613,946 285 335,536
Reksa Dana Bahana Revolving Fund 424 603,456 242 325,064
Reksa Dana Schroder Money Market Fund 423 583,524 236 307,966
Reksa Dana Mandiri Dana Optima 382 553,977 168 229,950
Reksa Dana Terproteksi Bahana Centrum
Protected Fund 192 500 505,887 - -
Reksa Dana Terproteksi Batavia Proteksi
Maxima 8 500 505,664 - -
Reksa Dana Terproteksi Mandiri Seri 173 490 505,262 - -
Reksa Dana Terproteksi Danareksa Proteksi 64 500 502,133 - -
Reksa Dana Terproteksi Syailendra Capital
Protected Fund 30 451 478,730 500 508,114
Reksa Dana Terproteksi Panin Proteksi
2022 462 464,645 500 502,832
Reksa Dana Terproteksi Panin Terproteksi
2024 445 449,662 - -
Reksa Dana Terproteksi Bahana Centrum
Protected Fund 158 432 441,918 600 593,846
Reksa Dana Terproteksi Mandiri Seri 199 420 427,890 - -
Reksa Dana Terproteksi Emco XVII 405 422,650 405 414,602
Reksa Dana Terproteksi Trimegah
Terproteksi Dana Berkala 3 373 388,909 700 706,917
Reksa Dana Terproteksi Batavia Proteksi
Cemerlang 60 303 313,254 378 380,335
Reksa Dana Terproteksi Bahana Centrum
Protected Fund 156 297 299,128 500 488,562
Reksa Dana Terproteksi Aberdeen
Standard Proteksi 1 300 298,731 - -
Reksa Dana Terproteksi Batavia Proteksi
Ultima 2 293 295,853 500 495,631
Reksa Dana Terproteksi Danareksa
Proteksi 56 259 261,607 450 442,691
Reksa Dana Terproteksi Danareksa
Proteksi 44 222 228,491 352 354,145
Reksa Dana Terproteksi Mandiri Seri 157 217 222,286 500 496,105
Reksa Dana Terproteksi Schroder IDR
Income Plan IV 218 216,294 350 334,787
Reksa Dana BNP Paribas Obligasi Berlian 200 211,210 200 201,376
Reksa Dana Terproteksi Samuel Aset
Manajemen Dana Obligasi Terproteksi 7 200 211,043 200 203,091
2019 Annual Report | PT Bank Central Asia Tbk 663
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
The detail of investment in mutual funds which owned by the Group by name and total units
owned as of 31 December 2019 and 2018 are as follows: (continued)
2019 2018
Total Carrying Total Carrying
Investment in mutual funds (continued) units amount units amount
Reksa Dana Terproteksi BNP Paribas
Gemilang 2 200 204,937 - -
Reksa Dana Terproteksi Trimegah
Terproteksi Dana Berkala 2 191 198,289 340 346,307
Reksa Dana Terproteksi Bahana E Optima
Protected Fund 122 178 182,230 333 332,152
Reksa Dana Syariah Trimegah Kas Syariah 130 150,215 138 150,706
Reksa Dana Terproteksi Mandiri Seri 82 111 112,364 319 317,343
Reksa Dana Terproteksi Emco XV 104 107,010 300 302,952
Reksa Dana Schroder Prestasi Gebyar
Indonesia II 38 100,403 38 89,123
Reksa Dana Terproteksi BNP Paribas
Gemilang 85 92,875 80 79,706
Reksa Dana Panin Gebyar Indonesia II 37 82,465 37 73,712
Reksa Dana Danareksa Gebyar Indonesia II 36 80,313 36 71,510
Reksa Dana Nikko Gebyar Indonesia Dua 34 76,113 34 69,538
Reksa Dana Syariah Mandiri Pasar Uang
Syariah 67 75,143 142 150,913
Reksa Dana Syariah Pasar Uang PNM Falah 2 49 50,157 - -
Reksa Dana Syariah Panin Dana Likuid
Syariah 46 50,088 48 50,001
Reksa Dana Syariah Trimegah Kas Syariah 2 50 50,043 50 50,213
Reksadana Syariah Penyertaan Terbatas
PNM Pembiayaan Mikro BUMN Seri III 50 50,000 - -
Reksa Dana Syariah Pool Advista Pasar
Uang Syariah 30 30,094 - -
Reksa Dana Ashmore Dana Obligasi
Nusantara 17 25,783 17 23,877
Reksa Dana Syariah Majoris Pasar Uang Syariah
Indonesia 22 25,053 - -
Reksa Dana Syariah Lautandhana Pasar
Uang Syariah 25 25,014 - -
Reksadana BNP Paribas Pasar Uang
Syariah 10 10,199 - -
Reksa Dana Sucorinvest Money Market
Fund 7 10,081 - -
Reksa Dana Syailendra Dana Kas 7 10,068 - -
Reksa Dana Bahana Dana Likuid 6 10,068 - -
Reksa Dana Syariah Majoris Sukuk Negara
Indonesia 1 1,001 - -
Reksa Dana Terproteksi Mandiri seri 46 - - 487 500,425
Reksa Dana Terproteksi Danareksa
Proteksi 28 - - 500 509,315
Reksa Dana Terproteksi Batavia Proteksi
Cemerlang 33 - - 274 279,054
Reksa Dana Terproteksi Trimegah
Terproteksi Dana Berkala - - 500 512,329
Reksa Dana Terproteksi Panin 2021 - - 400 403,908
Reksa Dana Syariah Danareksa Seruni
Pasar Uang Syariah - - 50 50,009
Reksa Dana BNP Paribas Prima II - - 1 1,971
15,586,108 13,842,503
Less:
Allowance for impairment losses (5,058) (4,519)
Total Investment in mutual funds - net 15,581,050 13,837,984
664 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
The detail of investment in shares owned by the Bank as of 31 December 2019 and 2018
are as follows:
a. Based on counterparties:
2019 2018
Related party 29,117 26,350
Third party 675,878 619,704
Total investment in shares 704,995 646,054
Less: Allowance for impairment losses (61,467) (39,775)
Total investment in shares - net 643,528 606,279
b. Based on nature of business and percentage of ownership:
2019 2018
Nature of Percentage of Carrying Percentage of Carrying
Company Name business ownership amount ownership amount
- PT Bank BTPN Tbk*) Banking 1.02% 297,085 1.00% 297,085
- PT Bank HSBC Indonesia Banking 1.06% 184,025 1.06% 184,025
- PT Bank DBS Indonesia Banking 1.00% 42,600 1.00% 42,600
- Finch Capital Fund II Cooperatief U.A. Fund
Management 4.00% 29,248 4.00% 18,142
- Airwallex (Cayman) Limited Crossborder
Payments 0.43% 28,850 0.43% 28,850
- PT Digital Otomotif Indonesia Marketplace 20.00% 14,000 20.00% 14,000
- Element Ventures Inc. Biometrix 3.00% 13,760 3.00% 13,760
- Wavemaker Pacific 1 Pte., Ltd. Fund
Management 2.00% 12,438 2.00% 12,117
- PT Akselerasi Usaha Indonesia P2P Lending 3.30% 10,676 - -
- PT Sentral Investama Andalan Holding
Company 2.00% 10,000 2.00% 10,000
- CeeSuite Pte., Ltd. Analytics for
Stock 5.00% 7,075 - -
- Silot (Cayman) Limited AI 0.44% 7,014 - -
- 6ESTATES Pte., Ltd. AI 2.16% 6,987 - -
- PT ALTO Network Switching 2.00% 5,117 2.00% 2,350
- Other (respectively,
under Rp 5,000) Various 0.06% - 17.50% 36,120 0.06% - 17.50% 23,125
Total investment in shares 704,995 646,054
Less: Allowance for impairment losses (61,467) (39,775)
Total investment in shares - net 643,528 606,279
*) Effective since 1 February 2019, PT Bank Tabungan Pensiunan Nasional and PT Bank Sumitomo Mitsui Indonesia have merged and change the name
to PT Bank BTPN Tbk. The Bank’s ownership of PT Bank BTPN Tbk became 1.02% with carrying amount of Rp 297,085.
2019 Annual Report | PT Bank Central Asia Tbk 665
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
The detail of investment in shares owned by the Bank as of 31 December 2019 and 2018
are as follows: (continued)
c. Based on collectibility of Bank Indonesia:
2019 2018
Current 701,764 642,635
Loss 3,231 3,419
Total investment in shares 704,995 646,054
Less: Allowance for impairment losses (61,467) (39,775)
Total investment in shares - net 643,528 606,279
The weighted average effective interest rates per annum for investment securities were as
follows:
2019 2018
Foreign Foreign
Rupiah (%) currencies (%) Rupiah (%) currencies (%)
Held-to-maturity:
Government bonds 6.91 4.81 6.97 4.80
Sharia Certificates of Bank Indonesia 6.61 - 5.61 -
Corporate bonds 8.32 - 8.58 -
Medium-term notes 7.65 2.68 6.99 3.14
Others 6.38 - - -
Available-for-sale:
Government bonds 7.18 5.14 6.99 5.32
Certificates of Bank Indonesia 6.73 - - -
Bank Indonesia Treasury Bills - 2.47 - 2.37
Sharia Government Treasury Bills 6.02 - 6.10 -
Corporate bonds 8.14 4.59 8.37 3.44
Medium-term notes 8.74 - 9.02 -
Others 9.08 - - -
The movement of allowance for impairment losses of investment securities for the years
ended 31 December 2019 and 2018 was as follows:
2019
Collective impairment losses Individual impairment losses
Foreign Foreign
Rupiah currencies Sub-total Rupiah currencies Sub-total Total
Balance, beginning of year (45,315) (181) (45,496) - (45,962) (45,962) (91,458)
(Addition) reversal of allowance
during the year (22,152) 48 (22,104) - 2,116 2,116 (19,988)
Write-offs during the year - - - - 40,220 40,220 40,220
Exchange rate difference - 1 1 - 805 805 806
Balance, end of year (67,467) (132) (67,599) - (2,821) (2,821) (70,420)
666 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
The movement of allowance for impairment losses of investment securities for the years
ended 31 December 2019 and 2018 was as follows: (continued)
2018
Collective impairment losses Individual impairment losses
Foreign Foreign
Rupiah currencies Sub-total Rupiah currencies Sub-total Total
Balance, beginning of year (46,133) (2,897) (49,030) (308,445) (162,826) (471,271) (520,301)
Reversal (addition) of allowance
during the year 818 2,715 3,533 188,445 (1,921) 186,524 190,057
Write-offs during the year - - - 120,000 125,910 245,910 245,910
Exchange rate difference - 1 1 - (7,125) (7,125) (7,124)
Balance, end of year (45,315) (181) (45,496) - (45,962) (45,962) (91,458)
Management believes that the balance of allowance for impairment losses provided was
adequate to cover possible losses on uncollectible investment securities.
The movement of unrealised gains (losses) from the change in fair value of available-for-
sale investment securities was as follows:
2019
Foreign
Rupiah currencies Total
Balance, beginning of year - before deferred income tax (216,788) 56,078 (160,710)
Addition of unrealised gains
during the year - net 2,686,431 32,864 2,719,295
Realised gains during the year - net (129,606) (3,979) (133,585)
Exchange rate difference - (2,526) (2,526)
Total before deferred income tax 2,340,037 82,437 2,422,474
Deferred income tax (Note 21) (483,602)
Balance, end of year - net 1,938,872
2018
Foreign
Rupiah currencies Total
Balance, beginning of year - before deferred income tax 1,495,748 159,785 1,655,533
Addition of unrealised losses
during the year - net (1,725,665) (109,959) (1,835,624)
Realised losses/(gains) during the year - net 13,129 (1,433) 11,696
Exchange rate difference - 7,685 7,685
Total before deferred income tax (216,788) 56,078 (160,710)
Deferred income tax (Note 21) 31,158
Balance, end of year - net (129,552)
2019 Annual Report | PT Bank Central Asia Tbk 667
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
15. INVESTMENT SECURITIES (continued)
The following table represents the summary of ratings and credit rating companies of
Bank’s investment securities as of 31 December 2019 and 2018:
2019 2018
Rating Rating Agency Rating Rating Agency
Indonesian Government BBB Fitch BBB Fitch
United States of America Government AAA Fitch AAA Fitch
Lembaga Pembiayaan Ekspor
Indonesia/Indonesia Eximbank AAA Pefindo AAA Pefindo
PT Adira Dinamika Multi Finance Tbk AAA Pefindo - -
PT Angkasa Pura I (Persero) AAA Pefindo AAA Pefindo
PT Astra Otoparts Tbk - - AA- Fitch
PT Astra Sedaya Finance AAA Pefindo AAA Pefindo
PT Bank CIMB Niaga Tbk AAA Pefindo AAA Pefindo
PT Bank DKI AA- Pefindo AA- Pefindo
PT Bank Pembangunan Daerah Jawa Barat
dan Banten Tbk AA- Pefindo AA- Pefindo
PT Bank Mandiri (Persero) Tbk AAA Pefindo AAA Pefindo
PT Bank Mandiri Taspen (previously
PT Bank Mandiri Taspen Pos) AA Fitch AA Fitch
PT Bank Negara Indonesia (Persero) Tbk AAA Pefindo AAA Pefindo
PT Bank OCBC NISP Tbk AAA Pefindo AAA Pefindo
PT Bank Pan Indonesia Tbk AA Pefindo AA Pefindo
PT Bank Rakyat Indonesia (Persero) Tbk AAA Pefindo AAA Pefindo
PT Bank Resona Perdania - - AA- Pefindo
PT Bank BTPN Tbk AAA Pefindo AAA Pefindo
PT Bank Tabungan Negara (Persero) Tbk AA+ Pefindo AA+ Pefindo
PT Bank UOB Indonesia AAA Fitch AAA Fitch
PT Bussan Auto Finance AA Pefindo AA Pefindo
PT Chandra Asri Petrochemical Tbk AA- Pefindo AA- Pefindo
PT Fast food Indonesia Tbk AA Pefindo AA Pefindo
PT Federal International Finance AAA Pefindo AAA Pefindo
PT Hutama Karya (Persero) AAA Pefindo AAA Pefindo
PT Indonesia Power AAA Pefindo AAA Pefindo
PT Indosat Tbk AAA Pefindo AAA Pefindo
PT Jakarta Lingkar Baratsatu A+ Pefindo A+ Pefindo
PT Jasa Marga (Persero) Tbk AA Pefindo AA Pefindo
PT Kereta Api Indonesia (Persero) AAA Pefindo - -
PT Lautan Luas Tbk A- Pefindo A- Pefindo
PT Mitra Pinasthika Mustika Finance AA Fitch - -
PT Oto Multiartha AA+ Pefindo AA+ Pefindo
PT Pegadaian (Persero) AAA Pefindo AAA Pefindo
PT Pertamina (Persero) BBB S&P BBB- S&P
PT Perusahaan Listrik Negara (Persero) - - BBB- S&P
PT Pupuk Indonesia (Persero) AAA Fitch AAA Fitch
PT Sarana Multi Infrastruktur (Persero) AAA Pefindo AAA Pefindo
PT Sarana Multigriya Finansial (Persero) AAA Pefindo - -
PT Semen Indonesia Tbk AA Pefindo - -
PT Sumber Alfaria Trijaya Tbk AA- Fitch AA- Fitch
PT Tiphone Mobile Indonesia Tbk BBB+ Pefindo BBB+ Pefindo
Information on the classification and fair value of investment securities is disclosed in Note
38. Information on the maturity of investment securities is disclosed in Note 44.
668 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
16. PREPAID EXPENSES
2019 2018
Prepaid rent 856,582 895,496
Prepaid insurance 10,735 14,568
Others 669,163 463,927
1,536,480 1,373,991
As of 31 December 2019 and 2018, prepaid expenses for related parties is amounting to
Rp 211,012 and Rp 224,409, respectively (Note 48).
17. FIXED ASSETS
Fixed assets consisted of:
2019
Beginning Ending
balance Additions*) Deductions Reclassifications Revaluations balance
Acquisition cost/
revaluation amount
Direct ownership
Land 12,482,110 128,167 (12,670) 177,916 770,369 13,545,892
Buildings 4,948,467 34,941 (4,409) 319,137 - 5,298,136
Office furnitures, fixtures,
and equipments 10,635,392 2,261,746 (1,232,619) 1,044 - 11,665,563
Motor vehicles 58,446 16,604 (11,840) - - 63,210
Construction in progress 1,328,213 584,551 (113,840) (498,097) - 1,300,827
Leased assets 162 - (162) - - -
29,452,790 3,026,009 (1,375,540) - 770,369 31,873,628
Accumulated depreciation
Direct ownership
Buildings (1,774,145) (215,371) 1,168 - - (1,988,348)
Office furnitures, fixtures,
and equipments (8,311,909) (1,366,143) 677,846 - - (9,000,206)
Motor vehicles (29,673) (10,692) 7,592 - - (32,773)
Leased assets (162) - 162 - - -
(10,115,889) (1,592,206) 686,768 - - (11,021,327)
Net book value 19,336,901 20,852,301
*) Included in additions of fixed assets is beginning balance of new acquired Subsidiary amounting to Rp 32,827.
2018
Beginning Ending
balance Additions Deductions Reclassifications Revaluations balance
Acquisition cost/
revaluation amount
Direct ownership
Land 10,208,494 17,166 (1,049) 183,286 2,074,213 12,482,110
Buildings 4,476,275 299,163 (3,818) 176,847 - 4,948,467
Office furnitures, fixtures,
and equipments 9,695,534 1,758,991 (861,003) 41,870 - 10,635,392
Motor vehicles 55,432 14,457 (11,443) - - 58,446
Construction in progress 1,509,473 505,086 (284,343) (402,003) - 1,328,213
Leased assets 4,212 - (4,050) - - 162
25,949,420 2,594,863 (1,165,706) - 2,074,213 29,452,790
Accumulated depreciation
Direct ownership
Buildings (1,527,640) (247,273) 768 - - (1,774,145)
Office furnitures, fixtures,
and equipments (7,522,050) (1,296,141) 506,282 - - (8,311,909)
Motor vehicles (28,754) (8,735) 7,816 - - (29,673)
Leased assets (2,027) (237) 2,102 - - (162)
(9,080,471) (1,552,386) 516,968 - - (10,115,889)
Net book value 16,868,949 19,336,901
2019 Annual Report | PT Bank Central Asia Tbk 669
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
17. FIXED ASSETS (continued)
Fixed asset on construction process as of 31 December 2019 and 2018 were as follows:
2019 2018
Land 575,412 725,223
Buildings 581,923 452,830
Others 143,492 150,160
1,300,827 1,328,213
Estimated percentage of the asset completion as of 31 December 2019 and 2018 were at
2% - 100% and 40% - 100%, respectively.
Revaluation of fixed assets
In 2019 and 2018, the Group revalued its fixed assets in land classification using external
independent appraisal, which was performed in accordance with Indonesian Valuation
Standards (SPI 2013), Indonesian Appraisal Code of Conduct (“KEPI”), Bapepam-LK
Regulation No. VIII.C4 regarding “Guidelines for Appraisal and Presentation of Property
Appraisal Reports in the Capital Market” and prevailing rules and regulations.
In 2019, the revaluation was performed by Kantor Jasa Penilai Publik (“KJPP”) Antonius
Setiady & Rekan based on the appraisal report dated 30 October 2019.
In 2018, the revaluation was performed by Kantor Jasa Penilai Publik (“KJPP”) Antonius
Setiady & Rekan based on the appraisal report dated 27 November 2018, 3 January 2019
and 4 January 2019, respectively, KJPP Jimmy Prasetyo & Rekan based on the appraisal
report dated 14 November 2018, KJPP Sudiono, Awaludin & Rekan based on the appraisal
report dated 7 August 2018, and KJPP Hari Utomo & Rekan based on the appraisal report
dated 14 December 2018.
The differences arising on land of revaluation for the years 2019 and 2018 were recorded as
“revaluation surplus of fixed assets” and presented in other comprehensive income amounting
to Rp 765,076 and Rp 2,164,251, respectively. The increase (decrease) of carrying value
arising from revaluation for the years 2019 and 2018 amounting to Rp 5,293 as other operating
income and Rp (90,038) as other operating expenses, respectively, were recorded in the
consolidated profit or loss.
The fair value of land is determined based on market approach by comparing several
comparable land transactions that either have occurred or still in sales offering stage and
adjusting the differences between fair value of land appraised and the comparable data and
list of land price that has been obtained. The value is also affected by the location, property
rights, physical characteristic, utilisation and other comparative elements.
The fair value measurement of the land is categorised as level 2 fair value based on the inputs
to the valuation technique used.
As of 31 December 2019 and 2018, the carrying value of land if the land was recorded using
cost model amounting to Rp 3,827,328 and Rp 3,600,620, respectively.
As of 31 December 2019 and 2018, there were no significant difference between the fair value
and carrying value of buildings or other fixed assets group.
670 2019 Annual Report | PT Bank Central Asia Tbk
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
17. FIXED ASSETS (continued)
Other informations
As of 31 December 2019 and 2018, the Bank did not have any fixed assets pledged as
collateral.
Fixed assets disposal includes sales of assets are as follows:
2019 2018
Proceeds from sale 36,960 10,393
Net book value (28,844) (6,890)
Gain on sale 8,116 3,503
Depreciation charged to general and administrative expenses for the years ended 31
December 2019 and 2018 amounting to Rp 1,581,811 and Rp 1,552,386, respectively.
Gain on sale of fixed assets recognised as part of other operating income for the years ended
31 December 2019 and 2018 amounting to Rp 21,668 and Rp 7,935, respectively.
Loss on sale of fixed assets recognised as part of other operating expenses for the years
ended 31 December 2019 and 2018 amounting to Rp 13,552 and Rp 4,432, respectively.
The Bank has insured its fixed assets (excluding land rights) to cover the possible losses from
fire, theft and natural disaster with a total coverage of Rp 13,193,888 as of
31 December 2019, and Rp 19,001,922 as of 31 December 2018. Management believes that
the insurance coverage is adequate to cover possible losses from such risks.
As of 31 December 2019 and 2018, the cost of fully depreciated fixed assets that were still in
use amounting to Rp 6,925,863 and Rp 5,923,843, respectively.
As of 31 December 2019 and 2018, the Bank has no fixed assets, which were no temporer
and no longer used but classified as available-for-sale.
No impairment losses on fixed assets during 2019 and 2018.
18. INTANGIBLE ASSETS
2019 2018
Software 1,945,951 1,615,310
Goodwill (Note 4) 855,830 167,625
Total intangible assets 2,801,781 1,782,935
Less: Amortisation of software (1,424,329) (1,103,604)
Total intangible assets - net 1,377,452 679,331
2019 Annual Report | PT Bank Central Asia Tbk 671
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
19. OTHER ASSETS
2019 2018
Rupiah:
Accrued interest income 4,304,511 3,571,534
Transactions related to ATM and credit card 3,824,093 6,265,176
Foreclosed assets 1,036,258 536,754
Receivables from insurance transactions 287,556 218,062
Receivables from customer transactions 166,736 213,234
Abandoned properties 26,020 36,675
Unaccepted bills receivable 2,193 23,993
Others 3,180,764 2,202,937
12,828,131 13,068,365
Foreign currencies:
Accrued interest income 182,985 140,890
Unaccepted bills receivable 38,403 66,258
Receivables from insurance transactions 9,153 8,151
Transactions related to ATM and credit card 2,443 2,148
Others 90,161 86,919
323,145 304,366
Total other assets 13,151,276 13,372,731
Less: Allowance for impairment losses (902) (10,401)
Total other assets - net 13,150,374 13,362,330
Receivables related to ATM and credit card transactions consist of receivables arising from
ATM transactions within ATM Bersama, Prima and Link network as well as receivables from
Visa and Master Card for credit card transactions.
Accrued interest income consists of interest income from the placement, marketable
securities, government bonds, loans, and assets from sharia transactions.
Receivables from insurance transactions represent the Subsidiary’s premium receivables
from policyholders and broker, premium receivables and claim from others insurance
companies and broker of closed policies, also reinsurance assets.
Receivables from customer transactions represent receivables arising from the Subsidiaries’
securities trading transactions.
Unaccepted bills receivable represent unaccepted export bills receivables from customer due
to export import transactions.
Others mainly consist of interoffice accounts, various form of receivables from transaction with
third parties, including clearing transactions and others.
672 2019 Annual Report | PT Bank Central Asia Tbk
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
19. OTHER ASSETS (continued)
Movement of allowance for impairment losses on other assets are as follows:
2019 2018
Beginning balance (10,401) (9,966)
Reversal (addition) of allowance during the period 9,478 (415)
Exchange rate difference 21 (20)
Ending balance (902) (10,401)
Management believes that the allowance for impairment losses is adequate to cover any loss
possibility due to uncollectible other assets.
20. DEPOSITS FROM CUSTOMERS AND OTHER BANKS
a. Deposits from customers
2019 2018
Foreign Foreign
Rupiah currencies Total Rupiah currencies Total
Demand deposits:
Related parties 717,985 125,743 843,728 781,340 81,318 862,658
Third parties 162,600,583 21,473,702 184,074,285 145,472,456 20,486,839 165,959,295
163,318,568 21,599,445 184,918,013 146,253,796 20,568,157 166,821,953
Savings:
Related parties 71,299 44,528 115,827 72,417 836,628 909,045
Third parties:
Tahapan 312,099,890 - 312,099,890 286,223,426 - 286,223,426
Tapres 8,646,250 - 8,646,250 8,076,023 - 8,076,023
Tabunganku 4,157,508 - 4,157,508 3,184,609 - 3,184,609
Tahapan Xpresi 5,873,736 - 5,873,736 3,101,824 - 3,101,824
Tahapan Berjangka 1,556,601 - 1,556,601 1,345,910 - 1,345,910
Simpanan Pelajar 1,152 - 1,152 1,326 - 1,326
BCA Dollar - 13,183,258 13,183,258 - 13,339,638 13,339,638
332,406,436 13,227,786 345,634,222 302,005,535 14,176,266 316,181,801
Time deposits:
Related parties 349,363 17,985 367,348 492,264 225,223 717,487
Third parties 153,765,993 14,294,492 168,060,485 132,968,872 13,121,904 146,090,776
154,115,356 14,312,477 168,427,833 133,461,136 13,347,127 146,808,263
Total deposits
from customers 649,840,360 49,139,708 698,980,068 581,720,467 48,091,550 629,812,017
b. Deposits from other banks
2019 2018
Foreign Foreign
Rupiah currencies Total Rupiah currencies Total
Demand deposits 4,757,368 1,840,568 6,597,936 4,576,530 1,839,460 6,415,990
Time deposits 119,538 - 119,538 58,501 - 58,501
Interbank call money - - - 20,000 - 20,000
Total deposits from
other banks 4,876,906 1,840,568 6,717,474 4,655,031 1,839,460 6,494,491
As of 31 December 2019 and 2018, the Bank did not have balances of deposits from
other banks from related party.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
20. DEPOSITS FROM CUSTOMERS AND OTHER BANKS (continued)
c. The weighted average effective interest rates per annum for deposits from customers
and other banks were as follows:
2019 2018
Foreign Foreign
Rupiah currencies Rupiah currencies
(%) (%) (%) (%)
Deposits from customers:
Demand deposits 0.95 0.14 0.95 0.12
Savings 0.59 0.21 0.81 0.24
Time deposits 5.51 1.38 4.71 0.90
Deposits from other banks:
Demand deposits 0.54 0.01 0.50 0.01
Time deposits 4.60 - 3.70 -
Interbank call money - - 4.59 -
d. Time deposits based on maturity period
2019 2018
Foreign Foreign
Rupiah currencies Total Rupiah currencies Total
1 month 85,478,890 11,566,241 97,045,131 74,960,850 11,669,675 86,630,525
3 months 43,263,455 1,063,354 44,326,809 40,340,656 861,507 41,202,163
6 months 15,446,808 1,247,582 16,694,390 14,623,620 264,741 14,888,361
12 months 10,045,741 435,300 10,481,041 3,594,511 551,204 4,145,715
154,234,894 14,312,477 168,547,371 133,519,637 13,347,127 146,866,764
e. Time deposits based on remaining period until maturity date
2019 2018
Foreign Foreign
Rupiah currencies Total Rupiah currencies Total
Up to 1 month 104,221,104 12,029,297 116,250,401 90,046,824 12,096,992 102,143,816
> 1 - 3 months 33,884,550 950,181 34,834,731 29,971,918 712,196 30,684,114
> 3 - 6 months 8,130,600 1,120,450 9,251,050 11,251,851 181,676 11,433,527
> 6 - 12 months 7,998,640 212,549 8,211,189 2,249,044 356,263 2,605,307
154,234,894 14,312,477 168,547,371 133,519,637 13,347,127 146,866,764
f. Deposits pledged as collateral to loans granted by the Bank as of 31 December 2019
and 2018 (see Note 13) were as follows:
2019 2018
Demand deposits 3,364,491 2,104,069
Savings 1,582,018 747,046
Time deposits 8,349,405 8,796,624
13,295,914 11,647,739
Information on the classification and fair value of deposits from customers and other
banks is disclosed in Note 38. Information on the maturity of deposits from customers and
other banks is disclosed in Note 44.
674 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
21. INCOME TAX
a. Prepaid tax
2019 2018
Bank 5,637 5,235
Subsidiaries 1,408 1,428
7,045 6,663
b. Tax payable
2019 2018
Current tax payable
Bank:
Company tax payable - Article 25/29 1,001,518 672,193
Subsidiaries:
Company tax payable - Article 25/29 33,532 70,452
Total current tax payable 1,035,050 742,645
Other tax payable
Bank:
Income tax
Article 21 139,837 129,174
Article 23 230,187 234,369
Article 26 122,300 1,336
Others 60,385 16,843
Total Bank 552,709 381,722
Subsidiaries 47,710 40,969
Total other tax payable 600,419 422,691
1,635,469 1,165,336
c. Tax expenses
2019 2018
Current tax:
Current year
Bank 7,562,007 6,005,115
Subsidiaries 641,179 604,281
8,203,186 6,609,396
Deferred tax:
Origination of temporary differences
Bank (471,106) 225,255
Subsidiaries (13,056) 19,753
(484,162) 245,008
7,719,024 6,854,404
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
21. INCOME TAX (continued)
d. In accordance with Article 2 of Government Regulation No. 56 Year 2015 regarding the
Guidelines on the Implementation and Supervision on the Tariff Reduction for Domestic
Tax Payers in the form of Public Companies, signed by the President of Republic
Indonesia on 3 August 2015, tax payers can receive a reduction of 5% (five percent)
lower than income tax rate for a domestic tax payer as stipulated by Tax Law, if the
company fulfills the following criteria:
1. The public owned 40% (forty percent) or more of the total paid up shares and those
shares are owned by at least 300 (three hundred) parties.
2. Each party can only own less than 5% (five percent) of total paid-up shares.
3. The tax payer should fulfill the above mentioned criteria at least within 6 (six) months
(183 (one hundred and eighty three) calendar days) in 1 (one) fiscal year.
The tax payers should attach the declaration letter from Securities Administration
Agency (“Biro Administrasi Efek”) to the annual income tax return of the tax payers with
the form X.H.1-2 as provided in Decision Letter of the Chairman of Capital Market and
Financial Institution Supervisory Agency (“Bapepam-LK”) No. KEP-669/BL/2012 dated
13 December 2012 for the respective fiscal year.
On 6 January 2020 and 7 January 2019, the Bank received a declaration letter from the
Securities Administration Agency for the fulfillment of the above criteria for fiscal year
2019 and 2018, respectively.
e. The reconciliation of consolidated accounting income before tax and taxable income
of the Bank was as follows:
2019 2018
Consolidated accounting income before tax 36,288,998 32,706,064
Elimination 685,893 612,792
Before elimination 36,974,891 33,318,856
Subsidiary’s accounting income before tax (2,620,078) (2,385,941)
Accounting income before tax - Bank only 34,354,813 30,932,915
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
21. INCOME TAX (continued)
e. The reconciliation of consolidated accounting income before tax and taxable income
of the Bank was as follows: (continued)
2019 2018
Accounting income before tax - Bank only
(Brought forward) 34,354,813 30,932,915
Permanent differences:
Employees' welfare 197,652 171,252
Rent income (40,439) (37,987)
Dividends from Subsidiaries (637,286) (578,536)
Interest income from off-shore
government bonds (84,666) (86,924)
Other expense/(income) which cannot be deducted
for tax calculation purposes - net 102,236 (90,051)
(462,503) (622,246)
Temporary differences:
Post-employment benefits obligation 1,202,812 295,558
Impairment losses on financial assets 1,643,900 (1,431,326)
Impairment losses on non-financial
assets 62,977 (181)
Accrued employees' benefits 848,372 585,499
Unrealised losses (gains) of trading and
available-for-sale investment securities and
placements with other banks 29,929 824
Others 129,731 264,532
3,917,721 (285,094)
Taxable income 37,810,031 30,025,575
f. The reconciliation between consolidated accounting income before tax multiplied by the
maximum tax rate and income tax expense was as follows:
2019 2018
Consolidated accounting income before tax 36,288,998 32,706,064
Maximum tax rate 25% 25%
9,072,250 8,176,516
Permanent differences at 25% - Bank (115,626) (155,562)
Permanent differences at 25% - Subsidiaries 144,576 180,747
9,101,200 8,201,701
Adjustment of corporate income tax rate -
Bank (Note 21d) (1,694,615) (1,515,533)
Adjustment of deferred tax rate 312,439 168,236
Income tax expense - consolidated 7,719,024 6,854,404
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
21. INCOME TAX (continued)
g. The calculation of current tax and income tax payable were as follows:
2019 2018
Taxable income:
Bank 37,810,031 30,025,575
Subsidiaries 2,564,716 2,417,124
40,374,747 32,442,699
Current tax:
Bank 7,562,007 6,005,115
Subsidiaries 641,179 604,281
8,203,186 6,609,396
Prepaid taxes:
Bank (6,560,489) (5,332,922)
Subsidiaries (607,647) (533,829)
(7,168,136) (5,866,751)
Income tax payable:
Bank 1,001,518 672,193
Subsidiaries 33,532 70,452
1,035,050 742,645
Annual corporate income tax return for fiscal year 2019 has yet been submitted. Taxable
income results from above reconciliation is the basis in filling the Bank’s Annual Tax
Return (“SPT”) of Corporate Income Tax for the year ended 31 December 2019.
The calculations of income tax for the year ended 31 December 2018 conform to the
Bank’s Annual Tax Returns (“SPT”).
h. The significant items of deferred tax assets and liabilities as of 31 December 2019
and 2018 were as follows:
Parent entity - Bank:
Post-employment benefits obligations 623,858 161,619 - 785,477
Allowance for impairment losses
of financial assets 1,323,220 103,798 - 1,427,018
Allowance for impairment losses
of non-financial assets 6 12,590 - 12,596
Accrued employees' benefits 190,647 159,394 - 350,041
Unrealised loss on available-for-sale
investment securities and
placements with other banks 32,588 - (513,386) (480,798)
Remeasurements of defined benefit liability 714,391 - 71,418 785,809
Unrealised gain from financial assets
held for trading (12,518) 7,759 - (4,759)
Others 52,906 25,946 - 78,852
Deferred tax assets - net 2,925,098 471,106 (441,968) 2,954,236
*) Included in recognised in current year profit or loss balance is beginning balance of new acquired Subsidiary amounting to Rp 1,600.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
21. INCOME TAX (continued)
h. The significant items of deferred tax assets and liabilities as of 31 December 2019
and 2018 were as follows: (continued)
Deferred tax assets - net (brought forward) 2,925,098 471,106 (441,968) 2,954,236
Subsidiary:
PT BCA Finance 34,263 5,101 (5,121) 34,243
PT BCA Sekuritas 2,783 775 46 3,604
PT Bank BCA Syariah 13,316 4,974 79 18,369
PT Asuransi Umum BCA 44,917 11,029 (38) 55,908
PT BCA Multi Finance (previously
PT Central Santosa Finance) 120,566 (8,105) 3,108 115,569
PT Central Capital Ventura 2,413 624 8 3,045
PT Asuransi Jiwa BCA 4,310 258 (5,252) (684)
Deferred tax assets - net 222,568 14,656 (7,170) 230,054
Total deferred tax assets - net 3,147,666 485,762 (449,138) 3,184,290
*) Included in recognised in current year profit or loss balance is beginning balance of new acquired Subsidiary amounting to Rp 1,600.
Parent entity - Bank:
Post-employment benefits obligations 607,255 16,603 - 623,858
Allowance for impairment losses
of financial assets 1,729,999 (406,779) - 1,323,220
Allowance for impairment losses
of non-financial assets 674 (668) - 6
Accrued employees' benefits 79,083 111,564 - 190,647
Unrealised loss on available-for-sale
investment securities and
placements with other banks (419,935) - 452,523 32,588
Remeasurements of defined benefit liability 983,593 - (269,202) 714,391
Unrealised gain from financial assets
held for trading (13,637) 1,119 - (12,518)
Others - 52,906 - 52,906
Deferred tax assets - net 2,967,032 (225,255) 183,321 2,925,098
Subsidiary:
PT BCA Finance 34,283 2,086 (2,106) 34,263
PT BCA Sekuritas 3,523 (317) (423) 2,783
PT Bank BCA Syariah 13,639 6,482 (6,805) 13,316
PT Asuransi Umum BCA 34,934 9,551 432 44,917
PT Central Santosa Finance 121,817 3,838 (5,089) 120,566
PT Central Capital Ventura - 2,431 (18) 2,413
PT Asuransi Jiwa BCA 44,013 (43,134) 3,431 4,310
Deferred tax assets - net 252,209 (19,063) (10,578) 222,568
Total deferred tax assets - net 3,219,241 (244,318) 172,743 3,147,666
Included in total deferred tax asset and liability of the Group were deferred tax asset and
liability arising from unrealised (loss) gain from change in fair value of available-for-sale
investment securities (see Note 15) amounting to Rp (477,627) and Rp (5,975) as of
31 December 2019, and Rp 31,814 and Rp (656) as of 31 December 2018. Moreover,
included in total deferred tax asset of the Bank was deferred tax asset arising from
unrealised (loss) gain from change in fair value of available-for-sale placements with Bank
Indonesia and other banks (see Note 8) amounting to Rp (3,171) and Rp 774 as of
31 December 2019 and 2018, respectively.
Management believes that total deferred tax assets arising from temporary differences are
probable to be realised in the future years.
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
21. INCOME TAX (continued)
i. Under the taxation laws of Indonesia, the Group in Indonesia calculate, pay and report
individual company tax return (submission of consolidated income tax computation is not
allowed) on the basis of self-assessment. The tax authorities may assess or amend taxes
within the statute of limitations, under prevailing regulations.
j. The Group tax positions may be challenged by the tax authorities. Management vigorously
defends the Group tax positions which are believed to be grounded on sound technical
basis, in compliance with the tax regulations. Accordingly, management believes that
the accruals for tax liabilities are adequate for all open tax years based on the
assessment of various factors, including interpretations of tax law, other tax provisions and
prior experience. This assessment relies on estimates and assumptions and may involve
judgement about future events. New information may become available that causes
management to change its judgement regarding the adequacy of existing tax liabilities.
Such changes to tax liabilities will impact tax expense in the period in which such
determination is made.
k. Other Information
Fiscal Year 2016
On 18 July 2017, the Bank received tax audit result notice for fiscal year 2016. For the tax
examination for fiscal year 2016, Directorate General of Taxation (DGT) through Tax
Assessment Letter (“SKP”) and Tax Collection Letter (“STP”) dated 11 July 2019, has
determined shortfall of tax payment with detail as follows:
a. Income tax (including Corporate Income Tax) amounting to Rp 1,591 billion.
b. Value Added Tax (VAT) amounting to Rp 63 billion.
The Bank has not filed objection on tax finding amounting to Rp 185 billion and has been
paid on 9 August 2019.
Management believes that objection filed by the Bank has been in accordance with
applicable tax regulations.
On 10 October 2019, the Bank filed an appeal of SKP through letter No. 556/DIR/2019 to
568/DIR/2019. To fulfill the requirement of tax appealing, Bank has paid amounting to Rp
6 billion and Rp 546 billion to State Treasury on 9 August 2019 and 9 October 2019, and
recorded as other assets as at 31 December 2019.
Fiscal Year 2017
On 27 November 2018, the Bank received tax audit result notice for fiscal year 2017. Up
to the report date, the tax audit for fiscal year 2017 is still on going.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
22. DEBT SECURITIES ISSUED
As of 31 December 2019 and 2018, the outstanding balance of bonds payable related to
bonds issued were as follows:
2019 2018
Nominal value:
BCA Finance Continuous Bonds II Phase II - 240,000
BCA Finance Continuous Bonds III Phase I 1,355,000 -
1,355,000 240,000
Less:
Deferred bonds issuance costs - net (7,477) (265)
Total - net 1,347,523 239,735
Amortisation of bonds issuance costs
charged to profit or loss 1,224 1,237
As at 31 December 2019, the Subsidiary has bonds payable that will be matured within 12
(twelve) months amounting to Rp 762,000 (2018: Rp 240,000).
BCA Finance Continuous Bonds II - Phase II Year 2016
BCA Finance Continuous Bonds II - Phase II were offered at nominal value. Interest will be
paid on a quarterly basis based on interest payment due date. The first interest payment was
made on 21 September 2016 and the final interest payment will be with the repayment of the
principal of each series of bonds.
The Subsidiary entered into a Trusteeship Agreement with PT Bank Mega Tbk (acts as the
Bond’s Trustee) for BCA Finance Continuous Bonds II - Phase II Year 2016 based on the
Trusteeship Agreement No. 41 dated 6 June 2016 which was made before Satria Amiputra
A., S.E., Ak., S.H., M.M., M.Ak., M.Ec.Dev, M.H., M.Kn., Notary in Jakarta.
BCA Finance Continous Bonds II - Phase II Series A and Series B were repaid on 1 July 2017
and 20 June 2019, respectively.
As of 31 December 2018, BCA Finance Continuous Bonds II - Phase II Series B was rated
at idAAA by Pefindo and AAA (idn) by Fitch.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
22. DEBT SECURITIES ISSUED (continued)
BCA Finance Continuous Bonds III - Phase I Year 2019
BCA Finance Continuous Bonds III - Phase I were offered at nominal value. Interest will be
paid on a quarterly basis based on interest payment due date. The first interest payment was
made on 5 February 2020 and the final interest payment will be with the repayment of the
principal of each series of bonds.
The Subsidiary entered into a Trusteeship Agreement with PT Bank Rakyat Indonesia
(Persero) Tbk (acts as the Bond’s Trustee) for BCA Finance Continuous Bonds III - Phase I
Year 2019 based on the Trusteeship Agreement No. 14 dated 12 August 2019 which was
made before Fathiah Helmi, SH., Notary in Jakarta.
As of 31 December 2019, BCA Finance Continuous Bonds III - Phase I were rated at idAAA
by Pefindo and AAA(idn) by Fitch.
The Trusteeship Agreement provides several negative covenants that should be complied by
the Subsidiary that, among others, prior to the repayment of the bonds payable, the
Subsidiary, without the written consent from the Trustee, is not allowed to transfer, pledge
and/or mortgage over all or any of the present or future assets of the Subsidiary, merge and/or
amalgamate, take over business, make changes in the articles of association regarding the
changes of the purpose and objective in the Subsidiary’s business, and grant any credit or
make investment in other parties other than in the ordinary course of the business.
Total principal and interest of bonds have been paid in accordance with the respective bonds’
maturity date.
As of 31 December 2019 and 2018, the Subsidiary was in compliance with covenants in
relation to the bonds payable agreements and complied with all the requirements mentioned
in Trusteeship Agreement.
All of the Subsidiary’s continuous bonds III - Phase I year 2019 are not be guaranteed with
specific collateral, but rather with all the Subsidiary’s assets.
All of the Subsidiary’s bonds payable are collateralised by the fiduciary transfer of consumer
financing receivables amounting to Rp 126,125 (see Note 14) as of 31 December 2018.
Information on the classification and fair value of debt securities issued is disclosed in Note
38. Information on the maturity of debt securities issued is disclosed in Note 44.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
23. BORROWINGS
Borrowings received by the Group were as follows:
2019 2018
(1) Liquidity loans from Bank Indonesia, Rupiah:
Agriculture loans (Kredit Usaha Tani/"KUT"), due date
between 13 March 2000 up to 22 September 2000,
in the process of closing the agreement 577 577
(2) Borrowings from other banks:
Rupiah:
PT Bank Mandiri (Persero) Tbk 775,000 920,000
PT Bank Mizuho Indonesia 325,000 -
PT Bank Danamon Indonesia Tbk 250,000 -
PT Bank DKI 250,000 200,000
PT Bank Ina Perdana Tbk 225,000 175,000
PT Bank Victoria International Tbk 200,000 300,000
PT Bank Nationalnobu Tbk 140,000 50,000
PT Bank Pan Indonesia Tbk 71,268 206,734
PT Bank Index Selindo 15,000 -
PT Bank KEB Hana Indonesia
(previously PT Bank Hana) 11,228 24,411
PT Bank Oke Indonesia Tbk
(previously PT Bank Dinar Indonesia Tbk) - 72,500
Foreign currencies:
Malayan Banking Berhad Co. - Singapore 69,399 -
United Overseas Bank - Hongkong - 71,922
2,331,895 2,020,567
(3) Others:
Foreign currencies 398 72,331
398 72,331
Total borrowings 2,332,870 2,093,475
The weighted average effective interest rates per annum for borrowings were as follows:
2019 2018
Rupiah 6.57% 7.15%
Foreign currencies 2.88% 2.51%
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
23. BORROWINGS (continued)
(1) Rupiah liquidity loans from Bank Indonesia
Rupiah liquidity loans from Bank Indonesia represent credit facility obtained by the Bank
as a national private bank in Indonesia, to be distributed to qualified Indonesian debtors
under the loan facility program.
(2) Borrowings from other banks
Represent working capital loans of Subsidiaries. The details of borrowing facilities
received as of 31 December 2019 and 2018 were as follows:
Bank Total facility Maturity date of facility
2019 2018 2019 2018
Rupiah:
PT Bank BTPN Tbk**) 800,000 800,000 29-May-2020 31-May-2019
PT Bank Danamon Indonesia Tbk 300,000 - 24-Sep-2020 -
PT Bank DBS Indonesia**) 100,000 100,000 31-May-2020 31-May-2019
PT Bank DKI - 100,000 - 16-Jun-2019
500,000 500,000 24-Sep-2020 27-Sep-2019
PT Bank Ina Perdana Tbk 225,000 175,000 21-Dec-2020 21-Dec-2019
PT Bank Index Selindo 50,000 - 26-Dec-2022 -
PT Bank KEB Hana Indonesia
(previously PT Bank Hana) 200,000 200,000 30-Apr-2021 30-Apr-2021
PT Bank Mandiri (Persero) Tbk 1,000,000 1,000,000 24-May-2020 25-May-2019
PT Bank Mizuho Indonesia**) 500,000 500,000 22-Nov-2020 22-Nov-2019
PT Bank Nationalnobu Tbk 140,000 100,000 24-Feb-2020 24-Feb-2019
40,000 40,000 31-Mar-2020 31-Mar-2019
PT Bank Oke Indonesia Tbk
(previously PT Bank Dinar Indonesia Tbk) 72,500 72,500 29-Mar-2020 30-Mar-2019
PT Bank Pan Indonesia Tbk 300,000 - 11-May-2023 -
300,000 300,000 28-Feb-2020 28-Feb-2020
400,000 400,000 26-Oct-2020 26-Oct-2020
PT Bank UOB Indonesia**) 550,000 650,000 21-Jul-2020 21-Jul-2019
PT Bank Victoria International Tbk 400,000 300,000 14-Jan-2021 09-Jun-2019
100,000 200,000 27-Jun-2020 27-Jun-2019
Foreign currencies (full amount):
Citibank, N.A. - Indonesian Branch**) USD 60,000,000 USD 60,000,000 20-Mar-2020 20-Mar-2019
Malayan Banking Berhad Co. - Singapore USD 5,000,000 - 03-Jan-2020 -
MUFG Bank, Ltd. - Indonesian Branch **) USD 60,000,000 USD 60,000,000 14-Sep-2019*) 14-Sep-2019
United Overseas Bank Limited Co. -
Hongkong - USD 5,000,000 - 30-Aug-2019
*)
In extension process
**)
Available to be withdrawn in US Dollar/Rupiah
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
23. BORROWINGS (continued)
(2) Borrowings from other banks (continued)
As of 31 December 2019 and 2018, these bank loans were secured by consumer
financing receivables amounting to Rp 1,178,714 and Rp 1,671,021 (see Note 14).
All loan agreements above are include certain convenants which are normally required
for such credit facilities, such as limitations to initiate merger or consolidation with other
parties, obtain loans from other parties except loans obtained in the normal course of
business, or changes its capital structure and/or Articles of Association without
notification to/prior written approval from the creditors and maintenance of certain
agreed financial ratios.
The required financial ratios was as follows:
2019 2018
Requirement Fulfillment Requirement Fulfillment
1. Debt to Equity Maximum 10 times < 1 time Maximum 10 times < 1 time
2. Receivable to Total Assets Minimum 40% 88.49% Minimum 40% 83.03%
3. Current ratio Minimum 1.1 times 1.75 times Minimum 1.1 times 1.68 times
4. Non performing loans (NPL) Maximum 5% 2.79% Maximum 5% 3.52%
of total receivables of total receivables
The range of contractual interest rates for borrowings from other banks was as follows:
2019 2018
Rupiah 5.45% - 9.60% 4.79% - 11.25%
Foreign currencies 1.99% - 3.25% 1.85% - 3.52%
(3) Others
As of 31 December 2018, BCA Finance Limited, Subsidiary, received a Banker’s
Acceptance Funding amounting to Rp 71,922 (USD 5,000,000 in full amount) from Wells
Fargo Bank, Miami, which will mature on 14 January 2019. This loan is collateralised by
export and import transaction documents and bears interest rate at 2.97%. This borrowing
has been paid off by BCA Finance Limited, Subsidiary, at its maturity date.
Information on the classification and fair value of borrowings is disclosed in Note 38.
Information on the maturity of borrowings is disclosed in Note 44.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
24. ACCRUALS AND OTHER LIABILITIES
2019 2018
Rupiah:
Liabilities related to ATM and credit card transactions 2,697,038 5,124,346
Unearned revenue 2,007,510 1,910,087
Liabilities to policyholders 1,420,687 1,084,057
Electronic money 800,108 668,840
Customers transfer transactions 772,759 755,392
Accrued interest expenses 434,749 403,717
Security deposits 119,182 121,983
Liabilities from customer transactions 115,636 40,414
Liabilities from insurance transactions 38,746 17,673
Others 4,839,973 4,191,124
13,246,388 14,317,633
Foreign currencies:
Customers transfer transactions 530,475 398,209
Unearned revenue 88,896 111,810
Security deposits 69,515 53,782
Accrued interest expenses 35,156 33,331
Liabilities from insurance transactions 4,826 6,480
Others 47,113 104,577
775,981 708,189
Total accruals and other liabilities 14,022,369 15,025,822
Liabilities related to ATM and credit card transactions consist of liabilities on ATM transactions
within ATM Bersama, Prima and Link, and liabilities to Visa and Master Card for credit card
transactions.
Unearned revenue consists of income from credit card commission.
Liabilities to policyholders represent liabilities of subsidiary for long-term insurance contract,
liability for future policy benefits, unearned premium reserves and estimated claim.
Accrued interest expenses consist of accrued interest from deposits from customers and other
banks, derivatives, borrowings, debt securities issued, securities sold under repurchase
agreement and subordinated obligation.
The guarantee deposit is a guarantee of cash deposited by customers from export-import
transaction and issuance of bank guarantees.
Liabilities from customer transactions represent liabilities of subsidiary for trading securities
transactions, which consist of liabilities to PT Kliring Penjaminan Efek Indonesia (KPEI)
related to purchase of securities transactions and deposits rendered by Subsidiary, and
liabilities from customer transactions related to selling of securities transactions that will be
matured in a short period, usually in 2 (two) days from date of trading.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
24. ACCRUALS AND OTHER LIABILITIES (continued)
Electronic money represent liabilities of the Bank from cash deposited by customers
electronically and not considered as deposits as stipulated in banking laws.
Liabilities from insurance transactions was liabilities of subsdiary for reinsurance payables,
coinsurance payable and claim in process.
Others mainly consist of interoffice accounts, deposit and unsettled transactions.
25. SUBORDINATED BONDS
2019 2018
Bank Central Asia Continuous
Subordinated Bonds I Phase I Year 2018 500,000 500,000
Total subordinated bonds 500,000 500,000
Amortisation of bonds issuance costs charged to
profit or loss - 4,655
The details of subordinated bonds were as follows:
Effective and
Instruments issued date Approval Principal amount Terms Maturity date Interest rate
Bank Central Asia Effective date No: S-03825/ Rp 435,000 7 Years 5 July 2025 7.75%
Continuous 26 June 2018 BEI.PP2/07-2018
Subordinated Issued date
Bonds I Phase I 5 July 2018
Year 2018 -
Series A
Bank Central Asia Effective date No: S-03825/ Rp 65,000 12 Years 5 July 2030 8.00%
Continuous 26 June 2018 BEI.PP2/07-2018
Subordinated Issued date
Bonds I Phase I 5 July 2018
Year 2018 -
Series B
Interest of Bank Central Asia Continuous Subordinated Bonds I Phase I Year 2018 - Series A
and B are paid quarterly since the issuance date, with no option of accelerating the
Subordinated Bonds interest payment. The first payment of interest was due on 5 October
2018. Bank Central Asia Continuous Subordinated Bonds I Phase I Year 2018 - Series A and
B can be calculated as supplementary capital (tier 2) based on OJK Regulation No.
11/POJK.03/2016 and to increase collection structure of long term funding. The proceeds from
issuance of Bank Central Asia Continuous Subordinated Bonds I Phase I Year 2018 - Series
A and B will be used to grow the Bank's business, especially for credit expansion.
The trustee of the above subordinated bonds is PT Bank Rakyat Indonesia (Persero) Tbk, a
third party.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
25. SUBORDINATED BONDS (continued)
The rating of this bonds based on PT Pemeringkat Efek Indonesia (PT Pefindo) rating is as
follows:
2019 2018
Description Rating Rating Rating Rating
Period Period
Bank Central Asia Continuous
Subordinated Bonds I 6 March 2019 - 13 March 2018 -
Phase I Year 2018 idAA 1 March 2020 idAA 1 March 2019
The Trusteeship Agreement provides several negative covenants that should be complied by
the Bank among others, prior to the repayment of the bonds payable, without the written
consent from the Trustee, the Bank is not allowed to:
a. Pledge majority or all of the Bank's present or future income or assets outside Bank's main
business, except if the actions are performed to meet regulatory requirements or related
with short term liquidity borrowing or related with the Bank's option for recovery plan;
b. Change the Bank main business;
c. Reduce authorised capital and paid-up capital unless if it is performed based on
Government of Indonesia or authority order (include but not limited to BI, OJK, the
Indonesia Finance Ministry and/or other authorities in Indonesian Banking Restructuring
Agency ("IBRA") in accordance with the prevailing laws; and
d. Merger or consolidation with other companies which cause dilution of the Bank.
As of 31 December 2019 and 2018, the Bank was in compliance with the aforementioned
covenants in relation to the issued subordinated debts agreements. Payments of interest had
been done on a timely basis.
26. SHARE CAPITAL
The composition of the Bank’s share capital as of 31 December 2019 and 2018 (after stock split,
see Note 1c) were as follows:
2019 2018
Number of shares Total par value Number of shares Total par value
Authorised capital at par value Rp 62.50
(full amount) per share 88,000,000,000 5,500,000 88,000,000,000 5,500,000
Unissued (63,344,990,000) (3,959,062) (63,344,990,000) (3,959,062)
Outstanding shares (issued and fully paid) 24,655,010,000 1,540,938 24,655,010,000 1,540,938
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
26. SHARE CAPITAL (continued)
The composition of shareholders as of 31 December 2019 and 2018 were as follows:
2019
Number of
shares Total par value %
*)
PT Dwimuria Investama Andalan 13,545,990,000 846,624 54.94
Anthoni Salim 434,079,976 27,130 1.76
Commissioners:
Djohan Emir Setijoso 22,147,163 1,384 0.09
Tonny Kusnadi 1,175,285 74 0.01
Directors:
Jahja Setiaatmadja 8,007,628 501 0.03
Armand W. Hartono 851,213 53 0.00
Suwignyo Budiman 7,475,051 467 0.03
Subur Tan 2,773,326 173 0.01
Henry Koenaifi 1,041,883 65 0.01
Erwan Yuris Ang 1,251,720 78 0.01
Rudy Susanto 480,926 30 0.00
Lianawaty Suwono 183,694 12 0.00
Santoso 237,324 15 0.00
Inawaty Handojo 163,374 10 0.00
Vera Eve Lim 57,348 4 0.00
Public shareholders **) 10,629,094,089 664,318 43.11
24,655,010,000 1,540,938 100.00
*) The shareholders of PT Dwimuria Investama Andalan are Mr. Robert Budi Hartono and Mr. Bambang Hartono, therefore the ultimate shareholders of the
Bank are Mr. Robert Budi Hartono and Mr. Bambang Hartono.
**) In the composition of shares held by the public, there was 2.49% shares owned by parties affiliated with PT Dwimuria Investama Andalan.
2018
Number of
shares Total par value %
*)
PT Dwimuria Investama Andalan 13,545,990,000 846,624 54.94
Anthoni Salim 434,079,976 27,130 1.76
Commissioners:
Djohan Emir Setijoso 23,100,481 1,444 0.09
Tonny Kusnadi 1,137,939 71 0.01
Directors:
Jahja Setiaatmadja 8,103,902 506 0.03
Eugene Keith Galbraith 1,581,879 99 0.01
Armand W. Hartono 851,213 53 0.00
Suwignyo Budiman 7,407,206 463 0.03
Subur Tan 2,705,481 169 0.01
Henry Koenaifi 957,138 60 0.00
Erwan Yuris Ang 1,191,967 75 0.01
Rudy Susanto 416,193 26 0.00
Lianawaty Suwono 126,279 8 0.00
Santoso 171,140 11 0.00
Inawaty Handoyo 102,667 6 0.00
Vera Eve Lim 17,000 1 0.00
Public shareholders **) 10,627,069,539 664,192 43.11
24,655,010,000 1,540,938 100.00
*) The shareholders of PT Dwimuria Investama Andalan are Mr. Robert Budi Hartono and Mr. Bambang Hartono, therefore the ultimate shareholders of the
Bank are Mr. Robert Budi Hartono and Mr. Bambang Hartono.
**) In the composition of shares held by the public, there was 2.49% shares owned by parties affiliated with PT Dwimuria Investama Andalan.
27. ADDITIONAL PAID-IN CAPITAL
Additional paid-in capital as of 31 December 2019 and 2018 consists of:
2019 2018
Additional paid-in capital from share capital payments 29,453,007 29,453,007
Elimination of accumulated loss through quasi-reorganisation on
31 October 2000*) (25,853,162) (25,853,162)
Additional paid-in capital from the exercise of stock options 296,088 296,088
Additional paid-in capital from treasury stock transactions (Note 1c) 1,815,435 1,815,435
Difference in values from business combination transaction of
entities under common control (Note 2e) (162,391) (162,391)
5,548,977 5,548,977
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
27. ADDITIONAL PAID-IN CAPITAL (continued)
*) On 31 October 2000, the Bank adopted SFAS No. 51, “Accounting for Quasi-Reorganisation” to achieve a “fresh start” reporting. Fresh
start reporting requires the revaluation of all its assets and liabilities recorded by using the fair value and elimination of its accumulated
deficit. Pursuant to the implementation of quasi-reorganisation, the Bank’s accumulated losses as of 31 October 2000 amounted to Rp
25,853,162 had been eliminated against the additional paid-in capital. The implementation of quasi-reorganisation had been approved by
Bank Indonesia through its Letter No. 3/165/DPwB2/IDWB2 dated 21 February 2001 and by the shareholders in their Extraordinary General
Meeting of Shareholders on 12 April 2001 (the minutes of meeting prepared by Notary Public Hendra Karyadi, S.H., in Notary Deed No.
25).
28. COMMITMENTS AND CONTINGENCIES
As of 31 December 2019 and 2018, the Group commitments and contingencies were as follows:
2019 2018
Amount in Amount in
Type of foreign Rupiah foreign Rupiah
Currencies currencies*) equivalent currencies*) equivalent
Commitments
Committed receivables:
Borrowing facilities received
and unused Rupiah 3,023,194 2,595,000
USD 120,000,000 1,665,900 120,000,000 1,725,600
Others,
USD equivalent 399,922 5,552 - -
4,694,646 4,320,600
Committed liabilities:
Unused credit facilities to
customers - committed Rupiah 144,251,023 136,926,268
USD 585,683,844 8,130,756 594,607,585 8,550,457
Others,
USD equivalent 16,019,074 222,385 8,541,891 122,832
152,604,164 145,599,557
Unused credit facilities to
other banks - committed Rupiah 2,455,331 1,260,022
2,455,331 1,260,022
Irrevocable Letters of
Credit facilities to
customers Rupiah 1,939,571 2,688,503
USD 346,560,926 4,811,132 406,756,872 5,849,164
Others,
USD equivalent 132,556,292 1,840,213 127,141,605 1,828,296
8,590,916 10,365,963
163,650,411 157,225,542
*)
Total in full amount.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
28. COMMITMENTS AND CONTINGENCIES (continued)
As of 31 December 2019 and 2018, the Group commitments and contingencies were as follows:
(continued)
2019 2018
Amount in Amount in
Type of foreign Rupiah foreign Rupiah
Currencies currencies*) equivalent currencies*) equivalent
Contingencies
Contingent receivables:
Bank guarantees received Rupiah 623,876 549,426
623,876 549,426
Interest receivable on
non-performing assets Rupiah 442,893 384,046
USD 2,292,264 31,822 571,000 8,211
Others,
USD equivalent 180,425 2,505 - -
477,220 392,257
1,101,096 941,683
Contingent liabilities:
Bank guarantee issued
to customers Rupiah 13,715,024 12,566,770
USD 139,732,825 1,939,841 180,778,819 2,599,599
Others,
USD equivalent 5,938,961 82,447 5,202,550 74,813
15,737,312 15,241,182
Others Rupiah 78 -
78 -
15,737,390 15,241,182
*)
Total in full amount.
Additional information
As of 31 December 2019 and 2018, the Group had unused credit facilities to customers -
uncommitted amounting to Rp 63,355,677 and Rp 55,587,325, respectively.
As of 31 December 2019 and 2018, the Group had unused credit facilities to other Banks -
uncommitted amounting to Rp 1,861 and Rp 2,353, respectively.
The Bank is a party to various unresolved legal actions, administrative proceedings, and claims
in the ordinary course of its business. It is not possible to predict with certainty whether or not
the Bank will be successful in any of these legal matters or, if not, what the impact might be.
However, the Bank’s management does not expect that the results in any of these proceedings
will have a material adverse effect on the Bank’s results of operations, financial position or
liquidity.
Commitments and contingencies from related parties are disclosed in Note 48.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
29. INTEREST AND SHARIA INCOME
Interest and sharia income consist of:
2019 2018
Interest income
Loan receivable 49,583,414 43,519,187
Investment securities 7,116,277 6,629,504
Consumer financing and investment in finance leases 2,953,510 3,016,494
Placements with Bank Indonesia and other banks 1,321,761 940,923
Securities purchased under agreements to resell 1,255,466 970,338
Bills receivable 433,535 533,588
Others 551,390 571,925
63,215,353 56,181,959
Sharia income
Sharia profit sharing 622,442 584,841
622,442 584,841
Total interest and sharia income 63,837,795 56,766,800
Included in interest income from loans receivable and investment securities were interest from
the effect of discounting (unwinding interest) of impaired financial assets for the year
ended 31 December 2019 amounting to Rp 72,189 and Rp nil, respectively
(2018: Rp (28,951) and Rp nil).
Interest income from loans receivable to related parties is disclosed in Note 48.
30. INTEREST AND SHARIA EXPENSES
Interest and sharia expenses consist of:
2019 2018
Interest expenses
Deposits from customers 11,405,559 9,680,798
Guarantee premium 1,365,777 1,240,519
Borrowings 121,761 112,912
Deposits from other banks 68,708 73,611
Debt securities issued 63,578 48,683
Securities sold under agreements to repurchase 37,893 7,863
Others - 54,574
13,063,276 11,218,960
Sharia expense
Sharia 297,071 257,295
297,071 257,295
Total interest and sharia expenses 13,360,347 11,476,255
Interest and sharia expenses for deposits from customers to related parties are disclosed in
Note 48.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
31. FEE AND COMMISSION INCOME - NET
Represent fee and commission income related to:
2019 2018
Deposits from customers 4,514,809 4,061,993
Credit cards 3,748,312 3,259,600
Payment settlement 1,994,805 1,559,668
Loans receivable 1,648,551 1,491,889
Remittance, clearing and collections 332,089 317,175
Others 1,370,943 1,307,820
Total 13,609,509 11,998,145
Fee and commission expenses (1,128) (1,805)
Fee and commission income - net 13,608,381 11,996,340
Fee and commission income from loans receivable were fee and commission income
related to disbursement of loan facilities which were not an integral part of effective interest
rates.
32. NET TRADING INCOME
Net trading income consists of:
2019 2018
Interest income from financial assets held for trading 346,446 45,060
Unrealised (loss)/gains from financial assets
held for trading - net (469,291) 1,985,594
Gain on spot and derivative transactions - net 2,885,242 136,382
Gain on sale of financial assets held for trading - net 693,945 640,313
3,456,342 2,807,349
33. IMPAIRMENT LOSSES ON ASSETS
2019 2018
Acceptance receivables (Note 10c) (156,562) (85,124)
Loans receivable (Note 13f) 4,268,790 2,645,057
Consumer financing receivables (Note 14) 398,196 286,436
Sharia financing 71,247 21,636
Investment securities (Note 15) 19,988 (190,057)
Others (10,316) (1,346)
4,591,343 2,676,602
2019 Annual Report | PT Bank Central Asia Tbk 693
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
34. PERSONNEL EXPENSES
2019 2018
Salaries and wages 6,221,674 5,941,982
Employees' benefits and compensations 4,952,095 4,607,808
Post-employment benefits (Note 39) 1,446,952 984,046
Training 428,708 335,991
Pension plan contribution 287,835 273,279
13,337,264 12,143,106
35. GENERAL AND ADMINISTRATIVE EXPENSES
2019 2018
Office supplies 4,658,930 4,314,836
Communication 1,734,480 1,466,736
Depreciation 1,693,877 1,667,298
Repair and maintenance 1,517,288 1,285,133
Rental 1,420,339 1,445,845
Promotion 1,118,345 1,108,898
Professional fees 525,897 447,893
Amortisation of intangible assets - software 321,738 414,310
Water, electricity and fuel 287,852 285,268
Computer and software 203,919 102,877
Tax 156,464 121,584
Transportation 45,877 39,633
Insurance 33,735 32,430
Research and development 32,889 36,150
Security 21,250 20,715
Others 342,295 236,986
14,115,175 13,026,592
36. BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share are calculated based on the weighted average number
of shares outstanding during the year, as follows:
2019 2018
Net income attributable to equity holder
of the parent entity 28,565,053 25,855,154
Weighted average number of outstanding shares 24,655,010,000 24,655,010,000
(in full amount)
Basic and diluted earnings per share attributable to equity
holder of the parent entity (in full amount of Rupiah) 1,159 1,049
As of 31 December 2019 and 2018, there were no instruments which can potentially be
converted into common shares. Therefore, diluted earnings per share is equivalent to basic
earnings per share.
694 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/98
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
37. APPROPRIATION OF NET INCOME
The Bank’s Annual General Meeting of Shareholders on 11 April 2019 (the minutes was
prepared by Notary Public Fathiah Helmi, S.H., with Notary Deed No. 33) resolved the
appropriation of 2018 net income, as follows:
a. Allocate 2018 net income for general reserve amounting to Rp 258,552.
b. Distribute cash dividends amounting to Rp 8,382,704 (Rp 340 (full amount) per share) to
shareholders who have the right to receive cash dividends. The actual cash dividends
paid was Rp 6,287,027 on 30 April 2019 (interim dividend for year 2018 amounting to
Rp 2,095,676 had been paid on 21 December 2018).
c. Determine the tantiem for the members of Board of Commissioners and Board of Directors
on duty in 2018 with a maximum amount of Rp 413,500. The actual amount of tantiem
paid was Rp 413,500.
d. Determine the remaining 2018 net income after dividends as unappropriated retained
earnings.
The Bank’s Annual General Meeting of Shareholders on 11 April 2019 also resolved to grant
the power and authority to the Bank’s Board of Directors (with approval from Board of
Commissioners) to pay interim dividend for the year 2019, where possible, by considering the
financial condition of the Bank.
In accordance with the Board of Directors’ Decision Letter dated 27 November 2019 No. 191
regarding the Distribution of Interim Dividends for year 2019, the Board of Directors resolved
that the Bank will pay interim dividends to shareholders from the 2019 net income amounting
to Rp 100 (full amount) per share. The actual interim dividends paid amounting to
Rp 2,465,501.
The Bank’s Annual General Meeting of Shareholders on 5 April 2018 (the minutes was
prepared by Notary Public Dr. Irawan Soerodjo, S.H., MSi. with Notary Deed No. 25) resolved
the appropriation of 2017 net income, as follows:
a. Allocate 1% (one percent) of 2017 net income for general reserve amounting to Rp
233,100.
b. Distribute cash dividends amounting to Rp 6,287,027 (Rp 255 (full amount) per share) to
shareholders who have the right to receive cash dividends. The actual cash dividends
paid was Rp 4,314,626 on 30 April 2018 (interim dividend for year 2017 amounting to Rp
1,972,401 had been paid on 20 December 2017).
c. Determine the tantiem for the members of Board of Commissioners and Board of Directors
on duty in 2017 with a maximum amount of Rp 355,000 from the 2017 net income. The
actual amount of tantiem paid was Rp 354,950.
d. Determine the remaining 2017 net income after dividends as unappropriated retained
earnings.
The Bank’s Annual General Meeting of Shareholders on 5 April 2018 also resolved to grant
the power and authority to the Bank’s Board of Directors (with approval from Board of
Commissioners) to pay interim dividend for the year 2018, where possible, by considering the
financial condition of the Bank.
In accordance with the Board of Directors’ Decision Letter dated 22 November 2018 No. 184
regarding the Distribution of Interim Dividends for year 2018, the Board of Directors resolved
that the Bank will pay interim dividends to shareholders from the 2018 net income amounting
to Rp 85 (full amount) per share. The actual interim dividends paid amounting to Rp 2,095,676.
2019 Annual Report | PT Bank Central Asia Tbk 695
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
38. FINANCIAL INSTRUMENTS
Classification of financial assets and financial liabilities
Financial instruments have been classified based on their respective classifications. The
significant accounting policies in Note 2g describe how the categories of the financial assets
and liabilities are measured and how income and expenses, including fair value gains and
losses (changes in fair value of financial instruments) are recognised.
Valuation models of financial instruments
The Group measures fair values using the following hierarchy of methods:
x Level 1: inputs that are quoted prices (unadjusted) in active markets for identical
instruments that the Group can access at the measurement date.
x Level 2: inputs other than quoted prices included within level 1 that are observable
either directly or indirectly. This category includes instruments valued using: quoted
market prices in active markets for similar instruments; quoted prices for identical or
similar instruments in markets that are not active; or other valuation techniques in which
all significant inputs are directly or indirectly observable from market data.
x Level 3: inputs that are unobservable. This category includes all instruments for which
the valuation technique includes inputs not based on observable data and the
unobservable inputs have a significant effect on the instrument’s valuation. This
category includes instruments that are valued based on quoted prices for similar
instruments for which significant unobservable adjustments or assumptions are required
to reflect differences between the instruments.
Fair values of financial assets and financial liabilities that are traded in active market are
based on quoted market prices. For all other financial instruments, the Bank determines
fair values using valuation techniques.
Valuation techniques include net present value and discounted cash flow models,
comparison with similar instruments for which market observable prices exist and other
valuation models. Assumptions and inputs used in valuation techniques include risk-free
interest rates, benchmark interest rate, credit spreads and other variables used in estimating
discount rates, bond prices, foreign currency exchange rates, and expected price volatilities
and correlations.
The objective of valuation techniques is to arrive at a fair value measurement that reflects the
price that would be received to sell the asset or paid to transfer the liability in an orderly
transaction between market participants at the measurement date.
The Group uses widely recognised valuation models for determining the fair values of
common and more simple financial instruments, such as interest rate and currency swaps
that used only observable market data and require little management judgement and
estimation. Observable prices or model inputs are usually available in the market for listed
debt securities and simple over-the-counter derivatives such as interest rate swaps.
Availability of observable market prices and model inputs reduces the needs for
management judgement and estimation and also reduces the uncertainty associated with
determining the fair values. Availability of observable market prices and inputs varies
depending on the products and markets and is prone to changes based on specific events
and general conditions in the financial markets.
696 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
38. FINANCIAL INSTRUMENTS (continued)
Valuation models of financial instruments (continued)
Management judgement and estimation are usually required for selection of the appropriate
valuation models to be used, determination of expected future cash flows on the financial
instruments being valued, determination of the probability of counterparty default,
prepayments and selection of appropriate discount rates.
Valuation Framework
Valuation of financial assets and financial liabilities are subject to an independent review from
the business by Corporate Finance Division (“DKP”) and Risk Management Work Unit
(“SKMR”). DKP is primarily responsible for ensuring that valuation adjustments have been
properly accounted for. SKMR performs an independent price validation to ensure that the
Bank uses reliable market data from independent sources, e.g., traded prices and broker
quotes.
Valuation model is proposed by SKMR and approved by the management. SKMR performs a
periodic review of the feasibility of the market data sources used for valuation. The market
data used for price validation may include those sourced from recent trade data involving
external counterparties or third parties such as Bloomberg, Reuters, brokers and pricing
providers. The market data used should be representative of the market as much as possible,
which can evolve over time as markets and financial instruments develop. To determine the
quality of the market data inputs, factors such as independence, relevance, reliability,
availability of multiple data sources and methodology employed by the pricing providers are
taken into consideration.
Valuation of financial instruments
Financial instruments measured at fair value
The following table sets out the carrying amounts and fair values of financial instruments of
the Group, measured at fair values, and their analysis by the level in the fair value hierarchy.
2019
Carrying amount Fair value
Available-
Held for trading for-sale Total Level 2
Financial assets
Placements with Bank Indonesia and
other banks - 1,473,827 1,473,827 1,473,827
Financial assets held for trading 5,910,146 - 5,910,146 5,910,146
Investment securities - 126,233,397 126,233,397 126,233,397
5,910,146 127,707,224 133,617,370 133,617,370
Financial liabilities
Financial liabilities held for trading 106,260 - 106,260 106,260
106,260 - 106,260 106,260
2019 Annual Report | PT Bank Central Asia Tbk 697
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
38. FINANCIAL INSTRUMENTS (continued)
Valuation of financial instruments (continued)
Financial instruments measured at fair value (continued)
2018
Carrying amount Fair value
Available-
Held for trading for-sale Total Level 2
Financial assets
Placements with Bank Indonesia and
other banks - 2,042,267 2,042,267 2,042,267
Financial assets held for trading 5,841,824 - 5,841,824 5,841,824
Investment securities - 94,646,524 94,646,524 94,646,524
5,841,824 96,688,791 102,530,615 102,530,615
Financial liabilities
Financial liabilities held for trading 188,934 - 188,934 188,934
188,934 - 188,934 188,934
Fair value of available-for-sale placements with Bank Indonesia and other banks were
calculated using valuation techniques based on the Bank’s internal model, which is a
discounted cash flow method. Input used in the valuation techniques is market interest rate for
money market instruments which have similar credit characteristics, maturity and yield.
As of 31 December 2019 and 2018, the fair value of held for trading securities was based on
market price issued by pricing provider (Indonesian Bond Pricing Agency/“IBPA”). If the
information is not available, the fair value is estimated using the quoted market prices of
securities which have similar credit characteristics, maturity and yield.
As of 31 December 2019 and 2018, the fair value of available-for-sale investment securities
was based on market price issued by pricing provider (Indonesian Bond Pricing
Agency/“IBPA”). If the information is not available, the fair value was estimated using the
quoted market prices of securities which have similar credit characteristics, maturity and yield.
As of 31 December 2019 and 2018, the fair value of available-for-sale investment securities
did not include the fair value of investments in shares amounting to Rp 643,528 and
Rp 606,279, respectively, which were valued at cost, since the fair value cannot be measured
reliably.
The Group did not have financial assets and financial liabilities measured at fair value which
the measurements fall under level 1 and level 3 hierarchy.
698 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
38. FINANCIAL INSTRUMENTS (continued)
Valuation of financial instruments (continued)
Financial instruments not measured at fair value
The following table sets out the carrying amounts and fair values of financial instruments of
the Group, which are not measured at fair values and their analysis by the level in the fair
value hierarchy.
2019
Carrying amount Fair value
Other
Held-to- Loans and amortised
maturity receivables cost Total Level 2 Level 3 Total
Financial assets
Loans receivable - 572,033,999 - 572,033,999 25,507,282 544,945,781 570,453,063
Consumer financing receivables - 10,532,424 - 10,532,424 - 9,169,952 9,169,952
Investment in finance leases - 149,428 - 149,428 - 143,104 143,104
Assets related to sharia transactions -
murabahah receivables - 1,584,223 - 1,584,223 - 1,584,223 1,584,223
Investment securities 16,105,780 - - 16,105,780 16,294,680 - 16,294,680
16,105,780 584,300,074 - 600,405,854 41,801,962 555,843,060 597,645,022
Financial liabilities
Deposits from customers - - 698,980,068 698,980,068 698,980,068 - 698,980,068
Sharia deposits - - 1,035,526 1,035,526 1,035,526 - 1,035,526
Deposits from other banks - - 6,717,474 6,717,474 6,717,474 - 6,717,474
Debt securities issued - - 1,347,523 1,347,523 1,361,032 - 1,361,032
Borrowings - - 2,332,870 2,332,870 - 2,335,314 2,335,314
Subordinated bonds - - 500,000 500,000 500,000 - 500,000
- - 710,913,461 710,913,461 708,594,100 2,335,314 710,929,414
2018
Carrying amount Fair value
Other
Held-to- Loans and amortised
maturity receivables cost Total Level 2 Level 3 Total
Financial assets
Loans receivable - 524,530,462 - 524,530,462 23,857,038 497,789,407 521,646,445
Consumer financing receivables - 7,613,709 - 7,613,709 - 7,404,601 7,404,601
Investment in finance leases - 174,212 - 174,212 - 162,193 162,193
Assets related to sharia transactions -
murabahah receivables - 1,679,410 - 1,679,410 - 1,679,410 1,679,410
Investment securities 13,827,860 - - 13,827,860 13,811,581 - 13,811,581
13,827,860 533,997,793 - 547,825,653 37,668,619 507,035,611 544,704,230
Financial liabilities
Deposits from customers - - 629,812,017 629,812,017 629,812,017 - 629,812,017
Sharia deposits - - 621,315 621,315 621,315 - 621,315
Deposits from other banks - - 6,494,491 6,494,491 6,494,491 - 6,494,491
Debt securities issued - - 239,735 239,735 240,306 - 240,306
Borrowings - - 2,093,475 2,093,475 - 2,095,694 2,095,694
Subordinated bonds - - 500,000 500,000 500,000 - 500,000
- - 639,761,033 639,761,033 637,668,129 2,095,694 639,763,823
Majority of the financial instruments not measured at fair value are measured at amortised
cost.
2019 Annual Report | PT Bank Central Asia Tbk 699
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
38. FINANCIAL INSTRUMENTS (continued)
Valuation of financial instruments (continued)
Financial instruments not measured at fair value (continued)
The following financial instruments are short-term financial instruments or financial
instruments which are re-priced periodically to current market rates, therefore, the fair values
of financial instruments are reasonable approximation of carrying value.
Financial assets:
- Cash
- Current accounts with Bank Indonesia
- Current accounts with other banks
- Placements with Bank Indonesia and other banks
- Acceptance receivables
- Bills receivables
- Securities purchased under agreements to resell
- Other assets
Financial liabilities:
- Securities sold under agreements to repurchase
- Acceptance payables
- Other liabilities
As of 31 December 2019 and 2018, the fair values of loans receivable, consumer financing
receivables, investment in finance leases and borrowings were determined using discounted
cash flows based on internal interest rate.
As of 31 December 2019 and 2018, the fair values of held-to-maturity securities and debt
securities issued based on market prices issued by pricing provider (Indonesian Bond Pricing
Agency/“IBPA”). If the information is not available, the fair values were estimated using quoted
market prices of securities which have similar credit characteristics, maturity and yield.
As of 31 December 2019 and 2018, the fair values of deposits from customers and deposits
from other banks are the same with the carrying amount because they are payables on
demand in nature.
The fair values calculated are for disclosure purposes only and do not have any impact on the
Group reported financial performance or position. The fair values calculated by the Group may
be different from the actual amount that will be received/paid on the settlement or maturity of
the financial instrument. As certain categories of financial instruments are not traded, there is
management judgment involved in calculating their fair values.
39. POST-EMPLOYMENT BENEFITS OBLIGATION
In accordance with Law of the Republic of Indonesia No. 13/2003 concerning Manpower, the
Bank is required to provide post-employment benefits to its employees when their
employments are terminated or when they retire. These benefits are primarily based on years
of services and the employees’ compensation at termination or retirement. These post-
employment benefits are defined benefits program.
700 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
39. POST-EMPLOYMENT BENEFITS OBLIGATION (continued)
The Bank also had a defined contribution pension plan that covers all permanent employees
who fulfilled the criteria determined by the Bank. This defined contribution pension plan is
managed and administered by Dana Pensiun BCA which was established by the Bank to
manage the assets, generate investment income and pay the post-employment benefits to
the employees. The establishment of Dana Pensiun BCA had been ratified by the Minister of
Finance of Republic of Indonesia in its Decision Letter No. KEP-020/KM.17/1995 dated
25 January 1995. The contribution to the pension plan is computed based on certain
percentage of employees’ basic salary, for which the contribution from employees and the
Bank are 3% (three percent) and 5% (five percent), respectively. During the year ended
31 December 2019 and 2018, the accumulated contribution from the Bank are 2% (two
percent) and 3% (three percent), respectively, which are considered as a deduction against
the post-employment benefits obligation in accordance with the manpower law.
During the year ended 31 December 2019, the Bank has provided some funds to support the
fulfillment of its post-employment benefit obligations amounting to Rp 2,740 and was placed
in several insurance companies in the form of saving plan program, which meet the criteria to
be recorded as plan assets.
During the year ended 31 December 2018, the Bank provided some funds to support the
fulfillment of its post-employment benefit obligations amounting to Rp 501,490. These funds
were placed in several insurance companies in the form of saving plan program and Dana
Pensiun Lembaga Keuangan (“DPLK”) in the form of Program Pensiun Untuk Kompensasi
Pesangon (“PPUKP”), which meet the criteria to be recorded as plan assets.
The defined benefit pension plan provides actuarial risk exposures to the Bank, e.g.,
investment risk, interest rate risk and inflation risk.
Post-employment benefits provided by the Bank consist of pension, other long-term
compensations in the form of service award and post-employment healthcare benefits. The
post-employment benefits obligation as of 31 December 2019 and 2018 were calculated by
PT Dayamandiri Dharmakonsilindo and PT Towers Watson Purbajaga (Biro Pusat Aktuaria),
respectively, as the Bank’s independent actuary, using the projected-unit-credit method. The
main assumptions used by independent actuary were as follows:
2019 2018
Economic assumptions:
Annual discount rate
Defined benefit pension plan 7.35% 8.00%
Other long-term compensation 7.40% 8.00%
Post-employment healthcare benefits 7.70% 8.00%
Annual basic salary growth rate 9.00% 9.00%
Healthcare cost rate 10.00% 10.00%
The discount rate is used in determining the present value of the post-employment benefits
obligation at valuation date. In general, the discount rate correlates with the yield on high
quality government bonds that are traded in active capital markets at the reporting date.
The future basic salary growth assumption projects the post-employment benefits obligations
starting from the valuation date through the normal retirement age. The basic salary growth
rate is generally determined by applying inflation adjustment to payment scales and by taking
into account of the years of service.
2019 Annual Report | PT Bank Central Asia Tbk 701
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
39. POST-EMPLOYMENT BENEFITS OBLIGATION (continued)
The Bank’s obligation for post-employment benefits for the years ended 31 December 2019
and 2018 were in accordance with the independent actuary reports dated 8 January 2020 and
3 January 2019, respectively.
a. Post-employment benefits obligation
The post-employment benefits obligation as of 31 December 2019 and 2018 were as
follows:
Defined benefit pension plan
and other long-term Post-employment healthcare
compensations benefits
Present value of obligation for post-
employment benefits 11,724,337 10,469,846 209,355 236,760
Fair value of plan assets (4,077,260) (4,410,076) - -
Net obligation for post-employment
benefits - Bank 7,647,077 6,059,770 209,355 236,760
The Subsidiaries’ obligation for post-employment benefits as of 31 December 2019 and
2018 which were recorded in the consolidated statements of financial position amounting
to Rp 98,638 and Rp 109,527, respectively.
b. Movement of post-employment benefits obligation
Defined benefit pension plan
and other long-term Post-employment healthcare
compensations benefits
Movement in the defined benefit obligation
Defined benefit obligation, beginning of
the year - Bank 6,059,770 6,113,527 236,760 249,861
Included in profit or loss
Current service cost 572,244 575,971 17,372 11,540
Past service cost - amendment 306,374 - - -
Interest cost 501,358 340,519 18,594 15,935
Termination cost 14,433 20,540 - -
Liability assumed due to
recognition of past services 2,945 - 133 -
Included in other comprehensive income
Actuarial gains/(losses) arising from:
Changes in financial assumptions 517,390 (1,054,597) (48,205) (8,237)
Changes in demographic assumptions (16,073) - (556) -
Experience adjustments 116,222 353,216 (7,038) (24,089)
Return on plan assets excluding
interest income (204,650) 371,291 - -
Others
Fund placements in insurance
companies (plan assets) (2,740) (501,490) - -
Benefits paid directly by the Bank (220,196) (159,207) (7,705) (8,250)
Post-employment benefits obligation,
end of the year - Bank 7,647,077 6,059,770 209,355 236,760
The Subsidiaries’ post-employment benefits expenses for the years ended 31 December
2019 and 2018 recorded in the profit or loss amounting to Rp 13,499 and Rp 19,541,
respectively, while total payment of employees’ benefits by Subsidiaries for the years
ended 31 December 2019 and 2018 amounting to Rp 8,589 and Rp 6,214, respectively.
702 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
39. POST-EMPLOYMENT BENEFITS OBLIGATION (continued)
c. The composition of plan assets
The composition of plan assets from pension fund for the years ended 31 December 2019
and 2018, were as follows:
Percentage allocation as of
31 December 2019 Percentage allocation as of
Quoted market price 31 December 2019
for severance program Quoted market price for DPLK PPUK
AIA Allianz Manulife AIA Allianz Manulife
Shares 0.00% 0.00% 0.00% 14.86% 14.26% 11.96%
Bonds 0.00% 0.00% 0.00% 70.08% 67.41% 61.26%
Property 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Derivatives 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Cash 100.00% 100.00% 100.00% 15.06% 18.33% 26.78%
Others 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Percentage allocation as of
31 December 2018 Percentage allocation as of
Quoted market price 31 December 2018
for severance program Quoted market price for DPLK PPUK
AIA Allianz Manulife AIA Allianz Manulife
Shares 0.00% 0.00% 0.00% 15.15% 12.75% 10.03%
Bonds 0.00% 0.00% 0.00% 70.37% 66.87% 67.19%
Property 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Derivatives 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Cash 100.00% 100.00% 100.00% 14.48% 20.38% 22.78%
Others 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
d. Changes in fair value of plan assets for post-employment program
2019 2018
Fair value of plan assets, beginning of the year - Bank 4,410,076 4,688,075
Fund placements in insurance companies 2,740 501,490
Return on plan assets excluding interest income 204,650 (371,291)
Interest income on plan assets 318,565 338,133
Post-employment benefits paid (858,771) (746,331)
Fair value of plan assets, end of the year - Bank 4,077,260 4,410,076
e. Historical information - Bank:
31 December
2019 2018 2017 2016 2015
Defined benefits pension plan
and other long-term compensation
Present value of post-employment
benefits obligation 11,724,337 10,469,846 10,801,602 9,056,905 8,454,073
Fair value of plan assets (4,077,260) (4,410,076) (4,688,075) (3,218,848) (1,886,693)
Deficit 7,647,077 6,059,770 6,113,527 5,838,057 6,567,380
Experience adjustment on plan liabilities 116,222 353,216 4,479 6,803 865,028
Experience adjustment on plan assets (204,650) 371,291 (211,993) (69,840) 70,863
Post-employment healthcare benefits
Present value of post-employment
benefits obligation 209,355 236,760 249,861 254,195 235,958
Experience adjustment on plan liabilities (7,038) (24,089) (50,912) (23,948) (15,214)
2019 Annual Report | PT Bank Central Asia Tbk 703
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
39. POST-EMPLOYMENT BENEFITS OBLIGATION (continued)
f. Sensitivity analysis
Changes in 1 (one) percentage of actuarial assumptions will have the following impacts:
2019
Other long-term Post-employment
Defined benefit pension plan compensations healthcare benefits
Increase Decrease Increase Decrease Increase Decrease
Discount rate (1% movement) (485,718) 541,185 (206,131) 230,223 (13,874) 15,698
Basic salary rate (1% movement) 592,411 (540,724) 233,059 (212,274) - -
Healthcare cost rate (1% movement) - - - - 14,171 (12,802)
2018
Other long-term Post-employment
Defined benefit pension plan compensations healthcare benefits
Increase Decrease Increase Decrease Increase Decrease
Discount rate (1% movement) (413,689) 463,172 (217,410) 216,420 (15,167) 16,884
Basic salary rate (1% movement) 523,998 (476,008) 220,823 (200,569) - -
Healthcare cost rate (1% movement) - - - - 16,220 (14,880)
g. Expected maturity analysis of undiscounted pension benefits and post-employment
healthcare benefits is as follows:
20 years and
Up to 10 years 10 - 20 years so on
Pension benefit 8,218,789 2,385,673 1,390,089
Other long-term compensations 3,256,991 1,030,714 620,454
Post-employment healthcare benefits 209,629 65,927 75,849
h. The weighted-average duration of the defined benefits obligation, other long-term
compensations, and post-retirement healthcare benefits were 9.02 years, 9.47 years and
11.50 years as of 31 December 2019 (31 December 2018: 6.65 years, 6.65 years and
6.65 years).
40. CUSTODIAL SERVICES
The Bank’s Custodial Services Bureau obtained its license to provide custodial services from
the Capital Market Supervisory Agency (Bapepam, currently Financial Services Authority or
“OJK”) under its Decision Letter No. KEP-148/PM/1991 dated 13 November 1991.
The services offered by the Bank’s Custodial Services Bureau include safekeeping, settlement
and transaction handling, income collection, proxy, corporate action, cash management,
investment recording/reporting and tax reclamation.
As of 31 December 2019 and 2018, assets administered by the Bank’s Custodial Services
Bureau consist of shares, bonds, time deposits, certificate of deposits, commercial papers and
other money market instruments amounting to Rp 108,031,974 and Rp 86,092,611,
respectively.
704 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/108
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
41. MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCIES
Balances of monetary assets and liabilities in foreign currencies were as follows:
2019 2018
Foreign Foreign
currencies Rupiah currencies Rupiah
(in thousand) equivalent (in thousand) equivalent
Monetary assets
Cash
US Dollar (USD) 61,491 853,650 28,691 412,580
Australian Dollar (AUD) 16,078 156,368 8,761 89,027
Singapore Dollar (SGD) 22,022 227,153 16,566 174,849
Hong Kong Dollar (HKD) 13,792 24,588 5,030 9,237
GB Poundsterling (GBP) 1,247 22,734 356 6,523
Japanese Yen (JPY) 146,652 18,744 63,689 8,319
Euro (EUR) 8,689 135,290 4,147 68,182
Others, USD equivalent 3,952 54,869 4,059 58,364
1,493,396 827,081
Current accounts with Bank Indonesia
US Dollar (USD) 334,725 4,646,826 339,682 4,884,631
4,646,826 4,884,631
Current accounts with other banks
US Dollar (USD) 548,930 7,620,521 386,591 5,559,179
Australian Dollar (AUD) 19,016 184,939 21,802 221,560
Singapore Dollar (SGD) 154,031 1,588,842 143,671 1,516,440
Hong Kong Dollar (HKD) 52,238 93,127 19,408 35,638
GB Poundsterling (GBP) 3,229 58,882 6,382 116,858
Japanese Yen (JPY) 2,996,826 383,024 2,465,339 322,022
Euro (EUR) 20,194 314,440 21,548 354,270
Others, USD equivalent 19,811 275,024 25,135 361,436
10,518,799 8,487,403
Placements with Bank Indonesia and
other banks
US Dollar (USD) 1,775,791 24,652,415 452,777 6,510,930
Australian Dollar (AUD) 30,000 291,761 31,000 315,033
Singapore Dollar (SGD) 30,000 309,452 - -
Hong Kong Dollar (HKD) 54 96 27,656 50,784
25,253,724 6,876,747
Financial assets held for trading
US Dollar (USD) 149,856 2,080,379 100,315 1,442,526
Singapore Dollar (SGD) 17 179 32 337
Hong Kong Dollar (HKD) - - 10 19
Japanese Yen (JPY) 3,068 392 7,691 1,004
Others, USD equivalent 15 212 10 149
2,081,162 1,444,035
Acceptance receivables - net
US Dollar (USD) 395,902 5,496,109 502,801 7,230,274
Singapore Dollar (SGD) 492 5,077 11 114
GB Poundsterling (GBP) 195 3,548 221 4,047
Japanese Yen (JPY) 978,890 125,112 1,602,422 209,308
Euro (EUR) 77,793 1,211,283 31,543 518,586
Others, USD equivalent 13,807 191,679 2,701 38,842
7,032,808 8,001,171
2019 Annual Report | PT Bank Central Asia Tbk 705
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
41. MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (continued)
Balances of monetary assets and liabilities in foreign currencies were as follows: (continued)
2019 2018
Foreign Foreign
currencies Rupiah currencies Rupiah
(in thousand) equivalent (in thousand) equivalent
Monetary assets (continued)
Bills receivable - net
US Dollar (USD) 149,488 2,075,265 180,730 2,598,894
Hong Kong Dollar (HKD) - - 36,028 66,158
Japanese Yen (JPY) 121,009 15,466 18,845 2,462
Euro (EUR) 1,050 16,346 144 2,374
Others, USD equivalent 3,678 51,061 530 7,617
2,158,138 2,677,505
Loans receivable - net
US Dollar (USD) 2,129,232 29,559,065 2,140,114 30,774,833
Singapore Dollar (SGD) 39,356 405,961 46,397 489,715
Hong Kong Dollar (HKD) 195,531 348,582 144,895 266,068
Japanese Yen (JPY) 79,149 10,116 - -
Euro (EUR) 787 12,260 732 12,033
Others, USD equivalent - - 49 707
30,335,984 31,543,356
Investment securities - net
US Dollar (USD) 2,003,217 27,809,661 1,596,601 22,959,115
Hong Kong Dollar (HKD) 181,846 324,185 183,957 337,797
28,133,846 23,296,912
Other assets - net
US Dollar (USD) 15,059 209,060 14,211 204,352
Australian Dollar (AUD) 12 120 37 379
Singapore Dollar (SGD) 69 708 70 742
Hong Kong Dollar (HKD) 3,881 6,919 4,872 8,947
Japanese Yen (JPY) 1,083 138 9 1
Euro (EUR) 359 5,591 79 1,307
Others, USD equivalent 690 9,575 5 77
232,111 215,805
Monetary liabilities
Deposits from customers
US Dollar (USD) 3,195,045 44,355,210 3,033,154 43,616,755
Australian Dollar (AUD) 54,689 531,873 59,779 607,491
Singapore Dollar (SGD) 247,199 2,549,866 218,203 2,303,114
Hong Kong Dollar (HKD) 27,564 49,139 9,134 16,772
GB Poundsterling (GBP) 2,920 53,261 5,230 95,766
Japanese Yen (JPY) 1,810,609 231,414 1,461,852 190,947
Euro (EUR) 67,389 1,049,284 54,469 895,514
Others, USD equivalent 23,026 319,661 25,396 365,191
49,139,708 48,091,550
706 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
41. MONETARY ASSETS AND LIABILITIES IN FOREIGN CURRENCIES (continued)
Balances of monetary assets and liabilities in foreign currencies were as follows: (continued)
2019 2018
Foreign Foreign
currencies Rupiah currencies Rupiah
(in thousand) equivalent (in thousand) equivalent
Monetary liabilities (continued)
Deposits from other banks
US Dollar (USD) 128,706 1,786,768 126,813 1,823,571
Australian Dollar (AUD) 5,288 51,429 424 4,311
Singapore Dollar (SGD) 229 2,363 1,097 11,578
Others, USD equivalent 1 8 - -
1,840,568 1,839,460
Financial liabilities held for trading
US Dollar (USD) 248 3,437 91 1,306
Singapore Dollar (SGD) 34 356 34 357
Hong Kong Dollar (HKD) 18 33 3 5
Japanese Yen (JPY) 2,185 279 5,684 742
Others, USD equivalent 43 592 28 397
4,697 2,807
Acceptance payables
US Dollar (USD) 277,319 3,849,883 316,335 4,548,904
Singapore Dollar (SGD) 158 1,626 - -
GB Poundsterling (GBP) 198 3,618 110 2,022
Japanese Yen (JPY) 901,748 115,252 1,498,012 195,670
Euro (EUR) 20,628 321,183 12,916 212,354
Others, USD equivalent 12,835 178,182 2,236 32,148
4,469,744 4,991,098
Securities sold under agreement to
repurchase
Hong Kong Dollar (HKD) 63,525 113,249 26,200 48,111
113,249 48,111
Borrowings
US Dollar (USD) 4 55 4 57
Hong Kong Dollar (HKD) 38,928 69,399 78,334 143,843
Others, USD equivalent 25 343 24 353
69,797 144,253
Accruals and other liabilities
US Dollar (USD) 2,720 37,764 2,604 37,445
Australian Dollar (AUD) 15 141 29 291
Singapore Dollar (SGD) 2 25 3 27
Hong Kong Dollar (HKD) 883 1,575 883 1,621
GB Poundsterling (GBP) - 1 - 1
Japanese Yen (JPY) 2 - 1 -
Euro (EUR) 21 333 15 252
Others, USD equivalent 10 143 12 174
39,982 39,811
2019 Annual Report | PT Bank Central Asia Tbk 707
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
42. OPERATING SEGMENTS
The Group disclosed the financial information based on the products were as follows:
2019
Loans Treasury Others Total
Assets 572,033,999 255,752,071 91,203,242 918,989,312
Loans receivable - net 572,033,999 - - 572,033,999
Interest and sharia income 49,583,414 10,339,749 3,914,632 63,837,795
Fee-based income 4,910,039 175,689 12,604,159 17,689,887
2018
Loans Treasury Others Total
Assets 524,530,462 216,464,938 83,792,544 824,787,944
Loans receivable - net 524,530,462 - - 524,530,462
Interest and sharia income 43,519,187 9,408,714 3,838,899 56,766,800
Fee-based income 4,112,448 75,365 10,750,318 14,938,131
The Group main operations are managed in Indonesian territory. Bank’s business segment is
classified into 5 (five) main geographic areas, which are Sumatera, Java, Kalimantan, East
Indonesia and overseas operation.
Information regarding segment based on geographic of the Group is presented in table below:
2019
East Overseas
Sumatera Java Kalimantan Indonesia operation Total
Interest and sharia income 3,727,661 56,795,098 1,213,833 2,065,663 35,540 63,837,795
Interest and sharia expense (882,676) (11,739,231) (279,273) (452,056) (7,111) (13,360,347)
Net interest and sharia income - net 2,844,985 45,055,867 934,560 1,613,607 28,429 50,477,448
Net fee and commission income - net 750,866 12,110,220 242,974 500,002 4,319 13,608,381
Net trading income - net 56,573 3,343,939 20,674 31,436 3,720 3,456,342
Other operating income 49,942 3,968,050 9,118 45,316 7,952 4,080,378
Total segment income 3,702,366 64,478,076 1,207,326 2,190,361 44,420 71,622,549
Depreciation and amortisation (42,845) (1,922,521) (13,824) (30,190) (6,235) (2,015,615)
Other material non-cash elements:
Addition of impairment on assets (202,473) (4,230,486) 41,598 (201,915) 1,933 (4,591,343)
Other operating expenses (1,315,499) (26,136,084) (441,694) (809,677) (23,639) (28,726,593)
Income before tax 2,141,549 32,188,985 793,406 1,148,579 16,479 36,288,998
Income tax expense - - - - - (7,719,024)
Net income for the year 2,141,549 32,188,985 793,406 1,148,579 16,479 28,569,974
2019
East Overseas
Sumatera Java Kalimantan Indonesia operation Total
Assets 59,995,632 807,755,303 19,315,578 31,139,056 783,743 918,989,312
Liabilities 59,995,632 629,379,469 19,315,578 31,139,034 237,414 740,067,127
Loans receivable - net 27,461,980 516,363,191 9,531,400 18,328,846 348,582 572,033,999
Deposits from customers 59,366,497 589,593,111 19,239,284 30,781,176 - 698,980,068
Sharia deposits - 1,035,526 - - - 1,035,526
Temporary syirkah deposits - 4,779,029 - - - 4,779,029
708 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
42. OPERATING SEGMENTS (continued)
Information regarding segment based on geographic of the Group is presented in table below:
(continued)
2018
Overseas
Sumatera Java Kalimantan East Indonesia operation Total
Interest and sharia income 3,341,209 50,454,784 1,048,497 1,886,898 35,412 56,766,800
Interest and sharia expense (771,074) (10,071,826) (238,919) (386,709) (7,727) (11,476,255)
Net interest and sharia income - net 2,570,135 40,382,958 809,578 1,500,189 27,685 45,290,545
Net fee and commission income - net 692,452 10,638,161 217,516 443,033 5,178 11,996,340
Net trading income - net 52,801 2,700,502 12,348 35,771 5,927 2,807,349
Other operating income 20,108 2,888,306 9,257 20,817 1,498 2,939,986
Total segment income 3,335,496 56,609,927 1,048,699 1,999,810 40,288 63,034,220
Depreciation and amortisation (45,304) (1,999,994) (11,739) (24,412) (159) (2,081,608)
Other material non-cash elements:
Addition of impairment on assets 102,293 (2,416,393) (68,922) (293,722) 142 (2,676,602)
Other operating expenses (1,236,204) (23,146,516) (403,921) (753,556) (29,749) (25,569,946)
Income before tax 2,156,281 29,047,024 564,117 928,120 10,522 32,706,064
Income tax expense - - - - - (6,854,404)
Net income for the year 2,156,281 29,047,024 564,117 928,120 10,522 25,851,660
2018
Overseas
Sumatera Java Kalimantan East Indonesia operation Total
Assets 54,136,829 725,271,031 17,008,223 27,621,371 750,490 824,787,944
Liabilities 54,136,829 569,471,430 17,008,223 27,621,362 200,935 668,438,779
Loans receivable - net 26,151,097 472,388,970 8,546,351 17,177,977 266,067 524,530,462
Deposits from customers 53,724,812 531,792,853 16,940,227 27,354,125 - 629,812,017
Sharia deposits - 621,315 - - - 621,315
Temporary syirkah deposits - 4,595,738 - - - 4,595,738
43. FINANCIAL RISK MANAGEMENT
The Bank has exposures to the following risks:
- Asset and liability risk
- Credit risk
- Liquidity risk
- Market risk
- Operational risk
- Consolidated risk
The following notes present information about the Bank’s exposure to each of the above risks,
the Bank’s objectives, policies and process which are undertaken by the Bank in measuring
and managing risk.
a. Risk management framework
The Bank recognises that in operating its business, there are inherent risks in its financial
instruments, i.e. credit risk, liquidity risk, market risk which consists of foreign exchange
risk and interest rate risk, operational risk and other risk.
In order to control those risks, the Bank implemented an integrated Risk Management
Framework which is stated in its Basic Policy of Risk Management (“KDMR”). This
framework is used as a tool for determining the strategies, organisation, policies and
guidances as well as the Bank’s infrastructures to ensure that all risks faced by the Bank
can be properly identified, measured, controlled and reported.
2019 Annual Report | PT Bank Central Asia Tbk 709
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/113
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
a. Risk management framework (continued)
To implement an effective risk management, the Bank has established a Risk
Management Committee whose functions are to address overall risk issues faced by the
Bank and recommend risk management policies to the Board of Directors.
In addition to the above-mentioned committee, the Bank also has other committees which
are responsible to handle specific risks, such as: Credit Policy Committee, Credit
Committee and Asset and Liability Committee (“ALCO”).
The Bank always conducts a thorough risk assessment on management plan to release
new products and/or activities in accordance with the type of risks regulated by the
prevailing Bank Indonesia Regulations (“PBI”), Financial Services Authority Regulation
(“POJK”) and other prevailing regulations.
b. Assets and liabilities risk management
ALCO is responsible for evaluating, recommending and establishing the Bank’s funding
and investing strategies. Included in the scope of ALCO activities are managing liquidity
risk, interest rate risk and foreign exchange risk; minimising funding cost and at the same
time maintaining liquidity; and optimising the Bank’s interest income by allocating the
funds to productive assets in a prudent manner.
ALCO is led by the President Director (concurrently as a member of ALCO), with other
members consisting of 10 (ten) directors, Executive Vice President which supervise
Treasury and International Banking Division, Executive Vice President which supervise
Corporate Banking Group, Executive Vice President which supervise Corporate Finance
Division also Corporate Secretary, Head of International Banking Division, Head of
Treasury Division, Head of Corporate Finance Division, Head of Corporate Banking and
Corporate Finance Group, Head of Commercials and SME Division, Head of Transaction
Banking Product Development Division, Head of Business Development & Transaction
Banking Marketing Division, Head of Transaction Banking Cooperation Solution
Development Division, Head of Consumer Credit Business Unit and Head of Risk
Management Unit.
The Bank’s asset and liability management process begins with an assessment of
economic parameters affecting the Bank, which primarily consist of inflation rate, market
liquidity, yield curve, US Dollar-Rupiah exchange rate, and other macro economic factors.
Liquidity risks, foreign currency exchange risks and interest rate risks are reviewed by the
Risk Management Unit and reported to ALCO. ALCO then decides the pricing strategy for
the interest rates on deposits and loans based on the conditions and competition in the
market.
c. Credit risk management
The credit organisation is continuously being improved with an emphasis on the four eyes
principle, in which the credit decision is determined with the considerations of 2 (two)
functions, i.e. business development function and credit risk analysis function.
The Bank has Basic Policy of Bank’s Credit (“KDPB”) which are continuously being
improved, in line with the Bank’s development, PBI, POJK and in accordance with
International Best Practices.
710 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/114
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
The improvement on procedures and credit risk management system are conducted
through the development of “Loan Origination System” which is a policy that regulates the
workflow on loan origination process (end-to-end) in order to achieve an effective and
efficient credit process. Risk profile measurement system is continuously being developed
to determine the risk of debtor completely and correctly. The credit database development
process is also continuously being conducted and improved.
The Credit Policy Committee is responsible for formulating credit policies, especially those
that relate to prudence principles in credit, monitoring and evaluating the implementation
of credit policies so that it can be applied consistently and in accordance with credit policy,
and give advice and corrective actions to resolve problems in the implementation.
The Credit Committee was established to assist Board of Directors in evaluating and/or
providing credit decisions in accordance with their level of authorisation through the Credit
Committee Meeting or Directors’ Circular Letter. The main functions of Credit Committee
are as follows:
x providing further guidance if a thorough and comprehensive credit analysis is needed;
x making a decision or giving a recommendation on a credit proposal for big debtors
and specific industries; and
x coordinating with ALCO, especially when it relates with sources of funding for credits.
The Bank has developed a debtor’s risk rating system, which is known as the Internal
Credit Risk Rating/Scoring System. The Internal Credit Risk Rating/Scoring System
consists of 11 (eleven) categories of risk rating ranging from RR1 to RR10, and the worst
is Loss. The Bank also implements debtor risk rating system for consumptive segment,
which is also called as Internal Credit Risk Scoring System, consists of 10 (ten) risk rating
categories ranging from RR1 (the best/the lowest) to RR10 (the worst/the highest).
Debtor’s risk rating provides an authorised officer with a valuable input for a better and
more appropriate credit decision.
To maintain the credit quality, monitoring over credit quality is performed regularly on each
credit category (Corporate, Commercial, Small & Medium Enterprise (“SME”) and
Consumer) as well as to overall credit portfolio.
The Bank has developed a credit risk management tools through credit portfolio stress
testing analysis and monitoring the results of such stress testing. Stress testing is used by
the Bank as a tool to estimate the impact of stressful condition in order to enable the Bank
creating appropriate strategies to mitigate the risks as part of its contingency plan
implementation.
In order to monitor and control credit risk of the Subsidiaries, the Bank monitors the
Subsidiaries’ credit risk regularly, to ensure that the Subsidiaries have a good and
effective Credit Risk Management Policy.
2019 Annual Report | PT Bank Central Asia Tbk 711
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
i. Maximum exposure to credit risk
For financial assets recognised in the consolidated statements of financial position,
the maximum exposure to credit risk generally equals their carrying amount. For bank
guarantees and irrevocable Letters of Credit issued, the maximum exposure to credit
risk is the maximum amount that the Bank would have to pay if the obligations of the
bank guarantees and irrevocable Letters of Credit issued are called upon. For credit
commitments, the maximum exposure to credit risk is the full amount of the unused
committed loan facilities granted to customers.
The following table presents maximum exposure to Bank and Subsidiaries credit risk
of financial instruments in the consolidated statements of financial position (on-
balance sheet) and consolidated administrative accounts (off-balance sheet).
2019 2018
Consolidated financial position :
Current accounts with Bank Indonesia 47,904,674 43,548,309
Current accounts with other banks 10,521,687 8,497,938
Placements with Bank Indonesia and
other banks 30,948,274 31,682,811
Financial assets held for trading 5,910,146 5,841,824
Acceptance receivables - net 9,492,755 11,582,285
Bills receivable - net 7,909,020 8,600,709
Securities purchased under agreements
to resell - net 9,575,565 9,212,684
Loans receivable - net 572,033,999 524,530,462
Consumer financing receivables - net 10,532,424 7,613,709
Investment in finance leases - net 149,428 174,212
Assets related to sharia transactions -
murabahah receivables - net 1,584,223 1,679,410
Investment securities - net 142,982,705 109,080,663
Other assets - net
Accrued interest income 4,487,493 3,712,424
Transactions related to ATM and
credit card 3,826,536 6,267,324
Unaccepted bills receivable 39,697 88,221
Receivables from customer transactions 166,736 213,234
Receivables from insurance transactions 296,709 226,213
858,362,071 772,552,432
712 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/116
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
i. Maximum exposure to credit risk (continued)
The following table presents maximum exposure to Bank and Subsidiaries credit risk
of financial instruments in the consolidated statements of financial position (on-
balance sheet) and consolidated administrative accounts (off-balance sheet).
(continued)
2019 2018
Consolidated administrative account:
Unused credit facilities to
customers - committed 152,604,164 145,599,557
Unused credit facilities to
other banks - committed 2,455,331 1,260,022
Irrevocable Letters of Credit facilities 8,590,916 10,365,963
Bank guarantees issued to customers 15,737,312 15,241,182
179,387,723 172,466,724
1,037,749,794 945,019,156
ii. Concentration of credit risk analysis
The Bank encourages the diversification of its credit portfolio among a variety of
geographic area, industries and products in order to minimise the credit risk.
The concentration of loans by type of loan, currency and economic sector is
disclosed in Note 13.
Based on counterparty
The following table presents concentration of credit risk of the Group by counterparty:
2019
Government
and Bank
Corporate Indonesia Bank Individual Total
Consolidated financial position:
Current accounts with Bank Indonesia - 47,904,674 - - 47,904,674
Current accounts with other banks - - 10,521,687 - 10,521,687
Placement with Bank Indonesia and
other banks - 26,313,814 4,634,460 - 30,948,274
Financial assets held for trading 299,865 3,378,221 2,232,060 - 5,910,146
Acceptance receivables 9,192,501 535 476,341 - 9,669,377
Bills receivable 627,260 83,962 7,200,532 - 7,911,754
Securities purchased under agreements
to resell 114,620 9,147,128 290,447 25,103 9,577,298
Loans receivable 369,169,253 1,500,000 25,507,282 190,763,048 586,939,583
Consumer financing receivables 291,920 - 298 10,713,303 11,005,521
Investment in finance leases - net 141,806 - - 10,769 152,575
Assets related to sharia transactions -
murabahah receivables 732,819 - - 886,916 1,619,735
Investment securities 23,447,231 110,735,136 8,870,758 - 143,053,125
Other assets
Accrued interest income 1,719,981 1,813,411 274,181 679,923 4,487,496
Transactions related to ATM and
credit card 3,826,536 - - - 3,826,536
Unaccepted bills receivable 40,596 - - - 40,596
Receivables from customer transactions 35,593 - - 131,143 166,736
Receivables from insurance transactions 239,947 - 20,245 36,517 296,709
Total 409,879,928 200,876,881 60,028,291 203,246,722 874,031,822
Less:
Allowance for impairment losses (15,669,751)
858,362,071
2019 Annual Report | PT Bank Central Asia Tbk 713
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
ii. Concentration of credit risk analysis (continued)
Based on counterparty (continued)
The following table presents concentration of credit risk of the Group by counterparty:
(continued)
2019
Government
and Bank
Corporate Indonesia Bank Individual Total
Commitments and contingencies with
credit risk:
Unused credit facilities - committed 128,677,077 500,000 2,455,331 23,427,087 155,059,495
Irrevocable Letters of Credit facilities 8,590,009 - - 907 8,590,916
Bank guarantees issued to customers 14,061,967 - 577,578 1,097,767 15,737,312
151,329,053 500,000 3,032,909 24,525,761 179,387,723
2018
Government
and Bank
Corporate Indonesia Bank Individual Total
Consolidated financial position:
Current accounts with Bank Indonesia - 43,548,309 - - 43,548,309
Current accounts with other banks - - 8,497,938 - 8,497,938
Placement with Bank Indonesia and
other banks - 21,170,352 10,512,459 - 31,682,811
Financial assets held for trading 189,233 4,717,155 935,436 - 5,841,824
Acceptance receivables 11,428,458 167 475,907 13,603 11,918,135
Bills receivable 826,677 366,086 7,413,620 - 8,606,383
Securities purchased under agreements
to resell - 3,986,380 5,195,638 30,666 9,212,684
Loans receivable 326,317,336 2,500,000 23,857,038 185,425,074 538,099,448
Consumer financing receivables 239,107 - 196 7,738,434 7,977,737
Investment in finance leases - net 167,451 - - 10,380 177,831
Assets related to sharia transactions -
murabahah receivables 1,095,243 - - 611,697 1,706,940
Investment securities 19,620,012 80,163,819 9,388,290 - 109,172,121
Other assets
Accrued interest income 1,521,979 1,241,283 290,395 658,767 3,712,424
Transactions related to ATM and
credit card 6,267,324 - - - 6,267,324
Unaccepted bills receivable 90,251 - - - 90,251
Receivables from customer transactions 14,716 - - 198,518 213,234
Receivables from insurance transactions 200,749 - 15,666 9,798 226,213
Total 367,978,536 157,693,551 66,582,583 194,696,937 786,951,607
Less:
Allowance for impairment losses (14,399,175)
772,552,432
Commitments and contingencies with
credit risk :
Unused credit facilities - committed 121,382,320 - 1,287,377 24,189,882 146,859,579
Irrevocable Letters of Credit facilities 10,360,579 - - 5,384 10,365,963
Bank guarantees issued to customers 13,204,698 - 920,186 1,116,298 15,241,182
144,947,597 - 2,207,563 25,311,564 172,466,724
714 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/118
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
iii. Credit risk analysis
The following table presents individually impaired financial assets, financial assets that
are not individually significant and collectively assessed for impairment, past due but
not impaired financial assets and neither past due nor impaired financial assets.
2019
Not
individually
significant
Neither past due nor impaired and
Acceptance receivables, bills collectively
Past due but not impaired receivable and loans receivable Other assessed
Individually 1 - 30 31 - 60 61 - 90 High Standard Low financial for
impaired days days days grade grade grade assets impairment Total
Loans and receivables:
Current accounts with
Bank Indonesia - - - - - - - 47,904,674 - 47,904,674
Current accounts with
other banks - - - - - - - 10,521,687 - 10,521,687
Placements with Bank
Indonesia
and other banks - - - - - - - 29,474,447 - 29,474,447
Acceptance receivables - net - - - - 4,863,217 4,311,314 17,851 - 300,373 9,492,755
Bills receivable - net - - - - 2,979,636 1,321,656 55,514 - 3,552,214 7,909,020
Securities purchased under
agreements to resell - net - - - - - - - 9,575,565 - 9,575,565
Loans receivable - net 1,469,364 716,117 156,606 136,021 244,286,451 83,481,169 1,309,528 - 240,478,743 572,033,999
Consumer financing
receivables - net - - - - - - - - 10,532,424 10,532,424
Investment in finance
leases - net - - - - - - - - 149,428 149,428
Assets related to sharia
transactions - murabahah
receivables - net 6,556 - - - - - - - 1,577,667 1,584,223
Other assets - net
Accrued interest income - - - - - - - - 4,487,493 4,487,493
Transactions related to ATM and
credit card - - - - - - - 3,826,536 - 3,826,536
Unaccepted bills receivable - - - - - - - - 39,697 39,697
Receivables from customer
transactions - - - - - - - - 166,736 166,736
Receivables from insurance
transactions - - - - - - - - 296,709 296,709
1,475,920 716,117 156,606 136,021 252,129,304 89,114,139 1,382,893 101,302,909 261,581,484 707,995,393
Measured at fair value
through profit or loss:
Financial assets held-for-
trading - - - - - - - 5,910,146 - 5,910,146
- - - - - - - 5,910,146 - 5,910,146
Available-for-sale:
Placements with Bank
Indonesia
and other banks - - - - - - - 1,473,827 - 1,473,827
Investment
securities - net - - - - - - - 126,876,925 - 126,876,925
- - - - - - - 128,350,752 - 128,350,752
Held-to-maturity:
Investment
securities - net - - - - - - - 16,105,780 - 16,105,780
- - - - - - - 16,105,780 - 16,105,780
1,475,920 716,117 156,606 136,021 252,129,304 89,114,139 1,382,893 251,669,587 261,581,484 858,362,071
2019 Annual Report | PT Bank Central Asia Tbk 715
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
iii. Credit risk analysis (continued)
The following table presents individually impaired financial assets, financial assets that
are not individually significant and collectively assessed for impairment, past due but
not impaired financial assets and neither past due nor impaired financial assets.
(continued)
2018
Not
individually
Neither past due nor impaired significant
Acceptance receivables, bills and
Past due but not impaired receivable and loans receivable collectively
Other assessed
Individually 1 - 30 31 - 60 61 - 90 High Standard Low financial for
impaired days days days grade grade grade assets impairment Total
Loans and receivables:
Current accounts with
Bank Indonesia - - - - - - - 43,548,309 - 43,548,309
Current accounts with
other banks - - - - - - - 8,497,938 - 8,497,938
Placements with Bank
Indonesia
and other banks - - - - - - - 29,640,544 - 29,640,544
Acceptance receivables - net 2,909 - - - 6,259,128 5,075,845 12,761 - 231,642 11,582,285
Bills receivable - net - - - - 4,823,706 1,024,353 - - 2,752,650 8,600,709
Securities purchased under
agreements to resell - net - - - - - - - 9,212,684 - 9,212,684
Loans receivable - net 1,234,744 110,414 139,455 87,828 226,535,490 67,576,937 1,049,715 - 227,795,879 524,530,462
Consumer financing
receivables - net - - - - - - - - 7,613,709 7,613,709
Investment in finance
leases - net - - - - - - - - 174,212 174,212
Assets related to sharia
transactions - murabahah
receivables - net - - - - - - - - 1,679,410 1,679,410
Other assets - net
Accrued interest income - - - - - - - - 3,712,424 3,712,424
Transactions related to ATM and
credit card - - - - - - - 6,267,324 - 6,267,324
Unaccepted bills receivable - - - - - - - - 88,221 88,221
Receivables from customer
transactions - - - - - - - - 213,234 213,234
Receivables from insurance
transactions - - - - - - - - 226,213 226,213
1,237,653 110,414 139,455 87,828 237,618,324 73,677,135 1,062,476 97,166,799 244,487,594 655,587,678
Measured at fair value
through profit or loss:
Financial assets held-for-
trading - - - - - - - 5,841,824 - 5,841,824
- - - - - - - 5,841,824 - 5,841,824
Available-for-sale:
Placements with Bank
Indonesia
and other banks - - - - - - - 2,042,267 - 2,042,267
Investment
securities - net - - - - - - - 95,252,803 - 95,252,803
- - - - - - - 97,295,070 - 97,295,070
Held-to-maturity:
Investment
securities - net - - - - - - - 13,827,860 - 13,827,860
- - - - - - - 13,827,860 - 13,827,860
1,237,653 110,414 139,455 87,828 237,618,324 73,677,135 1,062,476 214,131,553 244,487,594 772,552,432
Individually impaired financial assets
Individually impaired financial assets are financial assets that are individually
significant and there is objective evidence that impairment loss has incurred after
initial recognition of the financial assets.
Based on the Bank’s internal policy, loans that are determined to be individually
significant are loans to corporate and commercial debtors.
716 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/120
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
iii. Credit risk analysis (continued)
Financial assets that are not individually significant and assessed for collective
impairment
Financial assets that are not individually significant consist of loans and receivables
of the Group to retail debtors, i.e. Small & Medium Enterprise (“SME”) debtors,
consumer financing receivables (including joint financing) debtors, mortgage and its
housing renovation loans, vehicle loans and credit card.
The Group determines that impairment losses of financial assets that are not
individually significant are assessed collectively, by grouping those financial assets
based on similar risk characteristics.
Past due but not impaired financial assets
Past due but not impaired financial assets are financial assets from corporate and
commercial segment, for which contractual interest or principal payments are past due,
but the Group believes that individual impairment has not occured on the basis of the
level of security/collateral available and/or the stage of collection of amounts owed to
the Group.
Neither past due nor impaired financial assets
Included in neither past due nor impaired financial assets are financial assets which
are not impaired individually and have been grouped based on similar risk
characteristics for the purpose of assessing its collective impairment for the incurred
but not yet reported losses (“IBNR”).
Based on its quality, neither past due nor impaired loans receivable, acceptance
receivables and bills receivable are classified into 3 (three) categories, i.e. high
grade, standard grade and low grade, in accordance with the Bank’s internal
estimate of each debtor’s probability of default or certain portfolios that have been
assessed against a range of qualitative and quantitative factors.
Loans receivable, acceptance receivables and bills receivable with risk rating of
RR1 to RR7 are included in high grade category. Included in high grade category are
loans to debtors which have strong capacity to repay all of its obligations in a timely
manner, supported by strong fundamental factors and are not easily affected by
unfavourable economic conditions.
2019 Annual Report | PT Bank Central Asia Tbk 717
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/121
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
iii. Credit risk analysis (continued)
Neither past due nor impaired financial assets (continued)
Loans receivable, acceptance receivables and bills receivable with risk rating of
RR8 to RR9 are included in standard grade category. Included in standard grade
category are loans to debtors which considered to have sufficient capacity to repay
its contractual interest and principal, but quite sensitive to unfavourable changes of
economic conditions.
Loans receivable, acceptance receivables and bills receivable with risk rating RR10
and Loss are included in low grade category. Included in low grade category are loans
to debtors with volatile repayment capacity, have poor fundamental factors and are
easily affected by unfavourable economic conditions.
iv. Collateral
Collateral is held to mitigate credit risk exposures and risk mitigation policies determine
the eligibility of collateral types that can be accepted by the Bank. The Bank
differentiates collateral types based on its liquidity and existence into solid
collaterals and non-solid collaterals. Solid collaterals are collaterals which have
relatively high liquidity value and/or the existence is permanent (is not easily moved)
i.e., cash collaterals and land/building, and therefore, the collaterals can be
repossessed or taken over by the Bank when the loan to debtor/group debtor
becomes non-performing. Non-solid collaterals are collaterals which have relatively low
liquidity value and/or the existence is temporary (easily moveable) i.e., vehicles,
machineries, inventories, receivables, etc. As of 31 December 2019 and 2018, the
Bank held collaterals against loans receivables in the form of cash, properties
(land/building), motor vehicles, guarantees, machineries, inventories, debt securities,
etc.
The Bank’s policy in connection with collateral as mitigation of credit risk depends
on the credit category or facilities provided. For SME loans, all loans should be
supported with collateral (collateral based lending) whereby at least 50% (fifty percent)
of it are solid collaterals. For corporate and commercial loans, the collateral values
are determined based on the individual debtor credit worthiness. The collateral value
is determined based on the appraisal value at the time of loan approval and
periodically reviewed.
718 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
iv. Collateral (continued)
For mortgage facility (“KPR”), the Bank requires that all facilities should be supported
by collateral properties (land/building). The Bank applies the Loan-to-Value (“LTV”)
regulation gradually, starting from the first mortgage facility and so forth, in
accordance with the rules imposed by the regulator. Value of the collateral for KPR
is calculated based on the collateral value when credit is granted and renewed
every 30 (thirty) months. For auto loan facility (“KKB”), the Bank requires that all
facilities should be supported by collateral vehicles. The Bank applied the down
payment rule, in accordance with the regulation imposed by the regulator.
Subsidiaries’ consumer financing receivables are secured by the related
certificates of ownership (“BPKB”) of the vehicles being financed.
For foreign exchange transactions, either spot or forward, the Bank requires cash
collaterals which is set at a certain percentage of facility provided. If the debtor has
other credit facilities in the Bank, the debtor may use the collateral that has been given
previously to be crossed with each other. The policy on percentage of the required
collateral will be reviewed periodically, in line with the fluctuation and volatility of
Rupiah currency to foreign currency exchange rate.
Details of financial and non-financial assets obtained by the Bank during the year by
taking possession of collaterals held as security against financial assets as of
31 December 2019 and 2018, presented in other assets at the lower of carrying
amount and net realisable value, were as follows:
2019 2018
Land 131,980 70,324
Building 803,028 456,181
Other commercial properties 39,911 665
Financial assets and other assets 1,960 2,703
Fair value 976,879 529,873
The Bank generally does not use repossessed non-cash collateral for its own
operations. The Bank’s policy is to realise collaterals which are repossessed as part
of the settlement of credit.
2019 Annual Report | PT Bank Central Asia Tbk 719
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/123
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
c. Credit risk management (continued)
v. Financial assets held for trading
As of 31 December 2019 and 2018, the Group had financial assets held for trading
at the fair value amounting to Rp 5,910,146 and Rp 5,841,824, respectively (see
Note 9). Information on credit quality of the maximum exposure to credit risk of
financial assets held for trading was as follows:
2019 2018
Government securities:
Investment grade 3,378,221 4,717,155
Corporate bonds:
Investment grade 132,990 40,616
Derivative assets:
Other banks as counterparties 1,814,854 906,915
Corporates as counterparties 120,742 133,041
Others 463,339 44,097
Fair value 5,910,146 5,841,824
vi. Investment securities
As of 31 December 2019 and 2018, the Group had investment securities at the
carrying value amounting to Rp 142,982,705 and Rp 109,080,663, respectively (see
Note 15). Information on credit quality of the maximum exposure to credit risk of
investment securities was as follows:
2019 2018
Government securities:
Investment grade 109,838,886 79,211,468
Corporate bonds:
Investment grade 16,839,052 15,066,115
Others 16,304,767 14,803,080
Carrying value 142,982,705 109,080,663
d. Liquidity risk management
The Bank emphasises the importance of maintaining adequate liquidity to meet its
commitments to its customers and other parties, whether in loans disbursement,
repayment of customers’ deposits or to meet operational liquidity requirements. The
management of overall liquidity needs is overseen by ALCO and operationally by the
Treasury Division.
The Bank has implemented the relevant liquidity rules in accordance with regulatory
requirement for the Bank to maintain Rupiah liquidity (Minimum Statutory Reserve/Giro
Wajib Minimum or GWM) both on daily and on average for a particular reporting period,
which consists of Primary Minimum Statutory Reserve and MIR (Macroprudential
Intermediation Ratio) in the form of Rupiah demand deposits at Bank Indonesia, MLB
(Macroprudential Liquidity Buffer) in the form of SBI, SDBI and SBN, as well as foreign
currency Minimum Statutory Reserve in the form of foreign currency demand deposits in
Bank Indonesia.
720 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/124
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
d. Liquidity risk management (continued)
The Bank monitors its liquidity by maintaining sufficient liquid assets to repay the
customers’ deposits and ensuring that total assets mature in each period is sufficient to
cover total matured liabilities.
The Bank’s liquid assets mainly consist of placements with Bank Indonesia and other
banks, including current accounts with Bank Indonesia and other banks and cash. If the
Bank needs liquidity, the Bank can immediately drawdown excess reserve funds over its
Minimum Statutory Reserve in the current accounts with Bank Indonesia (“GWM”), sell
the Certificates of Bank Indonesia (“SBI”)/State Debentures (“SUN”)/other government
securities or sell SBI/SUN/other government securities under repurchase agreements,
early redemption of BI term deposits or seek for borrowings from interbank money market
in Indonesia. The Bank’s primary reserve consists of the Minimum Statutory Reserve
and cash held at branches.
In order to reduce risk of dependency to single funding, the Subsidiaries have
diversified its funding resources. Besides capital and collection from customers, the
Subsidiaries generate funding resources from bank loans and capital market, through
bonds and medium-term notes issuance.
The following table presents the contractual undiscounted cash flows of financial liabilities
and administrative accounts of the Group based on remaining period to contractual maturity
as of 31 December 2019 and 2018:
2019
Gross
nominal
Carrying inflow/ >1-3 > 3 months - >1–5 >5
amount (outflow) Up to 1 month months 1 year years years
Non-derivative financial liabilities
Deposits from customers (698,980,068) (699,367,072) (647,106,202) (34,798,731) (17,462,139) - -
Sharia deposits (1,035,526) (1,036,015) (1,036,015) - - - -
Deposits from other banks (6,717,474) (6,717,597) (6,681,497) (36,000) (100) - -
Acceptance payables (5,321,249) (5,321,249) (1,919,003) (2,301,825) (1,026,305) (74,116) -
Securities sold under agreements
to repurchase (113,249) (114,750) (114,750) - - - -
Debt securities issued (1,347,523) (1,551,087) - (26,760) (842,279) (682,048) -
Borrowings (2,332,870) (2,335,654) (73,158) (148,286) (1,864,397) (249,813) -
Other liabilities (3,287,368) (3,287,368) (3,268,228) (17,426) (1,704) (10) -
Subordinated bonds (500,000) (509,296) (9,296) - - - (500,000)
(719,635,327) (720,240,088) (660,208,149) (37,329,028) (21,196,924) (1,005,987) (500,000)
Derivative financial liabilities
Financial liabilities held for trading: (106,260)
Outflow (9,189,024) (5,244,953) (3,163,079) (780,992) - -
Inflow 9,084,206 5,193,975 3,119,612 770,619 - -
Other liabilities (38,783) (38,783) (38,783) - - - -
(145,043) (143,601) (89,761) (43,467) (10,373) - -
Administrative accounts
Unused credit facilities to
customers - committed (152,604,164) (152,604,164) - - - -
Unused credit facilities to
other banks - committed (2,455,331) (2,455,331) - - - -
Irrevocable Letters of Credit facilities (8,590,916) (3,142,922) (4,293,786) (1,154,208) - -
Bank guarantees issued to
customers (15,737,312) (1,563,549) (2,954,540) (8,987,269) (2,220,596) (11,358)
(179,387,723) (159,765,966) (7,248,326) (10,141,477) (2,220,596) (11,358)
(719,780,370) (899,771,412) (820,063,876) (44,620,821) (31,348,774) (3,226,583) (511,358)
2019 Annual Report | PT Bank Central Asia Tbk 721
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/125
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
d. Liquidity risk management (continued)
The following table presents the contractual undiscounted cash flows of financial liabilities
and administrative accounts of the Group based on remaining period to contractual maturity
as of 31 December 2019 and 2018: (continued)
2018
Gross
nominal
Carrying inflow/ >1-3 > 3 months - >1–5 >5
amount (outflow) Up to 1 month months 1 year years years
Non-derivative financial liabilities
Deposits from customers (629,812,017) (630,209,040) (585,523,692) (30,646,614) (14,038,734) - -
Sharia deposits (621,315) (621,657) (621,657) - - - -
Deposits from other banks (6,494,491) (6,494,562) (6,456,962) (37,500) (100) - -
Acceptance payables (5,843,486) (5,843,486) (1,969,737) (2,653,028) (1,108,574) (112,147) -
Securities sold under agreements
to repurchase (48,111) (49,386) (49,386) - - - -
Debt securities issued (239,735) (250,188) - (5,094) (245,094) - -
Borrowings (2,093,475) (2,097,061) (251,494) (122,500) (1,491,922) (231,145) -
Other liabilities (5,600,443) (5,600,443) (5,588,712) (9,078) (2,653) - -
Subordinated bonds (500,000) (508,972) (8,972) - - - (500,000)
(651,253,073) (651,674,795) (600,470,612) (33,473,814) (16,887,077) (343,292) (500,000)
Derivative financial liabilities
Financial liabilities held for trading: (188,934)
Outflow (6,880,448) (4,577,272) (1,185,592) (1,117,584) - -
Inflow 6,756,169 4,505,857 1,165,473 1,084,839 - -
Other liabilities (25,518) (25,518) (25,518) - - - -
(214,452) (149,797) (96,933) (20,119) (32,745) - -
Administrative accounts
Unused credit facilities to
customers - committed (145,599,557) (145,599,557) - - - -
Unused credit facilities to
other banks - committed (1,260,022) (1,260,022) - - - -
Irrevocable Letters of Credit facilities (10,365,963) (3,934,116) (4,442,304) (1,484,835) (504,708) -
Bank guarantees issued to
customers (15,241,182) (1,565,166) (3,253,063) (8,220,583) (2,202,295) (75)
(172,466,724) (152,358,861) (7,695,367) (9,705,418) (2,707,003) (75)
(651,467,525) (824,291,316) (752,926,406) (41,189,300) (26,625,240) (3,050,295) (500,075)
The tables above were prepared based on remaining contractual maturities of the
financial liabilities and irrevocable Letters of Credit facility, while for issued guarantee
contracts and unused committed credit facility were based on its earliest possible
contractual maturity. The Bank’s and Subsidiaries’ expected cash flows from these
instruments vary significantly from the above analysis. For example, current accounts
and saving accounts are expected to have a stable or increasing balance, or unused
committed credit facility to customers/other banks are not all expected to be drawn
down immediately.
The nominal inflow and outflow disclosed in the above table represents the contractual
undiscounted cash flows relating to the principal and interest on the financial liabilities
or commitments. The disclosure for derivatives shows a gross inflow and outflow
amount for derivatives that have simultaneous gross settlement (e.g., foreign currency
forward).
Analysis on the carrying value of financial assets and liabilities based on remaining
contractual maturities as of 31 December 2019 and 2018 are disclosed in Note 44.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
e. Market risk management
i. Foreign exchange risk
The Bank conducts foreign currency trading in accordance with its internal policies
and regulations from Bank Indonesia regarding Net Open Position (“NOP”). In
managing its foreign exchange risk, the Bank centralises the management of its
NOP at the Treasury Division, which consolidates daily NOP reports from all
branches. In general, each branch is required to square its foreign exchange risk at
the end of each business day, although there is a NOP tolerance limit set for each
branch depending on the volume of its foreign exchange activity. The Bank prepares
its daily NOP report which combines the NOP from consolidated statements of financial
position and administrative accounts. Bank has considered Domestic Non delivery
Forward (DNDF) transaction as part of NOP report.
The Bank’s revenue from foreign currency trading is mainly obtained from customer-
related transactions and sometimes the Bank has NOP in certain amount to fulfill the
customer’s needs, in accordance with the Bank’s internal guidelines. Trading for
profit-taking purposes (proprietary trading) can only be performed for limited foreign
currencies with small limits.
The Bank’s foreign currency liabilities mainly consist of deposits and borrowings
denominated in US Dollar. To comply with the NOP regulations, the Bank maintains
its assets which consist of placements with other banks and loans receivable in USD.
To measure foreign exchange risk on trading book, the Bank uses Value at Risk
("VaR") method with Historical Simulation approach for the purpose of internal
reporting, meanwhile for the purpose of Bank's Capital Adequacy Ratio ("CAR")
report, the Bank used OJK standard method.
Bank’s sensitivity towards foreign currency is taken into account by using NOP
information translated to major foreign currency of the Bank, which is USD. The table
below summarises the Bank’s profit before tax sensitivity on changes of foreign
exchange rate as of 31 December 2019 and 2018:
Impact on profit before tax
+5% -5%
31 December 2019 (3,881) 3,881
31 December 2018 (6,093) 6,093
Information about Bank’s NOP as of 31 December 2019 and 2018 were disclosed in
Note 45.
2019 Annual Report | PT Bank Central Asia Tbk 723
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/127
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
e. Market risk management (continued)
ii. Interest rate risk
Interest Rate Risk in the Banking Book
The calculation of interest rate risk in the banking book ("IRRBB") uses two
perspectives, which are the economic value perspective and the earnings perspective.
It is intended so the Bank can identify risks more accurately and perform appropriate
corrective actions.
To mitigate IRRBB, the Bank has set nominal limits for fixed rate loans and banking
book securities, IRRBB limits and pricing strategies.
The measurement of IRRBB using 2 (two) methods is in accordance to Circular Letter
of OJK No. 12/SEOJK.03/2018 regarding the Implementation of Risk Management
and Standard Approach for Risk Measurement of Interest Rate Risk in Banking Book
for Conventional Banks:
a. Measurement based on the changes in the economic value of equity, which
measures the impact of changes in interest rates on the economic value of Bank
equity; and
b. Measurement based on the changes in net interest income, which measures the
impact of changes in interest rates on the Bank's earnings.
The Bank measures IRRBB for significant currencies, which are IDR and USD. In total
of IRRBB, the maximum negative (absolute) value of the two currencies is aggregated.
The result of IRRBB calculation using EVE method as of 31 December 2019 was
3.17% of Tier 1 Capital. While, based on the NII method as of 31 December 2019 was
5.43% of Projected Income.
Interest Rate Risk in the Trading Book
The risk measurement is performed on Rupiah and USD which are then reported to
ALCO. To measure interest rate risk on the trading book, the Bank uses VaR method
with Historical Simulation approach for internal reporting purposes, while for the
Minimum Capital Adequacy Ratio purpose, the Bank uses OJK’s standard approach.
Cash flow interest rate risk is the risk that future cash flow from financial instruments
fluctuates due to the movement in market interest rates. Fair value interest rate risk is
the risk that the fair value of financial instruments fluctuates due to the movement in
market interest rates. The Bank has exposure to the volatility in market interest rates
both to the fair value risk and cash flows risk. To mitigate this risk, the Board of
Directors have set VaR limits for trading book, which are monitored by the Risk
Management Unit on a daily basis.
The Subsidiary is exposed to interest rate risk arising from consumer financing
receivables, factoring receivables, other receivables, the issuance of fixed rate bonds
payable and medium-term notes payable. The Subsidiary manages the interest rate
risk by diversifying its financing sources to find the most suitable fixed interest rate to
minimise mismatch.
724 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/128
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
e. Market risk management (continued)
ii. Interest rate risk (continued)
The table below summarises the Group financial assets and liabilities (non-trading
purposes) at carrying amounts, categorised by the earlier of contractual re-pricing or
maturity dates:
2019
Floating interest rate Fixed interest rate
Up to 3 > 3 months - Up to 3 > 3 months - More than 1 Non-interest
months 1 year months 1 year year bearing Total
Financial assets
Current accounts with
Bank Indonesia - - - - - 47,904,674 47,904,674
Current accounts with
other banks 10,521,687 - - - - - 10,521,687
Placements with Bank
Indonesia
and other banks - - 29,679,822 711,202 557,250 - 30,948,274
Acceptance receivables - net 2,195,448 1,294,721 - - - 6,002,586 9,492,755
Bills receivable - net - - 7,909,020 - - - 7,909,020
Securities purchased under
agreements to resell - net - - 5,289,326 4,286,239 - - 9,575,565
Loans receivable - net 412,930,737 44,350,584 3,172,180 11,587,817 99,992,681 - 572,033,999
Consumer financing
receivables - net - - 1,199,425 3,866,249 5,466,750 - 10,532,424
Investment in finance
leases - net - - 28,800 47,803 72,825 - 149,428
Assets related to sharia
transactions - murabahah
receivables - net - - - - - 1,584,223 1,584,223
Investment securities - net 15,586,109 - 16,815,066 36,497,675 73,440,328 643,527 142,982,705
Other assets - - 86,558 4,100 - 8,726,513 8,817,171
441,233,981 45,645,305 64,180,197 57,001,085 179,529,834 64,861,523 852,451,925
Total
Financial liabilities
Deposits from customers (530,552,234) - (149,514,560) (18,913,274) - - (698,980,068)
Sharia deposits - - - - - (1,035,526) (1,035,526)
Deposits from other banks (6,597,936) - (119,438) (100) - - (6,717,474)
Acceptance payables - - - - - (5,321,249) (5,321,249)
Securities sold under
agreements to repurchase - - (113,249) - - - (113,249)
Debt securities issued - - - (758,006) (589,517) - (1,347,523)
Borrowings - - (468,660) (1,614,397) (249,813) - (2,332,870)
Other liabilities - - - - - (3,326,151) (3,326,151)
Subordinated bonds - - - - (500,000) - (500,000)
Total (537,150,170) - (150,215,907) (21,285,777) (1,339,330) (9,682,926) (719,674,110)
Interest rate re-pricing gap (95,916,189) 45,645,305 (86,035,710) 35,715,308 178,190,504 55,178,597 132,777,815
2018
Floating interest rate Fixed interest rate
Up to 3 > 3 months - Up to 3 > 3 months - More than 1 Non-interest
months 1 year months 1 year year bearing Total
Financial assets
Current accounts with
Bank Indonesia - - - - - 43,548,309 43,548,309
Current accounts with
other banks 8,497,938 - - - - - 8,497,938
Placements with Bank
Indonesia
and other banks - - 29,610,654 2,011,628 60,529 - 31,682,811
Acceptance receivables - net 2,282,716 3,072,930 - - - 6,226,639 11,582,285
Bills receivable - net - - 8,600,709 - - - 8,600,709
Securities purchased under
agreements to resell - net - - 9,182,018 30,666 - - 9,212,684
Loans receivable - net 372,050,967 30,884,072 6,041,850 24,742,234 90,811,339 - 524,530,462
Consumer financing
receivables - net - - 867,683 2,781,085 3,964,941 - 7,613,709
Investment in finance
leases - net - - 44,995 58,850 70,367 - 174,212
Assets related to sharia
transactions - murabahah
receivables - net - - - - - 1,679,410 1,679,410
Investment securities - net 13,842,503 - 20,387,803 20,570,491 53,673,587 606,279 109,080,663
Other assets - - 233,926 25,996 - 10,245,346 10,505,268
Total 396,674,124 33,957,002 74,969,638 50,220,950 148,580,763 62,305,983 766,708,460
2019 Annual Report | PT Bank Central Asia Tbk 725
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/129
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
e. Market risk management (continued)
ii. Interest rate risk (continued)
The table below summarises the Group financial assets and liabilities (non-trading
purposes) at carrying amounts, categorised by the earlier of contractual re-pricing or
maturity dates: (continued)
2018
Floating interest rate Fixed interest rate
Up to 3 > 3 months - Up to 3 > 3 months - More than 1 Non-interest
months 1 year months 1 year year bearing Total
Financial liabilities
Deposits from customers (483,003,754) - (131,455,903) (15,352,360) - - (629,812,017)
Sharia deposits - - - - - (621,315) (621,315)
Deposits from other banks (6,415,990) - (78,401) (100) - - (6,494,491)
Acceptance payables - - - - - (5,843,486) (5,843,486)
Securities sold under
agreements to repurchase - - (48,111) - - - (48,111)
Debt securities issued - - - (239,735) - - (239,735)
Subordinated bonds - - - - (500,000) - (500,000)
Borrowings - - (194,830) (1,666,922) (231,723) - (2,093,475)
Other liabilities - - - - - (5,625,961) (5,625,961)
Total (489,419,744) - (131,777,245) (17,259,117) (731,723) (12,090,762) (651,278,591)
Interest rate re-pricing gap (92,745,620) 33,957,002 (56,807,607) 32,961,833 147,849,040 50,215,221 115,429,869
f. Operational risk management
Implementation of operational risk management (MRO) are outlined in Financial Services
Authority Regulation (“POJK”) No. 18/POJK.03/2016 dated 16 March 2016.
The Bank has Basic Policy of Operational Risk Management (“KMRO”) as the basic
guideline for managing operational risk in all working units.
The Bank has qualified infrastructure to support implementation of operational risk
management, named Operational Risk Management Information System (ORMIS),
which consists of three modules. The modules are Risk and Control Self Assesstment
(RCSA), Loss Event Database (LED), and Key Risk Indicator (KRI). This web-based
application can be used by all working units to help them in managing operational risk. In
order to make implementation of operational risk management is more effective and
efficient, the bank continuously enhance the ORMIS in accordance with the latest bank
operational activities.
Risk and Control Self Assessment (“RCSA”)
RCSA aims to improve the awareness culture in managing operational risk to improve
risk control of each employee in conducting their daily activities so it can minimize
operational risk loss.
RCSA is conducted regularly in all working units (branches and head office) that are
significantly exposed to operational risk.
The Bank regularly reviews and revalidates operational risk that may occur in working
unit and also assess impact and likelihood grading that is used for RCSA so that the
assessment of operational risk can provide more precise overview of activities and risk
profiles of each working unit and bankwide.
726 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/130
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
f. Operational risk management (continued)
Loss Event Database (“LED”)
LED is used to gather operational risk loss data from all working units. The data are used
by Bank to calculate Capital Requirement using Standardized Measurement Approach
(SMA) method for operational risk. On the other hand, LED data is used to analyze and
monitor operational risk events to take action immediately and minimize loss.
The Bank always conducts an independent review of operational risk loss data
comprehensively to maintain the validity of data which are provided by working units.
Key Risk Indicator (“KRI”)
KRI can provide an early warning sign of increasing operational risk in a working unit.
Whenever there is an increase in risk, the system will send a notification to Risk
Manager, so they can immediately take necessary actions to minimize operational risk
that may occur.
The Bank regularly reviews and revalidates KRI parameters and thresholds to ensure
KRI effectiveness in providing early warning signs of increased operational risk in
working units.
The Bank presents implementation of operational risk management to working units and
conducts Risk Awareness Program to embed and enhance the awareness culture in
managing operational risk in working units.
g. Consolidated risk management
In accordance with Financial Services Authority Regulation (“POJK”)
No. 38/POJK.03/2017 dated 12 July 2017 regarding the Implementation of Consolidated
Risk Management for Banks with Control over Subsidiaries, the Bank is required to
implement consolidated risk management.
Implementation of consolidated risk management in the Bank is performed based on
the above-mentioned Financial Services Authority regulation, including:
x Active supervision of Board of Commissioners and Board of Directors;
x Adequate policies and procedures and setting limits;
x Adequacy of the process of identification, measurement, monitoring and risk control,
as well as risk management information system; and
x A comprehensive internal control system.
By refering to the concept for implementation of consolidated risk management, the
implementation of risk management framework in Subsidiaries has been indirectly
monitored and examined by the Bank’s management.
2019 Annual Report | PT Bank Central Asia Tbk 727
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/131
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
43. FINANCIAL RISK MANAGEMENT (continued)
g. Consolidated risk management (continued)
In accordance with Financial Services Authority Regulation (“POJK”) No.
17/POJK.03/2014 dated 18 November 2014 regarding the Implementation of Integrated
Risk Management for Financial Conglomeration, a financial conglomeration should
implement a comprehensive and effective integrated risk management, in this case the
Bank as the main entity is obliged to integrate the implementation of risk management
within the financial conglomeration.
Referring to the implementation of integrated risk management concept, implementation
of tasks and responsibilities of Integrated Risk Management Working Unit is one of the
functions of the existing Risk Management Working Unit. In performing their duties,
Integrated Risk Management Working Unit coordinates with working units that conduct
Risk Management function on the respective Financial Service Institution (“LJK”) in
financial conglomeration.
In addition to implement risk management in accordance with the regulations of their
respective regulators, Subsidiaries have also implemented risk management in line with
the implementation of risk management in the Main Entity. The purpose of implementing
risk management in Subsidiaries is to provide added value and increase the
competitiveness of companies, considering this is one of the fulfillments of the Bank's
compliance with regulations and international standard practices.
In order to implement of integrated risk management effectively, the Bank also has an
Accounting Information System and Risk Management System that can identify, measure
and monitor the business risks of the Bank and Subsidiaries.
The Bank as the Main Entity has:
1. formed Integrated Risk Management Committee (“KMRT”) with the aim of ensuring
that the risk management framework has provided adequate protection to all Bank’s
and Subsidiaries’ risks in integrated manner;
2. compiled Basic Policy of Integrated Risk Management (“KDMRT”);
3. compiled several policies related to the implementation of Integrated Risk
Management, including policies governing integrated capital, intra-group
transactions, Integrated Risk Profile Reports and others; and
4. submitted to OJK:
a. Reports regarding the Main Entity and LJK included as members of the financial
conglomeration to the OJK.
b. Integrated Risk Profile Report.
c. Integrated Capital Sufficiency Report.
d. Report on Changes in Members of the Financial Conglomerate.
Beside that the Group as conglomeration has performed integrated Stress Test to ensure
that capital and liquidity on conglomeration level are still adequate during worst conditions
(stress).
728 2019 Annual Report | PT Bank Central Asia Tbk
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
44. MATURITY GAP OF FINANCIAL ASSETS AND LIABILITIES
The following table summarises the maturity gap profile of the Group financial assets and
liabilities based on the remaining period until the contractual maturity date as of 31 December
2019 and 2018:
2019
No
> 3 months - More than contractual
Up to 1 month > 1 - 3 months 1 years > 1 - 5 years 5 years maturity Total
Financial assets
Cash - - - - - 25,421,406 25,421,406
Current accounts with Bank Indonesia - - - - - 47,904,674 47,904,674
Current accounts with other banks 10,521,687 - - - - - 10,521,687
Placement with Bank Indonesia
and other banks 16,437,828 13,320,874 632,322 557,250 - - 30,948,274
Financial assets held for trading 584,848 1,605,433 3,169,828 366,685 183,352 - 5,910,146
Acceptance receivables - net 2,589,902 4,334,386 2,495,647 72,820 - - 9,492,755
Bills receivable - net 1,940,866 3,198,668 2,769,486 - - - 7,909,020
Securities purchased under
agreements to resell - net 5,264,535 23,466 4,287,564 - - - 9,575,565
Loans receivable 31,190,189 48,679,014 174,808,447 186,644,023 146,413,158 - 587,734,831
Less:
Allowance for impairment losses
and deferred provision and
commission income - - - - - - (15,700,832)
Consumer financing receivable - net 119,797 170,298 1,464,379 8,627,482 150,468 - 10,532,424
Investment in finance leases - net 4,104 2,320 30,277 112,727 - - 149,428
Assets related to sharia
transactions - murabahah
receivables - net 325 3,091 57,537 919,045 604,225 - 1,584,223
Investment securities - net 25,056,036 7,046,253 36,774,299 72,107,766 1,354,823 643,528 142,982,705
Other assets - net 4,175,291 379,227 1,160,054 2,204,225 710,400 187,974 8,817,171
97,885,408 78,763,030 227,649,840 271,612,023 149,416,426 74,157,582 883,783,477
Financial liabilities
Deposits from customers (646,719,198) (34,798,731) (17,462,139) - - - (698,980,068)
Sharia deposits (1,035,526) - - - - - (1,035,526)
Deposits from other banks (6,681,374) (36,000) (100) - - - (6,717,474)
Financial liabilities held for trading (62,716) (35,786) (2,613) (5,145) - - (106,260)
Securities sold under
agreement to repurchase (113,249) - - - - - (113,249)
Acceptance payables (1,919,003) (2,301,825) (1,026,305) (74,116) - - (5,321,249)
Debt securities issued - - (758,006) (589,517) - - (1,347,523)
Borrowings (70,374) (148,286) (1,864,397) (249,813) - - (2,332,870)
Other liabilities (3,307,011) (17,426) (1,704) (10) - - (3,326,151)
Subordinated bonds - - - - (500,000) - (500,000)
(659,908,451) (37,338,054) (21,115,264) (918,601) (500,000) - (719,780,370)
Net position (562,023,043) 41,424,976 206,534,576 270,693,422 148,916,426 74,157,582 164,003,107
2018
No
> 3 months - More than contractual
Up to 1 month > 1 - 3 months 1 years > 1 - 5 years 5 years maturity Total
Financial assets
Cash - - - - - 21,691,443 21,691,443
Current accounts with Bank Indonesia - - - - - 43,548,309 43,548,309
Current accounts with other banks 8,497,938 - - - - - 8,497,938
Placement with Bank Indonesia
and other banks 28,412,993 1,197,660 2,011,629 60,529 - - 31,682,811
Financial assets held for trading 2,225,222 1,220,207 2,195,922 115,895 84,578 - 5,841,824
Acceptance receivables - net 3,088,222 4,329,898 4,053,162 111,003 - - 11,582,285
Bills receivable - net 2,269,070 3,639,615 2,692,024 - - - 8,600,709
Securities purchased under
agreements to resell - net 5,195,638 3,986,380 30,666 - - - 9,212,684
Loans receivable 36,042,785 41,393,814 158,902,156 175,803,366 126,714,191 - 538,856,312
Less:
Allowance for impairment losses
and deferred provision and
commission income - - - - - - (14,325,850)
Consumer financing receivable - net 131,998 133,085 917,521 6,242,104 189,001 - 7,613,709
Investment in finance leases - net 11,225 2,163 19,138 141,686 - - 174,212
Assets related to sharia
transactions - murabahah
receivables - net 170 1,370 34,642 1,015,521 627,707 - 1,679,410
Investment securities - net 27,891,286 5,849,836 20,978,132 52,774,584 980,545 606,280 109,080,663
Other assets - net 6,463,907 423,526 803,364 1,963,074 686,557 166,988 10,507,416
120,230,454 62,177,554 192,638,356 238,227,762 129,282,579 66,013,020 794,243,875
Financial liabilities
Deposits from customers (585,126,669) (30,646,614) (14,038,734) - - - (629,812,017)
Sharia deposits (621,315) - - - - - (621,315)
Deposits from other banks (6,456,891) (37,500) (100) - - - (6,494,491)
Financial liabilities held for trading (79,223) (26,167) (51,379) (32,165) - - (188,934)
Securities sold under
agreement to repurchase (48,111) - - - - - (48,111)
Acceptance payables (1,969,737) (2,653,028) (1,108,574) (112,147) - - (5,843,486)
Debt securities issued - - (239,735) - - - (239,735)
Borrowings (247,908) (122,500) (1,491,922) (231,145) - - (2,093,475)
Other liabilities (5,614,230) (9,078) (2,653) - - - (5,625,961)
Subordinated bonds - - - - (500,000) - (500,000)
(600,164,084) (33,494,887) (16,933,097) (375,457) (500,000) - (651,467,525)
Net position (479,933,630) 28,682,667 175,705,259 237,852,305 128,782,579 66,013,020 142,776,350
2019 Annual Report | PT Bank Central Asia Tbk 729
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
45. NET OPEN POSITION
The Bank’s net foreign exchange positions (Net Open Position or “NOP”) as of 31 December
2019 and 2018 were calculated based on prevailing Bank Indonesia Regulations. Based on
those regulations, banks are required to maintain the NOP (including all domestic and
overseas branches) at the maximum of 20% (twenty percent) of capital.
The aggregate NOP represents the sum of the absolute values of (i) the net difference
between assets and liabilities denominated in each foreign currency and (ii) the net difference
of receivables and liabilities of both commitments and contingencies recorded in the
administrative account (administrative account transactions) denominated in each foreign
currency, which are all stated in Rupiah. The NOP for statement of financial position
represents the sum of the net differences of assets and liabilities on the statement of financial
position for each foreign currency, which are all stated in Rupiah.
The Bank’s NOP as of 31 December 2019 and 2018 were as follows:
2019
NOP for statement Net difference
of financial between
position (net receivables and
difference liabilities in Overall NOP
between assets administrative (absolute
and liabilities) accounts amount)
USD 54,416,449 (55,851,054) 1,434,605
SGD (42,209) (59,010) 101,219
AUD 32,891 (31,060) 1,831
HKD 26,061 (25,011) 1,050
GBP 26,774 (25,533) 1,241
EUR 301,204 (313,032) 11,828
JPY 192,370 (192,561) 191
CAD 18,984 (18,403) 581
CHF 16,352 (14,057) 2,295
DKK 2,611 (2,791) 180
MYR 1,533 - 1,533
NZD 21,660 (18,671) 2,989
SAR 6,214 (6,940) 726
SEK 2,080 (1,388) 692
CNY (85,679) 87,199 1,520
THB (639) - 639
Others 1,393 - 1,393
Total 1,564,513
Total capital (Note 46) 167,281,590
Percentage of NOP to capital 0.94%
730 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/134
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
45. NET OPEN POSITION (continued)
The Bank’s NOP as of 31 December 2019 and 2018 were as follows: (continued)
2018
NOP for statement Net difference
of financial between
position (net receivables and
difference liabilities in Overall NOP
between assets administrative (absolute
and liabilities) accounts amount)
USD 32,135,226 (32,779,195) 643,969
SGD (139,255) 9,517 129,738
AUD (8,321) 9,020 699
HKD 20,538 (20,103) 435
GBP 26,701 (27,467) 766
EUR (164,261) 161,118 3,143
JPY 118,207 (118,291) 84
CAD 28,184 (27,259) 925
CHF 24,515 (23,840) 675
DKK (914) 2,165 1,251
MYR 16,113 - 16,113
NZD 19,679 (19,318) 361
SAR 7,815 (7,190) 625
SEK 1,329 (729) 600
CNY (112,721) 112,834 113
THB 2,077 - 2,077
Others 1,105 - 1,105
Total 802,679
Total capital (Note 46) 148,193,541
Percentage of NOP to capital 0.54%
46. CAPITAL MANAGEMENT
The primary objective of the Bank’s capital management policy is to ensure that the Bank has
a strong capital to support the Bank’s current business expansion strategy and to sustain
future development of the business, to meet regulatory capital adequacy requirements and
also to ensure the efficiency of the Bank’s capital structure.
The Bank prepares the Capital Plan based on assessment of and review over the capital
situation in terms of the legal capital adequacy requirement, combined with current economic
outlook assesment and the result of stress testing method. The Bank will continue to link
financial goals and capital adequacy to risk appetite through the capital planning process and
stress testing and assess the businesses based on Bank’s capital and liquidity requirements.
The Bank’s capital needs are also planned and discussed on a routine basis, supported by
data analysis.
The Capital Plan is prepared by the Board of Directors as part of the Bank’s Business Plan
and approved by the Board of Commissioners. This plan is expected to ensure an adequate
level of capital optimum capital structure.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
46. CAPITAL MANAGEMENT (continued)
Based on BI Regulation No. 8/6/PBI/2006 dated 30 January 2006 and BI Circular Letter No.
8/27/DPNP dated 27 November 2006 requires all banks to meet CAR requirements for the
bank on an individual and consolidated basis. The calculation of minimum CAR on
consolidated basis is performed by calculating capital and Risk-Weighted Assets (“RWA”)
based on risks from consolidated financial statements as provided in the prevailing Bank
Indonesia Regulations.
BI Circular Letter No. 11/3/DPNP dated 27 January 2009 requires all banks in Indonesia with
certain qualification to take into account operational risk in the CAR calculation.
The Bank is required to provide minimum capital in accordance with risk profile as of 31
December 2019 and 2018 based on Financial Services Authority Regulation
No. 11/POJK.03/2016 dated 2 February 2016.
The Bank calculates its capital requirements based on the prevailing OJK Regulations, where
the regulatory capital consisted of two tiers:
x Core Capital (Tier 1), which includes:
1. Common Equity (CET 1), which includes issued and fully paid-up capital (after
deduction of treasury stock), additional paid-up capital, allowable non-controlling
interest and deductions from Common Equity.
2. Additional Core Capital
x Supplementary Capital (Tier 2), which includes capital instrument in form of shares or
other allowable instruments, agio or disagio from supplementary capital issuance,
required general allowance for productive assets (maximum of 1.25% RWA credit risk),
specific reserve and deductions from tier 2 capital.
The CAR as of 31 December 2019 and 2018, calculated in accordance with the prevailing
regulations, taking into account the credit risk, market risk and operational risk, were as
follows:
2019 2018
Bank Consolidated Bank Consolidated
I. Core Capital (Tier 1) 160,318,613 170,750,375 141,687,397 149,412,372
II. Supplementary Capital (Tier 2) 6,962,977 7,137,864 6,506,144 6,639,146
Total Capital 167,281,590 177,888,239 148,193,541 156,051,518
Risk-Weighted Assets based on risk profile
RWAs Considering Credit Risk 596,998,897 609,939,978 538,872,893 551,236,800
RWAs Considering Market Risk 6,942,916 6,566,021 3,429,199 3,088,738
RWAs Considering Operational Risk 98,983,486 105,411,073 91,331,739 97,206,002
Total RWAs 702,925,299 721,917,072 633,633,831 651,531,540
Min. Capital Requirement
based on risk profile 9.99% 9.99% 9.99% 9.99%
CAR ratio
CET 1 ratio 22.81% 23.65% 22.36% 22.93%
Tier 1 ratio 22.81% 23.65% 22.36% 22.93%
Tier 2 ratio 0.99% 0.99% 1.03% 1.02%
CAR ratio 23.80% 24.64% 23.39% 23.95%
CET 1 for Buffer 13.81% 14.65% 13.40% 13.96%
732 2019 Annual Report | PT Bank Central Asia Tbk
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/136
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
46. CAPITAL MANAGEMENT (continued)
The CAR as of 31 December 2019 and 2018, calculated in accordance with the prevailing
regulations, taking into account the credit risk, market risk and operational risk, were as
follows: (continued)
2019 2018
Bank Consolidated Bank Consolidated
Regulatory Minimum Capital Requirement
Allocation
From CET 1 9.00% 9.00% 8.96% 8.97%
From AT 1 0.00% 0.00% 0.00% 0.00%
From Tier 2 0.99% 0.99% 1.03% 1.02%
Regulatory Buffer percentage required
by Bank
Capital Conservation Buffer 2.500% 2.500% 1.875% 1.875%
Countercyclical Buffer 0.000% 0.000% 0.000% 0.000%
Capital Surcharge for Systemic Bank 2.500% 2.500% 1.500% 1.500%
47. NON-CONTROLLING INTEREST
The movement of non-controlling interest in net assets of Subsidiaries was as follows:
2019 2018
Balance, beginning of year 93,743 98,139
Non-controlling interest portion of Subsidiaries net profit
during the year 4,921 (3,494)
Increase (decrease) of non-controlling interest from
other comprehensive income of Subsidiaries during the year 1,561 (902)
Balance, end of year 100,225 93,743
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Related parties Nature of relationship Nature of transaction
PT Dwimuria Investama Andalan Shareholder Deposits from customers
Dana Pensiun BCA Employer pension fund Loans receivable, pension fund
contribution, deposits from
customers
PT Adiwisesa Mandiri Building Owned by the same ultimate Loans receivable, deposits from
Product Indonesia shareholder customers
PT Agra Bareksa Energi Owned by the same ultimate Deposits from customers
shareholder
PT Agra Bareksa Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Agra Primera Plantation Owned by the same ultimate Deposits from customers
shareholder
PT Akar Inti Teknologi Owned by the same ultimate Deposits from customers
shareholder
PT Alpha Merah Kreasi Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Altius Bahari Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Alto Network Owned by the same ultimate Deposits from customers
shareholder
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Related parties Nature of relationship Nature of transaction
PT Andil Bangunsekawan Owned by the same ultimate Deposits from customers
shareholder
PT Angkasa Komunikasi Global Owned by the same ultimate Deposits from customers
Utama shareholder
PT Ansvia Owned by the same ultimate Deposits from customers
shareholder
PT Arta Karya Adhiguna Owned by the same ultimate Deposits from customers
shareholder
PT Artha Dana Teknologi Owned by the same ultimate Deposits from customers
shareholder
PT Artha Mandiri Investama Owned by the same ultimate Deposits from customers
shareholder
PT Bahtera Maju Selaras Owned by the same ultimate Deposits from customers
shareholder
PT Bangun Media Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Bhumi Mahardika Jaya Owned by the same ultimate Deposits from customers
shareholder
PT Bukit Muria Jaya Estate Owned by the same ultimate Deposits from customers
shareholder
PT Bukit Muria Jaya Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Bukit Muria Jaya Karton Owned by the same ultimate Loans receivable
shareholder
PT Caturguwiratna Sumapala Owned by the same ultimate Deposits from customers
shareholder
PT Cipta Karya Bumi Indah Owned by the same ultimate Deposits from customers
shareholder
PT Ciptakreasi Buana Persada Owned by the same ultimate Deposits from customers
shareholder
PT Cipta Teknologi Cerdas Owned by the same ultimate Deposits from customers
shareholder
PT Darta Media Indonesia Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Daya Cipta Makmur Owned by the same ultimate Deposits from customers
shareholder
PT Daya Maju Lestari Owned by the same ultimate Deposits from customers
shareholder
PT Digital Otomotif Indonesia Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Digital Startup Nusantara Owned by the same ultimate Deposits from customers
shareholder
PT Djarum Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Dwi Cermat Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Dynamo Media Network Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Ecogreen Oleochemicals Owned by the same ultimate Deposits from customers,
shareholder guarantees issued, letter of credit
PT Energi Batu Hitam Owned by the same ultimate Loans receivable, deposits from
shareholder customers, guarantees issued
PT Fajar Surya Perkasa Owned by the same ultimate Deposits from customers
shareholder
734 2019 Annual Report | PT Bank Central Asia Tbk
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Related parties Nature of relationship Nature of transaction
PT Fajar Surya Swadaya Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Farindo Investama Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Fira Makmur Sejahtera Owned by the same ultimate Deposits from customers
shareholder
PT Fokus Solusi Proteksi Owned by the same ultimate Deposits from customers
shareholder
PT Futami Food & Beverages Owned by the same ultimate Deposits from customers
shareholder
PT Gajah Merah Terbang Owned by the same ultimate Deposits from customers
shareholder
PT General Buditekindo Owned by the same ultimate Loans receivable, deposits from
shareholder customers, guarantees issued
PT Global Dairi Alami Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Global Digital Niaga Owned by the same ultimate Loans receivable, deposits from
shareholder customers, guarantees issued
PT Global Digital Ritelindo Owned by the same ultimate Deposits from customers
shareholder
PT Global Distribusi Nusantara Owned by the same ultimate Deposits from customers
shareholder
PT Global Distribusi Pusaka Owned by the same ultimate Deposits from customers,
shareholder guarantees issued
PT Global Kassa Sejahtera Owned by the same ultimate Deposits from customers
shareholder
PT Global Media Visual Owned by the same ultimate Deposits from customers
shareholder
PT Global Poin Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Global Tiket Network Owned by the same ultimate Loans receivable, deposits from
shareholder customers, guarantees issued
PT Global Visi Media Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Global Visitama Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Globalnet Aplikasi Indotravel Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Globalnet Sejahtera Owned by the same ultimate Deposits from customers
shareholder
PT Gonusa Prima Distribusi Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Graha Padma Internusa Owned by the same ultimate Deposits from customers
shareholder
PT Grand Indonesia Owned by the same ultimate Loans receivable, deposits from
shareholder customers, guarantees issued,
office rental transaction
PT Griya Muria Kencana Owned by the same ultimate Deposits from customers
shareholder
PT Hartono Istana Teknologi Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Hartono Plantation Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Iforte Global Internet Owned by the same ultimate Deposits from customers
shareholder
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/139
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Related parties Nature of relationship Nature of transaction
PT Iforte Solusi Infotek Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Indo Paramita Sarana Owned by the same ultimate Deposits from customers
shareholder
PT Intershop Prima Centre Owned by the same ultimate Deposits from customers
shareholder
PT Kalimusada Motor Owned by the same ultimate Deposits from customers
shareholder
PT Kecerdasan Buatan Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Komet Infra Nusantara Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Kudos Istana Furniture Owned by the same ultimate Deposits from customers
shareholder
PT Kumala Rimba Lestari Owned by the same ultimate Deposits from customers
shareholder
PT Kumparan Kencana Electrindo Owned by the same ultimate Deposits from customers
shareholder
PT Legal Tekno Digital Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Lingkarmulia Indah Owned by the same ultimate Deposits from customers
shareholder
PT Lintas Cipta Media Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Lunar Inovasi Teknologi Owned by the same ultimate Deposits from customers
shareholder
PT Marga Sadhya Swasti Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Margo Hotel Development Owned by the same ultimate Deposits from customers
shareholder
PT Margo Property Development Owned by the same ultimate Deposits from customers
shareholder
PT Mediapura Digital Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Merah Cipta Media Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Mitra Media Integrasi Owned by the same ultimate Deposits from customers
shareholder
PT Multigraha Lestari Owned by the same ultimate Deposits from customers
shareholder
PT Nagaraja Lestari Owned by the same ultimate Deposits from customers
shareholder
PT Nova Digital Perkasa Owned by the same ultimate Deposits from customers
shareholder
PT Orbit Abadi Sakti Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Poly Kapitalindo Owned by the same ultimate Deposits from customers
shareholder
PT Pradipta Mustika Cipta Owned by the same ultimate Deposits from customers
shareholder
PT Profesional Telekomunikasi Owned by the same ultimate Loans receivable, deposits from
Indonesia shareholder customers
PT Promedia Punggawa Satu Owned by the same ultimate Deposits from customers
shareholder
736 2019 Annual Report | PT Bank Central Asia Tbk
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Related parties Nature of relationship Nature of transaction
PT Promoland Indowisata Owned by the same ultimate Deposits from customers,
shareholder guarantees issued
PT Prosa Solusi Cerdas Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Puri Dibya Property Owned by the same ultimate Deposits from customers
shareholder
PT Puri Zuqni Owned by the same ultimate Deposits from customers
shareholder
PT Quattro International Owned by the same ultimate Deposits from customers
shareholder
PT Resinda Prima Entertama Owned by the same ultimate Deposits from customers
shareholder
PT Sapta Adhikari Investama Owned by the same ultimate Deposits from customers
shareholder
PT Sarana Kencana Mulya Owned by the same ultimate Deposits from customers
shareholder
PT Sarana Menara Nusantara Owned by the same ultimate Deposits from customers
shareholder
PT Savoria Kreasi Rasa Owned by the same ultimate Deposits from customers,
shareholder guarantees issued
PT Seminyak Mas Propertindo Owned by the same ultimate Deposits from customers
shareholder
PT Sentral Investama Andalan Owned by the same ultimate Deposits from customers
shareholder
PT Sewu Nayaga Tembaya Owned by the same ultimate Deposits from customers
shareholder
PT Silva Rimba Lestari Owned by the same ultimate Deposits from customers
shareholder
PT Sineira Rimba Belantara Owned by the same ultimate Deposits from customers
shareholder
PT Suarniaga Indonesia Owned by the same ultimate Deposits from customers
shareholder
PT Sumber Kopi Prima Owned by the same ultimate Loans receivable, deposits from
shareholder customers
PT Swarnadwipa Serdangjaya Owned by the same ultimate Deposits from customers
shareholder
PT Tricipta Mandhala Gumilang Owned by the same ultimate Deposits from customers
shareholder
PT Trigana Putra Mandiri Owned by the same ultimate Deposits from customers
shareholder
PT Verve Persona Estetika Owned by the same ultimate Deposits from customers
shareholder
PT Wana Hijau Pesaguan Owned by the same ultimate Deposits from customers
shareholder
Key management personnel Bank’s Board of Commissioners Loans receivable, deposits from
and Board of Directors customers, employee benefits
The Bank’s controlling individuals Shareholder Deposits from customers
and their family members
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PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/141
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
In the normal course of business, the Bank has transactions with related parties due to their
common ownership and/or management. All transactions with related parties are conducted
with agreed terms and conditions.
The details of significant balances and transactions with related parties that were not
consolidated as of 31 December 2019 and 2018, and for the years then ended were as
follows:
2019 2018
Percentage to Percentage to
Amount total Amount total
Loans receivable*) (Note 13) 4,233,122 0.72% 3,216,263 0.60%
Prepaid expense**) (Note 16) 211,012 13.73% 224,409 16.33%
Other assets***) 7,758 0.06% 8,036 0.06%
Deposits from customers (Note 20) 1,326,903 0.19% 2,489,190 0.40%
Unused credit facilities to customers (Note 28) 2,374,191 1.10% 426,591 0.21%
Letter of credit facilities to customers (Note 28) 53,004 0.62% 31,857 0.31%
Bank guarantee issued to customers (Note 28) 144,500 0.92% 93,619 0.61%
Interest and sharia income (Note 29) 88,462 0.14% 70,286 0.12%
Interest and sharia expenses (Note 30) 40,388 0.30% 36,013 0.31%
Rental expenses (Note 35) 13,398 0.94% 13,398 0.93%
Contribution to pension plan (Note 34) 228,359 79.34% 216,950 79.39%
*) Before allowance for impairment losses.
**) Represent prepaid rental and security deposits to PT Grand Indonesia.
***) Represent rental deposit to PT Grand Indonesia.
Compensations for key management personnel of the Bank (see Note 1e) were as follows:
2019 2018
Short-term employee benefits (including tantiem) 604,627 503,325
Long-term employee benefits 37,161 38,031
Total 641,788 541,356
Rental agreement with PT Grand Indonesia
On 11 April 2006, the Bank signed a rental agreement with PT Grand Indonesia (a related
party), in which the Bank agreed to lease, on a long-term basis, the office space from
PT Grand Indonesia with a total area of 28,166.88 sqm at an amount of
USD 35,631,103.20, including Value Added Tax (“VAT”), with an option to lease for long-term
additional space of 3,264.80 sqm at an amount of USD 4,129,972, including VAT. This rental
transaction was approved by the Board of Directors and Shareholders in the Bank’s
Extraordinary General Meeting of Shareholders on 25 November 2005 (the minutes of
meeting was prepared by Notary Public Hendra Karyadi, S.H., with Deed No. 11). This rental
agreement started on 1 July 2007 and will end on 30 June 2035.
The Bank was required to pay an advance of USD 3,244,092.50 on 5 December 2005,
including VAT and 10 (ten) installments of USD 3,238,701.07, including VAT, for the period
of 15 April 2006 to 31 December 2006.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Rental agreement with PT Grand Indonesia (continued)
As of 31 December 2006, the Bank had paid USD 32,392,402.13, including VAT and it was
recorded as other assets. On 2 January 2007, the Bank settled the payments (paid the tenth
installment) amounting to USD 3,238,701.07, including VAT.
On 29 June 2007, the Bank paid the lease for additional space in the 28 th and 29th floors of
3,264.80 sqm at an amount of USD 4,129,972, including VAT.
This agreement was notarised by Notary Public Hendra Karyadi, S.H., under Deed No. 14
dated 11 April 2006.
Starting May 2008, the Bank has calculated the amortisation for those prepaid rental
expenses. As of 31 December 2019 and 2018, amortisation of prepaid rental expenses was
Rp 153,402 and Rp 140,005, respectively, such that the remaining prepaid rental payment to
PT Grand Indonesia as of 31 December 2019 and 2018 were Rp 211,012 and
Rp 224,409, respectively, which was recorded as prepaid expenses.
On 24 October 2008, the Bank paid security deposits for additional space on the 30th (thirtieth)
and 31st (thirty first) floor of 3,854.92 sqm at an amount of USD 208,165.68. This agreement
was notarised in Deed No. 110 dated 22 May 2008 of Notary Public Dr. Irawan Soerodjo,
S.H., Msi.
Rental payment for the 30th (thirthieth) and 31st (thirty first) floor started on 1 August 2009, for
which in accordance with the agreement between the Bank and PT Grand Indonesia, starting
from the first rental payment date (1 August 2009), the Bank will make the rental payments
on a quarterly basis until the lease expires.
On 19 July 2011, the Bank paid security deposits for additional space on the 32nd (thirty
second) floor of 1,932.04 sqm at an amount of USD 118,801.46. This agreement was
notarised in Deed No. 32 dated 12 September 2011 of Notary Public Lim Robbyson Halim,
S.H., M.H., replacement of Notary Public Dr. Irawan Soerodjo, S.H., Msi., Notary in Jakarta.
Rental payment for the 32nd floor started on 1 September 2011, for which in accordance with
the agreement between the Bank and PT Grand Indonesia, starting from the first rental
payment date (1 September 2011), the Bank will make the rental payments on a quarterly
basis until the lease expires.
On 22 June 2015, the Bank paid security deposits for additional space on the 33rd (thirty third)
floor of 1,932.04 sqm at an amount of USD 231,844.80. This agreement was notarised in
Deed No. 413 dated 30 June 2015 of Notary Public Dr. Irawan Soerodjo, S.H., Msi., Notary
in Jakarta.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
48. TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
Rental agreement with PT Grand Indonesia (continued)
Rental payment for the 33rd floor started on 1 September 2015, for which in accordance with
the agreement between the Bank and PT Grand Indonesia, starting from the first rental
payment date (1 September 2015), the Bank will make the rental payments on a quarterly
basis until the lease expires.
49. NET PAYABLE RECONCILIATION
2019
Securities sold
Debt under
Subordinated securities agreements to
bonds issued Borrowings repurchase
Net payable 1 January 2019 500,000 239,735 2,093,475 48,111
Cash flow:
Proceeds from debt securities issued - 1,346,617 - -
Payment of debt securities issued - (240,000) - -
Proceeds from borrowings - - 88,649,720 -
Payment of borrowings - - (88,406,964) -
Proceeds from securities sold under agreements
to repurchase - - - 698,016
Payment of securities sold under agreements
to repurchase - - - (629,756)
Non-cash changes:
Amortisation of deffered bonds issuance costs - 1,171 - -
Adjustment of foreign currency - - (3,361) (3,122)
Net payable 31 December 2019 500,000 1,347,523 2,332,870 113,249
2018
Securities sold
Debt under
Subordinated securities agreements to
bonds issued Borrowings repurchase
Net payable 1 January 2018 - 610,499 3,040,602 96,225
Cash flow:
Proceeds from subordinated bonds 500,000 - - -
Payment of debt securities issued - (370,764) - -
Proceeds from borrowings - - 66,872,390 -
Payment of borrowings - - (67,830,206) -
Proceeds from securities sold under agreements
to repurchase - - - 1,460,662
Payment of securities sold under agreements
to repurchase - - - (1,519,429)
Non-cash changes:
Adjustment of foreign currency - - 10,689 10,653
Net payable 31 December 2018 500,000 239,735 2,093,475 48,111
740 2019 Annual Report | PT Bank Central Asia Tbk
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
50. GOVERNMENT GUARANTEE SCHEME ON THE OBLIGATIONS OF DOMESTIC BANKS
Based on the Law No. 24 regarding Indonesia Deposit Insurance Corporation (Lembaga
Penjaminan Simpanan or “LPS”) dated 22 September 2004, effective 22 September 2005,
the LPS was established to provide guarantee on certain obligations of commercial banks
based on the prevailing guarantee schemes, in which the guarantee amount could be
changed if certain prevailing criteria are met. The law was changed with the Government
Regulation as the Replacement of Law No. 3 Year 2008, which was then changed to a law
since 13 January 2009 i.e. the Law of Republic of Indonesia No. 7 Year 2009.
Based on Government of Republic of Indonesia Regulation No. 66/2008 dated 13 October
2008 regarding the deposit amount guaranteed by LPS, on 31 December 2019 and 2018, the
deposit amount guaranteed by LPS for every customer in a bank is at a maximum of
Rp 2,000.
As of 31 December 2019 and 2018, the Bank was the participant of this guarantee scheme.
51. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE
Financial Accounting Standard Board of Indonesian Institute of Accountants (DSAK-IAI) has
issued the following new standards, amendments and interpretations, but not yet effective for
the financial year beginning 1 January 2019 as follows:
- SFAS 71 “Financial Instruments”;
- SFAS 72 "Revenue from Contracts with Customers";
- SFAS 73 “Leases”;
- The amendments to SFAS 15 “Investments in Associates and Joint Ventures: Long-term
Interest in Associates and Joint Ventures”;
- The amendments to SFAS 62 “Insurance contract - Implementation of SFAS 71: Financial
Instruments”;
- The amendments to SFAS 71 “Financial Instruments: Prepayment Features with Negative
Compensation”;
- The amendments to SFAS 1 “Presentation of Financial Statement”;
- The amendments to SFAS 25 “Accounting Policies, Changes in Accounting Estimates and
Errors”;
- Annual Improvements 2019 to SFAS 1 “Presentation of Financial Statements”;
- ISFAS 35 “Presentation of Non-Profit Oriented Entities Financial Statements”; and
- PPSAK 13 Revocation of SFAS 45 Financial Reporting for Non-profit Organisations.
The above standards will be effective on 1 January 2020.
- The amendments to SFAS 22 “Business Combination”; and
- SFAS 112 “Accounting Wakaf”.
The above standard will be effective on 1 January 2021.
As at the authorisation date of these consolidated financial statements, the Group is evaluating
the potential impact of these new and revised standards to the Group consolidated financial
statements.
2019 Annual Report | PT Bank Central Asia Tbk 741
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk AND SUBSIDIARIES Schedule 5/145
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
52. SUBSEQUENT EVENTS
The following are significant subsequent events conducted by the Bank and Subsidiaries:
PT Bank Royal Indonesia
Based on the Deed of Resolution of PT Bank Royal Indonesia No. 167 dated 27 January
2020, of Notary Public Sakti Lo, S.H., the following decisions have been taken:
1. Approved the increase in authorised capital of PT Bank Royal Indonesia, from Rp 748,800
to Rp 3,000,000; and
2. Approved the increase in issued and paid-up capital of PT Bank Royal Indonesia from
Rp 287,200 to Rp 1,287,200, PT Bank Royal Indonesia will issue 10,000,000 new shares
with nominal value of Rp 1,000,000 which all are subscribed to the Bank.
This Deed was approved by the Minister of Justice and Human Rights under its Decision
Letter No. AHU-0008370.AH.01.02.TAHUN 2020 dated 30 January 2020. The additional paid-
in capital has been approved by OJK through its Letter No. SR-2/ PB.33/2020 dated 9 January
2020. This additional paid-in capital payment have been made by the Bank on 5 December
2019, and as Other Assets as at 31 December 2019.
PT Bank Rabobank International Indonesia
The Bank has signed the credit facility agreement with PT Bank Rabobank International
Indonesia for a total facility amounted to Rp 1,100,000 or equivalent to USD 100,000,000 (in
full amount) on 14 January 2020, with interest rate at JIBOR plus margin. This facility will
expire on 30 June 2020. PT Bank Rabobank International Indonesia has withdrawn the credit
facility amounted to Rp 210,000 on 30 January 2020.
53. ADDITIONAL INFORMATION
Information presented in schedule 6/1 - 6/7 are additional financial information of PT Bank
Central Asia Tbk, (Parent Entity), which presented investment in Subsidiaries according to
cost method and are an integral part of the consolidated financial statements of the Group.
742 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk Schedule 6/1
ADDITIONAL INFORMATION
STATEMENTS OF FINANCIAL POSITION (PARENT ENTITY ONLY)
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2019 2018
ASSETS
Cash 25,402,712 21,677,576
Current accounts with Bank Indonesia 47,611,639 43,282,691
Current accounts with other banks 10,451,954 8,474,189
Placements with Bank Indonesia and other banks 29,541,325 30,403,652
Financial assets held for trading 5,838,673 5,776,887
Acceptance receivables - net of allowance for
impairment losses of Rp 176,622 as of
31 December 2019 (31 December 2018: Rp 335,850) 9,492,755 11,582,285
Bills receivable - net of allowance for impairment
losses of Rp 2,734 as of 31 December 2019
(31 December 2018: Rp 5,645) 7,909,020 8,534,552
Securities purchased under agreements to resell 9,268,902 9,182,017
Loans receivable - net of allowance for impairment
losses of Rp 14,905,039 as of
31 December 2019 (31 December 2018: Rp 13,568,311)
Related parties 5,896,763 3,295,056
Third parties 567,449,148 521,051,066
Investment securities - net of
allowance for impairment losses
Rp nihil as of 31 December 2019
(31 December 2018: Rp 803) 136,424,944 106,011,781
Prepaid expenses 1,174,300 1,060,718
Prepaid tax 5,637 5,235
Fixed assets - net of accumulated depreciation of
Rp 10,716,816 as of 31 December 2019
(31 December 2018: Rp 9,862,667) 20,225,494 18,814,438
Intangible assets - net of accumulated amortisation of
Rp 1,307,319 as of 31 December 2019
(31 December 2018: Rp 1,009,154) 527,812 508,456
Deferred tax assets - net 2,954,236 2,925,098
Investment in shares - net of allowance for impairment
losses of Rp 58,646 as of 31 December 2019
(31 December 2018: Rp 36,966) 5,765,385 3,599,218
Other assets - net of allowance for impairment
losses of Rp 899 as of 31 December 2019
(31 December 2018: Rp 2,030) 13,095,263 12,463,204
TOTAL ASSETS 899,035,962 808,648,119
2019 Annual Report | PT Bank Central Asia Tbk 743
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk Schedule 6/2
ADDITIONAL INFORMATION
STATEMENTS OF FINANCIAL POSITION (PARENT ENTITY ONLY)
31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2019 2018
LIABILITIES AND EQUITY
LIABILITIES
Deposits from customers
Related parties 1,652,310 2,772,111
Third parties 697,652,276 627,322,840
Deposits from other banks 6,726,687 6,504,001
Financial liabilities held for trading 106,260 188,934
Acceptance payables 5,321,249 5,843,486
Tax payables 1,554,227 1,053,915
Borrowings 975 986
Post-employment benefits obligation 7,856,432 6,296,530
Accruals and other liabilities 10,718,960 12,245,851
Subordinated bonds 500,000 500,000
TOTAL LIABILITIES 732,089,376 662,728,654
EQUITY
Share capital - par value per share of Rp 62.50 (full amount)
Authorised capital: 88,000,000,000 shares
Issued and fully paid: 24,655,010,000 shares 1,540,938 1,540,938
Additional paid-in capital 5,711,368 5,711,368
Revaluation surplus of fixed assets 9,423,272 8,675,407
Unrealised gains (losses) on available-for-sale
financial assets - net 1,923,192 (130,353)
Retained earnings
Appropriated 1,955,604 1,697,052
Unappropriated 146,392,212 128,425,053
TOTAL EQUITY 166,946,586 145,919,465
TOTAL LIABILITIES AND EQUITY 899,035,962 808,648,119
744 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk Schedule 6/3
ADDITIONAL INFORMATION
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
(PARENT ENTITY ONLY)
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2019 2018
OPERATING INCOME AND EXPENSES
Interest income 59,999,838 52,952,930
Interest expenses (12,925,739) (11,084,595)
INTEREST INCOME - NET 47,074,099 41,868,335
OTHER OPERATING INCOME
Fee and commission income - net 13,540,023 11,908,191
Net trading income - net 3,394,113 2,775,758
Others 2,124,389 1,374,139
Total other operating income 19,058,525 16,058,088
Impairment losses on assets (4,104,654) (2,367,389)
OTHER OPERATING EXPENSES
Personnel expenses (12,248,042) (10,998,606)
General and administrative expenses (13,209,161) (12,074,173)
Others (2,215,954) (1,553,340)
Total other operating expenses (27,673,157) (24,626,119)
INCOME BEFORE TAX 34,354,813 30,932,915
INCOME TAX EXPENSE (7,090,901) (6,230,370)
NET INCOME 27,263,912 24,702,545
OTHER COMPREHENSIVE INCOME:
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit liability (357,090) 362,416
Income tax 71,418 (269,202)
(285,672) 93,214
Revaluation surplus of fixed assets 747,865 2,087,910
462,193 2,181,124
Items that will be reclassified to profit or loss:
Unrealised gains (losses) on available-for-sale
financial assets 2,566,931 (1,842,681)
Income tax (513,386) 452,523
Unrealised gains (losses) on available-for-sale -
net of tax 2,053,545 (1,390,158)
OTHER COMPREHENSIVE INCOME,
NET OF INCOME TAX 2,515,738 790,966
TOTAL COMPREHENSIVE INCOME 29,779,650 25,493,511
BASIC AND DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT ENTITY (full amount of Rupiah) 1,106 1,002
2019 Annual Report | PT Bank Central Asia Tbk 745
746
PT BANK CENTRAL ASIA Tbk Schedule 6/4
ADDITIONAL INFORMATION
STATEMENTS OF CHANGES IN EQUITY (PARENT ENTITY ONLY)
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
Financial Highlights
(Expressed in millions of Rupiah, unless otherwise stated)
2019
Unrealised gains
(losses) on
Revaluation available-for-sale
Issued and fully Additional paid- surplus of fixed financial assets- Retained earnings
2019 Annual Report | PT Bank Central Asia Tbk
paid-up capital in capital assets net Appropriated Unappropriated Total equity
Balance, 31 December 2018 1,540,938 5,711,368 8,675,407 (130,353) 1,697,052 128,425,053 145,919,465
Net income for the year - - - - - 27,263,912 27,263,912
Management Report
Revaluation surplus of fixed assets - - 747,865 - - - 747,865
Unrealised gains on available-
for-sale financial
assets - net - - - 2,053,545 - - 2,053,545
Remeasurement of defined
benefit liability - net - - - - - (285,672) (285,672)
Total comprehensive income for the year - - 747,865 2,053,545 - 26,978,240 29,779,650
Corporate Profile
General reserve - - - - 258,552 (258,552) -
Cash dividends - - - - - (8,752,529) (8,752,529)
Balance, 31 December 2019 1,540,938 5,711,368 9,423,272 1,923,192 1,955,604 146,392,212 166,946,586
Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk Schedule 6/5
ADDITIONAL INFORMATION
STATEMENTS OF CHANGES IN EQUITY (PARENT ENTITY ONLY)
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
Corporate Governance
2018
Unrealised gains
(losses) on
Revaluation available-for-sale
Issued and fully Additional paid- surplus of fixed financial assets- Retained earnings
paid-up capital in capital assets net Appropriated Unappropriated Total equity
Balance, 31 December 2017 1,540,938 5,711,368 6,587,497 1,259,805 1,463,952 110,272,696 126,836,256
Net income for the year - - - - - 24,702,545 24,702,545
Revaluation surplus of fixed assets - - 2,087,910 - - - 2,087,910
Unrealised losses on available-
for-sale financial
assets - net - - - (1,390,158) - - (1,390,158)
Remeasurement of defined
benefit liability - net - - - - - 93,214 93,214
Corporate Social Responsibility
Total comprehensive income for the year - - 2,087,910 (1,390,158) - 24,795,759 25,493,511
General reserve - - - - 233,100 (233,100) -
Cash dividends - - - - - (6,410,302) (6,410,302)
Balance, 31 December 2018 1,540,938 5,711,368 8,675,407 (130,353) 1,697,052 128,425,053 145,919,465
2019 Annual Report | PT Bank Central Asia Tbk
Consolidated Financial Statements
747
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
PT BANK CENTRAL ASIA Tbk Schedule 6/6
ADDITIONAL INFORMATION
STATEMENTS OF CASH FLOWS (PARENT ENTITY ONLY)
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts of interest income, fees and commissions 72,670,644 63,289,126
Other operating income 1,431,543 878,944
Payments of interest expenses, fees and commissions (13,088,561) (10,973,180)
Payments of post-employment benefits (230,641) (668,947)
Losses from foreign exchange transactions - net 1,855,221 (405,711)
Other operating expenses (24,340,293) (21,635,990)
Payment of tantiem to Board of Commissioners and Board of Directors (413,500) (354,950)
Other increases/decreases affecting cash:
Placements with Bank Indonesia and other banks - mature
more than 3 (three) months from the date of acquisition 769,565 2,803,980
Financial assets held for trading 1,235,090 1,507,219
Acceptance receivables 2,248,758 (1,602,067)
Bills receivable 459,371 (1,788,022)
Securities purchased under agreements to resell (86,885) (452,036)
Loans receivable (54,608,008) (71,010,420)
Other assets 137,504 (2,916,577)
Deposits from customers 70,923,556 46,240,525
Deposits from other banks 287,519 652,579
Acceptance payables (522,237) 43,009
Accruals and other liabilities (1,187,393) 4,036,740
Net cash provided by operating activities before
income tax 57,541,253 7,644,222
Payment of income tax (7,232,682) (5,337,912)
Net cash provided by operating activities 50,308,571 2,306,310
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of investment securities 100,000 45,279
Acquisition of investment securities (99,560,248) (78,978,061)
Proceeds from investment securities that matured
during the year 71,826,721 102,721,330
Payment for acquisition activities (988,047) -
Cash dividends received from investment in shares 637,792 587,873
Acquisition of fixed assets (2,522,307) (2,236,761)
Proceeds from sale of fixed assets 5,826 4,703
Net cash (used in) provided by investing activities (30,500,263) 22,144,363
748 2019 Annual Report | PT Bank Central Asia Tbk
Corporate Governance Corporate Social Responsibility Consolidated Financial Statements
PT BANK CENTRAL ASIA Tbk Schedule 6/7
ADDITIONAL INFORMATION
STATEMENTS OF CASH FLOWS (PARENT ENTITY ONLY)
FOR THE YEARS ENDED 31 DECEMBER 2019 AND 2018
(Expressed in millions of Rupiah, unless otherwise stated)
2019 2018
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from subordinated bonds - 500,000
Proceeds from borrowings - 17
Payment of borrowings (11) -
Payment of cash dividends (8,752,529) (6,410,302)
Payment of additional paid-in capital on Subsidiaries (1,200,000) -
Net cash used in financing activities (9,952,540) (5,910,285)
NET INCREASE IN CASH AND CASH EQUIVALENTS 9,855,768 18,540,388
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 101,795,841 81,567,489
EFFECT OF FOREIGN EXCHANGE RATE FLUCTUATIONS ON
CASH AND CASH EQUIVALENTS (117,806) 1,687,964
CASH AND CASH EQUIVALENTS, END OF YEAR 111,533,803 101,795,841
Cash and cash equivalents consist of:
Cash 25,402,712 21,677,576
Current accounts with Bank Indonesia 47,611,639 43,282,691
Current accounts with other banks 10,451,954 8,474,189
Placement with Bank Indonesia and other banks - mature within
3 (three) months or less from the date of acquisition 28,067,498 28,361,385
Total cash and cash equivalents 111,533,803 101,795,841
2019 Annual Report | PT Bank Central Asia Tbk 749
Financial Highlights Management Report Corporate Profile Management Discussion and Analysis
750 2019 Annual Report | PT Bank Central Asia Tbk
FINANCIAL STATEMENTS
PT DWIMURIA INVESTAMA ANDALAN AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER
As of December 31, 2019 and 2018 COMPREHENSIVE INCOME
For The Years Ended December 31, 2019 and 2018
(in millions of Rupiah)
(in millions of Rupiah, unless earnings per share)
Audited Audited
Audited Audited No. ACCOUNTS
No. ACCOUNTS Dec 31, 2019 Dec 31, 2018
Dec 31, 2019 Dec 31, 2018
OPERATING INCOME AND EXPENSES
ASSETS Interest and sharia income
1. Interest income 63,574,097 56,428,606
1. Cash 25,421,413 21,691,445
2. Sharia income 622,442 584,841
2. Current accounts with Bank Indonesia 47,904,674 43,548,309 Total interest and sharia income 64,196,539 57,013,447
3. Current accounts with other banks 10,529,509 8,537,084
4. Placements with Bank Indonesia and other banks 33,718,077 34,098,217 Interest and sharia expense
5. Financial assets held for trading 5,910,146 5,841,824 3. Interest expense (13,058,662) (11,212,601)
4. Sharia expense (297,071) (257,295)
6. Acceptance receivables - net of allowance 9,492,755 11,582,285
Total interest and sharia expense (13,355,733) (11,469,896)
7. Bills receivable - net of allowance 7,909,020 8,600,709
8. Securities purchased under agreements to resell - net of allowance 9,575,565 9,212,684 NET INTEREST AND SHARIA INCOME 50,840,806 45,543,551
9. Loans receivable - net of allowance 572,033,999 524,530,462
10. Consumer financing receivables - net of allowance 10,532,424 7,613,709 OTHER OPERATING INCOME
11. Investment in finance leases - net of allowance 149,428 174,212 5. Fee and commission income - net 13,608,381 11,996,340
12. Assets related to sharia transactions - net of allowance 5,434,287 4,824,013 6. Net trading income 3,456,342 2,807,349
7. Others 4,259,488 2,983,781
13. Investment securities - net of allowance 147,634,308 112,161,342
Total other operating income 21,324,211 17,787,470
14. Prepaid expenses 1,543,036 1,376,317
15, Prepaid tax 7,396 6,663 8. Impairment losses on assets (4,591,343) (2,676,602)
16. Fixed assets - net of accumulated depreciation 20,858,503 19,340,642
17. Intangible Assets - net of accumulated amortisation 126,340,469 125,640,915 OTHER OPERATING EXPENSES
18. Deferred tax assets - net 3,194,609 3,151,156 9. Personnel expenses (13,408,696) (12,147,606)
19. Other assets - net of allowance 17,859,479 14,692,814 10. General and administrative expenses (14,240,757) (13,028,051)
11. Others (3,363,388) (2,514,152)
Total other operating expenses (31,012,841) (27,689,809)
TOTAL ASSETS 1,056,049,097 956,624,802
INCOME BEFORE TAX 36,560,833 32,964,610
LIABILITIES, TEMPORARY SYIRKAH DEPOSITS, AND EQUITY
INCOME TAX EXPENSE (7,715,453) (6,867,506)
LIABILITIES
1. Deposits from customers 698,797,262 629,560,741 NET INCOME 28,845,380 26,097,104
2. Sharia deposits 1,034,703 550,438
Deposits from other banks 6,717,474 6,494,491 OTHER COMPREHENSIVE INCOME:
3.
12. Items that will not be reclassified to profit or loss:
4. Financial liabilities held for trading 106,260 188,934 a. Remeasurements of defined benefit liability (341,381) 409,898
5. Acceptance payables 5,321,249 5,843,486 b. Income tax 70,102 (284,061)
6. Securities sold under agreements to repurchase 113,249 48,111 (271,279) 125,837
c. Revaluation surplus of fixed assets 769,197 2,164,251
7. Debt securities issued 1,347,523 239,735
497,918 2,290,088
8. Tax payable 1,637,331 1,178,588
13. Items that will be reclassified to profit or loss:
9. Borrowings 2,332,870 2,093,475 a. Unrealised gains (losses) on available-for-sale
10. Accrued expenses and other liabilities 14,044,088 15,035,545 financial assets 2,604,958 (1,864,674)
11. Post-employment benefits obligation 7,957,700 6,407,377 b. Income tax (519,218) 456,639
12. Subordinated bonds 500,000 500,000 Unrealised gains (losses) on available-for-sale
TOTAL LIABILITIES 739,909,709 668,140,921 financial assets - net of tax 2,085,740 (1,408,035)
c. Foreign exchange differences arising from translation of
financial statements in foreign currency (17,117) 28,322
13. Temporary syirkah deposits 4,779,029 4,595,738 2,068,623 (1,379,713)
EQUITY OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX 2,566,541 910,375
14. Share capital 210,619,700 210,619,700
15. Additional paid in capital (24,766,946) (24,766,946) TOTAL COMPREHENSIVE INCOME 31,411,921 27,007,479
16. Revaluation surplus of fixed assets 1,664,902 1,242,289
NET INCOME ATTRIBUTABLE TO:
17. Foreign exchange differences arising from translation of financial Equity holders of parent entity 15,982,303 14,450,819
statements in foreign currency 7,002 16,441 Non-controlling interest 12,863,077 11,646,285
18. Unrealised gains (losses) on available-for-sale financial assets - net 860,219 (284,885) 28,845,380 26,097,104
19. Retained earnings 43,967,287 28,131,877
20. Other equity components (5,073) (5,073) COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Total equity attributable to equity holders of the parent Equity holders of parent entity 17,391,492 14,951,494
entity 232,347,091 214,953,403 Non-controlling interest 14,020,429 12,055,985
31,411,921 27,007,479
21. Non-controlling interest 79,013,268 68,934,740
BASIC AND DILUTED EARNINGS PER SHARE
TOTAL EQUITY 311,360,359 283,888,143 ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT ENTITY 75,882 68,611
TOTAL LIABILITIES, TEMPORARY SYIRKAH DEPOSITS, AND EQUITY 1,056,049,097 956,624,802
2019 Annual Report | PT Bank Central Asia Tbk 751
FINANCIAL STATEMENTS
PT DWIMURIA INVESTAMA ANDALAN AND SUBSIDIARY - CONTINUED
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For The Years Ended December 31, 2019 and 2018
(in millions of Rupiah)
For The Years Ended December 31, 2019 and 2018 (Audited)
Attributable to equity holders of the parent entity
Foreign exchange
ACCOUNTS Total equity
Issued and Revaluation differences arising from Unrealised gains (losses) Non-
Additional Retained Other equity attributable to
fully paid- up surplus of translation of financial on available-for-sale controlling Total equity
paid-in capital earnings components equity holders of
capital fixed assets statements in foreign financial assets - net interest
the parent entity
currency
Balance, December 31, 2017 210,619,700 (24,766,946) 53,203 880 488,142 13,612,003 (5,073) 200,001,909 59,718,735 259,720,644
Net income for the year - - - - - 14,450,819 - 14,450,819 11,646,285 26,097,104
Revalution surplus of fixed assets - - 1,189,086 - - - - 1,189,086 975,165 2,164,251
Foreign exchange differences arising from translation
of financial statements in foreign currency - - - 15,561 - - - 15,561 12,761 28,322
Unrealised (losses) on available-for-sale financial
assets - net - - - - (773,027) - - (773,027) (635,008) (1,408,035)
Remeasurements of defined benefit liability - net - - - - - 69,055 - 69,055 56,782 125,837
Total comprehensive income for the year - - 1,189,086 15,561 (773,027) 14,519,874 - 14,951,494 12,055,985 27,007,479
Cash dividends - - - - - - - - (2,888,345) (2,888,345)
Increase in non-controlling interest due to additional
share capital payment - - - - - - - - 48,365 48,365
Balance, 31 December 2018 210,619,700 (24,766,946) 1,242,289 16,441 (284,885) 28,131,877 (5,073) 214,953,403 68,934,740 283,888,143
Balance, 31 December 2018 210,619,700 (24,766,946) 1,242,289 16,441 (284,885) 28,131,877 (5,073) 214,953,403 68,934,740 283,888,143
Net income for the year - - - - - 15,982,303 - 15,982,303 12,863,077 28,845,380
Revalution surplus of fixed assets - - 422,613 - - 2,196 - 424,809 348,385 773,194
Foreign exchange differences arising from translation
of financial statements in foreign currency - - - (9,439) - - - (9,439) (7,678) (17,117)
Unrealised gains on available-for-sale financial
assets - net - - - - 1,145,104 - - 1,145,104 940,636 2,085,740
Remeasurements of defined benefit liability - net - - - - - (149,089) - (149,089) (122,190) (271,279)
Total comprehensive income for the year - - 422,613 (9,439) 1,145,104 15,835,410 - 17,393,688 14,022,230 31,415,918
Cash dividends - - - - - - - - (3,943,702) (3,943,702)
Balance, 31 December 2019 210,619,700 (24,766,946) 1,664,902 7,002 860,219 43,967,287 (5,073) 232,347,091 79,013,268 311,360,359
Consolidated Commitments and Contingencies
As of December 31, 2019 and 2018
(in millions of Rupiah)
Audited Audited
No. ACCOUNTS
Dec 31, 2019 Dec 31, 2018
COMMITMENTS
Committed receivables:
1. Borrowing facilities received and unused 4,694,646 4,320,600
2. Outstanding derivatives purchase position 11,822,675 8,575,998
16,517,321 12,896,598
Committed liabilities:
1. Unused credit facilities to customers
- Committed 152,604,164 145,599,557
- Uncommitted 63,355,677 55,587,325
2. Unused credit facilities to other banks Jakarta, March 5, 2020
- Committed 2,455,331 1,260,022
- Uncommitted 1,861 2,353
3. Irrevocable Letters of Credit facilities to customers 8,590,916 10,365,963
4. Outstanding derivatives selling position 67,392,624 40,887,714
294,400,573 253,702,934
CONTINGENCIES
Contingent receivables: Honky Harjo Agus Santoso Suwanto
1. Bank guarantees received 623,876 549,426 President Director Director
2. Interest receivables on non-performing assets 477,220 392,257
1,101,096 941,683
Contingent liabilities:
1. Bank guarantee issued to customers 15,737,312 15,241,182
2. Other 78 -
15,737,390 15,241,182
752 2019 Annual Report | PT Bank Central Asia Tbk
2019
LAPORAN
ANNUAL
TAHUNAN 2019
REPORT
NAVIGATING CHANGE
PT Bank Central Asia Tbk
KantorOffice
Head Pusat
Menara BCA
Grand Indonesia
Jl. M.H. Thamrin No. 1
Jakarta 10310, Indonesia
Tel. 62 21 235 88000
Fax. 62 21 235 88300
www.bca.co.id
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