236 PT Bank Danamon Indonesia Tbk. Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 237 PT Bank Danamon Indonesia Tbk. Good Good Corporate Governance Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 238 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Indonesian GCGGeneralGuidelines andIndonesianBanking GCGGuidelines issued bythe Regulations, Company’s Articles ofAssociation, ASEANCorporate Governance Scorecard, of the Financial Services Authority, BankIndonesiaRegulations, IndonesianStockExchange laws andregulations, including LawofLimited Liability Companies, BankingLaw,Regulations subsidiaries. Corporate Governance policies arepreparedinaccordance with the relevant governance (GCG)principles inallactivities andorganizational levels inDanamonandits which serve aspractical guidelines andreference inthe implementation ofgoodcorporate Danamon hasanIntegrated Corporate Governance Policy andaCorporate Governance Policy BASIS OFIMPLEMENTATION OFDANAMON’S CORPORATE GOVERNANCE POLICY national economy. Danamon’s addedvalueaswellcanpositively contribute tothe financial industry andthe performance, increaseinvestor confidence protect the interests ofstakeholders,optimize corporate governance is asustainablemanner, its is hopethat itcanfurther boost company is carried outconsistently atalllevel ofOrganization atDanamon. Byimplementing good The implementation ofGoodCorporate Governance principles is ajointcommitment that implementation inDanamon. Danamon hasrefinedGCGpolicy asaformofcommitment toimprove the quality ofGCG of corporate governance, both inthe bankingindustry andthe financial services industry, integrated manner. Alongwith the development ofbestpractices inthe implementation of GCGprinciples inallaspects ofits businessactivities including its subsidiaries inan Danamon is committed tocontinuously strengthen andimprove the implementation quality IMPLEMENTATION COMMITMENT ANDOBJECTIVES OFDANAMON’S CORPORATE GOVERNANCE corporate governance. National Committee onGovernance Policy (KNKG),aswell asthe bestpractices ofgood PT Bank DanamonIndonesia Tbk. “ Governance Corporate contribute tothe Indonesianeconomy. isa companythat highly competitive andpositively improve the addedvalueaswellmakeDanamon protect the interests itcan ofstakeholders,sothat implementation ofgoodcorporate governance can term invarious businessprospects. Inaddition, the able toachieve excellent performance inthe long governance inasustainablemanner, Danamonis and consistency inimplementing goodcorporate Danamon believes high with that commitment “ Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 239 PT Bank Danamon Indonesia Tbk. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 240 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data is asfollows: corporate governance implementation roadmapofDanamon.Corporate governance implementation roadmapofDanamon Danamon hasconsistently andcontinuously madeimprovements toDanamon’scorporate governance asoutlinedin PT Bank DanamonIndonesia Tbk. Roadmap ofDanamon Corporate Governance Implementation 2013 2015 2020 • • • • • • • • • • • • • • • • Disclosure ofthe Remuneration Policy forthe BoardofDirectors andBoardof Completed management profileandminutes ofthe GMS. Enhancement ofthe Bank’swebsite including bilingual. Disclosures onthe Bank’swebsite: Corporate Governance Policy, Article of Published GMS Resolutions onedayafter the GMS. Disclosure ofGMS Agendaandits Explanations. Disclosure ofcandidate profilesformembers ofthe Board of Commissioners. Dividend payment within 30days. Established Diversity Policy of the BoardofCommissioners andBoardof Addition ofIndependentCommissioner onthe Nomination Committee and Implementation ofIntegrated Corporate Governance andIntegrated governance organs. Financial Conglomeration. Commissioners inthe AnnualReport. Transactions with Conflicts ofInterest Policy, Shareholders,andgroups. Association, PersonalInvestment Policy, Transactions ofRelated Partyand Commissioners, Anti Gratification Policy (Providing andReceiving Gifts). and BoardofDirectors, ToolsforPerformance Assessment ofthe Boardof Directors, Performance Assessment Policy forthe BoardofCommissioners Directors, Nomination Policy forthe Boardof Commissioners andBoard of Remuneration Committee. Infrastructure. Risk Management through the availabilityofIntegrated Structure and Governance. related toRisk Management andIntegrated Corporate Counter-Financing ofTerrorism (AML-CFT)policies. implementation of the Anti-Money Laundering and Refinement andupdate ofanumberpolicies Improvement of a number of policies related to the Refinement and update of charters for corporate Adjustment ofcommittee membership structure. Adjustments tothe structure andmembers ofthe 2016 2018 • • • • • • • • • • • • • Enhancement ofCorporate Governance implementation inlinewith the regulation ofFinancial Services Authority concerning Enhancement ofIntegrated Corporate Governance implementation andimprovement ofSubsidiaries’ Corporate Governance Changes inOrganizational Structure. Refinement andUpdate ofPolicies related toRisk Management. Refinement ofthe policies related tothe implementation ofthe Anti Money Adjustment tothe membership structure ofthe Integrated Corporate Review the Subsidiaries’ Corporate Governance Policy. Review the Charters ofthe BoardofDirectors, BoardofCommissioners, Improvement ofDanamon’sCorporate Governance implementation Enhancement ofthe Whistleblower Policy. Established Communication Policy, BoardofDirectors Succession Policy, andDirectors Performance Assessment Tools. Adjustment andsimplification ofCommittees underthe BoardofDirectors. Updated the Charters ofNomination Committee andRemuneration Committee. Corporate Governance Guidelines forListed Companies. guidelines. Laundering andCounter-Financing ofTerrorism (AML-CFT)policy Governance Committee Committees underthe BoardofCommissioners. 2019 • • • • • • Refinement andupdate ofthe policies related toRisk Adjustment ofCommittee membership structure Changes inOrganizational Structure Update the CodeofConduct. Refinement ofthe Charters forthe organsofCorporate Refinement ofpolicies supporting the Implementation of Management andIntegrated Corporate Governance. Governance. Corporate Governance. 2014 • • • • • • • Affiliated Transactions andConflicts ofInterest Enhanced andupdated Charters ofthe Boards Referring tothe applicable regulations, adjusted the Separated the Nomination Committee & Facilitated allmembers ofthe Boardof Aligned andenhanced goodcorporate governance Aligned andenhanced goodcorporate governance Policies. Corporate Governance Committee. Committee, Remuneration Committee, and Committee, Risk Monitoring Committee, Nomination of Commissioners, BoardofDirectors, Audit and Nomination Committee. Monitoring Committee, Remuneration Committee, membership structure ofthe Audit Committee, Risk Committee. namely Nomination Committee andRemuneration Remuneration Committee into2(two)Committees, course. Commissioners with risk management refreshment practices with the ASEAN CGScorecard. Corporate Governance Roadmap. Services Authority assetoutinthe Indonesian to meet the recommendations ofthe Financial practices with the applicable regulations, primarily 2017 • • • Alignment ofDanamon’scorporate Enhancement ofsupporting policies Improvement ofDanamon’sWebsite on the Implementation ofCorporate regulation ofthe Financial Services Authority governance implementation with the implementation of Danamon’scorporate governance Governance forCommercial Banks. Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 241 2 4 5 PT Bank Danamon Indonesia Tbk. Organs of Danamon perform their activities activities Organs of Danamon perform their as well as avoiding independently and objectively, Danamon of any dominant party. influence the business with its conduct to committed is professionalism. Independency 3 Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Clear establishment of functions, duties, authorities and responsibilities within within responsibilities and authorities duties, of functions, Clear establishment the organization set in accordance with the guidelines and charters of each of each and charters guidelines the with set in accordance organization the should be accountable and responsible for Danamon as an institution function. performance. its Accountability 1 the environment, to achieve long-term sustainability and sustainability and long-term to achieve environment, the citizen. as a good corporate be recognized can be fulfilled. and minority majority of all shareholders, both and interests rights the ensures that Danamon always to all stakeholders. treatment fair and equal provides Danamon always Danamon is committed to comply with laws and laws and to comply with committed Danamon is In addition, policies. internal and established regulations and to society responsibilities its Danamon also manifests 2019 Fairness and Equality Fairness Responsibility accessible to both shareholders and stakeholders. to both accessible Danamon is committed to provide adequate, clear, clear, adequate, to provide committed Danamon is easily disclosure, information and timely accurate, Transparency Annual Report Corporate Governance Policy of Danamon is part of the Danamon Group Financial Conglomeration’s Integrated Corporate Corporate Integrated Conglomeration’s Danamon Group Financial part of the is of Danamon Policy Governance Corporate based on organization of the at all levels governance corporate in implementing a guideline is which Policy (ICG) Governance as follows: governance of good corporate principles the POLICY, ORGAN AND IMPLEMENTATION OF CORPORATE GOVERNANCE IN DANAMON IN GOVERNANCE OF CORPORATE IMPLEMENTATION POLICY, ORGAN AND of Danamon Policy Governance Corporate Main Management Company Management Operational Good Corporate Corporate Corporate 242 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. integrity, sothat the GCGprinciples canbeimplemented activities. The implementation ofGCGis basedonsolid main foundation andbasic needs incarrying outbusiness governance (GCG)is nolongeranecessity, butis the Danamon realizes that implementing goodcorporate Implementation ofDanamon’sCorporate Governance corporate governance have clearrolesandresponsibilities tocreate acheck andbalance controlmechanism. principles sothat they canrun systematically andstructured. Supporting organsforthe implementation ofDanamon’s Danamon’s corporate governance organsareestablished tosupportthe implementation ofcorporate governance Corporate Governance OrgansofDanamon Internal Control Governance Committee Integrated Corporate Corporate Governance Risk Monitoring Remuneration Board ofCommissioners Nomination Committee Committee Committee Committee Commitee Danamon Audit Hello management Risk General MeetingofShareholders Internal Audit Working Unit Check andBalance Compliance Legal & (SKAI) is basedon5(five) basic principles ofgoodcorporate The implementation ofDanamon’sCorporate Governance carried outconsistently andcontinuously. Danamon activity sothat alloperational activities canbe at every level ofthe organization, andcarried outinevery Corporate Secretary Board ofDirectors Assets &Liabilites (ALCO) Risk Management Committee Committee Committee Committee IT Steering CSR HR HR Integrated Risk Management Committee Annual Report Relation & Investor FAT 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 243 Governance Outcome Governance PT Bank Danamon Indonesia Tbk. stakeholders; management and follow-up in accordance of audit results with the commitments; growth sustainable Danamon’s and economic and provides all benefits to non-economic Stakeholders. performance includes includes performance and efficiency profitability, capital; of the the intervention from and other related owners parties which can cause a of interest; conflict and non-financial conditions other important information the Danamon by supported is informative that website by and easily accessible Adequate compliance and risk and risk compliance Adequate Plan describes Bank Business Positive Danamon’s Danamon’s Positive free activities are Danamon’s of financial and Disclosure • • • • • Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Governance Process Governance comprehensive and measurable and measurable comprehensive the by manner approved of Commissioners Board the to and communicated of all levels and to shareholders the organization. large funds are conducted conducted funds are large approval normal credit through and taking into processes the principle of arm’s account length; the so that implemented well arise can be may risks that managed adequately; financial, non-financial, product, Danamon’s complaint and customer and accurately completely, proportionally; plans is and business carried out in a realistic, and appointing the Board and appointing the Board of Board of Commissioners, is in and Committees Directors with the applicable accordance regulations; of of the Board competence of and Board Commissioners sustainability through Directors and trainings; education of conflicts transactions, of the Board by interest of and the Board Directors Commissioners; of parties and the provision functions, duties and functions, duties and of Danamon’s responsibilities it so that is adequate organs the functions of can optimize supervision and control; Risk management has been Risk management has been of disclosure Information of strategic preparation The The process of replacing of replacing process The of the Enhancement of affiliated Disclosure related of funds to Provision Implementation of the of the Implementation • • • • • • • • 2019 Governance structure Governance funds, conflicts of interest and and of interest funds, conflicts aspects of transparency; with Danamon’s in line are vision and mission. adequacy of internal controls, controls, of internal adequacy functions and compliance audit functions internal of with the assignment meet the audits that external requirements; related funds to providing of large parties/ provision Guidelines and Work Rules. Rules. Guidelines and Work Procedures Policies, Danamon’s and Management Information and available are Systems supporting Danamon’s activities; operational Guidelines, Risk Governance management framework, of Danamon Group has has of Danamon Group the Integrated established Governance Corporate Risk and Integrated Committee Management Committee; at and functions of all levels and adequate Danamon are in the Policies, stipulated the Board of Commissioners, of Commissioners, the Board and of Directors the Board are committees Danamon’s and meet the needs adequate of Danamon and the prevailing of the Financial regulations Bank Authority/ Services Indonesia; criteria and independence of of and independence criteria Strategic and business plans plans and business Strategic Availability of policies for of policies for Availability Sufficiency of Corporate of Corporate Sufficiency Main tasks, responsibilities Main tasks, responsibilities Danamon as the Main Entity Danamon as the Main Entity The number, composition, composition, number, The • • • • • • Annual Report governance, namely the principles of Transparency, Accountability, Responsibility, Independency as well as Fairness as well as Fairness Independency Accountability, Responsibility, of Transparency, principles the namely governance, form in the of governance aspects of 3 (three) consists which system are grouped in a governance which and Equality Outcome. Governance and Process Governance Structure, of Governance Main Management Company Management Operational Good Corporate Corporate Corporate 244 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. vision, mission andstrategy canberealized. Management and employees so that the company’s strengthen the ethical valuesandbehavior ofDanamon’s update ofthe CodeofConduct is intended tofurther and employees to act appropriately and correctly. The thinking andbehaving forDanamon’sManagement in 2019. The Danamon’sCodeofConduct is aguide to Danamon updated the Danamon’sCodeofConduct UPDATE OFCODECONDUCT good corporate governance. laws andregulations andthe implementation ofBank’s Committee Charter inaccordance with the prevailing Committee Charter, Integrated Corporate Governance of the Audit Committee Charter, Corporate Governance Danamon conducted reviews and refinements/ updates OF COMMISSIONERS’ CHARTERS REFINEMENT OFTHECOMMITTEE UNDERTHEBOARD stakeholders. Danamon’s growth anddelivery oflongterm valuetoall on MUFG’sexellence, expertise andnetworktofacilitate shareholder of Danamon, Danamon will be able to tap In addition, with MUFGBank,Ltd. asacontrolling Indonesian bankingsector andeconomy asawhole. synergy that will positively contribute to the growth of the Danamon. This merger willallowgreater collaboration and Effective onMay1,2019, BankBNPhasmerged with NUSANTARA PARAHYANGAN(BANKBNP) THE MERGER BETWEENDANAMON ANDBANK 1, 2019. by the EGMS onMarch 26, 2019andthe EGMS onOctober Danamon’s Articles ofAssociation have beenapproved Articles ofAssociation. Adjustments oramendments to there were2(two)adjustments oramendments tothe articles inDanamon’sArticles ofAssociation. During 2019 Danamon’s Articles ofAssociation andrestated all Danamon adjusted oramended several articles in ASSOCIATION ADJUSTMENT ORAMENDMENT TOARTICLES OF supporting policies structures are,among others: with the lawsandregulations aswellimprovement of implementation ofcorporate governance inaccordance of corporate governance through aligning the initiatives interms ofstrengthening the implementation in the management ofthe company. During 2019,various corporate governance byprioritizing ethics andintegrity of the implementation ofDanamonandsubsidiaries’ governance focusesonimproving andenhancement The implementation ofDanamon’scorporate Governance Implementation In2019 Focus andAchievement ofDanamon’sCorporate IMPLEMENTATION OFSUSTAINABLE FINANCE ACTION through the EGMS March 26, 2019. The Recovery Plan has obtained Shareholders’ Approval recovery options byaseries ofstresstest scenarios. that Danamonhaspossessedcredible andfeasible Banks, Danamonhasupdated the Recovery Plantoensure POJK.03/2017 concerning Recovery PlanforSystemic In 2019,asafollow-uptothe fulfillment ofPOJKNo.14/ UPDATE OFRECOVERY PLAN Adaptive. stands forCollaboration, Integrity, Customer Centric, and Danamon’s valueswererefinedtobe “BISA” which all Danamon’smanagement andemployees. In2019, and mission. The company’svaluesmust beapplied by achieve goalsinaccordance with the Company’svision business, Danamonenhanced the company’svaluesto Along with the dynamically changeddevelopment and ENHANCEMENT OFDANAMON’S VALUES Danamon. employees andstrengthen the culture ofcompliance in related tocompliance forDanamon’sManagement and Terrorism (AML-CFT)e-learningtoprovide refreshment 2019 Anti-Money Laundering andCounter-Financing of Bank has updated the 2019Compliance e-learning and DEVELOPMENT OF2019COMPLIANCEE-LEARNING 4. 3. 2. 1. management, including: of applicable lawsandregulations related torisk several policies toaccommodate the development In 2019,Danamonhaspreparedandreviewed/ refined UPDATE OFRISK MANAGEMENT POLICIES and bestpractices. I andPartIItoadjustthe development ofregulations Corporate Governance Policies of Danamon Group Part In 2019,Danamonhasreviewed andupdated Integrated POLICY UPDATE OFINTEGRATED CORPORATE GOVERNANCE Issuers andPublic Companies. Sustainable Finance forFinancial Service Institutions, 51/POJK.03/2017 concerning the Implementation of for the 2019-2023period inordertofulfillPOJKno. Plan (RAKB)in2019according tothe RAKBprepared Danamon implemented Sustainable Finance Action PLAN Guidelines forLegal Lending Limit (LLL) andProvision Sustainability Policy Market andLiquidity Risk Management Policy Integrated Risk Management Policy of LargeFunds Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 245 PT Bank Danamon Indonesia Tbk. Title Director Director Director Director Director Director Director President Director President Vice President Director President Vice Director President Vice Rank Definition aspects, namely governance structure, governance governance structure, governance namely aspects, outcome. and governance process, concerning POJK No. 4/POJK.03/2016 with In accordance the Bank’s Soundness Level, of Commercial Assessment of implementation of the self-assessment result of the coverage factors in the one of the is governance corporate The Level. Bank’s Soundness of the assessment of the of implementation of the self-assessment of the results been submitted have governance Danamon’s corporate on the of reports submission the with to OJK together Bank’s Soundness Level. of the result self assessment also includes self-assessment self-assessment The in a governance of corporate implementation of the Subsidiaries. manner with Consolidated Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Position: As of June and December 2019 As of June and December Position: Reflecting Danamon’s management has implemented the corporate governance which in general which in general governance the corporate management has implemented Danamon’s Reflecting principles. If governance of the corporate fulfillment in the adequate is reflected is Good. This less generally are principles, they of the governance in the implementation weaknesses are there management. Danamon’s normal actions by by significant and can be resolved Name Self - Assessment Results of Danamon’s Corporate Governance Implementation Governance of Danamon’s Corporate Results Self - Assessment Rank 2019 2 (Good) Muljono Tjandra Naoki Mizoguchi Honggo Widjojo Kangmasto Kangmasto Honggo Widjojo Herry Hykmanto Khan Qayum Adnan Rita Mirasari Putra Agung Heriyanto Dadi Budiana Yasushi Itagaki Itagaki Yasushi Michellina Laksmi Triwardhany All members of the Board of Directors do not have concurrent positions as Board of Commissioners, Board of Directors Board of Directors Board of Commissioners, as concurrent positions do not have Board of Directors of the All members During the assessment period, the Board of Directors managed Danamon in accordance with their authority and and authority their with managed Danamon in accordance of Directors Board the period, assessment the During Based on the EGMS on October 1, 2019, the number of Danamon’s Board of Directors is 10 (ten) people with the the people with (ten) 10 is of Directors number of Danamon’s Board 2019, the on October 1, EGMS Based on the or Executive Officers in other banks, companies and or institutions, except in the context of carrying out supervisory out supervisory of carrying context in the except and or institutions, banks, companies in other Officers or Executive as of Letters controlled by Danamon. Based on Personal Statement in non-bank subsidiaries on participation duties responsibilities. The implementation of the duties and responsibilities of the Board of Directors has been completed by by completed been has Board of Directors of the responsibilities and duties the of implementation The responsibilities. (Charter). and work rules guidelines clear policies, following composition: 1 7 2 5 3 8 9 6 4 10 No Bank Danamon’s Corporate Governance In 2019 Governance Corporate Danamon’s Assessment of The Implementation of of Implementation of The Assessment Annual Report

1. SELF ASSESSMENT ANALYSIS IN 2019 ANALYSIS SELF ASSESSMENT factors, Danamon has governance good corporate on 11 (eleven) 2019, based on Danamon’s assessment During of corporate and quality effectiveness support the that and infrastructures structures governance adequate stakeholders, among others: of the expectations the meet that principles governance assessment is carried out based on the assessment assessment out based on the carried is assessment among based on OJK regulations, factors stipulated of principles the of implementing quality the others, structured and comprehensive a in governance corporate governance into 3 (three) integrated is manner which concerning the Implementation of Corporate Governance Governance of Corporate Implementation the concerning rules implementation its Banks and for Commercial Implementation concerning SEOJK No. 13/SEOJK.03/2017 Banks, for Commercial Governance of Corporate of the self assessment conducts Danamon periodically biannually governance of corporate implementation The and December. end of June at the for positions SELF ASSESSMENT RESULT OF THE IMPLEMENTATION OF THE IMPLEMENTATION RESULT SELF ASSESSMENT GOVERNANCE OF CORPORATE POJK No. 55/POJK.03/2016 with In accordance Main Management Company Management Operational Good Corporate Corporate Corporate 246 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 4. 3. *) 2. No 4 6 8 3 5 2 7 1 Charters andarereviewed periodically. which arecomplemented byclearpolicies and out according totheir duties andresponsibilities responsibilities ofthe Committees hasbeen carried duties. The implementation of the duties and independence and implementation of committee the composition ofmembership that supports to the provisions and Danamon’s needs with Committee. Committees are established according Committee and Integrated Corporate Governance Remuneration Committee, Corporate Governance Monitoring Committee, Nomination Committee, Commissioners, namely the Audit Committee, Risk implementation ofthe duties ofthe Boardof policies andCharters. responsibilities which arecomplemented byclear has been carried out according to their duties and and responsibilities ofthe BoardofCommissioners Commissioners. The implementation ofthe duties Board ofCommissioners consist ofIndependent to the requirements. 50%ofthe members ofthe of members ofthe BoardofDirectors according of Commissioners does not exceed the number business. The numberofmembers of the Board considered the scale and complexity of Danamon’s independence ofthe BoardofCommissioners have following composition: of members ofthe BoardofCommissioners doesnotexceed the numberofmembers ofthe BoardofDirectors with the the BoardofDirectors’ Charter andCorporate Governance Policy. obtaining OJKapproval. The limitation onconcurrentpositions formembers ofthe BoardofDirectors is stipulated in Commissioner ofPTAdira DinamikaMultifinance, Tbkis inthe framework ofsupervision andwillbeeffective after December 31, 2019, the concurrent position of the President Director of Danamon in the Subsidiary as the President must prioritize the interests ofDanamonand are Danamon. Management andEmployees ofDanamon conflicts ofinterest forManagement andemployees of Danamon has a policy that supports the handling of Danamon hasCommittees that assist the The currentnumber, composition, criteria and Based onthe EGMS onOctober1,2019,the numberofthe BoardofCommissioners is 8(eight) people,andthe number will beeffective after obtainingOJKapproval Peter Benyamin Stok Made Sukada Manggi T. Habir Nobuya Kawasaki Noriaki Goto Masamichi Yasuda J.B. Kristiadi Takayoshi Futae *) Name *) Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Commissioner Commissioner Vice President Commissioner (IndependentCommissioner) President Commissioner 5. Danamon hasmadevarious efforts toensure Danamon asthe MainEntity inthe DanamonGroup Danamon hasCompliance WorkingUnitcalled of Compliance Reviews, conducting monitoring and compliance (Compliance Culture), implementation increasing awarenessand understanding of Danamon’s compliance, amongothers: through Entity inthe Financial Conglomeration. implementation ofthe compliance function ineach has the duties, atleast,tomonitorandevaluate the Director inchargeofthe Compliance Function. SKKT Compliance WorkingUnit. SKKTis responsibletothe responsibilities is carried outbyDanamon’s units whoseimplementation oftheir duties and is independentfromother operational working Integrated Compliance Working Unit(SKKT) that Financial Conglomeration has the function of an adequate human resources. been implemented adequately with the supportof obtained OJK approval. The compliance function has not permitted bythe applicable provisions andhave independent anddoesnotoversee functions that are Director hasmet the applicable requirements, namely Compliance Function. The appointment ofCompliance the responsibilityofthe Director inchargeofthe working unit. The Compliance WorkingUnitis under Regulatory Compliance which is anindependent is detrimental tothe interests ofDanamon. period there is noconflict ofinterest transaction that or reduce Danamon’sprofits. During the assessment prohibited fromtakingactions that canharmand/ Title Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 247 PT Bank Danamon Indonesia Tbk. Danamon and the Financial Conglomeration and the the and Conglomeration Financial Danamon and the in each type of Management of Risk Implementation also complemented is policy This comprehensively. risk Risk Credit including policies derivative separated by Management Risk Operational Policy, Management Management Risk Market and Liquidation Policy, Policy, Management Business Continuity Policy, Appetite and Group Risk Policy Security Information These and RAS Cascading. (RAS) Policy Statement will conduct audits of the consolidated financial financial consolidated the of audits conduct will Tbk and of PT Bank Danamon Indonesia statements AP and KAP The year. for 2019 financial Subsidiaries to work independently, requirements the met have standards of public professional the meeting as well as the and work agreement accountants scope of audit. specified for the PT Danamon Indonesia Tbk and Subsidiaries out by AP and KAP was carried year 2019 financial audit interim of the results OJK. The with registered on OJK to submitted were year financial 2019 for 11, 2019. December management of risk well implementation the supports Risk of the consists which control, internal and SKAI, Compliance Working Unit (SKMR), Management Committee, Management Working Unit, Risk Risk and Integrated Committee Monitoring Risk according functions which Committee Management and responsibilities. duties respective their to the structure organizational the Danamon has updated 2019. December since has been effective that for Framework Management Risk the regulates that work and its compliance with SPFAIB has been SPFAIB has been with compliance work and its in years three every parties by external evaluated of SPFAIB from provisions the with accordance of implementation on the Bank Indonesia. Reports are available, functions audit Danamon’s internal The in Danamon’s Annual Report. and are disclosed based and objective, complete, is report SKAI audit analysis. on careful and impartial the with in accordance assignment with adequate Accountant of Public appointment The provisions. (KAP) has obtained Accountant Firm (AP) and Public based 2019 26, on March approval Annual GMS the Committee Audit of the recommendation on the to appoint Board of Commissioners the through CPA, as a M.Ec., M. Jusuf Wibisana, Doctorandus Wibisana, Accountant (AP) and Tanudiredja, Public PwC global of the firms & Partners (member Rintis that (KAP) Firm Accounting network) as a Public of statements financial consolidated of the audit The that structure Danamon has an organizational Policy Management Risk Danamon has Integrated Implementation of the external audit function is is function audit external the of Implementation 8. 7. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 The effectiveness of the implementation of SKAI’s of SKAI’s implementation of the effectiveness The The Board of Directors ensures that the follow-up of follow-up of the ensures that Board of Directors The The implementation of the audit plan and audit results results plan and audit audit of the implementation The SKAI has independence in conducting audits and and audits in conducting SKAI has independence SKAI is led by the Head of SKAI who is directly directly of SKAI who is Head led by the SKAI is Danamon has implemented OJK Regulation (POJK) (POJK) OJK Regulation Danamon has implemented reference to the policies and directions of the Board Board of the directions and policies to the reference Committee. Audit the through of Commissioners escalation the governing a framework is There that findings for any follow-up on audit mechanism agreed deadline. goes beyond the and members of the Board of Commissioners. In In Board of Commissioners. of the and members audit reports also regularly Audit Internal addition, President Director. to the activities has findings audit Danamon’s internal each of the with working units related out by the been carried are closely monitored and reported to the Board of of Board to the are closely monitored and reported Every Committee. Audit the through Commissioners presented is findings of audit summary the month, Audit the through Board of Commissioners to the of the by members can be attended which Committee are meeting of the and minutes Board of Directors Board of Directors of the to all members submitted other parties that are not in accordance with the the with are not in accordance that parties other Based Audit SKAI uses Risk and regulations. laws and elements all aspects Approach to determine the to affect expected directly are that of activities community. of Danamon and the interests follow-up, the Head of SKAI also reports to the to the of SKAI also reports Head follow-up, the the Board of Commissioners, the President Director, Director. Compliance and the Committee Audit professional with in accordance expressing views of interests the standards by not taking sides with developed an Internal Audit Guide (Manual Audit and and Audit (Manual Guide Audit an Internal developed Standards). Program Audit To support President Director. responsible to the smooth of SKAI and to ensure the independence the in monitoring and authority audit of the running No. 1/POJK.03/2019 concerning the Implementation Implementation the concerning No. 1/POJK.03/2019 Banks by at Commercial Function Audit of Internal Working Audit an independent Internal establishing Audit Internal an Integrated having Unit (SKAI), and 2019 version to updated been has which Charter well socialized at all levels of the organization and and organization of the at all levels well socialized of all Danamon’s management responsibility the is 2019 developed also has Danamon employees. and e-learning. e-learning and 2019 AML-CFT Compliance of and responsibilities duties of implementation The to OJK through conveyed is function compliance the Report. Compliance the testing activities, monitoring Danamon’s regulatory Danamon’s regulatory monitoring activities, testing results follow-up of the and monitoring parameters has been culture Compliance audits. of Regulatory Annual Report

6. Main Management Company Management Operational Good Corporate Corporate Corporate 248 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 9. exposures, which areadjusted tothe applicable provision offundstorelated parties andlarge follow-up corrections. issues, mitigation mechanisms, potential lossesand performance anddiscuss matters related torisk Directors andthe BoardofCommissioners analyze Risk Monitoring Committee meetings, the Boardof able toabsorbpotential lossrisk that mayarise. capital is above the required minimum capitaland business andrisks faced byDanamon.Danamon’s adjusted to the objectives, size and complexity of the and implementation ofrisk management have been is atthe level ofLowtoModerate. The procedures This is indicated byDanamon’srisk profilewhich audit findings aremonitored. process arealsocarried out andimprovements tothe regulations. Internal audits of the risk management as welladequate procedures forcompliance with eyes principle, applying risk awarenessandculture organizational structure, implementing adequate four to monitorpolicies, procedures andlimits, clear of three linesofdefense,stipulating the authority and adequate, among others, through the approach risk management hasbeenquite comprehensive implementation ofrisk management. to the BoardofCommissioners regarding the to monitor, reportandprovide recommendations The mainroleofthe Risk Monitoring Committee is monitoring the implementation ofrisk management. Monitoring Committee in carrying outthe function of The BoardofCommissioners is assisted bythe Risk monitoring the implementation ofrisk management. is holding the finalresponsibilityforits rolein and responsibilities. However, the BoardofDirectors Committee to assist in carrying out its functions Board ofDirectors established Risk Management Danamon’s Integrated Risk Management Policy. The Risk Management areclearlystipulated in Directors andBoardofCommissioners regarding monitoring andcontrollingrisks. used effectively asguidelines inidentifying, measuring, policies arereviewed periodically sothat they canbe approval process andarm’slength asstipulated of largefundsaredonethrough the normalcredit regulations (if there areanychanges). Provision offundstorelated parties andprovision Bank has policies and procedures regarding the Through regular Risk Management Committee and Risk management has been carried out adequately. The internal controlsystem in the application of The duties andresponsibilities ofthe Boardof 10.

Transparency offinancial andnon-financial conditions There are no violations and exceeds of the maximum The procedure forcustomer complaints and Danamon hasoperational andmarketing collateral Danamon hasanadequate management information The financial statements including Danamon’s financial statements have beenposted onthe adequate. Danamon’sAnnualReport andpublished and corporate governance implementation reportis and applicable regulations inproviding funds. Bank’s capital and applying the prudential principles funding portfolio by considering the condition of the maximum legallending limitanddiversification ofthe of largefunds.Danamonalways monitorsthe legal lending limittorelated parties andthe provision with credit approval authority. Credit Committee independentlyandinaccordance is approved by the Board of Directors through the Board ofCommissioners. The provision offunds Director’s review andobtainapproval fromthe related parties must gothrough the Compliance in Danamon’scredit policies. Provision offundsto via the corporate webandinterms andconditions settlement ofcustomer disputes hasbeen informed prepared. to customers inaccordance with the guidelines Danamon delivers andexplainsproduct information officers and/orthrough e-channelapplications, launching new products/ features, through marketing officers in accordance with product regulations. In training andcertification neededtomarketing Financial Services Sector. Danamoncarries out with the provisions of Consumer Protection in the policies that are reviewed and updated in accordance human resources and an adequate ITsecurity system. system (SIM), which is supported bycompetent accordance with regulations. submits financial and non-financial reports toOJK in media andthrough the company’s website aswell financial reports onaregular basis through print Danamon always announces financial andnon- holds public exposesonaregular (quarterly) basis. published tothe Stakeholders.Danamonalso financial/ non-financial conditions have been and content inaccordance with the provisions. timely mannerto OJK and shareholders with scope Reports have beensubmitted inacomplete and Report andCorporate Governance Implementation stipulated inthe OJKregulations. Danamon’sAnnual language newspaperswhich have broadcirculation as Danamon website and/orpublished inIndonesian Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 249 PT Bank Danamon Indonesia Tbk. implementation of corporate governance’s best practices best practices governance’s of corporate implementation of Danamon’s issuance The applicable. are universally that part of the report is implementation governance corporate principles transparency implementing for responsibility laws applicable fulfilling and stakeholders the towards and regulations. In addition to the self assessment of the implementation implementation of the self assessment to the In addition provisions the by regulated as governance corporate of Indonesian also assessed by the of OJK, Danamon is and OJK RSM (IICD), Directorship for Corporate Institute Danamon principles. CG Scorecard ASEAN on the based necessary the to determine self assessment conducts plan improvements. action GOVERNANCE OF CORPORATE ACHIEVEMENT IMPLEMENTATION Directorship Corporate for Institute Indonesian 11th In Danamon received Award, Governance Corporate (IICD) Award 2019” award as one Governance Corporate “IICD the Company, Listed Public Capitalization Top 50 Big of the governance best corporate the company with a public Sector” Best Financial Capitalization “Big for practices that companies to public given is award This category. best governance good corporate implemented have ASEAN CG in the parameters based on the practices Scorecard. GOVERNANCE CORPORATE OF DANAMON’S REPORTS IMPLEMENTATION Implementation Governance Danamon’s Corporate of implementation of the all aspects covers Report are formulated at Danamon, which governance corporate and regulations to prevailing legislative by referring Danamon. Good Corporate Governance principles have have principles Governance Danamon. Good Corporate aspects to three and structured thoroughly been applied governance structure, governance namely of governance, activities, of Reviews outcome. governance and process out carried are and strategies policies processes, and effective processes optimal achieve to continuously controls. ASSESSMENT EXTERNAL (ASEAN CG Scorecard Governance ASEAN Corporate Scorecard) the in improvements make to continues Danamon principles governance of good corporate implementation corporate good achieve to expected is it that so value to added provide can ultimately that governance made by efforts all Danamon stakeholders. One of the for guide a as CG Scorecard ASEAN to use the is Danamon of sustainable corporate implementation the improving principles. governance Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 The Board of Directors consistently implements implements consistently Board of Directors The The Board of Directors has communicated has communicated Board of Directors The Danamon prepares Business Plans by considering considering Danamon prepares Business Plans by Danamon has strategic plans in the form of Corporate form of Corporate plans in the Danamon has strategic meetings and/ or Joint meetings, and based on the and based on the and/ or Joint meetings, meetings report. supervisory Board of Commissioners’ Danamon organization through an offsite meeting meeting an offsite through organization Danamon employees. with Board of business plans. The established the implementation the has supervised Commissioners Board of Commissioners’ RBB through of the including HR, IT, office networks, policies and and networks, policies HR, IT, office including preparation factors in the are supporting procedures plans. of Danamon’s strategic to Plan Business and Plan Corporate Danamon’s of the levels Controlling Shareholders and to all the is disclosed in Danamon’s Business Plan. Danamon’s in Danamon’s Business Plan. Danamon’s disclosed is both stakeholders has benefited growth positive Danamon’s and non-economically. economically been prepared comprehensively plans have strategic to business opportunities paid attention and have owned by Danamon and considered and strengths infrastructure Adequate weaknesses and threats. the support Danamon’s strategic plans. support Danamon’s strategic appetite, risk conditions, macro and micro the and taking into account strategies infrastructure, to internal and being responsive principles prudential growth changes. Danamon’s continuous and external Danamon’s capital adequacy ratio is maintained maintained is ratio Danamon’s capital adequacy regulator. set by the ratio minimum the above Capital Internal the Danamon has also implemented in managing (ICAAP) Process Assessment Adequacy has been carried capital. Danamon’s profit sharing General Meeting of the resolution the out through regard to capital to due with of Shareholders (GMS) Plans and Business Plans in accordance with with accordance in Plans Business and Plans Danamon’s Business and mission. Danamon’s vision Board of Directors Plan has been prepared by the and Board of Commissioners by the and approved reflected is which owner, by the fully supported is in owner the of efforts and commitment the in in which capital, maintaining Danamon’s healthy of Customer Complaints and special units that that units and special Complaints of Customer customer and facilitate complaints handle customer or through branches through received complaints 24 customers Danamon serves and Hello media the hours. and/ or summary of banking service/ product product service/ of banking and/ or summary provisions. the with accordance in information of Settlement for Handling Danamon has a policy Annual Report in the problems are no significant In general, there at principles Governance of Corporate implementation

11. Main Management Company Management Operational Good Corporate Corporate Corporate 250 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 7. 6. 5. 4. 3. 2. 1. as follows: GMS consists of the Annual GMS and Extraordinary GMS, and arecarried outfairlyandtransparently. taken atthe GMS arebasedonthe interests ofthe Bank, to the articles ofassociation andlegislation. Decisions forum forshareholderstotakedecisions with due regard organ inDanamon’scorporate governance, which is a The GeneralMeeting ofShareholders(GMS) is the highest placed bythe shareholders amounted to9,773,552,870 Rp 500.00pershare.Authorized capitalthat hasbeen B shareswith voting rights, eachwith a nominalvalueof value of Rp 50,000.00 per share and 17,760,000,000 Series Series Ashareswith voting rights, eachwith anominal authorized capitalofDanamonis divided into22,400,000 are recorded in Danamon’sregister of shareholders. The Shareholders areownersofthe capitalwhosenames SHAREHOLDERS Corporate Governance Guidelines. 2017, Danamon’sArticles ofAssociation andDanamon’s FSA Regulation No.10/POJK.04/2017 dated March 14, Companies alongwith the amendment rules through General Meetings ofShareholdersPublic Limited December 8,2014concerning PlanningandHolding Companies, FSARegulation No.32/POJK.04/2014dated to Law No. 40 Year 2007 concerning Limited Liability The GMS held byDanamonis carried outbyreferring Legal Basis forGMS Implementation PT Bank DanamonIndonesia Tbk. Shareholders ( General Meeting of Association andthe prevailinglaws andregulations. in accordance with the provisions ofthe Articles of the GMS Announcement andInvitation; and Danamon’sArticles ofAssociation preceded by Danamon in accordance to the statutory regulations any time basedonthe needsforthe interests of (EGMS) regulations andDanamon’sArticles ofAssociation. been submitted inaccordance with the statutory Danamon’s Articles ofAssociation; Commissioners with coverage as stipulated in to the GMS after beingreviewed bythe Boardof Announcement andInvitation; to inthe statutory regulations preceded bythe GMS annually, atthe latest bythe endofJune,asreferred In the EGMS, the proposedagendamaybedetermined EGMS canbeheld bythe BoardofDirectors at Extraordinary GeneralMeeting ofShareholders AGMS decides on the agenda or on matters that have The BoardofDirectors submits the Annual Report AGMS must beheld bythe Board ofDirectors Annual GeneralMeeting ofShareholders(AGMS) GMS ) information inrelation tothe GMS, including agenda, her votes inthe GMS, aswellthe right toobtain the right toparticipate effectively andtoexercise his/ Association andother changes related tothe Company, making related toamendments inthe Articles of Shareholders have the right toparticipate indecision Association. the requirements stipulated in Danamon’s Articles of may beheld atthe request ofthe shareholdersbymeeting management of the Company through the GMS. The GMS and obligations. Shareholdersmayparticipate inthe from commonshares.Shareholdershave equal rights Danamon doesnotdifferentiate preferredshares Rights andAuthority ofShareholders issued byDanamonareregistered shares. as holdersofseries Aandseries Bsharesandall 9,751,152,870 series Bshares.Shareholdersareclassified shares consisting of 22,400,000 series A shares and 3. 2. 1. Limitation ofShareholders danamon.co.id). can beaccessed through Danamon’swebsite (www. in detailthe Articles ofAssociation ofDanamonthat The rights andauthorities ofshareholdersareregulated 7. 6. 5. 4. 3. 2. 1. others: shareholders. The basic rights ofshareholdersare,among facilitates the implementation ofthe basic rights of Danamon protects the rights ofshareholdersand rules andprocedures forvoting. Supervision bythe controllingshareholderscanonly The controlling shareholderscancoordinate the Shareholders arenotallowedtointervene inthe Perform other rights andauthorities pursuant to Receive aportion ofDanamon’sprofit;and Appoint anddismiss the BoardofDirectors andthe Assign ortransfershares; Obtain the ownership registration method; Obtain relevantandmaterial information about Attend andvote inthe GMS; applicable regulations. and conducting audits inaccordance with the be performed through the GMS orpolicy coordination business plan. preparation ofbusinessstrategy, corporate plan,and reject such intervention. of Directors andthe BoardofCommissioners must operational activities of Danamon, and the Board laws andlegislations. Danamon’s Articles ofAssociation andthe prevailing Board ofCommissioners; Danamon inatimely andorderlymanner; Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 251 PT Bank Danamon Indonesia Tbk. that decides the cash dividend distribution. cash dividend the decides that regard to the provisions of attendance quorum and and quorum of attendance provisions regard to the in Danamon’s as stipulated quorum decision GMS Association. of Articles are not own and shareholders they shares that one person for to more than authority to give entitled voice. a different shares owned with of the a portion 1 a shareholder has more than if to cast 1 (one) vote, 1 (one) are asked to vote concerned (one) share, the number entire the represents vote only and the time card received. voting of owned shares based on the are prohibited and employees Board of Directors the of shareholders. proxy as the from acting that to those disbursement the distribution, dividend days 30 (thirty) than no later effected is are entitled GMS of minutes summary the of publication the after Decision-making by voting is conducted with due due with conducted is by voting Decision-making all cast by shareholders apply to ballots In voting, holder its 1 (one) share entitles counting, vote In the Board of Commissioners, of the members In voting, to cash related decision of a GMS event In the 2019 GMS 2019 GMS and EGMS AGMS and 2 (two) EGMS 1 (one) AGMS In 2019, Danamon has held 2018 the along with was held EGMS one of the in which mechanism holding EGMS and 2018 AGMS The AGMS. in the provisions the with out in accordance was carried No. 32/ and FSA Regulation of Association Bank’s Articles General Planning and Holding POJK.04/2014 concerning Companies Limited of Shareholders of Public Meetings 14, March dated No. 10/POJK.04/2017 and FSA Regulation No. 32/ to FSA Regulation Amendments 2017 concerning POJK.04/2014. 2019 26, on March and EGMS AGMS the with continued was which AGMS its Danamon held 20, 2018 as follow: on March EGMS 2) 3) 4) 5) 6) Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 GMS decisions are taken based on deliberation to to are taken based on deliberation decisions GMS The Board of Commissioners and Board of Directors of Directors and Board Board of Commissioners The of Danamon Shareholders may not take advantage The controlling shareholders must avoid any conflict any conflict avoid controlling shareholders must The abuse the not controlling shareholders must The reach consensus. In the case of a decision based on based on case of a decision reach consensus. In the made is decision the consensus not being reached, by voting. for personal, family, company or business interest in in interest for personal, family, company or business the and legislation to the contrary is a manner that in commonly applicable is of fairness which principle sectors. banking and financial the dominance of ownership or control that could lead to to lead could that control or ownership of dominance governance. of corporate principles of the violations regarding for information refuse requests must does controlling shareholder that Danamon by the of fairness and equality. principle the not comply with of interest. Annual Report 1) chairman of the meeting gives the shareholders, or proxy shareholders, or proxy the gives meeting chairman of the and/ or to ask questions opportunity of shareholders, the opinions to to ask and/or voice right the opinions, having for any agenda to voting prior GMS chairperson of the the GMS. of the as follows: conducted is GMS making in the decision The Voting and Vote Counting Mechanisms at GMS at GMS Mechanisms Counting and Vote Voting GMS The of Conduct. Rule GMS Danamon prepares the on Danamon website, disclosed is of Conduct Rule beginning at the meeting of the chairman by the recited voting the includes of Conduct Rule GMS The GMS. of the the voting, to the Prior procedures. counting and vote through various communication media facilitated by by facilitated media communication various through analyst exposure, public GMS, the as Danamon, such statements financial of quarterly publication briefing, as well as email access website, and annual report, the ([email protected]) Relations to Investor (corporate.secretary@danamon. Secretary and Corporate co.id). Access to Information for Shareholders to Information Access Danamon regarding Shareholders may obtain information 6. 7. 4. 5. Main Management Company Management Operational Good Corporate Corporate Corporate 252 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Venue Date andTime at theAGMS andEGMS The decision-makingmechanism at theAGMS andEGMS questions and/orgive opinions Number ofShareholders whoask AGMS and EGMSdecisions the quorumandvoting ofthe Independent partiesto calculate Director Attendance ofCompliance President Director Board ofDirectors including Attendance ofmembersthe Risk Monitoring Committee Attendance oftheChairman Remuneration Committee the Nomination Committee and Attendance oftheChairman Members oftheAudit Committee of theAudit Committee and Attendance oftheChairman Supervisory Board Attendance oftheSharia Commissioner including thePresident the Board ofCommissioners Attendance ofmembers Chairman oftheAGMS andEGM (Attendance ofShareholders) Quorum 3) 2) 1) first agendaoftheEGMS,there were 2(two) shareholders whoraised questions. agenda oftheAGMS, there was 1(one) shareholder who raised question and inthe 3 (three) Shareholders asked questions at the GMSandEGMS.In the second voting. Jasa Korpora astheSecurities Administration Bureau to calculate thequorumand Danamon hasappointed MalaMukti, NotaryandPTAdimitra S.H,LL.M.asaPublic Rita Mirasari astheCompliance Director was present Directors were present. Sng Seow Wah asPresident Director andallothermembersoftheBoard of Manggi T. HabirastheChairmanofRiskMonitoring Committee was present. Committee andRemuneration Committee was present. Johanes Berchmans Kristiadi Pudjosukanto astheChairmanofNomination present. Made Sukada asChairmanandallmembersoftheAudit Committee were Supervisory Board were present. Dr. Hasanudin,M.Ag andDrs.AsepSupyadillah asmembersoftheSharia Commissioners were present. Ng Kee ChoeasthePresident Commissioner andallmembersoftheBoard of of Association andCircular Resolutions oftheBoard ofCommissioners. Commissioner (Independent)ofDanamon,inaccordance withDanamon'sArticles The GMSwas chaired by JohanesBerchmans Kristiadi Pudjosukanto, Vice President GMS isvalid to take place andmake decisions. been placed andpaidupby theShareholders withvalid voting rights) .Thus, the second upto thefourth agendaoftheEGMS(i.e. 2/3 ofthetotal shares that have been placed andpaidupby theShareholders withvalid voting rights) andfor the requirements for thefirst agendaoftheEGMS(i.e. 3/4 ofthetotal shares that have paid upby theShareholders withvalid voting rights) anddecision-makingquorum the AGMS agenda(i.e. more than2/3 ofthetotal shares that have beenplaced and by Danamon.Therefore, itmeets thedecision-makingquorumrequirements for EGMS is 8,988,034,410 shares or approximately 93.78% of the total shares issued the numberofshares withvoting rightsthat attended orbeingrepresented at the shares or approximately 92.47% of the total shares issued by Danamon, meanwhile, voting rightsthat attended orbeingrepresented at theAGMS is8,863,250,411 the numberofentitledShares is9,584,643,365 shares. The numberofshares with In accordance withtheRegister ofDanamonShareholders asofMarch 1,2019, 10, Karet Setiabudi,Jakarta 12920 Menara BankDanamon,Auditorium, Lantai23,Jl.HR.RasunaSaid,BlokCNo. Indonesia Time EGMS –started at 11.20a.m.West IndonesiaTime andclosedat 12.12 p.m. West Indonesia Time AGMS –started at 10.04 a.m.West IndonesiaTime andclosedat 11.06 a.m.West Tuesday, March 26,2019: ABSTAIN vote isconsidered to have thesamevote asmajorityvote. In thecaseofadecisionbasedondeliberation for consensus was notreached, Meeting decisionswere taken basedondeliberation to reach consensus. c) b) a) a decisionwas valid ifapproved: For thesecond upto fourth EGMSagendas,by 2/3 ofthetotal shares For thefirst EGMSagenda,by 3/4 ofthetotal shares withvalid For allAGMS agenda,by more than2/3 ofthetotal shares withvalid with valid voting rightspresented orbeingrepresented at theMeeting; voting rightspresented orbeingrepresented at theMeeting; voting rightspresented orbeingrepresented at theMeeting; Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 253 Approve PT Bank Danamon Indonesia Tbk. 8,851,024,470 shares or 99.86% shares 8,851,024,470 explanation of GMS Agenda, and other GMS materials materials GMS Agenda, and other of GMS explanation IDXNet the through www.idx.co.id Website: IDX the to and system; reporting Profiles, Firm Accounting Accountant and Public to materials GMS and other of Conduct, Rules GMS 4, 2019. March on Danamon website, the Upload the announcement, invitation, and and invitation, announcement, Upload the Agenda, Public of GMS explanation Upload the Disapprove d) e) 2019 March on 26 and EGMS of AGMS Resolution agendas on 4 (four) 2019 decided 26, on March AGMS The agendas. 4 (four) 2019 decided 26, on March EGMS and the in 2019 been realize have Meetings of the All resolutions below: as stated 385,300 shares or 0.00% or 385,300 shares Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching AGMS – First Agenda – First AGMS Total Abstain Vote: 11,840,641 shares or 0.13% shares 11,840,641 Vote: Abstain Total Total Majority Vote: 8,862,865,111 shares or 99.99% shares 8,862,865,111 Majority Vote: Total Abstain 11,840,641 shares or 0.13% shares 11,840,641 2019 Ratify the annual Supervisory Report of the Board of Commissioners of the Company for financial year ended at ended at financial year for the Company of of Commissioners of the Board the annual Supervisory Report Ratify of duties in the performance of Directors (i) the Board to: et décharge”) acquit (“volledig and discharge release Give Approve the annual report of the Company’s for financial year ended at December 31, 2018; December ended at financial year for of the Company’s the annual report Approve the Public Accounting by audited which was 31, 2018 ended December of the year the financial statements Ratify providing advice and suggestions to the Board of Directors, which is done in the financial year ending December 31, 31, ending December which is done in the financial year of Directors, the Board to and suggestions advice providing ended December the financial year for in the annual report reflected are as long as the duties and responsibilities 2018, 31, 2018. December 31, 2018; and 31, 2018; December (ii) the the Company; represent to as the duties and responsibilities the management as well for and responsibilities in responsibilities duties, and responsibilities, and oversight of duties in the performance of Commissioners Board Directors; of the Board to approval and give of Directors, the Board assist of Directors, the Board to advice providing of the Sharia of supervision of duties and responsibilities in the performance and (iii) the Sharia Supervisory Board as with Islamic principles as well activities in accordance business of the Company’s aspects of the implementation Firm of Tanudiredja, Wibisana, Rintis & Partner, a firm member of the PricewaterhouseCoopers as stipulated in the in the as stipulated member of the PricewaterhouseCoopers a firm Rintis & Partner, Wibisana, Firm of Tanudiredja, with an unmodified Number 00023/2.1025/AU.1/07/0222-2/1/I/2019 2019 of January 29, Report Independent Auditor’s opinion; Voting Result Voting Invitation to attend the GMS as advertised in Kompas in Kompas as advertised GMS the to attend Invitation Notification of the plan to hold GMS to the Financial Financial to the plan to hold GMS of the Notification as advertised plan to hold GMS of the Announcement on the same day and date; same on the 4 on March and Kontan daily newspapers published on the Danamon website ,2019 and uploaded it to the day and date; same Services Authority and Indonesia Stock Exchange on on Exchange and Indonesia Stock Authority Services 15, 2019; January daily newspapers published in Kompas and Kontan Danamon it to the 22, 2019 and uploaded on January www.danamon.co.id (“Danamon website”) website: 3. 4. 1. 2. Agenda and Resolution of AGMS on March 26, 2019 26, on March of AGMS Agenda and Resolution Annual Report c) a) b) In relation to the AGMS and EGMS above, Danamon’s Danamon’s above, and EGMS AGMS to the In relation disclosures: following out the carried Board of Directors Main Management Company Management Operational Good Corporate Corporate Corporate 254 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 2. 1. IDR 3,922,172,000,000 detailedasfollows: Approve theappropriation ofthe Company’s netprofit for thefinancialyear endedDecember 31,2018 intotal amountof 2. 1. Accounting Firm,withtheconsideration oftherecommendation oftheAudit Committee. Commissioners to determine theamountofhonorarium andotherrequirements relating to theappointmentofPublic Services Authority to audittheCompany’s financialstatement for thefinancialyear 2019 andgive authorityto the Board of & Partner, memberfirmofPricewaterhouseCoopers Accounting asa Public Firmthat listed intheIndonesiaFinancial Appoint Drs.M.JusufWibisana, M.Ec., CPA, Accountant asPublic Accountant and Public FirmTanudiredja, Wibisana, Rintis 3. Voting Result Voting Result earnings oftheCompany. d. c. b. a. shares), shallbepaidasdividendsfor theyear of2018, withthefollowing conditions: that total numberofshares issued by theCompany ontheRecording Date shallnotbemore than9,584,643,365 40 of2007 onLimited LiabilityCompanies; 35% ofthenetprofit oramountingto IDR1,372,760,200,000 orapproximately IDR143,22pershare (withtheassumption 1% ofthenetprofit orIDR39,221,720,000 to besetasidefor thereserve fundto comply withArticle70 ofLaw number The remaining amountofthenetprofit for thefinancialyear 2018 whichisnotdetermined shallbeposted asretained c. b. a. c. b. a. been elapsedshallbeincludedintheSpecialReserves Funds.Procedures to claimDividendwhichhasbeen be stipulated by theBoard ofDirectors oftheCompany (furtherreferred to asthe“Recording Date”); 2. 1. implementation ofdividendpayment for thefinancialyear 2018, including(however withoutlimitation) to: regulations to theshareholders; recorded intheSpecialReserve Fundcanbeaccessed through theCompany’s website; The Board ofDirectors ishereby authorized andempowered to stipulate allmatters regarding orrelating to the The Board ofDirectors willdeductdividendtaxfor thefinancialyear 2018 inaccordance withtheprevailing tax Dividends whichare unclaimedafter periodof5(five) years asfrom thedate ofpayment ofthedividendshas Dividend shallbepaidto theshareholders whosenamesare registered intheShareholders’ Registry onadate to recommendation ofRemuneration Committee; for the financial year 2019, for each member of the Sharia Supervisory Board of the Company, based on the of tantieme/bonusfor the financialyear 2018 andtheremuneration/ honorarium andany otherallowance Company for thefinancialyear 2019 to beestimated at IDR752,624,628.00 gross; and the financialyear 2018; recommendation ofRemuneration Committee; for thefinancialyear 2019, for eachmemberoftheBoard ofCommissioners oftheCompany, basedonthe of tantieme/bonusfor thefinancial year 2018 and the remuneration/honorarium andany otherallowance Company for thefinancialyear 2019 to beestimated at IDR16,236,131,520.00 gross; and Company for thefinancialyear 2018; Approved thedelegation ofauthorityto theBoard ofCommissioners oftheCompany to determine portion Approved the total amount of the remuneration and other allowances for the Sharia Supervisory Board of the Approved thepayment oftantiemewhichwillbedistributed to theShariaSupervisoryBoard oftheCompany for Approved the delegation of authority to the President Commissioner of the Company to determine portion Approved thetotal amountoftheremuneration and/or otherallowances for theBoard ofCommissioners ofthe Approved the payment of tantieme/bonus which will be distributed to the Board of Commissioners of the and withoutprejudice to theregulations oftheStock Exchange where theshares oftheCompany are listed; payment for thefinancialyear 2018; and determine thedate ofimplementingpayment ofdividendfor thefinancialyear 2018, takinginto consideration Determine theRecording Date for theshareholders oftheCompany whoare entitledto receive dividend 121,000 shares or0.00% 121,000 shares or0.00% Abstain Abstain Total MajorityVote: 8,862,865,111 shares or99.99% Total MajorityVote: 8,862,137,711 shares or99.99% Total Abstain Vote: 121,000 sahamatau 0.00% AGMS –Second Agenda Total Abstain Vote: 121,000 shares or0.00% AGMS Agenda –Fourth AGMS –Third Agenda 385,300 shares or0.00% 1,112,700 shares or0.01% Disapprove Disapprove 8,862,016,711 shares or99.99% 8,862,744,111 shares or99.99% Approve Approve Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 255 Approve Approve 8,852,210,971 shares or 99.88% shares 8,852,210,971 PT Bank Danamon Indonesia Tbk. 8,535,273,746 shares or 94.96% shares 8,535,273,746 Disapprove 5.04% Disapprove 1,211,940 shares or 0.01% 1,211,940 shares 452,706,456 shares or or shares 452,706,456 Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching EGMS – First Agenda – First EGMS Total Abstain Vote: 54,208 shares or 0.00% 54,208 shares Vote: Abstain Total AGMS – Fourth Agenda AGMS Total of Abstain Vote: 9,827,500 saham atau 0.11% saham atau 9,827,500 Vote: of Abstain Total Total Majority Vote: 8,535,327,954 shares or 94.96% shares 8,535,327,954 Majority Vote: Total Total Majority and Approved Votes: 8,862,038,471 shares or 99.99% shares 8,862,038,471 Votes: Majority and Approved Total Abstain Abstain 9,827,500 shares or 0.11% shares 9,827,500 54,208 share or 0.00% 54,208 share In the event that there are non eligible shareholders who have transferred their shares to the Escrow Account, Account, the Escrow to their shares transferred who have non eligible shareholders are there that In the event sellers the respective will be borne by described above as the sale of shares paid for tax or commission Any The Company’s shareholders who intend to sell their shares must fill in and sign the Share Sales Form; fill in and sign the Share must sell their shares to who intend shareholders Company’s The PT to submit the form must Sale form Shares filled and signed the who have shareholders Company’s The Sales Verification within the Shares Sale form the Shares submitted who have shareholders Company’s The but Sale Period within the Shares Sale from their Shares submitted who have shareholders, Company’s The have not transfer their shares to the Escrow Account until the expiration of the Shares Transfer Period on 10 on 10 Period Transfer of the Shares until the expiration Account the Escrow to their shares not transfer have their shares; sell and transfer to their intention cancelled have to considered are April 2019, their submitted shareholders the respective after days than 2 working no later returned will be their shares Registrar; Share as the Company’s Jasa Korpora Adimitra including the supporting documents to requests of and the arrangement regulation Exchange with the applicable Indonesian Stock in accordance and buyers of each party. with the broker agreed fees Adimitra Jasa Korpora as the Company’s Share Registrar at 09.00 until 15.00 WIB starting from 28 March 28 March from WIB starting 15.00 until 09.00 at Registrar Share as the Company’s Jasa Korpora Adimitra is a If there announcement will make Company The Period). Sale Verification (Shares until 10 April 2019 2019 Period; Sales Verification change on Share to their shares transfer Bank to Custodian their Securities Companies/ to instructions provide must Period Transfer (“Shares on 9 or 10 April 2019 Account”) (Escrow number: KSEI1-1092-001-96 account escrow KSEI Period”); 2019 Approved the total amount of the remuneration and other allowances for the Board of Directors of the Company of the Company of Directors the Board for and other allowances amount of the remuneration the total Approved portion of determine to Company of the of Commissioners Board the of authority to the delegation Approved Approved the payment of tantieme/bonus which will be distributed to the Board of Directors of the Company for for Company the of Directors of Board the to distributed be will which tantieme/bonus of payment the Approved the financial year 2018; the financial year and IDR 50,107,962,608.00; at be estimated to 2019 year the financial for the for allowance other and any and the remuneration/honorarium 2018 the financial year tantieme/bonus for of based on the recommendation of the Company, of Directors each member of the Board for 2019 financial year Committee. Remuneration Voting Result Voting e) f) a) b) c) d) b. c. a. Approved for the Board of Directors of the Company to prepare and sign the BNP Merger Deed into the Company in in Company the into Deed Merger BNP the sign and prepare to Company the of Directors of Board the for Approved rights, to with substitution of the Company of Directors the Board and authority to of power the granting Authorized Approved the plan for the merger of the Company with BNP (where the Company will become the Srviving Bank a the Srviving Bank a will become the Company with BNP (where of the Company the merger the plan for Approved accordance with the BNP Merger Deed Concept into the Company with the terms and conditions as contained in the in the as contained and conditions with the terms the Company into Deed Concept with the BNP Merger accordance the Notary. and the amendments before Draft Merger the planned merger. to carry out actions relating Merged Bank and therefore confirms the transfer of all BNP assets and liabilities), along with the required transactional transactional with the required along and liabilities), of all BNP assets the transfer confirms Bank and therefore Merged merger the of concept and changes, and/or information additional document, merger of draft including documents, Sales form: Share and Statement attachments including all with BNP, deed of the Company Voting Result Voting 2. 3. 1. 3. Agenda and Resolution of EGMS on March 26, 2019 26, on March of EGMS Agenda and Resolution Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 256 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 1. 2. 1. Voting Result 1) shares owned by BNPshareholders priorto themerger, where theconversion ratio 1:0.236168: hundred fiftyfour millionseven hundred fiftytwo thousandfive hundred rupiahs) asaresult oftheconversion ofall five hundred andfive) seriesBshares withatotal nominalvalue ofRp94.454,752,500.00 (ninety-four billionfour whereby theCompany willissue atotal of188,909,505 (one hundred eightyeightmillionninehundred ninethousand AGMS for financialyear ended31December 2019 whichwillbeconducted nolater than June 2020. of theRepublic ofIndonesia. Human RightsoftheRepublic ofIndonesia,register itintheCompany Register, andannounce itintheState Gazette submit application to thecompetent authorityincludingtheFinancialServices Authority andMinister ofLaw and above into oneNotarydeedandmake editorial changesifneededinaccordance withapplicableregulations, andthen 2) Out of the aforementioned authorized capital issued by theshareholders inthe total of 9,773.552.870 (nine billion where theappointmentwillbeeffective after passing OJK Fitandproper Test, andtheterm ofoffice untilthe close of Director :RitaMirasari Director :Yasushi Itagaki Director :DadiBudiana Director :HerryHykmanto Director :Heriyanto Agung Putra Director :Adnan Qayum Khan Director :Satinder Pal Singh Ahluwalia Vice President Director :MichellinaTriwardhany President Director :SngSeow Wah Board ofDirectors Commissioner (Independent):Peter Benyamin Stok Commissioner (Independent):MadeSukada Commissioner (Independent):ManggiTaruna Habir Commissioner Commissioner Vice President Commissioner (Independent) President Commissioner :Takayoshi Futae Board ofCommissioners Approved thecomposition oftheBOCandBODafter theeffective merger oftheCompany and BNP asfollow: Approved to give authorityto theCompany’s Board ofDirectors to restate theAoA includingtheproposed change Approved the changeof the Company’s AoA Article4, Paragraph 2 concerning Issued Capital andPaid-up Capital, (a) b) a) hundred thirtyfive thousandRupiah),consisting of: value ofIDR5,995,576,435,000 (five trillionninehundred ninetyfive billionfive hundred seventy sixmillionfour seven hundred seventy three millionfive hundred fiftytwo thousandeighthundred seventy) shares inthenominal (b) The authorized capitaloftheCompany shallbeinIDR10,000,000,000,000 (ten trillionRupiah)dividedinto: Association. paid upby theshareholders withdetailsandnominalvalue ofshares specifiedat theendoftheseArticle hundred seventy five billion five hundred seventy sixmillionfour hundred three fiftyfive thousandRupiah) hundred seventy) Bseriesshares inthetotal nominalvalue ofIDR4,875,576,435,000 (four trillioneight IDR1,120,000,000,000; (one trilliononehundred andtwenty billionRupiah);and shares shallbeinanominalvalue ofIDR500(five hundred Rupiah. be inanominalvalue ofIDR50,000 (fiftythousandRupiah);and 22,400,000 (twenty two millionfour hundred thousand)Aseriesshares withvoting rights,eachshare shall 9,751,152,870 (ninebillionseven hundred fiftyonemillionhundred five twenty two thousandeight 22,400,000 (twenty two millionfour hundred thousand)Aseriesshares inthetotal nominalvalue of 17,760,000,000 (seventeen billionseven hundred andsixtymillion)Bseriesshares withvoting rights,each : HideakiTakase : MasamichiYasuda 121,000 shares or0,00% Abstain Total MajorityVote: 8,555,750,496 shares or95.19% : JohanesBerchmans Kristiadi Pudjosukanto EGMS –Second Agenda Total Abstain Vote: 121,000 shares or0.00% EGMS –Third Agenda “Capital” Article 4 432,283,914 shares or Disapprove 4.81% 8,555,629,496 shares or95.19% Approve Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 257 Approve Approve Dr. Hasanudin, M. Ag and Drs. and Drs. Hasanudin, M. Ag Dr. PT Bank Danamon Indonesia Tbk. 7,978,781,785 shares or 88.77% shares 7,978,781,785 8,568,094,374 shares or 95.33% shares 8,568,094,374 11.12% 4.67% Disapprove Disapprove 419,764,828 shares or or shares 419,764,828 999,280,217 shares or or shares 999,280,217 Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Total No Vote: 175,208 shares or 0.00% shares 175,208 No Vote: Total Total No Vote: 9,972,408 shares or 0.11% shares 9,972,408 No Vote: Total EGMS – Third Agenda – Third EGMS EGMS – Fourth Agenda EGMS Total Majority Vote: 7,988,754,193 shares or 88.88% shares 7,988,754,193 Majority Vote: Total Total Majority Vote: 8,568,269,582 shares or 95.33% shares 8,568,269,582 Majority Vote: Total by Danamon. Therefore, it meets the decision-making quorum requirements it meets the decision-making quorum requirements Danamon. Therefore, by been have that shares of the total than 2/3 more the EGMS agenda (i.e. for the Thus, rights). voting with valid the Shareholders and paid up by placed decisions. and make place take to GMS is valid Vice Pudjosukanto, Kristiadi Johanes Berchmans by chaired EGMS was The with (Independent) of Danamon, in accordance Commissioner President of the Board Resolutions and Circular Danamon's Articles of Association of Commissioners. and all members of the Commissioner Futae as the President Takayoshi present. were of Commissioners Board as Chairman, H. M. Din Syamsuddin Dr. Prof. were Mag as members of the Sharia Supervisory Board Asep Supyadillah, present. Committee as Chairman and all members of the Audit Made Sukada present. were Tuesday, 1 October 2019: Started at 14.25 West Indonesia Time and and Indonesia Time 14.25 West at Started 2019: 1 October Tuesday, Indonesia Time 14.50 West closed at Lantai 23, Jl. HR. Rasuna Said, Blok Auditorium, Bank Danamon, Menara 12920 Setiabudi, Jakarta Karet 10, C No. as of 6 September of Danamon Shareholders with the Register In accordance of number The shares. 9.773.552.870 is Shares entitled of number the 2019, the EGMS at or being represented attended rights that with voting shares issued shares of the total 95.42% or approximately shares is 9.326.385.319 Abstain Abstain 175,208 shares or 0.00% shares 175,208 9,972,408 shares or 0.11% shares 9,972,408 2019 Approved the Update of the Recovery Plan which was submitted to OJK on November 2018 on November OJK to submitted Plan which was of the Recovery the Update Approved with of the Company of Directors the Board and/or of Commissioners the Board authority to give to Approved Syariah Supervisory Board Syariah DR. HM Din Syamsuddin Chairman : Prof. M.Ag. Hasanuddin Member : Dr. M. Ag. Member : Drs. Asep Supyadillah, is effective. the same until the merger remained and SSB of BOC, BOD, composition The made before statements include such decisions in the deeds of to of Directors the Board authority to give to Approved There is no change on the composition of DPS after the merger is effective: the merger after of DPS on the composition is no change There substitution rights, to carry out the required actions relating to the Recovery Plan in consideration to OJK Regulation Regulation OJK to consideration in Plan Recovery the to relating actions required the out carry to rights, substitution Banks. Systemic Plans for Recovery concerning 2017 14 year No. Indonesia a notary public, notify changes to the Company’s data to the Minister of Law and Human Rights of the Republic of of Republic of the and Human Rights Law of Minister the to data Company’s the to changes public, notify notary a Voting Result Voting Voting Result Voting 1. 2. 3. 4. 2. Board of the Chairman of the Attendance and Members of the Committee Audit Committee Audit Chairman of the EGMS of of members of the Board Attendance including the President Commissioners Commissioner of the Sharia Supervisory Attendance Quorum (Attendance of Shareholders) of Quorum (Attendance Date and Time Date Venue Annual Report Danamon held another EGMS on 1 October 2019 as follow: on 1 October 2019 as follow: EGMS another Danamon held EGMS 1 OCTOBER 2019 EGMS Main Management Company Management Operational Good Corporate Corporate Corporate 258 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. as stated below. The EGMS onOctober1,2019hasdecided on2(two)agendas.Allresolution ofthe meeting have beenrealized in2019, RESOLUTION OFEGMS ON OCTOBER1,2019 5. 4. 3. 2. 1. In relation tothe EGMS on1October2019,the BoardofDirectors ofDanamoncarried outthe followingdisclosures: Agenda andResolution ofEGMS onOctober 1,2019 1. Independent partiesto calculate the Attendance ofCompliance Director Director of Directors includingPresident Attendance ofmemberstheBoard Monitoring Committee Attendance oftheChairmanRisk Remuneration Committee the Nomination Committee and Attendance oftheChairman AGMS andEGMS The decision-makingmechanismat the AGMS andEGMS questions and/orgive opinionsat the Number ofShareholders whoask EGMS decisions quorum andvoting oftheAGMS and website (www.danamon.co.id). Articles ofAssociation ofthe Company,GMS Rules ofConduct, andother meeting materials onthe Company’s www.idx.co.id through the SPE.OJK-IDXNet reporting system; and the Danamonwebsite onthe same dayanddate; upload ittothe Danamonwebsite: www.danamon.co.id(“Danamonwebsite”) onthe same dayanddate; Exchange, respectively on15August 2019; Upload the explanation ofEGMS Agenda,profileofthe BOCandBODmembers, amendments tothe articles inthe Upload the announcement, invitation, explanation ofGMS Agenda,andother GMS materials tothe IDX Website: Invitation toattend the EGMS inthe KompasandKontandailynewspaperon9September 2019anduploaditto Announcement onthe plantoconduct EGMS inthe KompasdanKontandailynewspaper on23August 2019and Notification onthe plantoconduct the EGMS tothe Financial Services Authority andthe IndonesiaStock c. b. a. BoC andBoD. Authority (OJK) where theirrespective term ofoffice isthesameasterm ofoffice ofthe incumbent ofthe Director where histerm ofoffice isthesameasterm ofoffice of theincumbentofBoD; will beeffective after passing theFit and Proper Test of the Financial Services Authority (OJK) asPresident Yasushi Itagaki asthePresident Director oftheCompany. The dismissal andappointmentofMr. Yasushi Itagaki the AnnualGeneral MeetingofShareholders inaccordance to theirrespective term ofoffice. (volledig acquit etdecharge) to Mr. SngSeow Wah andMr. Satinder Pal SinghAhluwalia willbedetermined at expression ofthanksfor theservices they have provided to theCompany. The grant ofrelease anddischarge where theirrespective appointmentwillbeeffective after passing theFitandProper Test oftheFinancialServices • • • • • Approved to appoint : Approved thedismissal ofMr. Yasushi ItagakiastheDirector oftheCompany andat thesametimeappointMr. Accepted theresignation ofMr. SngSeow Wah andresignation ofMr. Satinder Pal SinghAhluwalia with Mr. NaokiMizoguchi asDirector Mr. Muljono Tjandra asDirector Mr. Honggo Widjojo Kangmasto asVice President Director Mr. Nobuya Kawasaki asCommissioner Mr. NoriakiGoto asCommissioner 3) 2) 1) There isnoShareholders whoraised questions at theEGMS the quorumandvoting. Adimitra JasaKorpora astheSecuritiesAdministration Bureau to calculate Danamon hasappointed MalaMukti, NotaryandPT S.H,LL.M.asa Public Rita Mirasari astheCompliance Director was present of Directors were present. Sng Seow Wah asPresident Director andallothermembersoftheBoard present. Manggi T. HabirastheChairmanofRiskMonitoring Committee was Committee andRemuneration Committee was present. Johanes Berchmans Kristiadi Pudjosukanto astheChairmanofNomination ABSTAIN vote isconsidered to have thesamevote asmajorityvote. In thecaseofadecisionbasedondeliberation for consensus was not Meeting decisionswere taken basedondeliberation to reach Meeting; shares withvalid voting rightspresented orbeingrepresented at the reached, a decision was valid if approved by more than 2/3 of the total consensus. EGMS –First Agenda Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 259 98,69% Approve Approve 9.204.437.791 shares or or shares 9.204.437.791 PT Bank Danamon Indonesia Tbk. 9.204.469.491 shares or 98,69% shares 9.204.469.491 Disapprove Disapprove 121.947.528 shares or 1,31% shares 121.947.528 Total Abstain Vote: 0 share 0 share Vote: Abstain Total Total Abstain Vote: 0 share 0 share Vote: Abstain Total 121.915.828 shares or 1,31% 121.915.828 shares Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching EGMS – First Agenda – First EGMS : Johanes Berchmans Kristiadi Pudjosukanto Kristiadi : Johanes Berchmans EGMS – Second Agenda – Second EGMS Total Majority Vote: 9.204.437.791 shares or 98,69% shares 9.204.437.791 Majority Vote: Total Total Majority Vote: 9.204.469.491 shares or 98,69% shares 9.204.469.491 Majority Vote: Total Abstain 0 shares 0 shares 0 share 0 share Abstain : Takayoshi Futae : Takayoshi : Masamichi Yasuda : Noriaki Goto* Kawasaki* : Nobuya 2019 Approved to give authority to the Board of Directors to include such decisions in the deeds of statements made made statements of deeds the in decisions such include to Directors of Board the to authority give to Approved Member : Dr. Hasanudin, M.Ag. Member : Dr. M. Ag. Member : Drs. Asep Supyadillah, Test Fit and Proper OJK passing after *effective the for Meeting of Shareholders Annual General the closing of the third will end up to that of office with term Director : Herry Hykmanto Director : Dadi Budiana Director : Rita Mirasari Director : Muljono Tjandra* Director : Naoki Mizoguchi* Director Sharia Supervisory Board DR. HM Din Syamsuddin Chairman : Prof. Commissioner (Independent) : Peter Benyamin Stok Benyamin : Peter (Independent) Commissioner of Directors Board Itagaki* : Yasushi Director President Laksmi Triwardhany : Michellina Director President Vice Kangmasto* : Honggo Widjojo Director President Vice Khan Qayum : Adnan Director Putra Agung : Heriyanto Director Board of Commissioners Board Commissioner President (Independent) Commissioner President Vice Commissioner Commissioner Commissioner Habir (Independent) : Manggi Taruna Commissioner : Made Sukada (Independent) Commissioner Therefore, the composition of the Board of Commissioners, Board of Directors and Sharia Supervisory Board of of and Sharia Supervisory Board of Directors Board of Commissioners, of the Board composition the Therefore, before a notary public, notify changes to the Company’s data to the Minister of Law and Human Rights of the and Human Rights of the of Law the Minister to data the Company’s a notary public, notify changes to before of Indonesia. Republic financial year book ended 2019 which will convene at the latest on 30 June 2020, without prejudice to the right the right to without prejudice on 30 June 2020, the latest at which will convene book ended 2019 financial year time. any them at dismiss to Meeting of Shareholder of General the Company as follows: the Company Voting Result Voting

Approved the Amendments of Article 3 of the Company’s Article of Association concerning Purpose and Objective Purpose Objective and concerning Association of Article Company’s the of 3 Article of Amendments the Approved change including the proposed the AoA restate to of Directors Board the Company’s authority to give to Approved and also Company Business Activity. Business and also Company and then with applicable regulations, changes if needed in accordance editorial one Notary deed and make into above Register, the Company it in of Indonesia, register Republic of the and Human Rights of Law Minister application submit of Indonesia of the Republic Gazette it in the State and announce Voting Result Voting 2. 1. 2. Annual Report All of the 2019 AGMS and EGMS Resolutions have been realized in the same year. same in the been realized have Resolutions and EGMS 2019 AGMS All of the REALIZATION OF THE 2019 GMS RESOLUTION OF THE 2019 GMS REALIZATION Main Management Company Management Operational Good Corporate Corporate Corporate 260 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. c. b. a. Work Ethics ofthe BoardofCommissioners reviewed periodically. the implementation ofgoodcorporate governance andis corporate governance principles, andbestpractices in Charter is developed basedonapplicable regulations, and implementation, transparency, andreporting. The President Commissioner, authority, work ethic, meetings of Commissioners, duties andresponsibilities ofthe terms ofoffice, duties andresponsibilities ofthe Board structure and membership, independent commissioners, of the Board of Commissioners that regulates the The BoardofCommissioners hasownedthe Charter Charter ofthe BoardofCommissioners opportunity todefendthemselves. of the BoardofCommissioners hadbeengiven the be basedonreasonablegroundsandafter the members though his/her term hasnotexpired, dismissal would dismiss members ofthe BoardofCommissioners even required bythe Financial Services Authority. The GMS can is declared effective after passing the fit and proper test Appointment ofmembers ofthe BoardofCommissioners reappointed. accordance with the Articles ofAssociation andmaybe are appointed with terms ofoffice of3 (three) years in Committee. Members ofthe BoardofCommissioners with regardtothe recommendation ofthe Nomination and dismissed bythe GMS basedonatransparentprocess Members ofthe Boardof Commissioners are appointed health ofthe company. and both have the ultimate goalforthe progressand with the principle that both organshave anequal position of Directors is the relationship ofchecks andbalances relationship ofthe BoardofCommissioners andthe Board principles ofgoodcorporate governance. The working Directors andensuring that the companyimplements the supervising andproviding advices tothe Boardof which hasduties andresponsibilities collectively for The Board of Commissioners is the organ of Danamon Commissioners Board of statements aboutmaterial facts ornotdisclosing Shareholders. other facilities asspecified inthe GeneralMeeting of gain fromDanamonother than remuneration and of Danamonandits subsidiaries. may reduce profits orbedetrimental tothe reputation personal, family,and/orother party’sinterests that time the statement wasmade. misleading aboutthe conditions ofDanamon atthe material facts so that the statements made are not Prohibited fromdirectly orindirectly makingincorrect Prohibited fromtakingand/orreceiving personal Prohibited from taking advantage of Danamon for c. b. a. Commissioners Duties andResponsibilities ofthe Boardof d. k. j. i. h. g. f. e. d. The Board of Commissioners must ensure the The BoardofCommissioners must conduct its duties The BoardofCommissioners is subject tothe work In conducting supervision, prohibited frominterfering The BoardofCommissioners must make The Boardof Commissioners must ensurethat the Members of the Board of Commissioners agree to sit The Board of Commissioners must evaluate the In ordertosupportthe effective implementation The BoardofCommissioners must review the vision The BoardofCommissioners must notbe involved In conducting supervision, the Board of organization. all Danamon’sbusinessactivities atalllevels ofthe implementation ofgoodcorporate governance in responsibilities optimally. provide sufficient time to carry out its duties and its duties, the Board of Commissioners must and responsibilities independently. In performing internal regulations andpolicies ofDanamon. ethics (codeofconduct), applicable legislation, Association. other matters setforth inDanamon’sArticles of for the provision offundstorelated parties and in the operational decisions ofthe companyexcept recommendations tothe BoardofDirectors. submitted bythe Audit Committee andsubmit those recommendations onimprovements orsuggestions other authorities. Financial Services Authority/ BankIndonesiaand/or working unit, external auditor, supervision results of and recommendations ofDanamon’sinternal audit Board of Directors have followed up audit findings duties effectively. ensure that the above Committees carry outtheir Committee. The BoardofCommissioners must Committees asrecommended bythe Nomination as amember orasachairmaninoneofthe above performance ofthe Committees annually. • • • • • • Commissioners hasestablished: of its duties andresponsibilities, the Boardof and mission ofDanamononaregular basis. Association ofDanamonandapplicable legislation. parties andother matters specified inthe Articles of except: inthe caseoffundsprovision torelated in the decision-making of Danamon’soperations, the strategic policy implementation ofDanamon. Commissioners must direct, monitor, andevaluate Integrated Corporate Governance Committee Corporate Governance Committee Nomination Committee Remuneration Committe Risk Monitoring Committee Audit Committee Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 261 PT Bank Danamon Indonesia Tbk. Position Commissioner President Commissioner President Commissioner (Independent) Commissioner (Independent) Commissioner (Independent) Commissioner Vice President Commissioner (Independent) Commissioner President Vice and regulations. less than 5 (five) days. 5 (five) less than Board of Commissioners. of the to members tantieme and resources funds, assets, Danamon’s employees, necessary. as deemed the with connection in parties and other employees, responsibilities. and duties of its implementation out in carrying to assist Board of Commissioners the necessary. if duties, its laws prevailing the of Danamon and Association of Receive authority from the GMS to distribute to distribute GMS from the authority Receive regarding data, and information documents, Access Board of Directors, the with communicate Directly of members than other Engage independent parties Articles by the as granted authorities out other Carry NUMBER, COMPOSITION, CRITERIA, INDEPENDENCY INDEPENDENCY CRITERIA, COMPOSITION, NUMBER, OF THE OF MEMBERS POSITIONS AND CONCURRENT BOARD OF COMMISSIONERS Board of the of Criteria and Composition Number, Commissioners after Board of Commissioners of the composition The Danamon and Bank between merger effective the Parahyangan was as follow c. Board of Commissioners of the Authority are Board of Commissioners of the authorities The Corporate of Association, Articles in the stipulated Board of the of and Charter Policy, Governance as follows: Commissioners, a. b. c. d. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Name 2019 Made Sukada Stok Benyamin Peter Takayoshi Futae Takayoshi Kristiadi J.B. Masamichi Yasuda Habir Manggi T. Receive reports from the Committees under the under the Committees from the reports Receive in conducting Board of Commissioners the Lead Members of the Board of Commissioners must must Commissioners of Board the of Members The Board of Commissioners must prepare the prepare the must Board of Commissioners The The Board of Commissioners must inform Financial Financial inform must Board of Commissioners The monitor and must Board of Commissioners The The Board of Commissioners must safeguard all all safeguard must Commissioners of Board The urgent situation in the meeting invitation in the event event the in invitation meeting in the urgent situation in conducted is meeting Board of Commissioners the Board of Commissioners. an and recognize functions, and assurance oversight review and update the charter periodically. charter the and update review continuous through competencies enhance and training. education evaluate the information technology strategic plan, plan, strategic technology information the evaluate of and procedures policies the reviewing including of information utilization for the management risk Board of by Danamon, as proposed by the technology Directors. as well as Board of Commissioners, of the Charter Services Authority no later than 7 (seven) working working 7 (seven) than no later Authority Services in of legislation of: violation finding the after days and conditions and banking finance of field the could endanger the that conditions or estimated of Danamon’s business continuity confidential documents, data, and information of of data, and information documents, confidential Danamon. 1 2 5 3 6 4 No. Annual Report Perform coordination functions on the implementation implementation on the functions Perform coordination Board of of the and responsibilities duties of the among others: Commissioners, a. b. p. President of the and Responsibilities Duties Commissioner o. m. n. l. Number, Composition and Criteria of the Board of Commissioners of the and Criteria Composition Number, Main Management Company Management Operational Good Corporate Corporate Corporate 262 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data complying with applicable lawsandregulations. account effectiveness in decision making, aswell the needs and complexity of Danamon while taking into of the BoardofCommissioners areinaccordance with are domiciled inIndonesia.The numberandcomposition Made SukadadanPeter BenyaminStok,andhalfofthem independent, namely: J.B.Kristiadi, Manggi T.Habir, Half ofthe members ofthe BoardofCommissioners are of the BoardofDirectors of10 (ten) members. (eight) members anddoesnotexceed the totalmember The totalmember ofthe BoardofCommissioners is 8 EGMS is asfollow: they passedthe OJKFit andProperTest. The composition ofthe BoardofCommissioner basedonthe 1October2019 Kawasaki as Commissioners of the Bank. The appointment of Noriaki Gotoand Nobuya Kawasakiwillbeeffective after Furthermore, the EGMS conducted on1October2019approved the appointment ofNoriaki GotoandNobuya at any time. Members of the Board of Commissioners right ofthe GeneralMeeting ofShareholderstoterminate held nolater than June30,2020,without prejudice tothe fiscal year ending on December 31, 2019 which willbe of the AnnualGeneralMeeting ofShareholdersforthe The BoardofCommissioners’ tenure is until the closing PT Bank DanamonIndonesia Tbk. *the appointment willbeeffective after passingthe OJKFit andProperTest No. 4 6 8 3 5 2 7 1 Masamichi Yasuda J.B. Kristiadi Takayoshi Futae Nobuya Kawasaki *) Noriaki Goto *) Peter Benyamin Stok Made Sukada Manggi T. Habir Name whose term ofservice hasendedmaybereappointed by • resigned. • • • • • the BoardofCommissioners: Commissioners willendautomatically if the member of The term ofoffice ofamember ofthe Boardof meeting, unlessthe GMS determines otherwise ended. The termination is effective fromthe closingofthe time bythe GMS even though the term ofoffice hasnot of the BoardofCommissioners maybedismissed atany taking intoaccountthe applicable provisions. Members

does notmeet the requirements referredtointhe dismissed basedonGMS decision; or passed away;or prohibited fromserving asamember ofthe Boardof declared bankrupt orplaced undercustody basedon provisions ofthe legislation; or statutory provisions; or Commissioners because ofstatutory provisions or a courtdecision; or Vice President Commissioner (Independent) Commissioner (Independent) Commissioner (Independent) Commissioner (Independent) President Commissioner Commissioner Commissioner Commissioner Position Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 263 To kyo Japan Domicile Indonesia Indonesia Indonesia Indonesia Singapore Singapore 1x 1x 1x 1x 1x 2x 5x 5x Number of Number of Appointment PT Bank Danamon Indonesia Tbk. 2011-2014 2011-2014 2014-2017 2014-2017 2014-2017 2008-2011 2008-2011 2017-2020 2017-2020 2017-2020 2018-2020 2018-2020 2018-2020 2019-2020 2019-2020 2019-2020 2019-2020 2019-2020 2019-2020 2019-2020 2019-2020 2005-2008 2005-2008 Office Terms Office the Sharia Supervisory Board, or held a position one one position a held or Board, Supervisory Sharia the Bank same of the Board of Directors below the level the Bank within the with company affiliated or other last 1 (one) year. prepared and is which of independency statement regarding statement including periodically, updated by Financial are prohibited that concurrent positions Authority. Services related to Danamon’s business activities. related of member Board of Commissioners, of the member the signed have All Independent Commissioners Have not been a member of the Board of Directors, Board of Directors, of the not been a member Have 5. 4. /BI Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2018 2019 2014 2005 2019*** 2019*** 2019*** 2019*** 2019*** 2019*** April 25, April 25, April 25, April 25, April 25, April 25, April 25, April 25, OJK fit & fit & OJK fit & OJK August 8, 8, August October 3, 3, October proper test test proper test proper July 5, 2018 February 21, 21, February December 5, 5, December Effective OJK OJK Effective July 22, 2005 2018 2018 2018 2019 2019 2019** 2019** 2019** 2019** 2019** 2019** GMS Date GMS March 26, 26, March 26, March March 26, 26, March 26, March March 26, 26, March 26, March March 20, 20, March March 20, 20, March October 1, 1, October 1, October May 7, 2014 7, May May 9, 2005 9, May November 19, 19, November May 9, 2005 9, May Position President President Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commissioner Commisisoner Vice President President Vice President Vice (Independent) (Independent) (Independent) (Independent) (Independent) (Independent) (Independent) (Independent) 2019 Name In the process of OJK Fit and Proper Test and Proper Test of OJK Fit process In the to due Board of Commissioners of the composition changes in the the approved 2019, that 26, on March EGMS of the resolution the with In accordance Financial of the Board of Commissioners of the of Decision Submission 25, 2019 regarding April No. S-122 / PB.12 / 2019 dated Based on OJK’s letter the merger process between Danamon and PT Bank Nusantara Parahyangan Tbk between Danamon and PT Bank Nusantara Parahyangan Tbk process merger the Management of the PKK Results of PT Bank Nusantara Parahyangan Tbk into PT Bank Danamon Indonesia Tbk and the Merger for the Authority Services from OJK. fit and proper test passed the have Board of Commissioners of the all members Results), of PT Bank Danamon Indonesia Tbk ( Merger Have no shares, directly or indirectly, in Danamon. or indirectly, no shares, directly Have relationship business indirect or direct no Have Have no financial, management, share ownership share ownership management, no financial, Have Commissioners, and/ or controlling shareholders, or shareholders, or and/ or controlling Commissioners, ability the may affect Danamon that with relationship to act independently. and/or family relationships with other members of of members other with and/or family relationships Board of of the members Board of Directors, the

Peter Peter Benyamin Stok Noriaki * Goto Nobuya * Kawasaki Made Made Sukada Manggi T. Manggi T. Habir Masamichi Masamichi Yasuda Takayoshi Takayoshi Futae J.B. Kristiadi Annual Report * ** *** 2. 3. Criteria for Independent Commissioner Criteria of a member as requirements the meeting to addition In Danamon’s Independent Board of Commissioners, the following provisions: the comply with must Commissioners 1. Main Management Company Management Operational Good Corporate Corporate Corporate 264 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Commissioners, members of the Board of Directors, and Controlling Shareholders can be viewed in the following table: Family andFinancial Relationship ofmembers ofthe BoardofCommissioners with their fellowmembers ofthe Boardof Family andFinancial Relationship Commissioners andBoardofDirectors. and allmembers ofthe BoardofCommissioners have nofinancial relationship with other members ofthe Boardof of the members ofthe BoardofCommissioners have nofinancial relationships with the controllingshareholders degree with other members of the Board of Commissioners, Board of Directors, or the controlling shareholders. 50% All members ofthe BoardofCommissioners whoarecurrentlyserving have nofamilyrelationship uptothe second Independency ofMembers ofthe BoardofCommissioners * PT Bank DanamonIndonesia Tbk. All members ofthe BoardofCommissioners donotholdconcurrentpositions which areprohibited bythe regulation 2. 1. Concurrent Positions ofthe BoardofCommissioners Kawasaki Nobuya Noriaki Goto Benyamin Stok Peter Made Sukada Manggi T. Habir Yasuda Masamichi J.B Kristiadi Futae Takayoshi where the concerned serves. b. a. Member ofthe BoardofCommissioners canonlybecome committee member innomorethan 5(five) committees Members ofthe BoardofCommissioners mayonlyassume concurrentpositions as: the appointment willbeeffective after passingthe OJKFit andProperTest Name With the following exceptions: Members ofBoardCommissioners whoserve asmembers ofthe BoardofDirectors, members ofthe Board A member ofBoardCommissioners, BoardofDirectors, orexecutive officer inanonfinancial institution or - - controlled byDanamon; of Commissioners orExecutive Officers who carry outthe supervisory function in1(one) non-banksubsidiary company; or *) Members ofthe BoardofCommissioners serve innon-profitorganizations orinstitutions. Company’s shareholdersinthe formoflegalentities intheir businessgroups,and/or Non-independent members ofthe BoardofCommissioners whocarry outfunctional duties fromthe *) Commissioner Commissioner (Independent) Commissioner (Independent) Commissioner (Independent) Commissioner Commissioner (Independent) Commissioner Vice President Commissioner President Position Yes Members ------BOC No √ √ √ √ √ √ √ √ Family Relationship with Yes ------Members BOD No √ √ √ √ √ √ √ √ Yes Shareholder Controlling ------No √ √ √ √ √ √ √ √ Yes Members ------BOC No Financial Relationship with √ √ √ √ √ √ √ √ Yes ------Members BOD No Annual Report √ √ √ √ √ √ √ √ Yes Shareholder Controlling √ √ √ √ - - - - No 2019 √ √ √ √ - - - - Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 265 PT Bank Danamon Indonesia Tbk. Position in Other Company in Other Position Officer Chief Executive, Global Commercial Banking Business Banking Business Global Commercial Chief Executive, Officer – Mitsubishi UFJ Officer-International Unit, Chief Operating Inc Financial Group Bank, Ltd MUFG COO-I, Group Banking Business Commercial Reform and Bureaucacy of Adminstrative Ministry Member of the Board of Directors, Senior Managing Executive Managing Executive Senior of Directors, Member of the Board Head, Global Group Executive Senior Managing Corporate Dah Sing Financial Limited Director, Alternate Tbk Tubindo Citra Member of BOC – PT. – Reform Bureaucacy for Member of Independent Team Managing Executive Officer, Regional Executive for Asia Pasific Asia Pasific for Executive Regional Officer, Managing Executive Committee and Remuneration Chairman, Nomination Vice Head of Supervisory Board - Yayasan Danamon Peduli Danamon - Yayasan Head of Supervisory Board – PT Committee and Investment Member of Risk Committee Avrist Life Insurance Life Avrist Inc. Financial Group – Mitsubishi UFJ Limited Public Company Member – Bank of Ayudhaya Senior Managing Executive Officer, Regional Executive For Asia Asia For Executive Regional Officer, Senior Managing Executive Pasific – MUFG Bank Ltd - Mitsubishi UFJ Financial Group Inc Financial Group - Mitsubishi UFJ Bank Ltd – MUFG Pasific Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 1. 3. 1. 2. Member of Supervisory Board – Yayasan Danamon Peduli – Yayasan Member of Supervisory Board None 2. Banking Commercial Deputy Head of Global Managing Director, Financial - Mitsubishi UFJ Bank, Ltd Planning Division – MUFG Inc. Group 1. 2. 3. 1. 2. - Bank, Ltd. – MUFG Executive Senior Managing Corporate Group Financial Mitsubishi UFJ

Position in Danamon Position Commissioner Commissioner (Independent) Commissioner Commissioner (Independent) Commissioner (Independent) Commissioner (Independent) Commissioner President Commissioner President President Vice *) *) 2019 Name the appointment will be effective after passing the OJK Fit and Proper Test OJK Fit passing the after will be effective appointment the Nobuya Kawasaki Kawasaki Nobuya Noriaki Goto Noriaki Goto Manggi T. Habir Manggi T. Made Sukada Stok Benyamin Peter JB Krisitiadi Masamichi Yasuda Takayoshi Futae Takayoshi Annual Report is as follows: is Share Ownership of the Members of the Board of Commissioners of the Members of the Share Ownership subsidiaries’ Danamon’s and its involving report any transactions must Board of Commissioners of the Members 1 (one) latest and at the transaction to the at least 1 (one) working day prior Secretary Corporate to the Securities Policy. Personal Investment regarding policy in internal occurs as stated transaction the working day after or indirectly directly either Board of Commissioners, of the Members of the 2019, share ownership As of 31 December * as reflected in the following table: following in the as reflected Main Management Company Management Operational Good Corporate Corporate Corporate 266 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Sukada Made Habir Taruna Manggi Futae Takayoshi Krisitiadi JB Name

(Independent) Vice President Commissioner Commissioner (Independent) (Independent) Commissioner Commissioner President Position

Danamon - - - - 10.000 of shares Amount Indonesia Negara PT Bank Other - Bank - - Share Ownership at shares 9.130 Amount of Group Inc UFJ Financial Mitsubishi Insitution Non Bank Financial - - - Amount ofshares 3.082 Amount ofshares Development Amount ofshares 95 40.000 20.000 50.000 20.000 Amount ofshares Negara, Persero 100.000 PT Waskita Raya PT Ciputra PT HBK Amount ofshares PT Wijaya Karya Amount ofshares PT H.MSampoerna Amount ofshares PT Adhi Karya, Tbk PT Perusahaan Gas Other Company

- -

Annual Report 18.6% ownership: of share Percentage - 0.000% ownership: of share Percentage Remark

------2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 267 ------

Remark Percentage Percentage of share ownership: 0.00098% Percentage of share ownership: 0.000%

- - - PT Bank Danamon Indonesia Tbk. Other Company Other

Semen Indonesia Semen Indonesia Ottomitra Wahana Precast Beton Waskita Aneka Tambang Tambang Aneka Mega Persada Energi Industri Kawasan Steel Krakatau 500 Amount of shares Alam Resource Amount of shares Amount of shares 335,000 Tbk (Persero) Amount of shares 20,500 Multiartha Tbk Amount of shares 1,009,600 Tbk Amount of shares 608,000 (Persero Tbk) (Persero Amount of shares 205,000 Tbk Amount of shares 451,125 Tbk Jababeka 33 Amount of shares Tbk (Persero) Indonesia Tbk - - Financial Financial Non Bank Non Bank Insitution - Mitsubishi Mitsubishi Financial UFJ Inc Group Amount of 26.400 shares Share Ownership at at Share Ownership Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching - - Bank - Other Other MUFG MUFG Bank Amount of shares 127.100 - - - - Danamon

Position Commissioner Commissioner Commissioner Commissioner (Independent) 2019 *)

Name the appointment will be effective after passing the OJK Fit and Proper Test OJK Fit passing the after will be effective appointment the Noriaki Noriaki Goto Masamichi Masamichi Yasuda Peter Peter Benyamin Stok Nobuya Nobuya *) Kawasaki Annual Report * Board of Commissioners. of Board of process nomination in the as a reference used is which Policy, case, Danamon has a Diversity In this knowledge, ability, and in perspective, any differences and respects Danamon appreciates candidates. Commissioners and religion. gender, ethnicity, to race, prejudice without of each individual, experience Diversity Policy on Composition of the Board of Commissioners Board of Commissioners of the on Composition Policy Diversity to the attention to paying in addition Board of Commissioners, of the members of the process nomination In the needs are also as well as diversity and experience of knowledge, expertise scope and balance requirements, minimum of the composition Optimum Commissioners. Board of of the composition the to determine taken into consideration of the responsibilities and of duties implementation of the effectiveness the will enhance Board of Commissioners Main Management Company Management Operational Good Corporate Corporate Corporate 268 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Procedure forDetermining the Remuneration ofthe BoardofCommissioners Board ofCommissioners is determined basedonthe The amountofremuneration forthe members ofthe Remuneration ofthe BoardofCommissioners Indicators andProcedure forDetermining the Board ofCommissioners’ Remuneration ethnicity, gender, andreligion. each individual, anddoesnotdiscriminate againstrace, perspectives, knowledge,abilities andexperiences of appreciates andrespects every difference inthe candidates forthe BoardofCommissioners. Danamon is usedasareference inthe nomination process for In this regard, DanamonhasaDiversity Policy which duties andresponsibilities ofthe BoardofCommissioners. increase the effectiveness ofthe implementation ofthe optimal composition ofthe BoardofCommissioners will the composition of the Board of Commissioners. The needs, itis alsotakenintoconsideration indetermining knowledge, expertise andexperience aswelldiversity the minimum requirements, the scopeandbalance of of Commissioners, inaddition totakingintoaccount In the process ofnominating members ofthe Board Commissioners Policy onDiversity inthe Composition ofthe Boardof remuneration oftheBoard ofCommissioners to the GMS. of theRemuneration Committee andproposes the The Board ofCommissioners studies therecommendations Commissioners. The committee makes recommendations to theBoard of in themarket by calculating Danamon’s performance. remuneration standards for positionsandsimilarindustries The Remuneration Committee collects information on of theGMS. of Commissioners isinaccordance withtheresolutions The distribution ofremuneration to membersoftheBoard member oftheBoard ofCommissioners. Commissioner to carry out the distribution to each Board of Commissioners and authorizes the President The GMSdetermines remuneration for membersofthe Remuneration Committee Board ofCommissioners General Meeting ofShareholders the BoardofCommissioners Remuneration of Members of of Commissioners andclassification ofremuneration Remuneration packagesreceived bymembers ofthe Board Board ofCommissioners’ Remuneration Structure of the Remuneration Committee Board ofCommissioners basedonthe recommendations allowances forthe 2020fiscal year foreachmember ofthe financial year andthe amountofsalary orhonorarium and determine the amountofbonus/tantieme during the 2019 of powertothe PresidentCommissioner ofDanamonto President Commissioner. The GMS approved the granting for approval. The remuneration is distributed bythe submits them to the General Meeting of Shareholders recommendations to the Board of Commissioners and performance. The Remuneration Committee provides industry comparison and takes into account Danamon’s internal policies, applicable external regulations, The remuneration formulation referstoDanamon’s and responsibilities ofthe BoardofCommissioners. performance ofeachmember byconsidering the duties Policy section inthis report. within 1(one)year, aredisclosed inthe Remuneration Commissioners whoreceive aremuneration package levels andthe numberofmembers ofthe Boardof Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 269 PT Bank Danamon Indonesia Tbk. of the Board of Commissioners submit written submit written Board of Commissioners of the decision. to the approval be represented can only Board of Commissioners the Board of Commissioners of the by a fellow member attorney. a power of with has a personal or indirectly, directly any way, either contract, or a in a transaction, of interest or conflict one of the Danamon is proposed contract of where at interest such of nature the declare must parties, and may not Meeting Board of Commissioners the the to related voting in participate to entitled be contract, or proposed contract, referred transaction, decides meeting Commissioners of Board the unless otherwise. on the principle of one person one vote. of one person principle on the of Board of the Joint Meetings including meetings, be shall Board of Directors and the Commissioners signed meetings, of the minutes in the recorded in Board of Commissioners of the by all members well. and documented attendance, of the results the who does not sign Commissioners the state must member concerned the meetings, to the attached letter in a separate reason in writing meeting. of the minutes opinions Dissenting members. to all of its binding in the be clearly stated must a meeting during reasons for the including meeting of the minutes opinions. dissenting such a Board of holding without decisions and binding members all that provided meeting, Commissioners of a member meeting, In a Board of Commissioners who in Board of Commissioners of the Any member All results of the Board of Commissioners Commissioners of Board the of results All Board of of the a member is there that event In the are Board of Commissioners of the All decisions legitimate make can Commissioners of Board The m. n. Meetings of Board of Commissioners Frequency 6 conducted Board of Commissioners 2019, the During Joint and 3 (three) meetings Board of Commissioners (six) Meetings. Directors and Board of Board of Commissioners i. j. k. l. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Meeting decisions must be made by consensus. If the the If consensus. by made be must decisions Meeting The Board of Commissioners must schedule the the schedule must Board of Commissioners The The Board of Commissioners meeting is chaired chaired is meeting Commissioners of Board The Joint Meetings of the Board of Commissioners and and Board of Commissioners of the Joint Meetings Board of Commissioners of the Each member Boards of Commissioners meetings should be held at at should be held meetings Boards of Commissioners of hold a minimum must Board of Commissioners The be attended must meetings Board of Commissioners participant no later than before the meeting is held. is meeting before the than no later participant decisions consensus, meeting fails to meet meeting of least 2/3 (two thirds) voting be made through must who are Board of Commissioners of the of members Decisions meeting. the at represented or present are based members of the made by 2/3 (two thirds) following year’s meetings before the end of the end of the before the meetings following year’s meeting meetings, At scheduled year. financial be submitted must materials and meeting invitations before days (five) 5 than no later participants to the not is a meeting that event In the held. is meeting the to the delivered is material meeting the scheduled, or videoconference which is supported by recording by recording supported is which or videoconference evidence. President If the President Commissioner. by the of the any member not present, is Commissioner present at the who is Board of Commissioners meeting. to chair the can be appointed meeting Commissioners meetings held within a year. a year. within held meetings Commissioners who Board of Commissioners of the Members in person may meetings are unable to attend teleconference through meetings in participate must of Meeting Minutes The or videoconference. the who attended by all participants be signed and by teleconference by physically both meeting by a minimum of 75% of all members of the Board of Board of of the of 75% of all members by a minimum Commissioners. at least 1 (one) are to be held Board of Directors the months. 4 (four) every time Board of total at least 75% of the attend must least 1 (one) time in 2 (two) months. least 1 (one) time in person by to be attended per year 2 (two) meetings members. all of its Annual Report h. g. f. d. e. Meeting Policy of the Board of Commissioners of the Policy Meeting a. b. c. Meetings of the Board of Commissioners Board of Commissioners of the Meetings Main Management Company Management Operational Good Corporate Corporate Corporate 270 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Agenda ofthe BoardofCommisisoners Meeting PT Bank DanamonIndonesia Tbk. Agenda ofthe JointMeeting BoardofDirectors with with BoardofDirectors areasfollows: The attendance ofthe BoardofCommissioners Members inthe BoardofCommissioners Meeting andJointMeeting Attendance inMeetings * Masamichi Yasuda Peter Benyamin Stok Takayoshi Futae Made Sukada Manggi THabir CheeYen*Gan JB Kristiadi Ng Kee Choe* No. No 4 6 3 5 3 2 2 1 1 no longerserve after the effective merger onMay1,2019 November 27, 2019 November 27, 2019 February 1,2019 October 1,2019 March 25,2019 March 25,2019 Commissioner April 25,2019 June 25,2019 June 25,2019 Date Date Integrated Corporate Governance Report Corporate Governance Report Risk Monitoring Committee Report Audit Committee Report Risk Monitoring Committee Report Audit Committee Report Risk Monitoring Committee Report Audit Committee Report Rainbow Project Risk Monitoring Committee Report Audit Committee Report Integrated Corporate Governance Report Corporate Governance Report Risk Monitoring Committee Report Audit Committee Report MUFG Collaboration -3years plan Integrated Risk-3years plan Sharia Banking EB &TB-3years plan Adira Finance -3years plan Consumer &SMEBanking-3years plan Finance -3years plan CEO Strategic Priority-3years plan Financial Result Capital Management Rainbow Project Financial Results Revised Business Plan Project Impact Financial Results (Total 6Meetings) BOC Meeting 6/6 6/6 6/6 6/6 6/6 3/3 3/3 5/6 Meeting Agenda Meeting Agenda BOC BODJointMeeting (Total 3Meetings) 3/3 3/3 3/3 3/3 3/3 2/3 1/1 1/1 Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 271 √ √ √ PT Bank Danamon Indonesia Tbk. Joint BOC BOD Meeting Commissioners and Directors. Commissioners The individual performance appraisal of the Board of Board of of the appraisal performance individual The President annually by the conducted is Commissioners benchmarks agreed of the basis on the Commissioner Board of Commissioners. of the upon by each member Board of of the appraisal performance of the results The for the considerations basic are one of the Commissioners to recommendations in providing Committee Nomination of reappoint members to Board of Commissioners the for as well as consideration Board of Commissioners the Board of of the structure remuneration drawing up the Commissioners. Commissioners Program for New Orientation Danamon has an introductory Commissioners, For New of an understanding aim of providing the program with code Culture, and Corporate mission Danamon’s vision, line of businesses, structure, organizational of ethics, and and Work Rules Guidelines Board of Commissioners orientation The banking and capital market regulations. Program On-Boarding the out through carried program is and by management both presentation and a brief face. to face units supporting other and units business Board of of the were new members 2019 there During opinions in the decisions of the meetings held during during held meetings the of decisions opinions in the agenda, materials, schedule, regarding Information 2019. to the were distributed of meetings and minutes results and well documented. meeting of the participants √ √ √ √ √ √ √ Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching BOC Meeting 2019 Meeting Schedule Meeting May 8, 2020 May June 22, 2020 21, 2020 August 26, 2020 October 2020 26 and 27, November January 21, 2020 23, 2020 March The Implementation of Good Corporate Governance Governance of Good Corporate Implementation The and internal management of risk implementation The Board of Commissioners’ structure and composition. structure Board of Commissioners’ of work implementation of the effectiveness The and strategies of implementation the of Monitoring management of the company. of the management in Danamon. risks. controls in mitigating programs of committees under the Board of Board of under the of committees programs Commissioners. of planned meetings to be held in 2020 are as follows: in 2020 are to be held of planned meetings 2020 Board of Commissioners Meeting Schedule Plan Schedule Meeting 2020 Board of Commissioners 7 (seven) in 2020 with to be held of meetings arranged a schedule has Board of Commissioners the end of 2019 At the Schedule Meetings. and Board of Directors Board of Commissioners and 3 (three) Meetings Board of Commissioners Annual Report of Commissioners. Meeting decisions were made by were made by decisions Meeting of Commissioners. no dissenting were and there consensus and deliberation All meetings held during 2019 met the quorum requirements requirements quorum the 2019 met during held All meetings as well physically both and were attended meeting of the Board of the members the by teleconference as through - - performance of the Board of Commissioners is carried out out carried is Board of Commissioners of the performance including: components several by considering - - - of Commissioners. Commissioners of Board the of Assessment Performance is that evaluation of performance Danamon has a policy of the effectiveness the for assessing used as a guideline Board of Commissioners, of the and responsibilities duties the of Assessment individually. and collegially both Implementation of the Board of Commissioners’ Duties Duties Board of Commissioners’ of the Implementation in 2019 and Recommendations of Board the function, supervisory out its In carrying to the recommendations provides Commissioners by taking into account input from the Board of Directors Board to the directly and reports assists that Committee Main Management Company Management Operational Good Corporate Corporate Corporate 272 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Table ofBoardCommissioners Training PT Bank DanamonIndonesia Tbk. Board ofCommissioners intrainingprograms /seminarsworkshopsis asfollows: training programs /seminarsworkshopsheld internally andexternally. In2019,the participation ofmembers ofthe Members ofthe BoardofCommissioners arealways given the opportunity toimprove their competency through Board ofCommissioners TrainingProgram * Note: Noriaki Goto* Nobuya Kawasaki* J.B. Kristiadi the appointment willbeeffective after passingthe OJKFit andProperTest Name Management Certification Lv. 1BankRisk Management Certification Lv. 1BankRisk Refresher Program Risk ManagementCertification Training/Conference/ Seminar Organizer BARA LSPP LSPP Location Jakarta Jakarta Jakarta Annual Report 29 Jan2019 2 Oct2019 2 Oct2019 Date 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 273 economics degree degree economics University Osaka from Japan in Osaka in Business from Administration the Booth School of University Business, USA of Chicago, Graduated with an with an Graduated degree Master’s • • Educational Background Educational Qualification/ Qualification/ PT Bank Danamon Indonesia Tbk. Finance Expertise Performance Assessment of the Committees of the of the Committees of the Assessment Performance Board of Commissioners performance the assesses Board of Commissioners The based on of Commissioners Board of the of Committees implementation and responsibilities duties of the reports on a regular Committees by each of the submitted Board of of the Committees of the Performance basis. the good by 2019 was rated throughout Commissioners contributions and provided Board of Commissioners and of duties implementation the in supporting Board of Commissioners. of the responsibilities Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching December 2018 - - 2018 December present Term of Office Term Remuneration Remuneration Committee Nomination Committee Member of Member of Member of • • Position Japanese Japanese nationality and domiciled in To kyo Citizenship & & Citizenship Domicile 2019 The Sanwa Bank, Ltd. which was a predecessor of MUFG Bank, 1983 of MUFG a predecessor which was Bank, Ltd. Sanwa The Vice Chairman of the Board of Bank of Ayudhya Chairman of the Board Vice Plc (Krungsri), Thailand of Bank of Ayudhya of the Board Vice-chairman Philippines, 2016-2018 of Security Bank Corporation, on the Board Director Bank in Asia, 2018 MUFG for Executive Regional Bank, 2017 – MUFG Senior Managing Director 2017 region, Asia & Ocenia Bank’s of MUFG Officer Chief Executive advisory and corporate banking, credit Corporate Division, serving the MNCs and the non-Japanese corporates Finance of the Structured Part – 10 years restructuring and corporate based finance, and asset project finance, in structured Senior roles Commissioner, Danamon, 2018-present Danamon, Commissioner, Audit Committee; Audit Committee; Monitoring Risk Committee; Nomination Committee; Remuneration Committee; Governance Corporate Committee. Governance Corporate Integrated • • • • • • • • • • President President Commissioner of Office) Term Organization, Title, (Job Experience Professional • Takayoshi Takayoshi Futae Old 58 Years Name, Age, and Age, and Name, Position Annual Report Profile of the Members of Committees Members Profile of the Each Committee is required to have a Charter which is is which a Charter to have required is Each Committee prevailing based on the reviewed prepared and periodically by the appointed is membership Committee regulations. of Resolution based on Meeting Board of Commissioners are Committees of the All Board of Commissioners. the chaired by Independent Commissioner. • • • • • • The Board of Commissioners Board of The of Commissioners Board the duties, out its In carrying of its effectiveness the to enhance committees has 6 (six) namely: and responsibilities, duties Committees Under Under Committees Main Management Company Management Operational Good Corporate Corporate Corporate 274 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Position Name, Age,and Commissioner Independent 73 Years Old J.B. Kristiadi • • • • • • • • Professional Experience (Job Title, Organization, Term ofOffice) Commissioner Independent 66 Years Old Habir Manggi T. • • • • • • • • • • • • • Professional Experience (Job Title, Organization, Term ofOffice) 1982; PTAneka Tambang, 1986;andBankBNI,2005) present. Director, State Asset Development oftheDirectorate General ofMonetary (Finance Department),1980-1987. Director, BudgetDevelopment oftheMinistry ofFinance, 1987-1990 Chairman, Institute ofAdministration (LAN)Republic ofIndonesia,1990-1998. Assistant to theCoordinating Minister, Development Supervision,1999-2001. Deputy, Minister ofAdministrative Reform, 2001-2003. Secretary General, Ministry ofCommunications andInformation, 2003-2005 Secretary General, Ministry ofFinance, 2005. Special Staff oftheMinister ofFinance, 2009-2011 Secretary, Tax andCustoms Reform Initiative Team, 2010 Commissioner, several State OwnedEnterprises (PTTambang Batu Bara BukitAsam,1980;PTBankDagangNegara, Professor, Padjajaran State University, Bandung,2007 –present. Member oftheNational Bureaucratic Reform Team undertheleadershipofIndonesianVice President, 2018 – Vice President Commissioner concurrently asIndependentCommissioner, Danamon,2005 –present. Served at several key position,CitibankN.A.Jakarta, 1985-1991 Business andeconomic correspondent, Far Eastern Economic Review, 1982-1985. Research Director, PTBahanaSecurities,1995 –1998. President Director, PTPefindo, 1998-2001 Director, Standard &Poor’s,Singapore, 2002-2005. President Commissioner, PTAsuransi Adira Dinamika, 2013-present. Chairman ofSupervisoryBoard, Yayasan DanamonPeduli, 2006-present. Independent Commissioner, Danamon,2005-present. Domicile Citizenship & Indonesia Indonesia Position • • • • • • Committee Remuneration Chairman of Committee Nomination Chairman of Member of Member of Member of Chairman Committee Governance Corporate Integrated Committee Governance Corporate Committee Remuneration Committee Monitoring of Risk Term ofOffice • • • • • • 2017-present April 2017-present April 2017-present April 2017-Present April 2017-Present April 2017-present April Expertise Management Finance/ Management Finance/ Risk Risk Educational Background Qualification/ • • • - - 2002 Harvard University, Administration, Master inPublic Michigan, 1979 University of Administration, Master inBusiness University, 1977 Economics Mc.Gill BA Degree in London 1980 Smith Institute Course) Adam Certification (Short 1979 University, France, Sorbonne Administration), PhD (Public Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 275 Accounting, University University Accounting, of Padjajaran, Bandung, 1977 of University 1984 USA, Pittsburgh, Bachelor in Bachelor in in Economics, Master Bachelor of Law, Bachelor of Law, University, Hitotsubashi 1983 · · Qualification/ Qualification/ Background Educational PT Bank Danamon Indonesia Tbk. Risk Risk Management, and Credit Treasury Finance/ Risk Risk Finance/ Management Expertise -present -present -present -present -present 2017 2017 2017 2017 2017 Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching - present December 2018 2018 December ** April • April • April • April • April • April Term of Office Term Member of Member of Member of Member of Governance Governance Committee Integrated Corporate Governance Committee Corporate Corporate Integrated Integrated Corporate Governance Committee of Audit of Audit Committee Risk Monitoring Committee Nomination Committee Corporate Governance Committee Member of Member of Member of Chairman of Chairman of • • Chairman • Chairman • • • • Position Japan Indonesia Citizenship & & Citizenship Domicile 2019 * Credit Analyst at Bank Indonesia, 1979. at Analyst Credit Independent Commissioner, Danamon, 2014 - present. Danamon, 2014 Independent Commissioner, - present. 2014 Danamon Peduli, Yayasan member, Supervisory Board - 2014. BI, 2010 Council, Governor to Advisor 2010-2014. Tbk, PT Bank Permata, Committee, Member of Risk Monitoring 2006 - 2010. of Bank Indonesia, and Monetary Policy Research of Economic Director Executive 2004 - 2006. D.C., – Washington IMF Assignment Director Deputy Executive 1998 - 2010. Departments, various of Bank Indonesia at Director 1995. Directorate, Monetary Management at Deputy Director - 1995. 1993 Office, Representative York Bank Indonesia New at Representative Associate Corporate Planning Division and moved to the Financial Planning Division of MUFG, 2004 the Financial Planning Division of MUFG, to Planning Division and moved Corporate Bank, in 1983 of MUFG a predecessor Ltd., Bank of Tokyo, The Bank MUFG of Officer and Chief Credit of MUFG Officer Chief Risk Group Bank and MUFG of MUFG Committee and Executive Member of the Board Chief Credit Officer of MUFG and MUFG Bank, 2015 and MUFG of MUFG Officer Chief Credit Unit, 2014 Deputy Chief Global Markets of the Global strategy a business for and Head of the Global Planning Division with oversight Officer Executive Union Bank, N.A, 2009 for and Chief of Staff Deputy Chief Financial Officer the Americas in 2008 Bank for Division MUFG Markets of the Global Treasurer Business Unit in MUFG Bank, 2011 Unit in MUFG Business • • • • • • • • • • • • • Professional Experience (Job Title, Organization, Term of Office) Term Organization, Title, (Job Experience Professional • • • • • • Masamichi Yasuda Old 58 Years Commissioner Professional Experience (Job Title, Organization, Term of Office) Term Organization, Title, (Job Experience Professional Made Sukada Old Years 67 Independent Commissioner Name, Age, and Age, and Name, Position Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 276 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Position Name, Age,and • • Professional Experience (Job Title, Organization, Term ofOffice) Commissioner Independent 70 Years Old Stok Peter Benyamin • • • • • • • • • • Professional Experience (Job Title, Organization, Term ofOffice) Party Independent 44 Years Old Simatupang Angela • • • • • • • • Bank, 2016-2018 OJK panelist team for implementation offitandproper tests for candidates for directors andcommissioners ofthe Independent Commissioner, Danamon,2018-present Member oftheBoard ofDirectors, BankNiaga,1991-1994 Vice President Director, BankNiaga,1994-1997 Vice President Director, BankPelita, 1997-1998 President Commissioner, BankDanamon,1998-1999 President Director, BankDagangNegara, 1999-2000 President Director, BankNiaga,2000-2006 Commissioner, BankPermata, 2008-2009 President Commissioner, BankNegara Indonesia,2009-2015 Author ofvarious articlesto socialize andencourage publicawareness aboutgoodgovernance since 2007. Speaker at various seminarsongovernance, internal auditandriskmanagementbothat localandabroad. Supervisor ofRSMAustralia, 2005 Managing Partner Governance RiskControl Practice ofRSMIndonesia,2010-2015 Governor Institute ofInternal Auditors (IIA)Indonesia,2014-2017 Managing Partner Consulting ofRSMIndonesia,2017-2018 International Contact Partner for Indonesia,2008-present Member oftheRSMAsiaPacific RiskConsulting Committee, 2010 -present Vice President ofInstitute ofInternal Auditors (IIA)Indonesia,2018 -present Senior Partner &HeadofConsulting ofRSMIndonesia(memberfirm ofRSMGlobal),present Domicile Citizenship & Indonesia Indonesia Position • • • Member • • Member Member of Member or Member of Committee Governance Corporate Integrated Committee Risk Monitoring Committee of Audit Committee Risk Monitoring Committee of Audit Term ofOffice • present December 2018 - • • Present April Present April 2017- Present April 2017-

2017- 2017- Expertise Management and Governance, Risk Corporate Finance Control Educational Background Qualification/ dan Management International Business Master ofCommerce in Bandung –Indonesia Padjajaran University, Bachelor inEconomics, 2002 University ofSydney, of Technology, The Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 277 Syarif Hidayatullah, Hidayatullah, Syarif 1980 Jakarta, degree) (Master of University Los California Angeles (UCLA), 1988 USA, University (Ph.D) Los of California Angeles (UCLA), 1991 USA, degree) Faculty Faculty degree) of Ushuluddin UIN Economics, Economics, of University 1983 Sriwijaya, of Business Master Administration Weather from head School of Management, Case Reserve Western 1994 University, Bachelor of Bachelor of · · in Degree Master Engineering Industrial • • · (Bachelor Qualification/ Qualification/ Background Educational PT Bank Danamon Indonesia Tbk. Management Management Certification 1 (BSMR) level Resources Management Performance Management Rewards and and Rewards Science, and and Science, Inter-religion/ Inter-culture communication · Risk · Human · Micro and and Micro Corporate Financing, Derivatives, and Credit Investment Management, as as well and Training Development Islam Law (sharia), Science Islamic Political Expertise April April 2017-present April 2017-present Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2018 – present 2018 • • April 2017-present Term of Office Term Remuneration Remuneration Committee concurrently concurrently as member of Nomination Committee concurrently as member of of Audit of Audit Committee Risk Monitoring Committee Member of Member of Secretary, • Secretary, • Secretary, Member of Member of Integrated Corporate Governance Committee/ Chairman of Sharia Supervisory Board Member • Member • Position Indonesia Indonesia Indonesia Citizenship & & Citizenship Domicile 2019 Director General of Workforce Placement of the Ministry of Manpower of Republic of Indonesia, 1998-2000 of Republic of Manpower of the Ministry Placement Workforce of General Director of Indonesia, 1998-1999 (MPR) Republic Assembly Consultative Member of People’s 1993-1998 Party, of Golkar and Development Head of Research 1982-2000 universities, various at Lecturer 1982-present UIN Jakarta, at Thought Islamic Political for Professor President's Special Envoy for Dialogue and Cooperation Inter-Religion and Civilization, Nov 2017 - Oct 2018 2017 Nov and Civilization, Inter-Religion Dialogue and Cooperation for Special Envoy President's 1998-2000 Party, of Golkar General Deputy Secretary Staff, Directorate General of Budgeting, Department of Finance of Republic of Indonesia, 1978-1984. of Republic of Finance of Budgeting, Department General Directorate Staff, Independent Party, Danamon, 2017-present. Independent Party, 2019-present (LPPI) Jakarta, Institute Banking Development the Indonesian at Consultant Associate Fund, 2010-2014. BRI Pension Director, President 2006-2010. and Training, Division Head, BRI Education Banking, 2004-2006. Division Head, BRI Micro 2001-2004 Program, Visitors International Director, Financial Executive, Bank Umum Nasional, 1998 Financial Executive, Secretary, concurrently as member of Remuneration Committee and Nomination Committee, Bank Danamon, Bank Danamon, Committee, and Nomination Committee as member of Remuneration concurrently Secretary, Indonesia, 2017-2018 Head of HR, Grab Country UOB Indonesia, 2009-2017 Head, Bank and Services Rewards Bank UOB Indonesia, 2009-2017. Committee, and Nomination Committee of Remuneration and member Secretary 2008-2009 and Benefit Head, Esia – BakrieTelecom, Compensation HR Management, HR Operation, and Performance among others: Rewards Managerial position in Human Resources, 1998-2003 Group, Texmaco and Benefit Analyst, HR Compensation Rewards Head, Bank Danamon, 2018-present Rewards 2018-present Bank CIMB Niaga, 2003-2008 Partner, and Business Area Party • • • • • • • • HR Executive HR Executive Officer of Office) Term Organization, Title, (Job Experience Professional • • • • • • Fahrizal Roy Permana old 45 years Professional Experience (Job Title, Organization, Term of Office) Term Organization, Title, (Job Experience Professional • • • M. Din Syamsuddin old years 61 Chairman of Sharia Supervisory Board Professional Experience (Job Title, Organization, Term of Office) Term Organization, Title, (Job Experience Professional • • • • • • Yusuf Nawawi Nawawi Yusuf old 64 years Independent Name, Age, and Age, and Name, Position Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 278 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. must meet the requirements ofcompetency andindependency required bythe committees. Governance Committee basedonthe recommendations ofthe Nomination Committee. Appointed Independent party of the BoardofCommissioners, namely the Audit Committee, Risk Monitoring Committee, andIntegrated Corporate has appointed Independent Parties (AngelaSimatupang andYusuf Nawawi)asindependentmembers onCommittees or arelationship with Danamon,which couldaffect his/her abilitytoactindependently. The BoardofCommissioners or familyrelationship with members ofthe BoardofCommissioners, Directors, and/orthe controlling shareholders An IndependentPartyis apartyoutside ofDanamonwhodoesnothave financial, management, shareownership, and/ Independent PartyinCommittees Position Name, Age,and Multi Finance, Dinamika PT Adira at Commissioner Independent 74 years old Sudyatmiko Djoko • • • • • • • • • • • • • • Professional Experience (Job Title, Organization, Term ofOffice) Tbk. 1971-1992 Member ofPeople’s Representative Council (DPR)andPeople’s Consultative Assembly (MPR)Republic ofIndonesia, Member ofPeople’s Consultative Assembly (MPR)Republic ofIndonesia,1992-1997 Commissioner at PTAstra Graphia Tbk, 1986-1989 Commissioner at PTDharmaSarana Perdana, 1989-1995 Commissioner at PTKharaba Unggul/PTMakro Indonesia,1990-2000 Corporate President Commissioner, 2002-2004 Commissioner at PTAsuransi Adira Dinamika, 2003-2008 Commissioner at PTAdira Sarana Armada,2003-2009 Commissioner at PTPalingda -Automotive Wheel Rim Manufacturer, 2003-2010 Commissioner at PTInkoasku -Automotive Wheel RimManufacturer, 2003-2010 Commissioner at PTPakoakuina -Automotive Wheel RimManufacturer, 2003-present Corporate IndependentCommissioner, 2004-2011 Commissioner concurrently asCorporate IndependentCommissioner, 2011-present Commissioner at ASCO Group, 2012-present Domicile Citizenship & Indonesia Position • •

Independent Member of Tbk Multi Finance, Dinamika of PTAdira Commissioner Committee Governance Corporate Integrated Term ofOffice 2017-present April Expertise Governance Corporate Economy and Educational Background Qualification/ Bandung, 1968 from Institut Teknologi Electrical Engineering Bachelor degree in Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 279 PT Bank Danamon Indonesia Tbk. Total amount of payments made to the to the made Total amount of payments and year, fiscal accountant in the public and for audit made Details of total payments negative or appropriate services non-audit significant as well as whether statements, been taken into account. have risks implementation Conformity of audit and/ or Public Accountants by Public audit applicable with Firms Accounting standards. work. for field of time Adequacy of services of coverage Assessment tests. of quotation and adequacy provided for improvements Recommendations and/ or Accountants by Public provided Firms. Accounting Public Independence of the Public Accountant, Accountant, Public of the Independence insider in and the Firm Accounting Public Firm. Accounting Public the audit. scope of the The benefits. service Audit Public of the and experience Expertise and Firm Accounting Accountant, Public Firm. Accounting Public of the team Audit facilities and audit techniques Methodology, Firm. Accounting Public used by the will that perspectives of fresh eye Benefits Public the replacing be obtained through firm and accounting Accountant, Public Firm. Accounting Public from the team audit • • public of the and recommendations findings, of Board accountant and feedback from the Directors. by information financial for annual historical Accounting and/ or Public Accountants Public at least through: Firm • • • • financial the after months (six) 6 than are no later ends. year will take the following matters into account: matters following will take the • • • • • • and independency, outcome, work and audit the and present on an annual basis objectivity Annual Report: following in the significant reports, financial audited the Review services of audit implementation the Evaluate evaluation Committee Audit of the results The In preparing recommendations, Audit Committee Committee Audit recommendations, In preparing accountant’s scope of public the Review d. e. b. c. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 dismissals or replacements, requirements requirements or replacements, dismissals of the remuneration and the of involvement, Annual the accountant to be proposed at public of Shareholders (AGMS). General Meeting have been taken into consideration. have reporting. and financial processes accounting reappointments, appointments, regarding to the public and/or regulators, among others: others: among regulators, and/or public the to reports and other projections, reports, financial information. relevant to Danamon’s financial standards. accounting existing report with risks all significant accountant to ensure that Review complaints relevant to Danamon’s relevant to Danamon’s complaints Review Board of Commissioners the Recommend Monitor and evaluate the compliance of financial of financial compliance the Monitor and evaluate public by the performed adequacy audit Review Review financial information that will be released will be released that information financial Review External Audit External Financial Reporting Reporting Financial d. a. b. c. a. Annual Report 2. update was made to the Audit Committee Charter. Committee Audit was made to the update Committee of Audit and Responsibilities Duties Committee Audit of the and responsibilities Duties include: 1. that stipulates matters relevant to the implementation implementation relevant to the matters stipulates that membership organization, and responsibilities, of duties meeting authority, independency, requirements, Audit of the of office and term work ethics, proceedings, reviewed is Charter Committee Audit The Committee. the with are in accordance they so that periodically Bank. In 2019 an and needs of the provisions applicable Committee also monitors the effectiveness of regulatory of regulatory effectiveness also monitors the Committee also provides Committee Audit The compliance. proper the from accountants public for recommendations effectiveness. their firm and oversees accounting public Committee of Audit Charter Charter Committee Audit has the Committee Audit The the Board of Commissioners to monitor and evaluate the the to monitor and evaluate Board of Commissioners the as to monitor as well of audits plans and implementation of adequacy in assessing the results follow-up of audit the financial of the adequacy the controls, including internal ensures that Committee Audit The process. reporting reports of financial and adequacy accuracy integrity, the Audit The been considered. have and all important risks AUDIT COMMITTEE in order to support was established Committee Audit The of responsibilities and duties of the implementation the Main Management Company Management Operational Good Corporate Corporate Corporate 280 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 3. PT Bank DanamonIndonesia Tbk. g. f. e. d. c. b. a. g. f. Internal Audit Provide recommendations tothe Boardof Reviewing audit reports and ensuring the Monitor andevaluate the follow-upactions by Review significant findings andrecommendations Review the scopeofworkandaudit planofthe Review the independence ofthe Head ofthe Review the adequacy andeffectiveness ofthe Monitor andevaluate public accountant’s Monitor andevaluate the planningand Board ofDirectors takecorrective actions that Authority and/orother regulators. and audit findings fromFinancial Services Internal Audit WorkingUnit,Public Accountant, the BoardofDirectors onthe findings ofthe feedback fromthe BoardofDirectors. from Internal Audit WorkingUnitaswell relevant toaudit implementation. with the BoardofDirectors andother matters Internal Audit WorkingUnit,including interaction and PresidentDirector. and unlimited access tothe Audit Committee Internal Audit WorkingUnitmust have direct Internal Audit WorkingUnit. The Head ofthe Internal Audit WorkingUnit. compliance with the existing audit standards. statement process. controls including the adequacy ofthe financial in ordertoassessthe adequacy ofinternal as well as monitor the follow-up of audit results implementation ofthe public accountant’s audit • • • • Commissioners regarding: and orother regulator. Auditors, andthe Financial Services Authority identified andreported bySKAI,External policies, lawsandregulations, orother problems in control,fraud, issues ofcompliance with are neededquickly toovercome weaknesses

and performance awards. Granting ofoverall SKAIannualremuneration allocation ofthe Internal Audit Unit Annual audit plan,scopeandbudget Approval ofInternal Audit Charter SKAI Appointment anddismissal ofthe Head of 6. Others 5. Compliance 4. Review andreportregularly tothe Boardof Internal Control a. c. b. a. technology. operations, compliance andcontrolofinformation Board ofDirectors, including controloffinance, effectiveness ofinternal controlspecified bythe Commissioners regarding the adequacy and h. g. f. e. d. c. b. the regulators. compliance policies, andreports received from consequences to the financial reports, relevant related toDanamonactivities. work, andcompliance plans. and trainings. competencies through continuous education potential conflicts ofinterest. to the Board ofCommissioners regarding confidential documents, data,andinformation. provides. and the public accountantonthe services it disagreement betweenthe BoardofDirectors completed bythe Audit Committee. Commissioners after the review results are review results toallmembers ofthe Boardof regular basis. update the Charter ofthe Audit Committee ona Committee atDanamon’sexpense. by anindependentparty appointed by the Audit may be carried out by the Audit Committee or meetings ofthe BoardofDirectors. The audit the implementation ofdecisions madeatthe Directors meetings orpossibledeviations in inaccuracies in decisions made at Board of Audit Committee acts independently. In conducting its duties andresponsibilities, the Review legalcaseswith possiblematerial Review compliance tothe lawsandregulations Review the compliance framework, scopeof The Audit Committee must enhance their The Audit Committee reviews andoffersopinions The Audit Committee must safeguard Provide independentopinioninthe event ofa The Audit Committee must submit reports of The Audit Committee must prepare,review, and The Audit Committee examinespossible Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 281 Member Member Member Chairman Position in Audit Committee in Audit Position PT Bank Danamon Indonesia Tbk. employees, including the Board of Directors and and of Directors Board the including employees, audit, of internal functions out the who carry those to the related and accountants management, risk Committee. Audit of the and responsibilities duties The Audit Committee can communicate directly with with directly can communicate Committee Audit The Independency of Audit Committee Committee of Audit Independency are Committee of Danamon’s Audit All members and Commissioners independent (Independent Non-independent Commissioners Independent Parties). the sit on not may of Directors Board of the members and fulfill must members Committee Audit Committee. Audit Danamon’s Code of Conduct. of Office Term not must members Committee of Audit of office term The Board of Commissioners of the of office term the exceed and may be of Association Articles in the as stipulated period. for 1 (one) additional reappointed • for Basis and Legal Expertise, Membership, Structure, Committee Audit of the Appointment Committee of Audit and Membership Structure of 2 consists members, has of 4 (four) Committee Audit (Made Sukada and (two) Independent Commissioners Parties Benyamin Stok) and 2 (two) Independent Peter Audit The Nawawi). Yusuf and Simatupang (Angela chaired by an Independent Commissioner, is Committee of the and membership Made Sukada. Structure namely prevailing regulations. the has met Committee Audit Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Position in Danamon Position Independent Commissioner Independent Commissioner Independent Party Independent Party Name 2019 Peter Benyamin Stok Benyamin Peter Angela Simatupang Nawawi Yusuf Made Sukada Invite/ appoint reviewers appoint reviewers Invite/ Board of by the provided authorities other Exercise Danamon’s Bank access can Committee Audit The Involve independent parties to assist in performing in performing to assist parties independent Involve Review affiliate transactions and conflict of of and conflict transactions affiliate Review Investigate any issue included in its terms of of terms in its included any issue Investigate that apply. that Commissioners. about employees, data, and information documents, are needed that and company resources funds, assets on confidentiality provisions the observing still while made by the Compliance Director, to ensure that that to ensure Director, Compliance made by the by taking into are conducted transactions such minority of Danamon and the interests account the in a fair manner shareholders and are performed terms. based on normal commercial necessary. where duties reference, has access to and collaborate with the the with to and collaborate has access reference, any to invite flexibility has the Board of Directors, meetings to attend officers or executive Director as has adequate as well Committee, Audit the with duties. out its to properly carry resources human based on assessments transactions interest 1 2 3 4 No Annual Report • • • • • Authority of the Audit Committee Committee Audit of the Authority following authority: has the Committee Audit The • Legal Basis of Appointment of Appointment Basis Legal by Circular are appointed members Committee Audit as a Substitute Board of Commissioners of the Decision Meeting of Commissioners at Board taken Decisions for of PT Bank Danamon Indonesia, Tbk. Number KSR-Kom. 13, 2018. December dated Corp. Sec-011 the applicable provisions related to the requirements of of requirements to the related provisions applicable the covering members Committee Audit of the expertise the management, risk and/ or accounting, of finance fields the integrity, account the into taking law, or and/ banking in the as stated and morals of each member character personal statement. Expertise of Audit Committee Members Committee of Audit Expertise with complied have Committee Audit of the All members Members Composition of Audit Committee of Audit Composition Members Main Management Company Management Operational Good Corporate Corporate Corporate 282 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. During 2019,the Audit Committee held 6(six) meetings with attendance rates asthe following: Meeting Frequency andAttendance Rate ofAudit Committee - - - - - Policy ofAudit Committee Meeting Policy andHolding ofAudit Committee Meetings Table ofMeeting Frequency ofAudit Committee Agenda ofthe Audit Committee Meeting Yusuf Nawawi Angela Simatupang Peter Benyamin Stok Made Sukada No 2 1 meeting. submitted tothe BoardofCommissioners. majority vote is basedonthe principle of1(one)person,vote. to reachconsensusdoesnotoccur, the decision willbebasedonamajority vote. Decision-making basedon including IndependentCommissioners andIndependentParties. Dissenting opinionsoccurinthe meeting alongwith the reasonsmust beclearlystated inthe minutes ofthe Each meeting is recorded inthe minutes ofmeeting which is properlydocumented, signed byallattendees, and Meeting decisions aremadebasedonthe principles ofdeliberation toreachconsensus.Incaseswhere deliberation Meetings mayonlytakeplace provided that 51%(fifty onepercent) ofthe totalnumberofmembers arepresent Meetings must beheld atleastonce every 3(three) months inaccordance with Danamon’sneeds. 25 March 2019 22 January2019 Date Name • • • • • • • • • • • • Division andLitigation Division Guidelines andAudit Committee Work Guidelines Whistleblower Services Update Whistlebower Disclosure Report -February 2019 Update onInternal Fraud Cases-February 2019 Update onBranch Office Issues Results oftheStudy ofChangesinOrganizational Structure oftheLegal Internal Audit Update Proposed Revision oftheIntegrated Internal Audit Work Procedure Proposal External Auditor Appointmentfor 2019 Update Whistlebower danProposal for New Vendor Whistleblower Update Fraud Internal 2018 Update Audit Internal 2018 Review ofInternal Control System Meeting Agenda Attendance inMeeting 6/6 6/6 6/6 6/6 Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 283 PT Bank Danamon Indonesia Tbk. Meeting Agenda Meeting Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching National Issues Branch Office Branch Issues National 2019 Case - YTD October Fraud on Internal Update 2019 - YTD October Report Disclosure Whistlebower Proposed Amendment to the Audit Plan of the 2019 SKAI Plan of the 2019 the Audit Amendment to Proposed of of the Board obtain the approval (to Plan 2020 SKAI Audit Building Plan Capacity Audit 2020 Update Audit Internal 2019 October 2019-YTD Results Audit Internal entity category by Ratings of Audit Distribution Action on Corrective Up status Follow Commissioners) Procedure Guidelines and Audit Committee Work Guidelines Work Committee Guidelines and Audit Procedure Parahyangan Update on Internal Fraud Cases - as of June 2019 Fraud on Internal Update - June 2019 Report Disclosure Whistlebower with MUFG Collaboration Audit Wiayah Parahyangan Nusantara - Ex-Bank Update Audit Internal Plan 2019 Audit the Internal Amendment to for Proposal 2019 As of August Update Audit Internal 2019 August Case Per Fraud on Internal Update 2019 - August Report Disclosure Whistlebower 2019 Banking Unit 3 Quarter Business for Issues Significant Audit 2019 for Findings and Recommendations Audit OJK Action Plan Related to the Revision of the Integrated Internal Audit Work Work Audit Internal Integrated of the the Revision to Plan Related Action Plan 2019 Audit the Internal Amendment to for Proposal Update Audit Internal Region Surabaya Quality and Exception-SME Significant Credit Case Update Fraud Report Disclosure Whistleblower Bank Nusantara LD1 With Merging After Structure Organizational Audit Internal Parahyangan Nusantara Ex-Bank for Changes Proposal Audit Internal 2019 Parahyangan Nusantara - Ex-Bank Update Audit Internal Parahyangan Nusantara Case - Ex-Bank Fraud on Internal Update Parahyangan Nusantara Ex-Bank Q4 2018- Issue Results Significant Audit Update Audit Internal • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Date 2019 25 September 2019 25 September 2019 19 November 16 July 2019 23 May 2019 23 May Changes in Internal Audit Organizational Structure After Merger With Bank Nusantara Parahyangan With Merger After Structure Organizational Audit Changes in Internal Report Blower Disclosure Whistle Study on Changes in Organizational Structure of Legal Division and Litigation Division and Litigation Division of Legal Structure on Changes in Organizational Study Charter Committee and Audit Working Guidelines Audit Internal Integrated of the Revision Issues on Branch Office Update

Appointment of PwC as Bank Danamon’s external auditor of PwC as Bank Danamon’s external Appointment to: related SKAI Reports Received • • • • • 5 3 6 4 No Annual Report on a regular basis. on a regular Audit Committee Statement on Effectiveness of Internal Control System Control System of Internal on Effectiveness Statement Committee Audit in the as reflected and adequate by Danamon are considered to be effective applied control systems Internal and financial, compliance, management, risk audit, of internal as functions such functions audit of internal effectiveness Commissioners of Board the to reports of duties implementation its submits Committee Audit The control. operational Implementation of Duties of Audit Committee in 2019 Committee of Audit of Duties Implementation 1. 2. Main Management Company Management Operational Good Corporate Corporate Corporate 284 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Members Composition ofRisk Monitoring Committee in2019 5. 4. 3. 2. 1. and responsibilities: The Risk Monitoring Committee hasthe followingduties Committee Duties andResponsibilities ofthe Risk Monitoring periodically reviewed. The Charter ofRisk Monitoring Committee Charter is work ethics, independency, term of office, and meetings. duties andresponsibilities, organization, membership and stipulates matters related tothe implementation of The Risk Monitoring Committee hasaCharter that Charter ofRisk Monitoring Committee consistent with Danamon’srisk appetite. related to risk management frameworks and policies independent professional recommendations or opinions carrying outthe risk monitoring function andproviding The Risk Monitoring Committee is responsiblefor RISK MONITORING COMMITTEE No 4 6 3 5 2 7 1 at leastonce every three months. over the implementation ofrisk management policies risk management bythe BoardofDirectors. encountered byDanamonandthe implementation of Commissioners. duties toprovide recommendations tothe Boardof Unit and the implementation of the committee’s least once ayear. recommendations tothe BoardofCommissioners, at policies with their implementation inordertoprovide and the alignment ofDanamon’srisk management Danamon’s risk management. of Commissioners regarding the implementation of Evaluate the responsibilityofthe BoardofDirectors Report tothe BoardofCommissioners onrisks Monitor and evaluate the Risk Management Working Evaluate Danamon’srisk management policies Offer independentprofessionalopinionstothe Board 1) Nolongerserve after the merger effective on1May2019 Note: Yusuf Nawawi Angela Simatupang Masamichi Yasuda Peter Benyamin Stok CheeYenGan Made Sukada Manggi T. Habir 1) Name Independent Party Independent Party Commissioner Independent Commissioner Commissioner Independent Commissioner Independent Commissioner Position inDanamon Appointment ofRisk Monitoring Committee Structure, Membership, Expertise andLegal Basis for 4. 3. 2. 1. authority: The Risk Monitoring Committee hasthe following Authority ofthe Risk Monitoring Committee 7. 6. applicable provisions. of the Risk Monitoring Committee hasfulfilledthe independent parties. The structure andmembership Commissioner, 1(one)Commissioner, 2(two) to 6(six) people,consisting of3(three) Independent 1, 2019. Thus the Risk Monitoring Committee amounted March 26, 2019. The effective date ofthe merger wasMay merger betweenDanamonandBNPbasedonthe EGMS Gan Chee Yen hasnolongerserved since the effective membership ofthe Risk Monitoring Committee inwhich In 2019, there wasachange in the structure and Committee Structure andMembership ofRisk Monitoring Exercise additional authority asassigned bythe Involve independentparties tosupportits duties Establish direct communication with employees, the Access toDanamon’sdocuments, data,and Regularly develop, review andupdate the Charter of Arrange or authorize investigations within the scope Board ofCommissioners. when required. duties andresponsibilities. Board ofDirectors, andother parties relevanttoits information when necessary. the Committee. of its powers. Position inRisk Monitoring Committee Chairman Member Member Member Member Member Member Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 285 3/3 6/9 8/10 10/10 10/10 10/10 10/10 PT Bank Danamon Indonesia Tbk. (Total 10 meetings) (Total 10 Attendance in Meeting Attendance one percent) of the total number of members are are total number of members of the one percent) and Independent Commissioners present including Independent Parties. to reach consensus. In cases where of deliberation the reach consensus does not occur, to deliberation Decision- vote. majority will be based on a decision based on the is vote making based on majority of 1 (one) person, 1 (one) vote. principle by all attendees, signed properly documented, is which Board of Commissioners. to the and submitted of minutes in the be clearly stated reasons must the meeting. the Meetings may only take place provided that 51% (fifty (fifty 51% that provided place take only may Meetings principles are made based on the decisions Meeting of meeting minutes in the recorded is Each meeting along with meeting opinions occur in the Dissenting During 2019, Risk Monitoring Committee held 10 (ten) (ten) 10 held Committee Monitoring 2019, Risk During as follows: rates attendance with meetings b. c. d. e. Meeting Committee Monitoring of Risk Holding Monitoring of Risk Rate and Attendance Frequency Committee Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Name *) 2019 no longer serve after the merger effective on 1 May 2019 effective merger the after no longer serve 2019 as of 21 February effective Note: * ** Meetings are held at least once every 3 (three) (three) 3 every once least at held are Meetings months in accordance with Danamon’s needs. needs. Danamon’s with in accordance months Peter Benyamin Stok Benyamin Peter Masamichi Yasuda** Manggi T. Habir Manggi T. GanYen Chee Made Sukada Angela Simatupang Nawawi Yusuf a. exceed the term of office of the Board of Commissioners Board of Commissioners of the of office term the exceed Association. of Articles in the as stipulated Committee Monitoring of Risk and Holding Policy Meetings Meetings Committee Monitoring of Risk Policy Independent Commissioners and Independent Parties and Independent Parties Independent Commissioners and objectivity. in an effort to maintain independence to are not permitted Board of Directors of the Members Committee. Monitoring Risk of the be members of Office Term not shall membership Committee of office of term The of Commissioners as a Substitute to the Resolution of the of the Resolution the to as a Substitute of Commissioners of PT Bank Danamon Meeting Board of Commissioners dated KSR-Kom.Corp.Sec-011 Indonesia, Tbk. Number 13, 2018. December Members Committee Monitoring of Risk Independency are Committee of the members of the majority The Legal Basis of Appointment Basis Legal is Committee Monitoring of Risk membership The Board of the Decision Circular based on the determined Annual Report Table of Meeting Attendance Rate of Risk Monitoring Committee Monitoring of Risk Rate Attendance Table of Meeting Main Management Company Management Operational Good Corporate Corporate Corporate 286 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Meeting AgendaofRisk Monitoring Committee in 2019 No 4 6 8 3 5 2 7 1 31 October 2019 25 September 2019 27 August 2019 30 July2019 24 June2019 25 April2019 25 March 2019 22 January2019 Date • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Middle CoC &NPLForecast in2019 Impact Assessment ofIFRSImplementation 9 SLIK update Rainbow Project Updates AnalysisGap ofBankDanamon'sRiskManagementwithMUFG Bank Consumer BankingPortfolio Update Adira Finance Portfolio Update Asset SalesUpdate -P2PDigitalLending Partnership Treasury &CapitalMarket Updates -Market, RIM,Liquidity, Stress Test andCFP Corporate Secretary &Trade -Public Information Policy Compliance Update -ShariaSpinOffandQanunAceh, FinancialCrime Update onEnterprise BankingDebtors Update onIntegration Risk-Stress Test Bottom UpandICAAPStess Test from Consumer FundingandBankingTransaction Strategies Update onSmallandMediumEnterprises (SME)Portfolio andGrowth Strategy Enterprise BankingPortfolio Update andGrowth Strategy Mergers, regulatory updates, GlobalRoll OutwithMUFG, sanctionedcountries, P2P Lending updates, potential parters, business models,riskmitigation Integration RiskPolicy Rainbow Project Updates Head to Maturity Portfolio (HTM),BNPconsolidation Headto Maturity Portfolio Treasury &CapitalMarket Update -LiquidityandRIMUpdates, Balance Sheet ICAAP update Update Internal Ratings andScorecards for Credit IFRS 9update Enterprise BankingGrowth andRiskStrategy Treasury &CapitalMarket Updates -ChangesinMarket &LiquidityRiskLimitand Update onCompliance-Fit &Proper Test for membersoftheBoard of Risk ManagementUpdate-Risk Profile, Composite RiskRating, RiskAppetite Treasury &CapitalMarket Update -Market Review, Liquidity, Stress Test, Compliance Update -Regulatory Audit, Merger Process, Corporate Governance Collectibility Adjustment Update Revised Credit Lending Limit(LLL)and2019 for Large Exposure Guidelines Risk ManagementUpdate -BankRiskProfile, ShariaRiskProfile, Integration Risk Credit Policy Committee Annual Recovery PlanReview Review the Group RiskAppetite Statement andRiskAppetite Statement Treasury &CapitalMarket Update -Market Review, RIM,LiquidityUpdate, Stress Information Security Updates UKM Update (SME) Update onEnterprise &Remedial BankingPortfolios (includingSharia&FI) Studies, Balance SheetStudies Transaction Monitoring Compliance (FCC) Reporting after themerger ofBankNusantara Parahyangan, OJK, Market &LiquidityRisk,Rainbow Project Update transaction monitoring Profile (HTM), Comparative Analysis withOtherBanks,Operational Risk,Integration Risk Studies, BondIssuance Studies andProfessional Funding Trading Limit Guidelines, SOPupdate for Corporate Secretary Element, update oftheBoard ofCommissioners andBoard ofDirectors Work Commissioners, FIRMsystem for SLIK,termination ofWestern Union,AntiSocial Statement, QualityAssurance Program Report (QA) Professional Funding Money Laundering,Global Roll Out Integration Policy, FinancialConglomerate Mapping,New OJK Regulation onAnti & LiquidityRisk Profile, Comparative BankAnalysis withClassmates, Operational RiskandMarket Management Test, Balance SheetStudy andProfessional Funding Agenda Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 287 PT Bank Danamon Indonesia Tbk. Agenda The composition of members of the Board of Board of of the of members composition The nomination needed in the and criteria Policies members for policy evaluation Performance Commissioners and/or members of the Board of Board of of the and/or members Commissioners Directors process and Board of Board of Commissioners of the Directors for the Board of Commissioners and/ or the Board Board and/ or the Board of Commissioners for the the to Director President including Directors of at the to be presented President Commissioner, of Shareholders for approval. General Meeting of the as members will serve that Commissioners committees. Board of Commissioners’ Commissioners regarding: Commissioners • • • and/or of selection and procedures system on the and the Board of Commissioners of the replacement Board of Directors. candidates and recommends reviews, Identifies, Board of to the Independent Parties Recommends Provides recommendations to the Board of Board of to the recommendations Provides recommendations and provides evaluates, Reviews, 3. 4. Charter of Nomination Committee of Nomination Charter stipulates that Charter has a Committee Nomination The accountability, objectives, relevant to the matters and duties of office, term and membership, structure and proceedings, meeting authority, responsibilities, is Committee Nomination of the Charter The reporting. reviewed. periodically of Nomination and Authorities Responsibilities Duties, Committee and Responsibilities Duties Committee Nomination of the and responsibilities Duties include: 1. 2. NOMINATION COMMITTEE COMMITTEE NOMINATION assists that a committee is Committee Nomination the of and duties functions of the implementation the of nominations the regarding Board of Commissioners of the and members Board of Directors of the members is Committee Nomination The Board of Commissioners. Board of Commissioners. responsible to the Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching PSAK 72 and 73 updates and 73 72 PSAK and Financial Institutions Banking on Enterprise Update (SME) Update SME Credit and Business Updates Project Rainbow Update Improvement BBU Special Mention Plans of Financial Sustainability Annual Review Policy Risk Management of Integrated Annual Review 9 Impact of IFRS Implementation and 2020-2022 for & NPL CoC Update Portfolio DSP Update Insurance Adira and Liquidity Risks Limit of Market Temporary • • • • • • • • • • • Date 2019 21 November 2019 21 November 14 November 2019 14 November Asset Sales Analysis - P2P Partnership Digital Digital Partnership P2P - Analysis Sales Asset Conflict of Interest Policy Analysis Policy of Interest Conflict Policy Information Non-Public of Material Analysis Analysis Statement Appetite Risk Plan on Recovery Study (LLL) Limit Lending Legal Revised Migration of MUFG retail accounts to Bank Danamon to Bank accounts MUFG retail of Migration analysis ICAAP banks same-class with Analysis Comparative Process Merger of the Analysis MUFG of Global Roll Out with Analysis strategy CASA Bottom Up 2018-2019 OJK Stress Test Analysis Stress Test 2019 ICAAP Operational Risk Analysis and Market & Liquidity Risk & Liquidity and Market Analysis Risk Operational the of for members Test & Proper on Fit Discussion of the of Sub Debt as part issuance on the Discussion Union Western with of cooperation Termination Analysis Conglomerate Financial Banking Portfolios and SME of Enterprise Analysis Analysis Banking Portfolio Consumer 9 update IFRS Analysis of bilateral subordinated credit agreements agreements credit subordinated of bilateral Analysis Adira of bonds from issuance on the Discussion of Credit Analysis Quality Assurance Profile Analysis Risk Integrated Analysis Rating Risk RIM analysis from the Bank from the analysis RIM Profile Bank’s Risk of the Analysis Lending Bank Recovery Plan Bank Recovery Board of Commissioners between Bank Danamon and MUFG Japan Finance No 9. 10.

Annual Report The Risk Monitoring Committee reports activities and and activities reports Committee Monitoring Risk The a on of Commissioners Board to the recommendations basis. regular ------Committee include: Committee - - - - The Implementation of Risk Monitoring Committee Work Work Committee Monitoring of Risk Implementation The in 2019 Activities Monitoring Risk out by the carried Important activities Main Management Company Management Operational Good Corporate Corporate Corporate 288 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 13. 12. 11. 10. 9. 8. 7. 6. 5. other authorities arefulfilled. but notlimited tothe OJK’sFit andProperTest and all requirements as required by regulations including will beconducted after the approval ofGMS andafter of the Board of Commissioners/ Board of Directors General Meeting ofShareholders. Commissioners/ BoardofDirectors inthe next to benominated asamember ofthe Boardof to the BoardofCommissioners through circulars and byshareholders,whopassthe evaluation test, the BoardofCommissioners/ BoardofDirectors. characteristics, their independence, andthe needsof and professionalexperience orother background proposed candidate expertise, in-depth knowledge appropriate, such as,bankingknowledgeand into accountallfacts andconditions considered minimum requirements and other criteria by taking recommendation. of sex,race, religion, aswellsource ofinitial reappointed atthe GeneralMeeting ofShareholders. Commissioners and/orBoardofDirectors whowillbe fees orrequirements ofthe search firm. firms toidentify candidates, including approving the authority tousethe services ofoneormore search and/or the BoardofDirectors. program formembers ofthe BoardofCommissioners Commissioners regarding the capacity building prepared asevaluation material. Directors basedonthe benchmarksthat have been Commissioners and/ or members of the Board of the performance ofmembers ofthe Boardof Board ofDirectors ofSubsidiaries. no objection concerning acandidate member ofthe Danamon. The Nomination Committee canprovide on Danamon,tothe BoardofCommissioners of of subsidiaries that have asignificant impact Board ofCommissioners andBoardofDirectors Provides recommendations tothe Board of Assists the BoardofCommissioners toassess Evaluates and recommends candidates for the The official appointment ofcandidates asmembers Recommends allcandidates both identified internally Reviews andevaluates candidates basedonthe Reviews andevaluates candidates equally, regardless Can evaluate allmembers ofthe Boardof At Danamon’sexpense,mayfromtime totime useits a. others: The Nomination Committee is authorized to,among Authority ofNomination Committee of Commissioners andsubmitted atthe GMS. Report onthe implementation ofthe duties ofthe Board the Boardof Commissioners. The report is part of the nomination procedures that have beencarried outto implementation ofits duties andresponsibilities and The Nomination Committee must reportonthe 16. 15. 14. the applicable provisions. membership ofthe Nomination Committee hasfulfilled Officer inchargeofHuman Resources. The structure and (one) Commissioner, and1(one)DanamonExecutive consisting of2(two)Independent Commissioners, 1 Therefore the Nomination Committee is 4(four) people, Danamon andBNP. no longerheld office after the effective merger between Choe whowasamember ofthe Nomination Committee the EGMS on March 26, 2019, it was decided that Ng Kee membership ofthe Nomination Committee. Basedon In 2019,there wasachangeinthe structure and Structure andMembership ofNomination Committee Appointment ofNomination Committee Structure, Membership, Expertise andLegal Basis for d. c. b. Access documents, data,andinformation required Maintain the confidentiality ofallDanamon’s Must prepare,review, andupdate the Charter of Must improve competency through continuous Exercise other authorities assigned bythe Boardof Involve anindependentpartytosupportthe Establish direct communication with employees, the from Danamon. documents, dataandinformation. available onDanamon’swebsite. the Nomination Committee regularly. The Charter is education andtrainings. Commissioners. implementation ofits duties when necessary. implementation ofits duties andresponsibilities. Board ofDirectors, andother parties relevanttothe Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 289 Member Member Member Chairman 1/1 6/6 6/6 6/6 6/6 PT Bank Danamon Indonesia Tbk. Attendance Position in Nomination Committee in Nomination Position of the Nomination Committee including Executive Executive including Committee Nomination of the Resources. in charge of Human Officer to reach consensus. of deliberation will be based on a majority decision the not occur, is vote majority on based Decision-making vote. of 1 (one) person, 1 (one) vote. principle based on the be reasons must the along with meeting Committee meeting. of the minutes in the clearly stated properly documented is which of meeting minutes the by all attendees. and signed of Board the to written in submitted be must Commissioners. at least once every 4 (four) months. 4 (four) every at least once Nomination of the majority by the attended if held Chairman the by attended and members Committee principles are made based on the decisions Meeting to reach consensus does deliberation In cases where Nomination in the opinions occur Dissenting in recorded is meeting Committee Each Nomination of meetings minutes Committee’s Nomination Nomination Committee meetings are held regularly regularly are held meetings Committee Nomination can only be meetings Committee Nomination 3. 4. 5. 6. 7. Meetings Committee of Nomination Holding with meetings 6 (six) held Committee In 2019, Nomination as follows: rates attendance Policy and Holding of Nomination Committee Meetings Committee of Nomination and Holding Policy Meetings Committee of Nomination Policy 1. 2. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Commissioner (Independent) (Independent) Position in Danamon Position President Commissioner President Vice President Commissioner President Vice Executive Officer of Human Resources Officer Executive Name 2019 Name J.B. Kristiadi J.B. Made Sukada Roy F Permana Roy Takayoshi Futae Takayoshi 3 4 1 2 J.B. Kristiadi J.B. Futae Takayoshi Made Sukada Choe* Ng Kee F Permana Roy No Annual Report Note: in May 1, 2019 effcetive merger the after * No longer serve Commissioners as stipulated in the Articles of Association of Association Articles in the as stipulated Commissioners next 1 (one) period. only for the and can be re-elected Committee of Nomination Rate Attendance Table of Meeting namely J.B. Kristiadi. Members of the Board of Directors Directors of Board the of Members Kristiadi. J.B. namely Nomination of the members to become are not permitted must members Committee Nomination Committee. Danamon’s Code of Conduct. comply with of Office Term members Committee Nomination of the of office term The Board of of the of office term the may not be longer than Commissioners Meeting of PT Bank Danamon Indonesia, of PT Bank Danamon Indonesia, Meeting Commissioners 13, December dated Tbk. Number KSR-Kom.Corp.Sec-011 2018. Committee of Nomination Independency Nomination the and objectivity, To uphold independence chaired by an Independent Commissioner, is Committee each integrity, character and morals as stated in a in a and morals as stated character each integrity, personal statement. of Appointment Basis Legal based appointed is Committee of Nomination Members Board of Commissioners of the Decision Circular on the of Board the of Resolution the to a Substitute as Expertise of Nomination Committee Members Committee of Nomination Expertise provisions applicable the fulfill members All committee the of expertise of the requirements to the related taking into account members, Committee Nomination Members Composition of Nomination Committee in 2019 Committee of Nomination Composition Members Main Management Company Management Operational Good Corporate Corporate Corporate 290 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Table ofMeeting AgendaofNomination Committee periodically reviewed. reporting. The Charter ofthe Remuneration Committee is responsibilities, authority, meeting proceedings, and structure andmembership, term ofoffice, duties and matters relevanttothe objectives, accountability, The Remuneration Committee hasaCharter that stipulates Charter ofRemuneration Committee remuneration. and policies aswellthe structure ofDanamon’s of Commissioners forthe effectiveness ofthe framework The Remuneration Committee is responsibletothe Board Board, IndependentParty,andcertain SeniorManagement. Commissioners, BoardofDirectors, Sharia Supervisory policy andstructure ofthe members ofthe Boardof the BoardofCommissioners regarding the remuneration the implementation ofthe duties andresponsibilities of Remuneration Committee is a committee that assists REMUNERATION COMMITTEE Commissioners. Committee arereported regularly tothe Boardof Activities andrecommendations fromthe Nomination • • • • • Committee canbesummarized asfollows: The implementation ofduties ofthe Nomination 2019 Implementation ofDuties ofNomination Committee in No 4 6 3 5 2 Integrated Corporate Governance Committee. Committees. the composition ofthe BoardofCommissioners’ Directors ofDanamon. members ofthe BoardofCommissioners and Board ofCommissioners ofDanamon. officials andexpatriates fromMUFG. Reviewed the nominations ofrecruitment forsenior Reviewed the nominations ofcandidates forthe Provided recommendations onthe approval of Provided recommendations forcandidates for Reviewed candidates forthe BoardofDirectors and 1 18 November 2019 29 August 2019 23 August 2019 22 July2019 25 June2019 31 January2019 Date Nomination ofSeniorEmployee Recruitment Nomination oftheBoard ofCommissioners andDirectors Nomination ofDirectors Proposal for Employee Changeto theNomination Committee Senior ManagementMembershipUpdate Micro Banking Changes to Committee MembersontheBoard ofCommissioners New Board ofCommissioners' Recommendations Senior HiringNominee Duties andResponsibilities Committee Duties, Responsibilities andAuthorities of Remuneration 3. 2. 1. Committee include: Duties andresponsibilities ofthe Remuneration Consider the followingmatters inpreparing the Assist the Board of Commissioners to conduct Prepare policy, evaluate andprovide • • • • structure, policy, andthe amountofremuneration: Directors. of Commissioners and/ormembers ofthe Boardof remuneration received byeachmember ofthe Board performance assessment with the suitability of • • • regarding: recommendations to the Board of Commissioners members ofthe BoardofCommissioners. of members ofthe BoardofDirectors and/or Target performance orthe individual performance of objectives andthe performance ofDanamon. of Commissioners inrelation tothe achievement Board of Directors and/or members of the Board Duties, responsibilities, andauthority ofthe group. Fairness ofremuneration compared with peer scale ofDanamoninthe industry. according tothe businessactivity andbusiness Applicable remuneration inthe industry Independent Parties. Remuneration, including salaries and benefits of Board. the BoardofCommissioners andthe Supervisory members ofthe BoardofDirectors, members of and targets forthe PresidentDirector andother on achievement ofthe predetermined objectives bonuses andincentives that willbegiven based Remuneration, including salaries, allowances, and SeniorManagement. the BoardofCommissioners, BoardofDirectors, The structure andamountofremuneration for Meeting Agenda Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 291 Member Member Member Chairman Committee Position in Remuneration in Remuneration Position PT Bank Danamon Indonesia Tbk.

related to the requirements of the expertise of the the of expertise of the requirements to the related taking into account members, Committee Nomination in a and morals as stated character each integrity, personal statement. of Appointment Basis Legal based appointed is Committee of Nomination Members Board of Commissioners of the Decision Circular on the of Board the of Resolution the to a Substitute as of PT Bank Danamon Indonesia, Meeting Commissioners 13, December dated Tbk. Number KSR-Kom.Corp.Sec-011 2018. Structure, Membership, Expertise and Legal Basis for for Basis and Legal Expertise Membership, Structure, Committee of Remuneration Appointment Committee of Remuneration and Membership Structure and structure a change in the was In 2019, there on Based Committee. Remuneration the of membership and approved 2019, it was decided 26, March on EGMS the Ng namely 2 (two) Commissioners, of resignation the the of members were who Yen Chee Gan and Choe Kee Committee. Remuneration members, 4 (four) has Committee Remuneration the Thus 1 (one) of 2 (two) Independent Commissioners, consists of Danamon Officer and 1 (one) Executive Commissioner, and Structure Resources. in charge of Human who is has fulfilled Committee Remuneration of the membership provisions. applicable the Members Committee of Nomination Expertise provisions applicable the fulfill members All committee Resources Commissioner (Independent) (Independent) Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Position in Danamon Position President Commissioner President Executive Officer of Human of Human Officer Executive Vice President Commissioner President Vice Name 2019 strategies of Danamon. strategies compliance with the applicable regulations. applicable the with compliance goal and long-term Target consideration The balance of fixed and variable benefits. and variable of fixed balance The and its of Danamon performance financial The Roy Fahrizal Permana Fahrizal Roy J.B. Kristiadi J.B. Habir Manggi T. Futae Takayoshi Exercise other authorities assigned by the Board of Board of by the assigned authorities other Exercise Access documents, data, and information about about data, and information documents, Access the employees, with communication direct Establish party to support the an independent Involve Maintain the confidentiality of all Danamon’s of all Danamon’s confidentiality Maintain the education continuous through competency Improve Evaluate the fore mentioned structure, policies, and and policies, structure, fore mentioned the Evaluate Remuneration of Charter the update and Evaluate implementation of its duties when necessary. necessary. when duties of its implementation Commissioners. employees, Senior Management, Board of Directors Board of Directors Management, Senior employees, and/ or Board of Commissioners. relevant to the parties and other Board of Directors, responsibilities. and duties of its implementation documents, data, and information. data, and information. documents, and trainings. • in 1 at least 1 (one) time amount of remuneration (one) year. periodically. Committee • • 1 2 3 4 No Annual Report d. in 2019 Committee of Remuneration Composition Members a. b. c. remuneration procedures that have been carried out to out to been carried have that procedures remuneration the of part is report The Commissioners. Board of the Board of the duties of the implementation on the Report GMS. at the and submitted of Commissioners Committee of Remuneration Authority among others: Committee of Remuneration Authorities 6. 7. report on the must Committee Remuneration The and the responsibilities and duties of its implementation 4. 5. Main Management Company Management Operational Good Corporate Corporate Corporate 292 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Table ofMeeting Attendance Rate ofRemuneration Committee PT Bank DanamonIndonesia Tbk. Table ofMeeting AgendaofRemuneration Committee Meeting AgendaofRemuneration Committee in2019 b. a. Policy of Remuneration Committee Meetings Policy andHolding ofRemuneration Committee Meetings and canbere-elected onlyforthe next1(one)period. Commissioners asstipulated inthe Articles ofAssociation may notbelongerthan the term ofoffice ofthe Boardof The term of office of the Remuneration Committee members Term ofOffice members must complywith Danamon’sCodeofConduct. the Remuneration Committee. Remuneration Committee of Directors arenotpermitted tobecome members of Commissioner, namely J.B.Kristiadi. Members ofthe Board Remuneration Committee is chairedbyanIndependent To uphold independence and objectivity, the Independency ofRemuneration Committee * Nolongerserve after the merger effcetive inMay1,2019 Note: Roy F Permana CheeYenGan * Ng Kee Choe* Manggi THabir Takayoshi Futae J. B.Kristiadi 7 6 5 4 3 2 1 No Committee members and attended by the Chairman held if attended bythe majority ofthe Remuneration at leastonce every 4(four) months. Remuneration Committee meetings canonlybe Remuneration Committee meetings areheld regularly December 20, 2019 November 18,2019 August 29, 2019 August 23,2019 June 25,2019 March 25,2019 January 31,2019 Date Name Short-term andLong-Term Incentives Senior Employee Recruitment Remuneration Remuneration oftheDirectors andBoard ofCommissioners Directors’ Remuneration The Board ofCommissioners Remuneration andAward Proposal Long-term Incentives 2018 -Payment 2019 - - 2019 Performance BonusandSalaryIncrease Senior Employee Recruitment Remuneration with attendance rates asfollows: In 2019,Remuneration Committee held 7(seven) meetings Holding ofRemuneration Committee Meetings e. d. c. Each meeting is recorded inthe minutes ofmeeting In caseswhere deliberation toreachconsensusdoes Meeting decisions aremadebasedonthe principles Commissioners. attendees, andsubmitted inwritten tothe Boardof which is properly documented, signed byall the meeting. the reasonsmust beclearlystated inthe minutes of Dissenting opinionsoccurinthe meeting alongwith based onthe principle of1(one)person,vote. vote. Decision-making based on majority vote is not occur, the decision willbebasedonamajority of deliberation toreachconsensus. Officer inchargeofHuman Resources. of the Remuneration Committee including Executive Meeting Agenda Attendance inMeeting 2/2 2/2 /7 7/ 7 7/ 7 7/ 7 7/ Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 293 PT Bank Danamon Indonesia Tbk. activities to the Board of Commissioners. to the activities from Danamon. relevant to the parties and other Board of Directors, responsibilities. and duties of its implementation necessary. when duties of its implementation Commissioners. corporate governance and its implementation implementation its and governance corporate and submit improvement periodically of Commissioners. Board to the recommendations and GCG implementation of inappropriateness for improvement. to be taken actions and accuracy transparency its by Danamon to ensure Board of to the improvements the and recommend Directors. Danamon’s of endorsement for Commissioners and corporate reports governance corporate policies. governance is Committee of the Charter periodically. Committee available in Danamon’s website. data, and information. documents, Committee’s Governance Corporate the Report required data, and information documents, Access the employees, with communication direct Establish party to support the an independent Involve Board of by the assigned authorities other Exercise Review and evaluate Danamon’s principles of of principles Danamon’s and evaluate Review various the of Commissioners of Board the to Report published report governance corporate the Review Board of to the recommendations Provide of the Charter the and update Prepare, review, of all Danamon’s confidentiality Maintain the 9. Committee Governance of Corporate Authority to, authorized is Committee Governance Corporate among others: a. b. c. d. for Basis and Legal Expertise Membership, Structure, Committee Governance of Corporate Appointment Governance of Corporate and Membership Structure Committee members, has 3 (three) Committee Governance Corporate and 1 (one) of 2 (two) Independent Commissioners consist has Committee this of composition The Commissioner. Charter Committee Governance Corporate fulfilled the Committee of the requirements independence and the members. 3. 4. 5. 6. 7. 8. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Comply with the code of conduct of Danamon. code of conduct the Comply with governance corporate the evaluate Periodically Provide recommendations on the remuneration of of remuneration on the recommendations Provide Reviewed senior employee recruitment plans. recruitment senior employee Reviewed and bonuses. bonuses for setting main guide The 2019. increase salary and tantiem Recommends incentives. long-term Reviewed Information Chief the of recruitment the Reviewed structure and framework as well as the suitability of of suitability as well as the and framework structure policies. governance Danamon’s corporate Senior Officials. Officer. duties and responsibilities of the Corporate Governance Governance Corporate the of responsibilities and duties include: Committee 1. 2. Duties, Responsibilities and Authorities of Corporate of Corporate and Authorities Responsibilities Duties, Committee Governance and Responsibilities Duties Corporate the responsibilities, and duties its out carrying In The act independently. must Committee Governance that stipulates matters relevant to the objectives, objectives, relevant to the matters stipulates that of term and membership, accountability, structure meeting authority, and responsibilities, duties office, Corporate the of Charter The and reporting. proceedings, is 2019 and in updated is Committee Governance reviewed. periodically governance. The Corporate Governance Committee is is Committee Governance Corporate The governance. for overseeing Board of Commissioners responsible to the governance of Danamon’s corporate implementation the regulations. with and compliance Committee Governance of Corporate Charter has a Charter Committee Governance Corporate The CORPORATE GOVERNANCE COMMITTEE COMMITTEE GOVERNANCE CORPORATE a committee is Committee Governance Corporate and duties of the implementation the assists that in Commissioners of Board the of responsibilities structures, of governance effectiveness the overseeing to support the and resources policies frameworks, of good corporate principles of the implementation - Remuneration from the and recommendations Activities Board of to the regularly are reported Committee Commissioners. Committee can be summarized as follows: can be summarized Committee - - - - - Implementation of Duties of Remuneration Committee Committee of Remuneration of Duties Implementation in 2019 Remuneration of the duties of implementation The Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 294 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data next 1(one)period. Articles ofAssociation andcanbere-elected onlyforthe office ofthe BoardofCommissioners asstipulated inthe Committee members maynotbelongerthan the term of The term of office of the Corporate Governance Term ofOffice Danamon’s CodeofConduct. Governance Committee members must complywith of the Corporate Governance Committee. Corporate Board ofDirectors arenotpermitted tobecome members Commissioner, namely MadeSukada.Members ofthe Governance Committee is chaired by an Independent To upholdindependence andobjectivity, the Corporate Independency ofCorporate Governance Committee December 13,2018. Indonesia, Tbk.NumberKSR-Kom.Corp.Sec-011 dated Board ofCommissioners Meeting ofPT BankDanamon Commissioners asaSubstitute tothe Resolution ofthe appointed basedonthe Circular Decision ofthe Boardof Members ofCorporate Governance Committee is Legal Basis ofAppointment the personalstatement letters. account eachintegrity, character andmoralsasstated in Corporate Governance Committee members, takinginto related tothe requirements ofthe expertise ofthe All committee members fulfillthe applicable provisions Expertise ofCorporate Governance Committee Members PT Bank DanamonIndonesia Tbk. Members Composition ofCorporate Governance Committee in2019 * effective asof21February 2019. Note: Masamichi Yasuda Manggi T. Habir Made Sukada No 3 2 1 Masamichi Yasuda Manggi T. Habir Made Sukada * Name Name Commissioner (Independent) Commissioner (Independent) Position inDanamon Commissioner 4. 3. 2. 1. Policy ofCorporate Governance Committee Meetings Meetings Policy and Holding of Corporate Governance Committee during 2019with attendance rates asfollows: Corporate Governance Committee held 3 (three) meetings Holding ofCorporate Governance Committee Meetings 6. 5. In caseswhere deliberation toreachconsensusdoes Meeting decisions aremadebasedonthe principles The minimum attendance ofcommittee meetings Meetings areheld according toDanamon’sneedsat Each meeting is recorded inthe minutes ofmeeting Dissenting opinionsoccurinthe meeting alongwith of deliberation toreachconsensus. Corporate Governance Committee members. (quorum ofmeetings) is 51%(fifty onepercent) ofthe least once every 1(one)semester. and submitted tothe BoardofCommissioners. which is properlydocumented, signed byallattendees, the meeting. the reasonsmust beclearlystated inthe minutes of based onthe principle of1(one)person, 1(one)vote. vote. Decision-making based on majority vote is not occur, the decision willbebasedonamajority Attendance Position inRemuneration 3/3 3/3 2/2 Committee Chairman Member Member Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 295 PT Bank Danamon Indonesia Tbk. Agenda Commissioners of the Main Entity in terms of of in terms Main Entity of the Commissioners governance corporate integrated the improving policy. and trainings. education continuous governance through at least the assessment of the of the assessment at least the through governance implementation controls and the of internal adequacy function. compliance of integrated Board of to the recommendations Provide through of members competency the Improve Evaluate the implementation of integrated corporate corporate of integrated implementation the Evaluate b. c. and regulations. The Integrated Corporate Governance Governance Corporate Integrated The and regulations. Board of Commissioners. responsible to the is Committee Committee Governance Corporate of Integrated Charter Committee Governance Corporate Danamon’s Integrated relevant to the matters stipulates that has a Charter and membership, accountability, structure objectives, authority, responsibilities, and duties office, of term of the Charter The and reporting. proceedings, meeting updated is Committee Governance Corporate Integrated reviewed. periodically in 2019 and is Corporate Integrated of Responsibilities and Duties Committee Governance and Responsibilities Duties Corporate Integrated the of and responsibilities duties The include: Committee Governance a. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching AGMS 2019 AGMS Regulation Independent Director Charter Review SLIK Update Regulator Audit Merger Update dan Qanun Aceh Spin Off Syariah Charter Review SLIK Update Regulator Audit Policy ICG ------Follow Up after Merger Up after Follow Financial Conglomeration Main Entity for Appointment of New and Qanun di Aceh Spin Off Syariah CGC Charter Update Regulator Audit Update Corporate Governance: Corporate Update Governance: Corporate Update - - - - - Update GCG Self Assessment Semester II-2018 Semester Self Assessment GCG Update II-2018 Semester Status Improvement CG Governance: Corporate Update I-2019 Semester Self Assessment GCG Update Date July 16, 2019 January 16, 2019 November 21, 2019 November 2019 Reviewed and provided recommendations to the to the recommendations provided and Reviewed Bank BNP. with implementation merger the Reviewed Reviewed the implementation of Danamon’s of Danamon’s implementation the Reviewed for 2019 Annual agenda and materials the Reviewed Governance Corporate the updated and Reviewed refinement of Integrated Corporate Governance Governance Corporate of Integrated refinement of Danamon Group. Policy corporate governance and GCG Self Assessment and GCG Self Assessment governance corporate results GMS. and Extraordinary GMS Charter. Committee 1 2 3 No Annual Report of Commissioners as the Board of Commissioners Board of Commissioners as the of Commissioners out the in carrying specifically Main Entity, of the of integrated implementation on the function supervisory Financial Group Danamon the in governance corporate laws applicable the with in accordance Conglomeration, regularly. COMMITTEE GOVERNANCE CORPORATE INTEGRATED Danamon of the Main Entity Danamon as the the established Conglomeration Group Financial to Committee Governance Corporate Integrated Board of the duties of the implementation the assist • • activities its reports Committee Governance Corporate Commissioners of Board the to recommendations and • • • Implementation of Duties of Corporate Governance Governance of Corporate of Duties Implementation in 2019 Committee in 2019 has carried Committee Governance Corporate The following: out the Meeting Agenda of Corporate Governance Committee in 2019 Committee Governance of Corporate Agenda Meeting agenda as follows: meeting the 2019 with during meetings conducted Committee Governance Corporate The Main Management Company Management Operational Good Corporate Corporate Corporate 296 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. December 13,2018. Indonesia, Tbk.NumberKSR-Kom.Corp.Sec-011 dated Board ofCommissioners Meeting ofPTBankDanamon of Commissioners asaSubstitute tothe Resolution ofthe is appointed basedonthe Circular Decision ofthe Board Members ofIntegrated Corporate Governance Committee Legal Basis ofAppointment personal statement letters. respective integrity, character andmoralsasstated ina functions ofthe committee bypaying attention totheir Each member hasthe expertise neededtocarry outthe Committee Members Expertise ofIntegrated Corporate Governance Members Composition ofIntegrated Corporate Governance Committee d. c. b. a. among others: Authority ofIntegrated Corporate Governance Committee are, Committee Authority ofIntegrated Corporate Governance e. d. No 4 6 3 5 2 1 Board ofCommissioners ofDanamon/MainEntity. the authority toexercise other authorities granted bythe carrying outtheir duties, if needed. the authority toinvolve independentparties toassist in and Subsidiaries. Board ofDirectors andother parties inthe MainEntity authorized tocommunicate directly with employees, applicable lawsandregulations. while adhering tothe internal policies ofeachentity and and information fromthe MainEntity andSubsidiaries, the authority toaccess the required documents, data Subsidiaries’ documents, data,andinformation. periodically. Integrated Corporate Governance Committee The Integrated Corporate Governance Committee has The Integrated Corporate Governance Committee has The Integrated Corporate Governance Committee is The Integrated Corporate Governance Committee has Maintain the confidentiality of all Danamon’s and Possess, review, andupdate the Charter ofthe M. DinSyamsuddin Djoko Sudyatmiko Angela Simatupang Masamichi Yasuda Manggi T. Habir Made Sukada Name Independent Party ofMainEntity member ofShariaSupervisory Independent Commissioner of Commissioner (Independent) Commissioner (Independent) Chairman concurrently asa Board oftheMainEntity Position inDanamon Commissioner Adira Finance 2. 1. Committee consists of6(six) people,namely: Conglomeration, the Integrated Corporate Governance in changestomembers ofthe DanamonGroupFinancial of Adira Insurance on November 27, 2019, which resulted As ofDecember 31,2019,inconnection with the divestment Governance Committee Structure and Membership of Integrated Corporate Committee Appointment ofIntegrated Corporate Governance Structure, Membership, Expertise andLegal Basis for next 1(one)period. Articles ofAssociation andcanbere-elected only forthe office of the BoardofCommissioners asstipulated inthe Committee members maynotbelongerthan the term of The term ofoffice ofthe Integrated Corporate Governance Term ofOffice Governance Committee. to become members ofthe Integrated Corporate Members ofthe BoardofDirectors arenotpermitted Independent Commissioner, namely Made Sukada. Corporate Governance Committee is chairedbyan To upholdindependence andobjectivity, the Integrated Committee Independency ofIntegrated Corporate Governance independency requirements ofthe Committee members. Corporate Governance Committee Charter and the The composition ofthis Committee hasfulfilledthe Integrated From the Subsidiaries: 1(one)Independent Commissioner From the MainEntity which consists of: company. who represents andis appointed fromthe financing - - - - 1 (one)member ofthe Sharia Supervisory Board. 1 (one)commissioner. 1 (one)independentparty. 2 (two)IndependentCommissioners. Position inIntegrated Corporate Governance Committee Chairman Member Member Member Member Member Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 297 1/3 2/2 3/3 3/3 3/3 3/3 3/3 PT Bank Danamon Indonesia Tbk. Attendance in Meeting Attendance Agenda improvement of Integrated Corporate Governance Governance Corporate of Integrated improvement of Danamon Group. Policy Conglomeration. Financial in the new Main Entity Reviewed and provided recommendations for for recommendations and provided Reviewed of appointment the regarding directives Provided the reasons must be clearly stated in the minutes of of minutes in the be clearly stated reasons must the meeting. the all attendees, by signed properly documented, is which of the of Commissioners Board to the and submitted Main Entity. Dissenting opinions occur in the meeting along with along with meeting opinions occur in the Dissenting of meeting minutes in the recorded is Each meeting • • reports Committee Governance Corporate Integrated of Board the to and recommendations activities its regularly. Commissioners d. e. Committee Governance Corporate Integrated of Holding in 2019 Meetings 3 held Committee Governance Corporate Integrated as rates attendance 2019 with during meetings (three) follows: Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching ICG Policy Policy ICG Subsidiaries from CG Update Financial Conglomeration Main Entiry for Appointment of New Charter ICGC Update New Main Entity For Financial Conglomeration Main Entity For New Review On-site OJK Subsidiaries from CG Update Financial Conglomeration Main Entiry for Appointment of New • • Governance: Corporate Update • • Subsidiaries from CG • Update Update ICG Self Assessment Semester II-2018 Semester Self Assessment ICG Update Governance: Corporate Update • • • I-2019 Semester Self Assessment ICG Update Governance: UpdateCorporate • Name Made Sukada Manggi T. Habir Manggi T. M. Din Syamsuddin M. Din Syamsuddin Djoko Sudyatmiko Sudyatmiko Djoko Angela Simatupang Angela Simatupang Date Masamichi Yasuda * Masamichi Yasuda Ariyanti Suliyanto ** Suliyanto Ariyanti July 16, 2019 January 16, 2019 2019 November 21, 2019 November effective as of 21 February 2019 as of 21 February effective of the a member no longer is Insurance 2019, Adira 27, as of November 2019, 27, on November Insurance of Adira divestment the with In connection Reviewed the implementation of integrated corporate corporate of integrated implementation the Reviewed Integrated of the Charter the and updated Reviewed governance and the results of self-assessment on the the on of self-assessment results and the governance Governance. Corporate of Integrated implementation Committee. Governance Corporate Danamon Group Financial Conglomeration. Danamon Group Financial Meetings are held as needed at least once every 1 1 every as needed at least once are held Meetings is meetings of committee attendance minimum The principles are made based on the decisions Meeting of deliberation to reach consensus. In cases where to reach consensus. In cases where of deliberation the to reach consensus does not occur, deliberation Decision- vote. will be based on a majority decision based on the is vote making based on majority of 1 (one) person, 1 (one) vote. principle (one) semester. Integrated of of total members one percent) 51% (fifty Committee. Governance Corporate 1 2 3

No Annual Report 2019 has carried out the following activities: out the 2019 has carried • • Implementation of Duties of Integrated Corporate Corporate of Integrated of Duties Implementation in 2019 Committee Governance during Committee Governance Corporate Integrated The Meeting Agenda of Integrated Corporate Governance Committee in 2019 Committee Governance Corporate Agenda of Integrated Meeting Note: * ** Meetings a. b. c. Policy and Holding of Integrated Corporate Governance Governance Corporate of Integrated and Holding Policy Meetings Committee Committee Governance Corporate of Integrated Policy Main Management Company Management Operational Good Corporate Corporate Corporate 298 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Bank Indonesia),international bestpractices andbest prevailing regulations (Financial Services Authority/ is preparedandperiodically reviewed basedon The BoardofDirectors hasownedaCharter which Charter ofthe BoardofDirectors tenure maybere-elected bythe GMS forthe next3years. Members ofthe BoardofDirectors that reachthe endof which referstothe prevailingrules andregulations. and responsibilitypursuanttothe Articles ofAssociation, its duties, the BoardofDirectors is given clearauthority implementation of its duties to the GMS. In performing The BoardofDirectors is accountable forthe other Directors. and endsonthe same date asthe terms ofoffice ofthe the newDirector starts onthe date specified inthe GMS members ofthe BoardofDirectors, the terms ofoffice of appointment. Ifthere is anaddition/ appointment ofnew and endsatthe closingofthe third GMS after the date of appointment is effective fromthe date setoutinthe GMS Committee through the BoardofCommissioners. The after considering the recommendations of the Nomination conducted bythe GeneralMeeting ofShareholders(GMS) The appointment ofmembers ofthe BoardofDirectors is court inaccordance with the Articles ofAssociation. and represents the companyboth insideandoutside the company forthe interests andobjectives ofthe company collectively responsibleforthe management ofthe The Board ofDirectors is a corporate organ that is 3. 2. 1. follows: Members ofthe BoardofDirectors have workethics as Work Ethics ofthe BoardofDirectors reporting. transparency, workethics, meetings, terms ofoffice and responsibilities, committee establishment, authority, general requirements, membership structure, duties and Board ofDirectors containsmatters related tothe corporate governance practices. The Charter ofthe Directors Board of PT Bank DanamonIndonesia Tbk. duties tobecome amember ofthe Boardof Danamon’s Subsidiaries, carrying outfunctional responsible foroversight ofparticipation in concurrent positions if the BoardofDirectors companies and/ orinstitutions. Excluded as of Directors or executive officers atother banks, a member of aBoardCommissioners, Board Shareholders. and facilities determined in the General Meeting of benefits fromDanamonother than remuneration Danamon andits subsidiaries. may harmorreduce the profits andreputation of personal, family,and/orother parties’ interests that Prohibited fromhaving concurrentpositions as Prohibited fromtakingand/orreceiving personal Prohibited from taking advantage of Danamon for 7. 6. 5. 4. 2. 1. including: The Duties andResponsibilities ofthe BoardofDirectors, Duties andResponsibilities ofthe BoardofDirectors 2. 1. Transparency ofthe BoardofDirectors 8. Prohibited fromdirectly orindirectly makingincorrect Prohibited fromusingindividual advisors and/or Prohibited from giving general authority to another Prohibited fromowningsharesmorethan 25%(twenty The Board of Directors must disclose Danamon’s The BoardofDirectors must disclose the information Subject toDanamon’sCodeofConduct, the work onspecific projects. an independentpartyandhasthe qualifications to of employment aswellthe costs; 3)Consultantis least the scopeofwork,responsibilities andduration 2) Basedonaclearcontract,which shallincludeat the followingrequirements: 1)The project is specific; professional services as a consultant unless it meets functions ofthe BoardofDirectors. party, which willresultinthe transferofduties and paid upcapitalofDanamonand/orother companies. five percent) either individually orcollectively ofthe Directors. duties andresponsibility as amember ofthe Boardof does notresultinthe Director neglecting his/ her by Danamon,aslongthe concurrentposition Commissioners inanon-bankSubsidiary controlled strategic employment policies toall employees. d. c. b. a. including: in the Corporate Governance Implementation Report internal policies. prevailing lawsandregulations, aswellDanamon’s time the statement was made. misleading aboutthe conditions ofDanamonatthe material facts so that the statements made are not statements aboutmaterial facts ornotdisclosing regulations; Association ofDanamonandthe prevailinglawsand responsibilities asstipulated inthe Articles of Manage Danamonwith its authority and Danamon’s management Take full responsibility for the implementation of Danamon; shareholders; Board of Directors and/or controlling members ofDanamon’sBoardCommissioners, home andoverseas; banks andcompanies, which aredomiciled at Positions inother companies. Remuneration and facilities received from Financial andfamilyrelationships with fellow Shares ownership inDanamonaswellother Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 299 PT Bank Danamon Indonesia Tbk. Directors the after Board of Directors of the composition The between Danamon and PT Bank merger effective as follows: Nusantara Parahyangan Tbk is Board of Directors Nomination Policy Nomination Board of Directors the in basis as a prepared is Policy Nomination The of the for members candidates of identifying process which best qualifications the with Board of Directors as set out in legislation requirements minimum the meet criteria. and other Board of for the candidates of identifying process The Committee, Nomination out by the carried is Directors can use the Committee Nomination the necessary, if Nomination firm). The party (search of a third services the who meet candidates identifies Committee candidates the and selects interviews requirements, and references). background checks conducts (including knowledge, the consider will Committee Nomination The diversity as well as the skills and professional experience, gender and ethnicity, against race, discrimination without Nomination The candidates. the identifying in religion to the candidates elected proposes the Committee by ratification and for approval Board of Commissioners Nomination of Shareholders. The General Meeting the Board on the an evaluation will also conduct Committee of Meeting General the at be reappointed to Directors of Shareholders. of Board the of Criteria and Composition Number, During the nomination process, in addition to the minimum minimum to the in addition process, nomination the During of scope and balance the criteria, and other requirements are as well as diversity experience, knowledge, skills and composition to obtain optimum taken into consideration of the composition Optimum Board of Directors. of the and decision-making can enhance Board of Directors company’s performance. improve ultimately Policy Succession Board of Directors of the for members policy Danamon has a succession of continuity maintain used to is that of Directors Board of succession Implementation future. in the leadership of executive identification the through conducted is Review Talent the through potential, who show officials is Board of Directors of the Program. Each member who of 2 (two) candidates to submit a minimum obliged competency for his/her and identified will be evaluated will be grouped in candidates replacement and skills. The Nomination to the to be recommended a talent inventory Committee. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Performing other authorities granted in the in the granted authorities Performing other prevailing and the of Association Danamon’s Articles and regulations. rules Representing Danamon inside and outside the court court the Danamon inside and outside Representing Danamon with binding and in all events, on all matters Danamon and with parties and other parties other management regarding both out all actions, carrying and conditions restrictions but with and ownership, of Association. Danamon’s Articles in the as stated Provide accurate, relevant and timely data and data and timely relevant and accurate, Provide Board of Commissioners. to the information Corporate of Integrated implementation Ensure the as Conglomeration Financial in the Governance Governance Corporate Integrated defined in the policy. of Commissioners in carrying out their role as a role as a out their in carrying of Commissioners organ. supervisory duties of the implementation for the Responsible of General Meeting the to shareholders through Shareholders; in policies Resources Human strategic the Disclose to employees; of employment field the Implement Danamon social responsibility programs. Danamon social Implement Unit, Risk Working Audit an Internal Establish Working and Compliance Working Unit Management of good principles the Unit, in order to implement governance. corporate the with and open relationship Maintain a healthy Board and support the Board of Commissioners Take full responsibility for setting the short-term and and short-term the for setting Take full responsibility Danamon. of priorities the and strategies, long-term and recommendations findings audit Follow up the working unit of Danamon, audit internal of the of Financial results supervisory auditors; external other and/or the Bank Indonesia Authority, Services regulators. Implement the principles of corporate governance in in governance of corporate principles the Implement of at all levels activities each of Danamon’s business organization; the Annual Report of Directors. Danamon appreciates and respects respects and appreciates Danamon of Directors. knowledge, skills and of viewpoints, any differences and does not discriminate of each individual, experience gender and religion. ethnicity, on race, 2. Board of Directors of the on Diversity Policy used as a reference is that policy Danamon has a diversity Board for the of candidates process nomination in the Authority of the Board of Directors Board of of the Authority 1. 11. 12. 9. 10. 6. 7. 8. 4. 5. 3. Main Management Company Management Operational Good Corporate Corporate Corporate 300 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. with the controllingshareholders. and/or financial relationship and/orfamilyrelationship party that hasnomanagement relationship, ownership competence. The PresidentDirector is anindependent who is aprofessionalandhasadequate integrity and The Boardof Directors is chairedbyaPresidentDirector Indonesian nationals andallaredomiciled inIndonesia. The majorities ofthe members ofthe BoardofDirectors are Board ofDirectors asat31December 2019is asfollows: President Director, Muljono TjandraasDirector andNaokiMizoguchi asDirector. Accordingly, the composition ofthe Pal Singh Ahluwaliaandthe appointment ofYasushi ItagakiasPresidentDirector, Honggo Widjojo KangmastoasVice Furthermore, onOctober1,2019anEGMS washeld which approved the resignation ofSngSeowWahandSatinder No. No. 10 4 6 9 8 3 5 2 7 4 9 6 8 3 5 2 7 1 1 Dadi Budiana Yasushi Itagaki Heriyanto Agung Putra Rita Mirasari Adnan Qayum Khan Satinder Pal SinghAhluwalia Herry Hykmanto Michellina L.Triwardhany Sng Seow Wah Naoki Mizoguchi Muljono Tjandra Dadi Budiana Heriyanto Agung Putra Rita Mirasari Adnan Qayum Khan Herry Hykmanto Honggo Widjojo Kangmasto Michellina L.Triwardhany Yasushi Itagaki Name Name provisions ofOJK passed the fitandpropertest inaccordance with the executives. Allmembers ofthe BoardofDirectors have expertise andexperience inthe operational field asbank convicted ofacriminal offense,andhave the knowledge, have never beendeclared bankrupt, have never been financial reputation, aswellgoodcharacter andmorals, have met the requirements of integrity, competency and All members ofthe BoardofDirectors uponappointment Vice President Director Vice President Director Vice President Director President Director President Director Director Director Director Director Director Director Director Position Director Director Director Director Director Director Director Position Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 301 Domicile Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia

1x 1x 1x 1x 1x 2x 2x 2x 4x 4x Number of Number of Appointment PT Bank Danamon Indonesia Tbk. Office Office Terms 2014-2017 2017-2020 2019-2020 2016-2017 2017-2020 2019-2020 2016-2017 2017-2020 2019-2020 2016-2017 2017-2020 2019-2020 2018-2020 2019-2020 2019-2020 2019-2020 2018-2020 2019-2020 2019-2020 2010-2011 2011-2014 2014-2017 2017-2020 2018-2020 2019-2020 2019-2020 2008-2011 2011-2014 (OJK/ BI) Effective Date Date Effective 25 April 2019** 2016 8 August 25 April 2019** 2016 14 September 25 April 2019** 2016 23 December 25 April 2019** 2018 17 October 25 April 2019** 2019 5 December 2019 5 December 7 September 2018 7 September 25 April 2019** 2019 5 December 2010 May 27 2018 14 March 25 April 2019** 2019 5 December 2008 13 May Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching GMS Date GMS 1 October 2019 1 October 2019 1 October 07 September September 07 2016 2019* 26 March 28 April 2016 2019* 26 March 2018 20 March 2019* 26 March 26 March 2019* 26 March 2019 1 October April 2008 03 2019* 26 March 28 April 2016 2019* 26 March 20 March 2018 2018 20 March 2019* 26 March 2019 1 October 29 April 2010 2018 20 March Position Director Director Director Director Director Vice President President Vice Director President Vice Director Director Director Director Director Director Director President Director Director President Vice Director 2019 Name between Danamon and PT Bank Nusantara Parahyangan Tbk (“BNP”). of PT Bank management for The Danamon Indonesia Tbk and PKK Results of PT Bank Nusantara Parahyangan Tbk into PT Bank Merger for the Authority from OJK. fit and proper test passed the have Board of Commissioners of the all members Results), Danamon Indonesia Tbk (Merger In accordance with the resolution of the EGMS on March 26, 2019, it has approved changes in the composition of the Directors due to the merger process process merger to the due Directors of the composition changes in the 2019, it has approved 26, on March EGMS of the resolution the with In accordance Services Financial of the Board of Commissioners of the of Decision Submission 25, 2019 regarding April / PB.12 / 2019 dated No.S-122 Based on OJK letter

Dadi Budiana Muljono Tjandra Naoki Mizoguchi Heriyanto Heriyanto Agung Putra Adnan Qayum Qayum Adnan Khan Rita Mirasari Kangmasto Herry Hykmanto Honggo Widjojo Honggo Widjojo Yasushi Itagaki Yasushi Michellina Laksmi Triwardhany Annual Report * ** Main Management Company Management Operational Good Corporate Corporate Corporate 302 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data stipulated inthe Charter ofthe BoardofDirectors. in compliance with the requirement ofindependency inaccordance with GoodCorporate Governance regulation as in the statement letter signed bymembers ofthe BoardofDirectors, which is updated every year. Directors must be All members of the Board of Directors must have no familyor financial relationships with each other as expressed Independency ofMembers ofthe BoardofDirectors is asfollows: the existing organizational structure, the scopeofduties andresponsibilities ofeachMember ofthe BoardofDirectors Circular Resolution ofthe BoardofDirectors onthe Duties andAuthorities ofthe BoardofDirectors. In2019,basedon Each member ofthe BoardofDirectors hasduties andauthorities that aresubject tothe Articles ofAssociation and Scope ofWorkandResponsibilities ofEachMember ofthe BoardofDirectors PT Bank DanamonIndonesia Tbk. Family andFinancial Relationship ofthe BoardofDirectors *) Note: (Director) Naoki Mizoguchi (Director) Muljono Tjandra (Director) Dadi Budiana (Director) Heriyanto Agung Putra (Director) Rita Mirasari (Director) Adnan Qayum Khan (Director) Herry Hykmanto (Vice President Director) Honggo Widjojo Kangmasto (Vice President Director) Michellina L.Triwardhany (President Director) Yasushi Itagaki Triwardhany Laksmi Michellina Itagaki Yasushi Kangmasto Widjojo Honggo

In conncetion with the divestment ofAdira Insurance onNovember 27, 2019,Adira Insurance is nolongeramember ofthe DanamonGroupFinancial Conglomeration Name Name Director President Vice Director President Vice Director President Position Yes Member of - - - BOC Insurance Information Technology, Operations, Internal Audit, Adira Finance, andAdira Supervises allmembersoftheBoard ofDirectors, Treasury andCapitalMarket, No Global Alliance Strategy Finance Credit Human Resources Compliance &Corporate Secretary Integrated Risk Sharia &Micro Banking Enterprise Banking&Transactional Banking Branch Network, Consumer Banking&SmallMediumEnterprises (SME) √ √ √ Family Relation with Yes Member of - - - *) BOD No √ √ √ Scope ofDutyandResponsibility Yes Shareholders Controlling - - - No √ √ √ Yes Member of - - - BOC No √ √ √ Financial Relation with Yes Member of - - - BOD No √ √ √ Annual Report Shareholders Yes Controlling - - - No 2019 √ √ √ Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 303 √ √ √ √ √ √ √ No ------Controlling Controlling Yes Shareholders √ √ √ √ √ √ √ No BOD ------Member of of Member Yes Financial Relation with Relation Financial PT Bank Danamon Indonesia Tbk. Position in Subsidiaries in Subsidiaries Position √ √ √ √ √ √ √ No *) BOC ------Member of of Member Yes √ √ √ √ √ √ √ No President Commissioner PT Adira Dinamika Multi Multi Dinamika PT Adira Commissioner President Tbk Finance ------Controlling Controlling Shareholders Shareholders Yes √ √ √ √ √ √ √ Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching No BOD ------Member of of Member Yes Family Relation with Family Relation Position in Danamon Position √ √ √ √ √ √ √ No BOC Director Director Director President Director President Director President Vice Director President Vice Director Director Director Director ------Member of of Member Yes Position Director Director Director Director Director Director Director Name 2019 Name Will be effective after passing the fit and proper test from OJK fit and proper test the passing after be effective Will Naoki Naoki Mizoguchi Rita Mirasari Heriyanto Putra Agung Dadi Budiana Muljono Tjandra Herry Herry Hykmanto Qayum Adnan Khan Rita Mirasari Putra Agung Heriyanto Dadi Budiana Muljono Tjandra Naoki Mizoguchi Yasushi Itagaki Yasushi Michellina Laksmi Triwardhany Kangmasto Honggo Widjojo Herry Hykmanto Khan Qayum Adnan Financial Institutions and other Companies, is as follows: is Companies, and other Institutions Financial Note: *) Board of Directors of the of Members Shares Ownership Direct paid up capital of a company. of the reach 25% that do not own shares Board of Directors of the All members Non-Bank Other Banks, in Danamon, Other Board of Directors of the of each member shares ownership or indirect Members of the Board of Directors’ Position in Subsidiaries Position Board of Directors’ of the Members Annual Report of Commissioners of Subsidiaries. All Danamon’s Directors have no prohibited concurrent positions in accordance in accordance concurrent positions no prohibited have All Danamon’s Directors of Subsidiaries. of Commissioners Banks. for Commercial Governance of Corporate Implementation concerning OJK regulation with Concurrent Positions of Members of the Board of Directors of the of Members Concurrent Positions and letter statement as outlined in the positions other to disclose are required of Directors Board of the Members are of Directors Concurrent positions year. are renewed every and Board of Directors of the by members are signed Board on the tasks and serving functional having Subsidiaries, who are responsible in supervising for Directors excluded Main Management Company Management Operational Good Corporate Corporate Corporate 304 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. to the BoardofCommissioners forGMS approval. regulations, industry comparison, andthe performance ofDanamon. Recommendation ofthe Committee is submitted remuneration principles ofDanamonandassessment results oftargetachievement (goal setting), prevailing Remuneration ofthe BoardofDirectors is recommended bythe Remuneration Committee with reference tothe Indicators forDetermining the Remuneration ofthe BoardofDirectors Remuneration ofthe BoardofDirectors Board ofDirector ShareOwnership Kangmasto Widjojo Honggo Triwardhany Laksmi Michellina Yasushi Itagaki Naoki Tjandra Muljono Dadi Budiana Agung Putra Heriyanto Rita Mirasari Khan Adnan Qayum Hykmanto Herry Mizoguchi Name

Vice President Vice President President Position Director Director Director Director Director Director Director Director Director Director Danamon of shares Amount 131,856 ------Royal Bankof Other Bank Amount of Scotland shares 190 Share Ownership at ------Insitution Non Bank Financial ------Selera Kreasi PT. Garuda Indonesia PT. Sapta (Persero) of shares Company 207,804 Amount Other ------Annual Report share ownership: share ownership: share ownership: Percentage of Percentage of Percentage of 0.000002% Remark 0.002% 18.75%

------2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 305 PT Bank Danamon Indonesia Tbk. meeting. a by meeting Directors of Board the in represented of power a with of Directors Board of member fellow attorney. are Board of Directors of the members of the 75% meeting. present at the materials must be submitted to the participants no no participants to the be submitted must materials meeting. to the prior days 5 (five) than later meeting to the submitted is material meeting meeting. to the prior participants taking meeting to the prior days at least 3 (three) place. position President Director In case the meetings. unable to is President Director vacant or the is a member meeting, Board of Directors the attend the by be appointed must Directors of Board the of of Directors Board to chair the Directors attending can only be Board of Directors of the A member at least if can be held Meeting Board of Directors The At scheduled meetings, meeting invitations and and invitations meeting meetings, At scheduled the beforehand, not scheduled is meeting If the participants be sent to the must invitations Meeting Board of Directors chairs the President Director The i. j. e. f. g. h. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Remuneration Committee Remuneration The Board of Commissioners studies the the studies of Commissioners Board The Committee the Remuneration from recommendations Directors of the Board of remuneration proposes and the GMS. to of Shareholders General Meeting of of members the remuneration GMS determines The of Directors. the Board of of members Remuneration of Directors the each members of the to distribution Remuneration with the GMS. in accordance Directors The Remuneration Committee gathers information information gathers Committee Remuneration The similar and positions for standards remuneration about the of performance calculating by market in industries to recommendations gives committee The company. of Commissioners. the Board Board of Commissioners 2019 Every strategic policy and decision must be decided decided be must and decision policy strategic Every Board of Directors meetings shoul be held periodically periodically shoul be held meetings Board of Directors the with Board of Directors of the Joint meetings of meetings the schedule should of Directors Board the Board of Commissioners for the following year following year for the Board of Commissioners the year. fiscal end of the before the referring meeting Board of Directors the through of Danamon’s Articles set in the provisions to the laws and regulations. and other Association at least 1 (one) time a month. at least 1 (one) time at least 1 should be held Board of Commissioners months. 4 (four) every (one) time with Joint Meetings and the Board of Directors the Annual Report d. a. b. c. members receiving remuneration package within 1 (one) 1 (one) package within remuneration receiving members of section Policy Remuneration in the disclosed is year, report. this Board of Directors of the Meetings Board of Directors of the Policy Meeting Remuneration Structure of the Board of Directors Board of Directors of the Structure Remuneration Board of of the package of members remuneration The of classification and the paid periodically is Directors number of Board of Directors’ and the level remuneration Procedures for Determining the Remuneration of the Board of Directors of the Remuneration the Determining for Procedures as follows: can be illustrated of Directors Board of the Remuneration the of determining process The Main Management Company Management Operational Good Corporate Corporate Corporate 306 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Attendance ofBoardDirectors Meetings andJointMeeting the with BoardofCommissioners PT Bank DanamonIndonesia Tbk. ** Effective resigned atEGMS 1October2019 * Effective asof5December 2019 Note: n. m. l. k. Satinder Pal Singh Ahluwalia ** Sng Seow Wah Naoki Mizoguchi* Muljono Tjandra* Dadi Budiana Heriyanto Agung Putra Rita Mirasari Adnan Qayum Khan Herry Hykmanto Honggo Widjojo Kangmasto* Michellina LaksmiTriwardhany Yasushi Itagaki Commissioners andthe Corporate Secretary. members ofthe BoardofDirectors andthe Boardof Commissioners inattendance, andsubmitted toall the BoardofDirectors andmembers ofthe Boardof minutes of the meetings, signed by all members of Board ofCommissioners must berecorded inthe and the Corporate Secretary. submitted toallmembers ofthe BoardofDirectors members ofthe BoardofDirectors inattendance, and recorded inthe minutes ofmeeting, signed byall otherwise. contract, unlessthe BoardofDirectors decides relating tothe referredtransaction orthe proposed is notentitled toparticipate inthe voting onmatters interest inthe meeting ofthe BoardofDirectors and Danamon is aparty,must state the nature ofthe transaction, contractorproposedcontract,inwhich has aninterest, either directly orindirectly, ina principle of1(one)person,vote. Decisions madebyamajority vote arebasedonthe reached, decisions aremadebyamajority vote. made byconsensus.Inthe event consensusis not Results ofBoardDirectors jointmeetings with the The Boardof Directors meeting results must be Any member ofthe BoardofDirectors whopersonally Any decision ofthe BoardofDirectors meeting is ** Name BOD Meeting (Total 24) 23/24 23/24 23/24 23/24 22/24 22/24 22/24 13/15 17/19 1/1 1/1 1/1 During 2019,the BoardofDirectors conducted 26 Frequency ofthe BoardofDirectors Meetings q. p. o. there werenodissenting opinions. must beconducted bydeliberation andconsensus, Decision makinginallmeetings ofthe BoardofDirectors decisions aredocumented inthe minutes ofmeeting. Commissioners meetings. Allresults ofthe meeting Directors and 3 joint Board of Directors and Board of meetings consisting of23meetings ofthe Boardof The Boardof Directors canalso make legitimate Dissenting opinionsexpressedinthe Boardof In the event that there is amember ofthe Board taken legallyatthe BoardofDirectors’ meeting. in this wayhave the same legalforce asthe decisions containing the proposalinquestion. Decisions taken Board ofDirectors agreeinwriting bysigning adecree Directors meeting, provided that allmembers ofthe and binding decisions without holding aBoardof dissenting opinions. minutes ofmeeting with the reasonsforthe Directors meeting must be clearlystated inthe minutes ofthe meeting. reason inwriting inaseparate letter attached tothe meetings, the concerned member must state the Commissioners whodoesnotsign the results ofthe of Directors and/ormember ofthe Boardof Joint Meeting BOC with (Total 3) 3/3 3/3 3/3 3/3 3/3 3/3 3/3 3/3 2/3 - - - Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 307 PT Bank Danamon Indonesia Tbk. Agenda ​​TTX update Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching General Meeting of Shareholders 2019 Meeting of Shareholders General (BNP) Plan NPL & CoC projections July 2019 projections NPL & CoC Merger and After Findings Before Audit Policy Finance Sustainability Guide Policy and Credit Program Product Credit Risk Management and Compliance Update Risk Management and Compliance Update Project Rainbow 2019 and NPL in March CoC Fraud Update 2019 March Financial Results Update SME Portfolio Arrangement AYDA Update Risk Management and Compliance D Bank Update Update Project Rainbow 3 Step Project Rainbow Updates April 2019 Financial Results Plan 2019 Business Revised April 2019 and NPL Update CoC Update Project Rainbow Plan 2019 Business Revised Updates and Legal Risk Management, Compliance and Danamon Risk Gap Analysis PwC-MUFG Antasena Project Plan 2019 Business Revised 2019 May Financial Results Update Project Rainbow Update Finance Sustainability Update and Legal Risk Management, Compliance Collectability for Criteria Risk Acceptance Antasena Project Management Update Vendor June 2019 Financial Results Birthday Danamon's 63rd Update Value Danamon "BISA" Update and Legal Risk Management, Compliance Annual General Meeting of Shareholders and Extraordinary and Extraordinary Meeting of Shareholders Annual General 2018 Fiscal Year for Updates and NPL CoC Plan 3 - Merger Step Project Rainbow 2018 Results Audit 2018 Financial Results Update Risk Management and Compliance value Danamon "BISA" NPL Ratio) Reduce (Plan to NPL Management Update Parahyangan Nusantara - Bank Project 3 Rainbow Step Update of TMO 2019 and Monitoring Focus January 2019 Financial Results NPL and January 2019 on CoC Update Updates / Litigation including Legal Risk Management Updates Cyber OJK to Plan - Response Sharia Business Offices Jakarta for - Study Offices on Use of Joint Update Update Finance • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Date 1 July 2019 15 July 2019 8 April 2019 27 May 2019 May 27 29 July 2019 20 May 2019 20 May 17 June 2019 22 April 2019 25 April 2019 28 March 2019 28 March 14 August 2019 14 August 14 January 2019 23 January 2019 28 January 2019 26 February 2019 26 February 2019 May July June April March Month August January February Annual Report Agenda of the Board of Directors Meeting of Directors Board Agenda of the Main Management Company Management Operational Good Corporate Corporate Corporate 308 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Agenda ofthe JointMeeting BoardofCommisisoners with September November December October November 27, 2019 Month March 25,2019 June 25,2019 Date 24 September 2019 13 September 2019 9 September 2019 3 September 2019 21 November 2019 4 December 2019 21 October 2019 7 October 2019 Date Revised BankBusiness Plan2019 April 2019 FinancialPerformance &May 2019 FinancialPerformance Overview Committee Report Impact Project -Process & Cost Optimization February 2019 FinancialPerformance MUFG Collaboration -3-Year Plan Integration Risk-3Year Plan Sharia banking Enterprise Banking&Transaction Banking-3Year Plan Adira Finance -3Year Plan Consumer &SMEBanking-3Year Plan Finance -3Year Plan CEO Strategy Priority-3Year Plan October 2019 FinancialPerformance Committee Report Capital Management Committee Report Rainbow Project Update • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Fiscal Year 2016 Tax Audit Process Financial Results September 2019 SOX Implementation Rainbow Project Update Operational andFraud RiskManagementUpdate Information SecurityRiskManagementUpdate Forecast CoC, NPLandLLPCoverage 2019 Update collectability equalization Tenan Coffee ShopSelection Update onExtraordinary General MeetingofShareholders OJK FindingsUpdate Legal CaseAgainst Ex-Employees Risk ManagementUpdate andRiskProfile &Parameter Guideline Mid Year Forecast 2019 Financial Results August 2019 Revised 3-Year BudgetGuideline(2020-2022) 3-Year BudgetGuideline(2020-2022) OJK Audit Findings Rainbow Project Update Risk ManagementandCompliance Update 2019 Projection Human Resources Update Adira Quantumupdate Financial Results November 2019 Temporary LimitsofMarket andLiquidityRisks Adira Insurance Update DSP Portfolio Update CoC andNPL2020-2022 andIFRS9 impact Annual Review ofIntegrated RiskManagement Policy Annual Review ofSustainability Finance Plans Integration Risk-Policy andGovernance Risk Management,Compliance andLegal Updates Agenda Agenda Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 309 PT Bank Danamon Indonesia Tbk. Financial performance, Financial Bank’s soundness level, profile, Risk compliance, Regulatory results, of audit Significance as well as goals and strategies, Long-term principles. governance of corporate Implementation especially in the SME segment, the NPL ratio increased increased NPL ratio the segment, SME in the especially The at a maintained level. but still compared to last year, end of 2019 from 2.7% in the at the rose to 2.9% NPL ratio year. previous improved has been successfully Danamon’s capital level at 24.2%, recorded (CAR) Ratio Capital Adequacy the with by regulations. determined level minimum the far above the effectiveness of the performance of the Board of Board of of the performance of the effectiveness the performance of Directors Board the In addition, Directors. accountability of form of in the was delivered assessment Annual GMS. at the and responsibilities duties the Board of of the of Members Assessment Performance Directors performance have Directors of Board the of members All in accordance scorecard balanced in the set forth targets of each Director, responsibilities and duties the with control, and risk management, compliance including of assessment performance The resources. human every are conducted Board of Directors of the members President Director. by the months 6 (six) on Board of Board of Commissioners Opinion of the Performance Directors’ been has strategy Danamon the of implementation The The growth. financial healthy in encouraging successful grew IDR 4.07 trillion, Bank’s net profit in 2019 reached in key growth credit in 2018. Overall trillion from IDR 3.92 4.8%, reaching was microfinance) (excluding segments on year. year IDR 143.8 trillion ensure to continues Danamon quality, asset of terms In principle, prudential the to adheres management risk that Due statement. appetite risk by the guided always and is banking industry, in the quality in credit decline to the Performance Assessment Criteria Assessment Performance Board of the performance for the criteria evaluation The including achievements based on overall is of Directors and Risk Building, Franchise Financial, of the aspects Core Values, as Capital and Danamon Control, Human follows: 1. 2. 3. Capital, 4. 5. 6. 7. 8. Assessment of the Executor Board of Directors of the assessment performance The and Board of Commissioners by the conducted is Board of of the results assessment performance the improving in consideration into taken are Directors Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Performed operational conversion and integration and integration conversion operational Performed of selling 70% of process transaction the Completed Increased investment in digital technology solutions solutions technology in digital Increased investment Bank Danamon of acquiring process of the Completed Continued the collection, recovery, and branch and branch recovery, collection, the Continued MUFG in improving with Increased collaboration Followed up on the implementation of Danamon’s of Danamon’s implementation Followed up on the in Danamon’s to encourage growth Took steps merger process with Bank Nusantara Parahyangan. with process merger Parahyangan into Nusantara of Bank 33 branches of Bank Danamon’s network. Insurance. shares to Zurich Insurance Adira capabilities. and automate service customer superior to provide and efficient more be to processes operational effective the coupled with shares by MUFG Bank, Ltd to 94.1% main business lines which include Small & Medium include Small & Medium main business lines which and Consumer Banking, Enterprise Enterprises, Banking. Banking to Micro relating optimization resource and human funds, processes credit, long-term strategy that has been consistently has been consistently that strategy long-term in 2018. formulated

Annual Report the Board of Directors also considers the duties and and duties the considers also Directors of Board the laws and regulations with in accordance responsibilities of Association. and Danamon’s Articles Performance Assessment of the Board of Directors Board of Directors of the Assessment Performance Assessment of Performance Process Implementation is Board of Directors of the assessment Performance Board of of the work of all members based on collegial of Danamon’s business achievement on the Directors of assessment performance the plans. In addition, 7. 8. 5. 6. 3. 4. activities in a directed and planned manner to fulfill its to fulfill its and planned manner in a directed activities Board the stakeholders. Among others, to the obligations of Directors: 1. 2. submitted to the shareholders through the 2019 Annual 2019 Annual the shareholders through to the submitted were present of Directors Board of the members All GMS. 2019. on 26 March was held which Annual GMS, at the of the and Responsibilities of Duties Implementation in 2019 Board of Directors Bank’s business out the carried Board of Directors The of Directors meetings and 3 Board of Directors joint joint of Directors and 3 Board meetings of Directors Board of Commissioners. the with meetings the in of Directors Board the of of Members Attendance Annual GMS on the Board of Directors responsibility of the The was and responsibilities of duties implementation 2020 Meeting Schedule 2020 Meeting has compiled Board of Directors the end of 2019, At the as many as 24 Board following year for the meetings Main Management Company Management Operational Good Corporate Corporate Corporate 310 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. for newMembers ofthe BoardofDirectors through the Naoki Mizoguchi. Danamonhasanorientation program namely Honggo Widjojo Kangmasto,Muljono Tjandraand During 2019,there were3(three) newDirectors inDanamon Directors Orientation ProgramforNew Members ofthe Boardof their highest appreciation tothe entire BoardofDirectors. continued dedication, the Board of Commissioners give For their goodachievements in2019,andfortheir and alsothe strength toface unexpected developments. level forBUKUIV. This gives Danamonthe abilitytogrow capital ofthe BanktoIDR32.2trillion, above the minimum In addition, Danamonsucceeded inincreasingthe total Triwardhany Michellina Laksmi Yasushi ltagaki Name Conference MUFG GlobalPartnership Global Advisory Board - Refreshment Program Risk ManagementCertification Compliance 2019 Conference –Digital MUFG GlobalPartnership Conference Digital BCG Asia-Pacific Danamon SalesCredit Program Omega) Danamon SalesCredit (CLB Refreshment Kode Etik Indonesia Fintech Forum 2019 Macquarie ASEAN Conference JP Morgan AseanBanksForum Response inTable Top Exercise Cyber SecurityIncident The DigitalAge. Changing World ofMarketing in Kode Etik Customer DueDiligence Training/Conference/ Seminar/ Certification JP Morgan Singapore Macquarie Singapore Omega Performance IMD SEPteAsiaLtd Management, Bank Boston Consulting Bisnis Universitas Sertifikasi Profesi Information Risk LSPP (Lembaga Alumni Fakultas Ekonomika dan Bank Danamon Bank Danamon Bank Danamon Bank Danamon Keluarga Besar workshops, andconferences asfollows: of Directors participated in trainings,certifications, on-going basis. During 2019,members ofthe Board competency, professionalism andknowledgeonan certifications, workshops,andconferences toenhance the BoardofDirectors toparticipate intrainings, Danamon provides opportunities formembers of Training Programs ofthe BoardofDirectors processes inDanamon. of the organization, duties andresponsibilities, and briefing byrelated units toprovide abetter understanding provision ofthe On-Boarding Program andaface-to-face Gajah Mada Gajah Perbankan) Danamon Organizer APU PPT Group MUFG MUFG MUFG Hongkong Singapore Singapore Bangkok Location Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Online Online Online okyo To kyo To Annual Report 28 October 2019 29 January2019 16 -17May 2019 04 September 13 March 2019 24 November 25 November 11 –13March 13 –14June Date/Year 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 311 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 Date/Year 12 July 2019 26 February 26 February 25 July 2019 15 April 2019 15 April 2019 15 November 15 November 19 December 19 December 03 December December 03 December 03 December 03 20 November 20 November 20 November 05 November 05 November 20 March 2019 20 March 04 March 2019 04 March 12 August 2019 12 August 1 & 2 November 1 & 2 November 06 August 2019 06 August 28 October 2019 28 October PT Bank Danamon Indonesia Tbk. Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Location Danamon Danamon Semarang Kempinski Menara Bank Menara Bank Menara Mandarin Hotel Mandarin Hotel Hotel Indonesia Indonesia Hotel BDI BDI UBS LSPP WWF (Persero) (Persero) (Persero) Organizer Danamon Danamon Danamon Indonesia CITIBANK Otoritas Jasa Jasa Otoritas ICC Indonesia ICC Bank Indonesia Keuangan (OJK) Keuangan Danamon & LSPP Danamon & WWF Danamon & WWF Danamon & KPMG Danamon & MUFG Danamon & PT. PLN PLN Danamon & PT. Danamon & PT. PLN PLN Danamon & PT. PLN Danamon & PT. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Certification Training/Conference/ Seminar/ Training/Conference/ Risk Management Certification Risk Management Certification -Refreshment Workshop on Palm Oil Master Oil Master on Palm Workshop Finance - Sustainable Class Indonesia) (WWF Sharing "Incoterms Knowledge 2020" 2019 UBS Indonesia Conference Security Incident Cyber Response Conference Indonesia Investor Summit Indonesia 2020 The Oil Financing Palm Sustainable Speaker on "Trade Finance Finance on "Trade Speaker and IMBT" Product on "Bank Guarantee Speaker PT. for and Demand Guarantee PLN (Persero)" Risk Management Certification Program - Refreshment Sharing "Incoterms Knowledge and URDG 758) 2020 Plan Recovery Workshop & Spin 4 DX Workshop Technique Summit Indonesia 2020 The ICC Seminar on Compliance Seminar on Compliance ICC Laundering, : Anti-Money & Sanctions Financing, Terrorist on " Global Trade Speaker Sharia and Trade Finance, Update" Compliance Incident Security Cyber Exercise Top in Table Response (TTX) Workshop Danamon Syariah 2019 2019 Name Adnan Qayum Khan Qayum Adnan Herry Hykmanto Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 312 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Rita Mirasari Name Indonesian Banking Development ofStrategic lsuin Evaluation Review (MER) the Preparation ofMutual Based APTPPUProgram in Implementation oftheRisk (TIX) Response inTable Top Exercise Cyber Sector the FinancialSector Business on Corruption Prevention for Dissemination ofGuidance Company Commissioners oftheListed Board ofDirectors &Board of Regulations related to the Company Compliance with Current BankIndonesiaPolicies Operations Strategies and Operations, 2019 Monetary Evaluation of2018 Monetary Potential 2019 Outlook &BankingRisk Avoidance Agreements for ImplementingDoubleTax 2018 concerning Procedures Socialization PER25/PJ / Training/Conference/ Seminar/ euiy Incident ​​Security Certification ICSA &PTBursaEfek Financial Action Task Bank Indonesia Badan lntelijen Negara (BIN): Force (FATF) PERBANAS Indonesia Danamon Organizer KPK OJK Location Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Annual Report 04 January2019 23 January2019 17 January2019 20 March 2019 09 April2019 15 April2019 18 July2019 8 July2019 Date/Year 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 313 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 Date/Year 11 December 11 December 19 December 19 December 18 November 18 November 22 November 22 November 02 December December 02 12 September 12 September 05 December 05 December 20 November 20 November 06 November 06 November 26 September 26 September 04 September 04 September 28 August 2019 28 August 22 October 2019 22 October 25 October 2019 25 October PT Bank Danamon Indonesia Tbk. Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Location Rl IBI OJK OJK FKDKP FKDKP Perbanas Organizer Danamon Danamon PERBANAS KAFEGAMA Bank Indonesia Bank Indonesia MUFG Danamon MUFG ILUNI Ul & DiUen Ul & DiUen ILUNI AHU Kemenkumham Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Certification Training/Conference/ Seminar/ Training/Conference/ I Banking Solution for Blockchain and Financial Services of Role Pivotal The Financing to Infrastructure Economic Sustanaible Advance Growth Activities Socialization PPT APU Plan for Socialization Supervision in the Compliance Banking Sector of the Indonesian Presentation Blueprint 2025 System Payment & Prospects Economic Challenges in 2020 and Discussion on Deepening in on Deepening in and Discussion 51 of POJK the Compilation Governance CEO re: for Trainer Session - PERPRES Discussion Legal of Ultimate Evaluation 13/2018 18 Beneficial Owner After Months IBEX (Indonesia Banking Expo) 2019 Outlook Economic IBI re: of Global "in the Midst 2020 with Sin Beng Uncertainties" of JP Director Ong (Executive Singapore) Morgan SUMMIT THE INDONESIA 2020 Sustainable Finance - Book - Book Finance Sustainable Banks 1 & 2 2019 Forum Indonesia Fintech to related Invitation FGD and / Management Licensing or Ownership of Commercial Banks of the Understanding 71 & of PSAK Implementation which will be Implemented 73 along with its Impacts in 2020 2019 Name Rita Mirasari Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 314 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Putra Heriyanto Agung Naoki Mizoguchi Muljono Tjandra Dadi Budiana Name Level 5 Risk ManagementCertification Training Risk ManagementCertification Digital Transformation Day 2019 Bahasa IndonesiaCourse Seminar for Newcomer Expat Refreshment Kode Etik SOX Training 2020 Danamon’ sCode ofConduct Certification Refreshment RiskManagement Prinsip Kehati-Hatian Bank Compliance 2019 Refreshment Kode Etik Implementasinya Konsep Kepatuhan Dan Kerja Keselamatan DanKesehatan Information SecurityAwareness Refreshment Kode Etik Diligence (2018) APU PPT: Customer Due Human CapitalWorkshop 2019 Certification Refreshment RiskManagement Summit 2019 Digital &Holistic Leadership MUFG-GHR AsiaConference Global Lead Session 3InJapan Training/Conference/ Seminar/ Certification Lembaga Sertifikasi Lembaga Sertifikasi ABEAM Consulting PT. Feniks Strategi Profesi Perbankan Profesi Perbankan Bank Danamon Bank Danamon Bank Danamon Bank Danamon Bank Danamon Bank Danamon Bank Danamon Bank Danamon Bank Danamon Bank Danamon lnterlingua Indonesia Organizer External External External Internal Internal BDI BDI JPN - MUFG Global OCC &MarinaOne Office -Singapore Bali Nusra- Hotel Tower 9th Floor" Learning Center "LSPP -Mandiri Fairmont Hotel, Padma Resort Menara Bank Menara Bank Menara Bank Menara Bank Hotel Quest- Ayana Hotel Semarang Danamon Danamon Danamon Danamon Location Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Online Ubud Annual Report 04 October 2019 13 February 2019 24 October 2019 28 October 2019 28 October 2019 11 February 2019 16 October 2019 01 January2019 31 January2019 11 October 2019 5-7 March 2019 21 August 2019 29 November 01 December 14 November 05 July2019 31 July2019 31 May 2019 31 May 2019 31 May 2019 31 May 2019 Date/Year 2019 2019 2019

2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 315 PT Bank Danamon Indonesia Tbk. report it to the Board of Directors through Danamon’s Danamon’s through Board of Directors report it to the exposures. profile and risk risk the in line with and perform improvement processes the can affect changes that and internal external of level the of Danamon’s capital adequacy, level profile. risk capital and its Subsidiary’s methodologies for managing the risks, build up the up the build risks, the for managing methodologies the to accommodate policies through reserves availability of and ensure the risks potential inherent procedures. recovery disaster to the recommendations and provide strategies key on all strategies, for approval Board of Directors management. of risk and systems processes policies, as well as periodically risks and significant operations management of risk implementation the Evaluate Determine the most suitable risk management management risk most suitable the Determine and risk of procedures development Monitor the market liquidity, of credit, portfolios various Review h. e. f. g. Charter of the Committees of the Charter Board of Directors under the committees Each of the committee and binds each as a reference has Charter among regulate, Charters Committees’ The member. meetings and responsibilities, duties membership, others, Charters Committees’ The and reporting. proceedings, of development to the according are constantly updated regulations. Danamon and the of the Committees of the Assessment Performance Board of Directors of Directors Board under the 2019, Committees During to support and contributed functions their performed have of and responsibilities duties of the implementation the Board of Directors. the Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Compliance Director Compliance Head Banking & Transaction Wholesale Head & Capital Market Treasury Officer Chief Information Officer Chief Credit Integrated Risk Director Integrated Director President Director Network SME & Branch Consumer, Banking Director & Micro Finance Director & Operation Syariah Director Human Resources 2019 Assist the Board of Directors in carrying out their their out carrying in Directors of Board the Assist plan, direction, management risk the Establish the are in line with all Danamon activities Ensure that that to business decisions related on matters Decide deviate from normal procedures. deviate responsibilities related to risk management to risk related responsibilities Subsidiaries. of Danamon and its strategies policies, and regulations. prevailing rules Risk Management Committee Management Risk Committee Resources Human Committee & Liabilities Assets Committee IT Steering Committee Management Risk Integrated Chairman Member a. b. c. d. Status of Voting Rights and Decision Making and Decision Rights of Voting Status has member Committee Management Each Risk are taken decisions Committee rights. voting equal consensus cannot be that event by consensus. In the vote. will be made by a majority decision the reached, Committee of the and Responsibilities Duties Annual Report If required, the Risk Management Committee will invite other parties to attend the meeting. the to attend parties other will invite Committee Management Risk the If required, RISK MANAGEMENT COMMITTEE MANAGEMENT RISK Committee of the and Membership Structure • • • • • for assisting the Board of Directors to provide suggestions suggestions provide to Directors of Board the assisting for in can be used as a reference that and recommendations duties of implementation to the making related decision Board of Directors. of the and responsibilities are as Board of Directors under the committees The follows: The Board of Directors Board of The implementation of the effectiveness In order to support the the Board of Directors, of the and responsibilities of duties are responsible that has committees Board of Directors Committees Under Under Committees Main Management Company Management Operational Good Corporate Corporate Corporate 316 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. k. j. i. Risk Management Committee Meeting Agenda2019 Rita Mirasari Heriyanto Agung Putra Herry Hykmanto Satinder Pal SinghAhluwalia Michellina Triwardhany Sng Seow Wah Adnan Qayum Khan September November issues orevents the Directors development. of risk management is inlinewith organizational Danamon andSubsidiaries toensurethat the process Recommend bank-widedecisions relating torisky Provide inputonthe steps to handle arisk event to Evaluate the risk organizational structure of February October January Month March April July May Name September 24, 2019 November 21,2019 Septemver 3,2019 February 26,2019 January 28,2019 October 21,2019 October 7, 2019 March 28,2019 April 22,2019 July 29, 2019 May 27, 2019 July 1,2019 Date Integrated RiskManagementAnnualReview Risk ManagementIntegrated –Policy andCorporate Governance Risk Management,Compliance andLegal Update Operational RiskManagementandFraud Update Information RiskManagementUpdate Risk ManagementUpdate andRiskProfil &Parameter Guideline Compliance andRiskManagementUpdate Compliance, Legal andRiskManagementUpdate Compliance, Legal andRiskManagementUpdate Compliance, Legal andRiskManagementUpdate Compliance andRiskManagementUpdate Compliance andRiskManagementUpdate Risk ManagementUpdate (IncludeLegal/Litigation update) Compliance andRiskManagementUpdate Chairman Member Member Member Member Member Member Position attended bymembers ofthe BoardofDirectors asfollows: During 2019,the Committee held 12meetings and Risk Management Committee Meeting Directors inthe Risk Management Committee Attendance ofMembers ofthe Boardof Agenda Meeting 12 12 12 12 12 12 12 Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 317 PT Bank Danamon Indonesia Tbk. Fund Transfer Pricing (FTP) Fund Transfer Pricing and loans on financing rates Interest balance profile on the risk Market and liquidity (CFP) Policy Funding Contingency Monitor the related matters and other Capital management liquidity and market of framework limit The risk on liquidity for stress testing Assumptions risk, on liquidity of core balance Calculation of FTP and methodology Policy Policy Funding Contingency Intermediation for Macroprudential Targets Economic and Market Overview Economic of the key components of the Current movement balance sheet, Yield/COF and NIM Yield/COF sheet, balance book and trading AFS portfolio sheet, to ALCO and AFS portfolio sheet, balance on the risk for funding derivatives rate and interest and FTP calculation risk rate interest (RIM) Ratio ------and approve every modification on strategy and and on strategy modification every and approve new institutional/ including funding alternative funding. structural - - following: on the evaluations periodic Conduct Perform evaluation on the composition of funding funding of composition the on evaluation Perform following: on the review monthly Conduct h. Meetings Committee & Liabilities Assets meetings 11 (eleven) held Committee 2019, the During of Directors following Board by the and was attended members: f. g. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching President Director President (CFO) Chief Financial Officer Director Banking SME and Consumer Sales & Distribution, Risk Director Integrated Head & Capital Market Treasury Head Banking & Financial Institution Enterprise Banking Head Transaction 2019 Conduct reviews and determine the balance sheet sheet balance the and determine reviews Conduct Perform the evaluation on market conditions and and conditions market on evaluation the Perform Determine the policies and directions regarding regarding and directions policies the Determine debt or other of securities issuance on the Decide Define the work scope of the Committtee, meeting meeting Committtee, work scope of the Define the structure to improve profitability. to improve structure instruments in order to provide sufficient liquidity liquidity sufficient provide to order in instruments a diversified Bank, as well as and capital for the structure. funding of Danamon’s conditions on the impacts their the and approve and capitalization, NII, liquidity, action. most appropriate liquidity risk, interest risk, and capital management and capital management risk, interest risk, liquidity reflect which subsidiaries of Danamon and its and capital, stable and of liquidity adequacy the the with as complying as well funding, diversified prevailing regulations. procedures, work process, and establish sub- and establish work process, procedures, (ALCO) Committee the to support assist committees Chairman Chairman Alternate Member Annual Report e. d. b. c. Duties and Responsibilities of the Committee of the and Responsibilities Duties and has duties Committee & Liabilities Assets among others: responsibilities, a. cannot attend the meeting then he/she can appoint a can appoint a he/she then meeting the cannot attend of voting Delegation rights. voting with replacement from the to approval be obtained prior must rights are decisions Committee Committee. Chairman of the consensus cannot that event taken by consensus. In the majority made based on the is decision the be reached, vote. Status of Voting Rights and Decision Making Decision and Rights of Voting Status voting same the who have of members consists ALCO who committee of the a member is there if rights, ASSETS & LIABILITIES COMMITTEE (ALCO) (ALCO) COMMITTEE & LIABILITIES ASSETS Committee of the and Membership Structure Main Management Company Management Operational Good Corporate Corporate Corporate 318 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. a. others: The Committee hasduties andresponsibilities, among Duties andResponsibilities votes inthe meeting. affirmative vote ofmorethan ½(half) of the totalvalid consensus, decision makingis basedonvoting bythe consensus. Inthe event that deliberation doesnotreach meetings is conducted with the aimofreaching without voting rights. Decision makinginthe Committee the Head ofthe SKAI,whois amember ofthe committee Each Committee member hasequal voting rights, except Status ofVoting Rights andDecision Making Other invitations dependonthe relevance ofeacharea ------discuss the materials which cover: The Assets &Liabilities Committee held meetings to Committee in2019 Implementation ofDuties ofAssets &Liabilities 5) 4) 3) 2) 1) Note: Members: Chairman: Sng Seow Wah Adnan Qayum Khan Michelina Triwardhany Yasushi Itagaki Satinder Pal SinghAhluwalia Muljono Tjandra Thomas Sudarma Herman Savio Dadi Budiana Andrew Suhandinata strategy plan,andensurethat ITprojects areinline Periodically review and recommend Danamon’sIT Management ofMacroprudential Intermediation Market andliquidity risk assessment Study interest rates onloansandthird partyfunds Fund TransferPricing (FTP) Rate Management Balance Sheet Management Economic &MarketOutlook Not beenamember ofthe Asset&Liabilities Committee since March 2019 Become amember ofthe Asset&Liabilities Committee since October2019 Has notbeenanAlternative Chairofthe Asset&Liabilities Committee since July2019 Become Chairofthe Alternative Asset&Liabilities Committee since July2019 Has notbeenChairofthe Asset& Liabilities Committee since October2019 Name • • • • • Finance Director Chief Information Officer Head ofEnterprise Banking Global Alliance Strategy Director Integrated RiskDirector Consumer, SME,Sales&Distribution Director Alternate Chairman Alternate Chairman Chairman Member Member Member Member Member Member Member Position e. d. c. b. Structure andMembership ofthe Committee COMMITTEE INFORMATION TECHNOLOGY (IT) STEERING - - - 4) 5) 1) Review the post-implementation ofastrategic project Review the progressofprojects andadjustthem Review andrecommend allITprojects that areinline Review andrecommend ITpolicies, including IT Available ForSale(AFS)portfolio management Professional Funding Management Capital management terms ofcosts andbenefits. & benefitfromits realization after implementation in relevant BusinessProject ManagerTeam. time, cost&benefits, which willbepresented bythe to Danamon’sstrategy interms ofproject status, value ofmorethan IDR10 billion. with Danamon’s strategy or with Capex investment Security Policy andITRisk Management Policy. with their strategic plans. Funding Ratio (NSFR) (RIM), Liquidity Coverage Ratio (LCR) and Net Stable 3) 2) Attendance ofMembers ofthe Boardof Directors inthe Committee Meeting 11 9 9 6 9 8 8 5 2 2 Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 319 2 3 3 4 4 4 PT Bank Danamon Indonesia Tbk. Directors in the Committee Meeting Committee in the Directors Attendance of Members of the Board of Board of the of of Members Attendance other committees on IT related matters. on IT related committees other and IT user by the cannot be solved that issues manner. and timely efficient, in an effective, provider to time. from time Board of Directors by the Review recommendations from subcommittees and and from subcommittees recommendations Review IT-related on resolving recommendations Provide delegated and responsibilities duties out other Carry each year. report activity committee Prepare the 1) i. j. k. l. Meeting Committee IT Steering The meetings. 4 (four) held Committee 2019, the During of the following members by the were attended meetings Board of Directors: Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Position Member Member Member Member Member Chairman President Director Director President Director Human Resources Network SME & Branch Consumer, Director President Vice Risk Director Integrated Name 2019 improvement. remediation. Important/ strategic projects in progress projects strategic Important/ and its and Cyber security issues IT security on the and follow-ups findings IT audit Not been Chair of the Information Technology Steering Committee since July 2019 since Committee Steering Technology Information Not been Chair of the Digitizing Loan Project Digitizing Antasena Project Front End Projects Digitizing End to End Loan Processing SME Account Opening Streamline CASA/TD Update for P2P Loan Channeling Project for P2P Loan Channeling Project Update Update Charter IT SC Update Initiative Digital Project System Fraud Detection Ensure accurate and proper allocation of IT of IT and proper allocation Ensure accurate Periodically review IT Risk Management covering the the covering Management IT Risk review Periodically Review the number of transactions through channels channels through number of transactions the Review resources. If necessary, use a third party to assist party to assist use a third If necessary, resources. IT Steering project. of the implementation the with of policies availability ensure the must Committee and appointment selection for the and procedures party. third of the processes strategy. following topics: • • • and provide recommendations to increase e-channel to increase e-channel recommendations and provide banking digital the with order to align in transactions Members: Chairman: Chairman, Alternative Secretary Adnan Qayum Khan Qayum Adnan Itagaki Yasushi Sudarma Thomas James Mary Bernadette Satinder Pal Singh Ahluwalia Pal Satinder Michellina Triwardhany Annual Report Structure and Membership of the Committee of the and Membership Structure 5. 6. 7. 8. 9. COMMITTEE RESOURCES HUMAN Implementation of Duties of Information Technology Steering Committee in 2019 Committee Steering Technology of Information of Duties Implementation as follows: materials discussion with meetings held Committee Steering Technology Information The 1. 2. 3. 4. Note: 1) h. g. f. Main Management Company Management Operational Good Corporate Corporate Corporate 320 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. The Human Resources Committee held meetings with the followingtopics: Implementation ofDuties ofHuman Resources Committee in2019 declared quorum if attended byatleast2/3ofthe members ofthe Human Resources Committee. The Committee Meeting results must berecorded inminutes ofmeeting that arewelldocumented. Meetings are 1. Duties andResponsibilities ofthe Committee has the right todetermine the finaldecision. vote. The Chairmanofthe Human Resources Committee cannot bereached, the decision willbemadebymajority be decided unanimously. Inthe event that consensus decision takenthrough the HRCommittee Meeting must Each Committee member hasequal voting rights. Every Status ofVoting Rights andDecision Making routinely reports its activities tothe BoardofDirectors. Committee is responsibletothe BoardofDirectors, and 4 Directors asthe tableabove. The Human Resources Members ofthe Human Resources Committee become Dadi Budiana Yasushi Itagaki Rita Mirasari Adnan Qayum Khan Satinder Pal SinghAhluwalia Michellina LaksmiTriwardhany Herry Hykmanto Heriyanto Agung Putra Sng Seow Wah No. • • • • not limited to): the amendments, inthe areas asthe following(but policies inthe field ofHuman Resources including Provide strategic directions and develop general 3 2 1 including promotion Performance Assessment Management, Employee compensation andbenefit General Policy onEmployment Human Resources Strategy February 08,2019 February 26,2019 January 24, 2019 Name Date 3. 2. 1. 2. 1. 4. 3. 2. 1. Promotion Committee update Senior Promotion to Grade 0 Union Update Rainbow Project andImpactProject timingalignment BDI Learning Collaboration withMUFG Long Term Incentive Performance Criteria Achievement Proposed HumanCapitalOrganization Structure Post Service Benefit Union Update Alternative Chairman,Secretary Chairman Members Members Members Members Members Members Members Position Directors: attended by the following members of the Board of During 2019,the Committee held 9(nine)meetings, Human Resources Committee Meeting 3. 2. The HRCommittee mayestablish sub-Committees to Carry outother duties andresponsibilities that the HRCommittee. undertake the scope of duties and responsibilities of Committee, fromtime totime. may be granted by the Board of Directors to the HR • • • • • • • • engagement Organizational Health andSafety Human Resources Planning Alignment ofpolicies with subsidiaries Employee andindustrial relations development Corporate culture andvaluesaswellemployee Employee TrainingandDevelopment Organizational structure andranklevel Talent Management andSuccession Planning Agenda Attendance inCommittee Meetings Annual Report 9 6 9 6 9 6 8 5 7 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 321 PT Bank Danamon Indonesia Tbk. Agenda plans will be reviewed by the Compliance Director and and Director Compliance by the plans will be reviewed In the Committee. Audit to the reported subsequently Board of the member the of Interest, of Conflicts event shall concerned of Commissioners or Board of Directors of and approval of assessment process abstain from the transaction. the Affiliations between members of the Board of Board of of the members between Affiliations of Board the of with members fellow Commissioners and/or and Majority of Directors Board Commissioners, Controlling Shareholders have of Commissioners Board of the All members Board of of the members other with no affiliations Non-Independent are 4 (four) There Commissioners. with relationship a financial who have Commissioners Futae, Takayoshi controlling shareholders, namely:: the Kawasaki. Yasuda dan Nobuya Goto, Masamichi Noriaki Board of of the between members Affiliations and/ or and Majority Board of Directors, Commissioners, table the in been disclosed Controlling Shareholders have in the and familial relationships relations of financial and Board of Directors section Boards of Commissioners report. Governance Corporate in this section governs Parties Affiliated with of Transacting Policy The and Board of Commissioners of the each member that any planned to disclose required is Board of Directors their and themselves by both transactions affiliated transaction Material Secretary. Corporate the to families Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Medical Benefit Medical Benefit Medical Benefit Update Project Rainbow for Scheme Compensation Week-end committee and Disciplinary Union Update MUFG by meetings/seminars : upcoming Update OD1-Rainbow Capacity plan post The Update: of Conduct Code Agreement Employment New Improvement Process Recruitment Union Update Disciplinary Committee Facility Assignment Contract extension - Mary B. James B. James - Mary extension Contract Bonus and Retention Payout LTI 2019 Program LTI new The Update Progress Job Family Alignment - Rainbow Grade Banking of Business Structure Organization IR and Union Update IR and Union Updates Update Project IMPACT contribution up irregular - Top (DPLK) Program Individual Pension Head Secretary of Corporate Assingment Permanent Updates Relations Union & Industrial 3. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 1. 2. 3. 1. 2. 3. 4. 1. 2. 3. 1. 2. Date 15 July 2019 May 20, 2019 20, May April 22, 2019 April 08, 2019 August 14, 2019 August November 13, 2019 November 2019 7 5 8 9 6 4 No. Majority and/or Controlling Shareholders. Majority Affiliations of members of the Board of Directors with with Board of Directors of the of members Affiliations members of Directors, Board of the fellow members or and/ Majority Commissioners, of Board the of Controlling Shareholders no have of Danamon’s Board of Directors All members Board of Directors, of the members other with affiliation and with Board of Commissioners of the members Danamon and the minority shareholders. minority Danamon and the of and Board of Directors Board of Commissioners The no and have maintain independency Danamon always ability to their with can interfere that of interest conflict out tasks professionally and objectively. carry THE BOARD OF DIRECTORS, BOARD OF COMMISSIONERS BOARD OF COMMISSIONERS THE BOARD OF DIRECTORS, SHAREHOLDERS AND MAJORITY Affiliated with of Transacting Danamon has a Policy parties. affiliated with transactions regulates that Parties is transaction affiliated the that regulates policy This and at terms out based on normal commercial carried of interests and does not harm the basis an arm’s length INTEGRATED RISK MANAGEMENT COMMITTEE MANAGEMENT RISK INTEGRATED Management Risk Integrated on the Discussions Governance Integrated in the are disclosed Committee section. Report OF PARTY TRANSACTIONS AND AFFILIATED RELATED Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 322 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 3. 2. 1. Roles andResponsibilities ofCorporate Secretary appointment ofcorporate secretary. October 24,2016 basedonDecree ofBoardDirectors No.KSR-DIR.Cor.Sec-003 dated October17, 2016 concerning Rita Mirasari is aMember ofDanamon’sBoardDirectors whoserve asDanamon’sCorporate Secretary since Corporate Secretary Profile Corporate Secretary Organizational Structure shareholders andother stakeholders. decision. The Corporate Secretary plays animportantroleinfostering goodcommunication betweenDanamonandits information toallstakeholders.The Corporate Secretary is appointed anddismissed basedonthe BoardofDirectors’ The function of the Corporate Secretary is to ensure the timely and accurate submission of Danamon material Secretary Corporate Commissioners inthe implementation ofcorporate other stakeholders; shareholders, the Financial Services Authority and in the capitalmarket; Commissioners tocomplywith lawsandregulations • • governance which includes: Assist the Board of Directors and Boardof Act asliaison betweenDanamonand its Provide input tothe BoardofDirectors andBoardof Authority and other authorities. Submission of reports tothe Financial Services the availabilityofinformation onthe website. Disclosure ofinformation tothe public including Corporate Secretary Officers Head ofCorporate Secretary Corporate Secretary Full profileis listed inthe BoardofDirector Profile. Laundering &Corporate Secretary. – Indonesia.Currently,she is the Director ofCompliance, Anti Money was Director ofRegulatory Compliance &Financial Crime inHSBC leading banksinIndonesia.Lastposition prior tojoiningDanamon the fields oflaw,compliance andbeingacorporate secretary invarious banking careeratalocalbankaslegalofficer. Have wideexperience in her education atFacultyofLaw,University ofIndonesia.Pursuedher Indonesian national, 50years oldanddomiciled inIndonesia.Completed Corporate Secretary Rita Mirasari competency ofthe Corporate Secretary asfollows: In 2019,various trainingshave beenheld toimprove the Developing Corporate Secretary Competency • • • Board ofCommissioners. programs for the BoardofDirectors and/or of Commissioners. meetings ofthe BoardofDirectors and/orBoard General Meeting ofShareholders. Implementation ofcorporate orientation Holding andproviding documentation of Holding andproviding documentation ofthe Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 323 Date 8 July 2019 18 July 2019 15 April 2019 09 April 2019 20 March 2019 20 March 28 August 2019 28 August 17 January 2019 23 January 2019 22 October 2019 22 October 25 October 2019 25 October 04 January 2019 11 December 2019 11 December 19 December 2019 19 December 18 November 2019 18 November 22 November 2019 22 November 02 December 2019 December 02 12 September 2019 12 September 05 December 2019 05 December 20 November 2019 20 November 06 November 2019 06 November 26 September 2019 26 September 04 September 2019 04 September PT Bank Danamon Indonesia Tbk. Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Jakarta Location Rl IBI OJK OJK OJK KPK FKDKP FKDKP Perbanas Organizer Danamon Danamon Danamon PERBANAS PERBANAS KAFEGAMA of Shareholders and the Public Expose held by the the by held Expose Public the and Shareholders of Bank. Board of Commissioners and attended Organized meetings Board of Commissioners meetings, the under and Committee by Directors attended as well as preparing meeting Board of Commissioners of meetings. minutes the and administering Organized and documented the General Meeting General Meeting the and documented Organized Negara (BIN): Negara Efek Indonesia Efek Badan lntelijen Badan lntelijen Bank Indonesia Bank Indonesia Bank Indonesia Financial Action Financial Action MUFG Danamon MUFG ICSA & PT Bursa & PT Bursa ICSA ILUNI Ul & Dirjen Ul & Dirjen ILUNI Task Force (FATF) Force Task AHU Kemenkumham 3. 2. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Training/Conference/Seminar Security Incident Response in Table Top Top in Table Security Incident Response 2019 Economic Prospects & Challenges in 2020 Prospects Economic Services Financing to of Infrastructure Role Pivotal The Growth Economic Sustanaible Advance PPT Plan for Socialization Activities Socialization Supervision in the Banking Sector APU Compliance System of the Indonesian Payment Presentation Blueprint 2025 IBEX (Indonesia Banking Expo) 2019 IBEX (Indonesia Banking Expo) of "in the Midst Outlook 2020 Economic IBI re: with Sin Beng Ong (Executive Global Uncertainties" Singapore) of JP Morgan Director SUMMIT I THE INDONESIA 2020 Banking and Financial for Solution Blockchain Understanding of the Implementation of PSAK 71 & 71 & of PSAK of the Implementation Understanding with along in 2020 which will be Implemented 73 in the on Deepening its Impacts and Discussion 51 of POJK Compilation Session Governance CEO re: for Trainer of Evaluation 13/2018 - PERPRES Discussion Legal 18 Months After Beneficial Owner Ultimate in the Preparation of Mutual Evaluation Review Review Evaluation of Mutual in the Preparation (MER) lsu in Indonesian Banking of Strategic Development - Book Banks 1 & 2 Finance Sustainable 2019 Forum Indonesia Fintech and Management Licensing to related Invitation FGD Banks / or Ownership of Commercial the Board of Directors & Board of Commissioners of of of Commissioners & Board of Directors the Board Company the Listed Prevention on Corruption of Guidance Dissemination Sector Business the Financial Sector for ​​ Cyber (TIX) Exercise of the Risk Based APT PPU Program Implementation Procedures for Implementing Double Tax Avoidance Avoidance Tax Implementing Double for Procedures Agreements 2019 Potential Outlook & Banking Risk 2019 Monetary Operations, of 2018 Evaluation Bank and Current Strategies Monetary Operations Indonesia Policies to related with Regulations Compliance Company Socialization PER 25 / PJ / 2018 concerning concerning / 2018 25 / PJ PER Socialization Followed the development of the capital market, capital market, of the development Followed the especially regulations related to capital market to capital market related regulations especially about these information and conveying regulation Board Board of Commissioners, to the developments and stakeholders of Danamon. of Directors 1 7 2 5 3 8 9 6 4 11 17 21 12 15 13 18 19 16 14 10 22 20 No carried out, among others, as follows: out, among others, carried 1. Implementation of Function & Duties of Corporate Corporate of Duties & Function of Implementation in 2019 Secretary out the has carried Secretary Corporate 2019, the During functions to the according and responsibilities duties Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 324 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. List ofInformation Disclosure Reports in2019 8. 7. 6. 5. 4. 06 Nov 2019 06 Nov 2019 09 Dec2019 09 Dec2019 05 Dec2019 03 Dec2019 28 Nov 2019 08 Oct2019 02 Oct2019 27 Dec2019 07 Oct2019 07 Oct2019 07 Oct2019 23 Oct2019 10 Dec2019 10 Oct2019 01 Oct2019 01 Oct2019 Bank’s goodcorporate governance. applicable laws and regulations and implementing Board ofCommissioners Charter inaccordance with the newrules andregulations that apply. accordance with the needs of the company as well implementation ofcorporate governance. Commissioners andBoardofDirectors related tothe the Charters ofCommittees underthe Boardof with applicable lawsandregulations. to the OJKandIDX inatimely manner. Capital Market,both periodic andincidental reports Updated/ adjusted the BoardofDirectors Charter and Made adjustments tothe Articles ofAssociation in Prepared recommendations foramendments to Conducted information disclosure inaccordance Submitted reports related tothe provisions inthe Date General MeetingofShareholders Submission ofDeedNotaryregarding Minutes ofExtraordinary Danamon IPhaseSustainable Offering BondsPublic 2019 Submission ofFundsRealization Report ("LRPD")Results ofBank Submission of2019ExposeImplementation Public Report Report onCorporate Debt/LiabilityData inForeign Currency end ofSeptember 2019 Monthly Report onBDMNSecurities HolderRegistration, asofthe Submission ofProof ofAdvertising ofCredit BaseInterest Rates Submission ofSummaryExtraordinary GMSMinutes Composition oftheBoard ofCommissioners andDirectors Report onInformation orMaterial Facts -Changesinthe Submission ExposeMaterials ofPublic Insurance") Shares oftheCompany inPTAsuransi Adira Dinamika Tbk ("Adira Report onInformation orMaterial Facts -Completion oftheSale Debt /LiabilityData Report oftheCompany inForeign Currencies end ofOctober 2019 Monthly Report onBDMNSecuritiesHolderRegistration, asofthe Submission ofAnnualGMSPlan Directors of theCapabilityandCompliance ofMemberstheCompany's Report onInformation orMaterial Facts -Results oftheAssessment Report onCorporate Debt/LiabilityData inForeign Currency end ofNovember 2019 Monthly Report onBDMNSecuritiesHolderRegistration, asofthe Disclosure ofCertain Shareholders' Information Phase 2019 Sustainable Bonds ("LRPD") Results ofContinuous OfferingI Public IBankDanamon Submission ofRevised Report onRealization oftheUseFunds Subject November 2019 December 2019 October 2019 e-reporting sites ofIDXNet andOJK’sSPE. Stock Exchange (IDX) andthe OJK,including through Danamon alsosubmits periodic reports tothe Indonesia website that is availableinboth IndonesianandEnglish. provided information tothe public through Danamon As a form of information disclosure, Danamon has Information Disclosure in2019 9. Prepared documentation andassisted the Fit and Board ofCommissioners. Board ofDirectors andprospective members ofthe Proper Test process forprospective members ofthe OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI To

Annual Report Incidental Incidental Incidental Incidental Incidental Incidental Periodic Periodic Periodic Periodic Periodic Periodic Regular Regular Regular Regular Regular Regular Type 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 325 Type Regular Regular Regular Regular Regular Regular Regular Regular Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental

To BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK PT Bank Danamon Indonesia Tbk. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching July 2019 June 2019 August 2019 August September 2019 September Subject Submission of the Director's Resignation Report Resignation of the Director's Submission Danamon Phase I Sustainable Bonds I Public Offering 2019 Bonds I Public Offering Danamon Phase I Sustainable of and Evidence Financial Statements of Unaudited Submission Financial Statements Consolidated Q2 2019 Advertising of and Evidence Financial Statements of Unaudited Submission Financial Statements Consolidated Q2 2019 Advertising Financial Disclosure Interim Q2 2019 of Unaudited Submission Checklist of the Exchange Explanation for Request as of the on BDMN Securities Holder Registration, Monthly Report 2019 end of May Currency Foreign in of the Company Report Debt / Liability Data Results Evacuation Committee of Audit Submission end of July 2019 Unit Audit Change in the Head of Internal Plan GMS Implementation of an Extraordinary Submission Financial Statement of MUFG of Evidence Submission GMS of Extraordinary Announcement Rate Interest of Basic Credit of Evidence Submission as of the on BDMN Securities Holder Registration, Monthly Report end of June 2019 Currency Foreign in of the Company Report Debt / Liability Data of Bank ("LRPD") Results Report of Funds Realization Submission Submission of Substitution of President Director of President of Substitution Submission as of the Holder Registration, on BDMN Securities Monthly Report 2019 end of August Currency in Foreign of the Company Report Debt / Liability Data Extraordinary for of Advertisement and Proof of Notice Submission GMS Summons Implementing Extraordinary for Agenda of Explanation Submission GMS Public Plan of 2019 Expose Implementation Submission Currency in Foreign of the Company Report Debt / Liability Data as of the Holder Registration, on BDMN Securities Monthly Report Submission of Unaudited Financial Statements and Evidence of Evidence and Statements Financial of Unaudited Submission Financial Statements Consolidated Q3 2019 Advertising Financial Disclosure Interim Q3 2019 of Unaudited Submission Checklist Controllers Public Company Regarding Information GMS Extraordinary for of Advertisement of Proof Submission Summons GMS Extraordinary for of Advertisement of Proof Submission Summons GMS Agenda of Extraordinary Submission 2019 Date 11 Jul 2019 31 Jul 2019 10 Jul 2019 24 Jul 2019 24 24 Jul 2019 24 Jul 2019 24 12 Jun 2019 12 Jun 2019 03 Jul 2019 03 05 Jul 2019 05 Jul 2019 25 Jun 2019 21 Aug 2019 21 Aug 12 Aug 2019 12 Aug 15 Aug 2019 15 Aug 23 Oct 2019 23 Oct 2019 26 Oct 2018 26 Oct 2018 26 Oct 2018 14 Aug 2019 14 Aug 29 Oct 2019 02 Sep 2019 02 20 Sep 2019 05 Sep 2019 05 Sep 2019 09 Sep 2019 09 Sep 2019 06 Aug 2019 06 Aug 2019 06 Aug Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 326 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 03 May 2019 03 May 2019 03 May 2019 03 May 2019 03 May 2019 02 May 2019 02 May 2019 02 May 2019 02 May 2019 07 May 2019 07 May 2019 07 May 2019 29 May 2019 29 May 2019 29 May 2019 24 May 2019 24 May 2019 22 May 2019 08 Apr2019 08 Apr2019 30 Apr2019 03 Apr2019 29 Apr2019 26 Apr2019 24 Apr2019 24 Apr2019 24 Apr2019 24 Apr2019 22 Apr2019 16 May 2019 10 Apr2019 Date Law andHumanRightsoftheRepublic ofIndonesia Submission ofAcceptance ofMerger Notices from theMinistry of Submission ofOJK Copy ofBusiness Merger Submission ofaBusiness Merger License Statement Checklist Submission ofUnaudited Q12019 Interim Disclosure Financial Shareholders -Extraordinary Submission ofaNotarized DeedofAnnualGeneral Meetingof Advertising Consolidated FinancialStatements Q12019 Submission ofUnaudited FinancialStatements andEvidence of Advertising Consolidated FinancialStatements Q12019 Submission ofUnaudited FinancialStatements andEvidence of Submission ofaProof ofBriefProspectus Advertising Report Shares Report Company onOwnershiporChangeof OwnershipofPublic Currencies Report onDebt/LiabilityData oftheCompany inForeign end ofMarch 2019 Monthly Report onBDMNSecuritiesHolderRegistration, asofthe Accountingand aPublic Firm Submission ofaReport Accountant ontheAppointmentofaPublic Submission ofthePhaseISustainable BondProectus of2019 Submission ofthePhaseISustainable BondProectus of2019 AccountantPublic Office Submission ofReport Accountant onAppointmentofPublic and Submission ofAnnouncement ofResults ofBusiness Combinations Submission ofAnnouncement ofResults ofBusiness Combinations Submission oftheBriefProectus Ad Proof Report Request for Explanation oftheExchange Disclosure ofCertain Shareholders' Information end ofApril2018 Monthly Report onBDMNSecuritiesHolderRegistration, asofthe Report onCorporate Debt/LiabilityData inForeign Currency Changes intheComposition ofShareholders Report ontheResults ofMerging Businesses Disclosure ofCertain Shareholders' Information Regarding Affiliated Transactions Submission ofProof ofAdvertisement ofInformation Disclosure and Indirect to Issuers Companies orPublic Report onInformation orMaterial Facts -ChangesinControl Direct Disclosure ofCertain Shareholders' Information Submission ofProof ofEffective Advertising oftheMerger Board ofDirectors and/orMembersoftheBoard ofCommissioners Material Information orFact Report -ChangesinMembersofthe Material Information orFact Report -Business Combination Subject April 2019 May 2019 OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI To

Annual Report Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Periodic Periodic Periodic Periodic Periodic Regular Regular Regular Regular Type 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 327 Type Regular Regular Regular Regular Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental Incidental

To BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI BEI IDX OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK OJK PT Bank Danamon Indonesia Tbk. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching March 2019 March February 2019 February Subject Submission of Annual Report Submission Advertising of Annual Report of Proof Submission Checklist Disclosure Annual Financial Report of Audited Submission of and Proof Annual Financial Statements of Audited Submission of PT Bank Financial Statements of the Consolidated Advertisement the and its Subsidiaries for ("the Company") Danamon Indonesia Tbk 2018 period ended 31 December GMS Agenda to Addition Medium of Bank Danamon I 201N - Issuance Facts or Material Report (MTN) Notes Term Medium of Bank Danamon I 201N - Issuance Facts or Material Report (MTN) Notes Term Submission of Summary of Minutes of the Annual General Meeting - of the Annual General of Summary of Minutes Submission Extraordinary Meeting - of the Annual General of Summary of Minutes Submission Extraordinary of Schedule and Distribution of Advertising of Proof Submission Cash Dividends Deed of the Merger of a Copy Submission Explanation for Request to Response as of 31 on BDMN Securities Holder Registration, Monthly Report January 2019 Currency in Foreign Debt / Liability Data on Company Report Information Shareholders' of Certain Disclosure / or Amendments to the Summary of the Merger Plan between PT Plan between the Summary of the Merger / or Amendments to Parahyangan and PT Bank Nusantara Bank Danamon Indonesia Tbk Tbk and Information Evidence Advertising of Additional Submission PT Bank the Summary of the Plan Between / or Amendments to Tbk Parahyangan and PT Bank Nusantara Danamon Indonesia Tbk and Information Evidence Advertising of Additional Submission PT Bank the Summary of the Plan Between / or Amendments to Tbk Parahyangan and PT Bank Nusantara Danamon Indonesia Tbk - Extraordinary Meeting Results of Annual General Submission Merger Regarding of Minutes of Announcement of Announcement of Proof Submission of Meeting of the Annual GMS - Extraordinary of Minutes of Announcement of Announcement of Proof Submission of Meeting of the Annual GMS - Extraordinary Invitation and Evidence of Annual and Extraordinary GMS Ads of Annual and Extraordinary and Evidence Invitation GMS Ads of Annual and Extraordinary and Evidence Invitation GMS Agenda of Annual and Extraordinary of Elucidation Submission Annual Report of 2018 Submission Annual Report of 2018 Submission as of the Holder Registration, on BDMN Securities Monthly Report 2019 end of February Currency in Foreign Debt / Liability Data on Corporate Report and Information - Additional Facts or Material on Information Report 2019 Date 25 Feb 2019 25 Feb 26 Feb 2019 26 Feb 26 Feb 2019 26 Feb 07 Feb 2019 Feb 07 2019 Feb 07 08 Feb 2019 08 Feb 09 Feb 2019 09 Feb 2019 09 Feb 09 Feb 2019 09 Feb 2019 09 Feb 04 Feb 2019 04 Feb 27 March 2019 March 27 2019 March 27 27 March 2019 March 27 2019 March 27 2019 March 27 2019 March 27 27 March 2019 March 27 22 March 2019 22 March 22 March 2019 22 March 2019 22 March 06 March 2019 06 March 2019 06 March 04 March 2019 04 March 2019 04 March 2019 04 March 2019 04 March 2019 04 March Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 328 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 28 Feb 2019 28 Feb 2019 08 Jan2019 07 Jan2019 07 Jan2019 18 Jan2019 18 Jan2019 21 Jan2019 21 Jan2019 18-Jan-19 Date Danamon IndonesiaTbk andPTBankNusantara Parahyangan Tbk Submission ofAdvertisement Evidence To Creditors ofPTBank PT BankNusantara Parahyangan Tbk Design ofBusiness Merger ofPTBankDanamonIndonesiaTbk and Submission ofAdvertisement Evidence-Announcement ofthe Tbk andPTBankNusantara Parahyangan Tbk Summary oftheMerger Planbetween PTBankDanamonIndonesia Report onInformation orMaterial Facts -Announcement ofthe Business Combination Plans Information Disclosure Needsto BeAddressed by - thePublic Announcement ofAnnualandExtraordinary GMS Announcement ofAnnualandExtraordinary GMS Submission ofProof ofAdvertising ofCredit BaseInterest Rates Reports onData /DebtofCompany LiabilitiesinForeign Currencies December 2018 Monthly Report onBDMNSecuritiesHolderRegistration, asof31 Commissioners Capability andCompliance ofMemberstheCompany's Board of Report orMaterial Facts -Results oftheAssessment ofthe Commissioners Capability andCompliance ofMemberstheCompany's Board of Report orMaterial Facts -Results oftheAssessment ofthe Subject January 2019 OJK OJK OJK OJK OJK OJK OJK OJK BEI BEI BEI BEI BEI To

Annual Report Incidental Incidental Incidental Incidental Incidental Periodic Periodic Periodic Regular Regular Type 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 329 Lead Testing) Compliance Compliance (Monitoring & (Monitoring Lead Affairs) PT Bank Danamon Indonesia Tbk. (SEMM & (SEMM & Regulatory Compliance Compliance Lead (Support, risk in accordance with the implementation of risk of risk implementation the with in accordance risk Banks and Sharia for Commercial management of the provisions to the and referring Business Units Authority; Services Financial that and procedures systems regulations, policies, of the implementation are owned by Danamon to the authority; competent of the provisions of a compliance culture in all Danamon’s business business in all Danamon’s culture of a compliance organization; of the level at every activities of and suitability adequacy the Assess and evaluate the Bank are in accordance with Financial Services Services Financial with in accordance are Bank the provisions, and statutory (OJK) provisions Authority commercial for sharia principles sharia including business units. banks and sharia to Bank Indonesia, Financial Bank made by the authorized and/ or other Authority, Services authorities. supervisory creation to support the programs compliance Create compliance monitor and control the measure, Identify, Ensure the Bank’s compliance with commitments commitments with Bank’s compliance the Ensure Compliance Compliance Operations) 3. Group Financial Conglomeration, Danamon’s Compliance Danamon’s Compliance Conglomeration, Group Financial Integrated the of function the performs also Unit Working Compliance Regulatory Working Unit (ICWU). Compliance and Function Compliance regarding Policy has the of the Decree Working Unit based on the Compliance dated No. KEP: DIR-COMP-020 Board of Directors culture, compliance covers which 28, 2017, December and management, risk compliance function, compliance reporting. Working Unit of Compliance roles and responsibilities The are as follows: 1. 2. 4. Function of Compliance Structure Organizational in Function of Compliance structure organizational The as follows: Danamon is Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Compliance (RC) Compliance Head of Regulatory Head of Regulatory Compliance Director Compliance Lead SME) Compliance Compliance (S&D, Retail & & Retail (S&D, Lead Syariah) Treasury, Treasury, Compliance Compliance (Wholesales, 2019 Lead Ensure that the policies, provisions, systems, and and systems, provisions, policies, the that Ensure Realize the implementation of Compliance Culture at at Culture of Compliance implementation the Realize Bank. by the faced Risk Manage Compliance procedures as well as the activities carried out by out by carried activities as well as the procedures all levels of organization and business activities. and business of organization all levels & Business Compliance Compliance (Governance Management) Annual Report is under the responsibility of the Director in charge in charge Director responsibility of the under the is Working Unit Compliance Function. of Compliance Danamon’s of implementation the for responsible is in Danamon Main Entity As the function. compliance and the appointment of the Compliance Director has has Director Compliance of the appointment and the Financial by the as stipulated process the gone through Authority. Services Working Unit Compliance Working Unit (Regulatory Danamon has a Compliance an independent working unit and is which Compliance) are not permitted by the applicable provisions. EGMS EGMS provisions. applicable by the are not permitted the was no change in there 2019 agreed that 26, March effective the until Board of Directors of the composition of Danamon and Bank Nusantara Parahyangan merger of Danamon and BNP, merger effective the (BNP). After Director. as Compliance was reappointed Mirasari Rita has obtained OJK approval Director Compliance The Compliance Director Compliance Compliance the of charge in Director a has Danamon Mirasari. Rita namely Director), (Compliance Function has fulfilled Director of Compliance appointment The are independence which requirements, applicable the which functions the and does not supervise requirements 3. of the Financial Services Authority No. 46/POJK.03/2017 No. 46/POJK.03/2017 Authority Services Financial of the of Implementation the July 12, 2017 concerning dated main the Banks, in Commercial Function Compliance follows: are as function of compliance duties 1. 2. Function COMPLIANCE FUNCTION in important aspects the one of is function Compliance to Regulation Referring governance. Danamon’s corporate Compliance Compliance Main Management Company Management Operational Good Corporate Corporate Corporate 330 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 2. 1. Compliance WorkingUnitthroughout 2019areasfollows: The implementation of duties and responsibilities ofthe in 2019 Implementation ofDuties ofCompliance WorkingUnit 8. 7. 6. 5. 4. review to ensure that the products, activities and and the deadline. regulations, including the matters that must bemet discussed the implementation offulfillment ofthe Unit incollaboration with related workingunits the Bankandits subsidiaries). Compliance Working new regulations tothe related workingunits (both units. 24 trainings/socializations tothe relevantworking had completed the e-learningCompliance 2019. SEMM). AsofDecember 31,2019,100% ofemployees be takenbyallDanamon’semployees (exclude developed e-learningCompliance 2019which must e-learning method. face toface meeting (classroom)method andby trainings andsocializations areconducted bythe and socialization forallDanamon’semployees. The Compliance WorkingUnitorganized various trainings Conglomeration. each Financial Service Institution inthe Financial the implementation ofthe compliance function in has duties ofatleastmonitoring andevaluating function. external provisions toworkingunits inDanamon; implementation ofregulator audits. to the implementation of compliance and the Danamon with regulators, particularly those relating Sharia principles forSharia BusinessUnit; provisions of the competent authorities, including procedures owned by Danamon to comply with the improvement ofpolicies, regulations, systems and 2019, 187 compliance reviews and 20 policy reviews not inconflict with the applicable provisions. During policies issued byDanamonandits subsidiaries are The Compliance WorkingUnitconducts compliance Compliance Review andMonitoring During 2019, Compliance Working Unit has delivered In 2019,the Compliance WorkingUnithasorganized In earlyJuly 2019, the Compliance Working Unit As partofthe efforts tobuild compliance culture, Training andSocialization Integrated Compliance WorkingUnit,amongothers, Carry outother tasksrelated tothe compliance Create training/socialization programs regarding Perform the function of the liaison officer of Conduct review and/orrecommend the updates and 4. 3. Working Unitstaffs,areasfollows: workshop that have beenattended byCompliance The materials ofinternal andexternal training/seminars/ their workperformance. to increasetheir knowledgeandcompetence tosupport opportunity tothe staffsofthe Compliance WorkingUnit with adequate capability. Danamonalways provides over 5years ofexperience workinginthe bankingsector Compliance WorkingUnit)with the majority ofstaffhaving was supported by23staff(including the Head ofthe As ofDecember 2019,the Compliance WorkingUnit Working Unit Development ofHuman Resources inCompliance 6. 5. Compliance risk management is conducted through Compliance Risk Management The Compliance WorkingUnitregularly monitorsthe Monitoring Compliance tothe Prudential Regulations The implementation ofthe Integrated Compliance The Compliance WorkingUnitmonitorsandensures Commitment tothe Regulators 3 (three) linesofdefensescheme. The Compliance risk management strategy is implemented through implementation ofrisk management. The compliance control ofcompliance risk inaccordance with the identification, measurement, monitoring and no violations basedonthe regulatory parameters set. NOP, Investment, andCAR. During 2019,there were ratio ofLLL, Statutory Reserve Requirement, NPL, in the formofkeyregulatory parameters, namely the Danamon’s compliance tothe prudential regulations processes related toDanamon’sproducts/ activities. see whether remedial action wasrequired onsome Unit developed monitoring andtesting function to are conducted. Inaddition, the Compliance Working Corporate Governance section. Working Unit Function is disclosed in the Integrated external parties. implementation ofcompliance forinternal and Working Unit also acts as liaison regarding the do notexceed the agreeddeadline.The Compliance from the regulatory audit results canbefulfilledand on a regular basis. During 2019,all commitments results ofexamination conducted bythe Regulator compliance offollow-upcommitments related tothe as wellintegrated compliance risk. for both individual andconsolidated compliance risk, Working Unitconducts ananalysis ofcompliance risk Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 331 Comply Comply Comply Comply Comply Comply Comply Comply Comply Compliance PT Bank Danamon Indonesia Tbk. External Requirement Workshop ASEAN CG Scorecard CG ASEAN Workshop related with Regulations Compliance Ensuring Company’s of Commissioners and Board Directors the to & Procedures Policy - Compliance Rule Volcker Implementation - Totus Rule Volcker 2019 Workshop Ethics Professional Conducts of Market Code and Sector Informal Prospects, Millennial Market Financing Mortgage in with Fintech Collaboration Summit Jakarta Financial Services Conference: Exclusive 2019 to : Consolidate Indonesia Banking Expo (IBEX) 2019 Elevate Signature Electronic Max. 25% Min. 9% s/d <10% (risk profile rating “2”) rating <10% (risk profile Min. 9% s/d Min. 6% Min. 8% 84%-94% 4% NPL Net Max. 5% Max. 20% Max. 10% Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Internal Parameter Ratio (RIM) Ratio Secondary/Macroprudential (PLM) Liquidity Buffer Primary (IDR) Primary (USD) Intermediation Macroprudential 2019 Performance Management System Performance and Collaterals Binding of Credit Culture & Corporate Bridging Digital Startup D’Talk: Banking and Financial Services Solutions for Blockchain Securities and Personal Non Public Information Material Policy Trading Discussion Group II Forum Leadership Situational D'Talk with Yasushi Itagaki: Embracing Change Itagaki: Embracing with Yasushi D'Talk Crucial Conversations QA Policy Workshop Competitive for Embedding Sustainability D'Talk: Advantage of Religion Ministry with Mini Workshop Update (DHN) Training Blacklist National 3 SMR Level Refreshment Training Regulation Outsourcing Code of Conduct Refreshment of Conduct Code 1 Level Risk Management Certification Secretary and Corporate FCC Compliance, Regulatory Workshop Directorate Bond Session Green Compliance Sharia and Trade Finance, Global Trade Workshop ORM LOB and QA ORM LOB Workshop Net Open Position (NOP) Net Open Position Limit (LLL) Lending Legal Parties’ Related Portfolio Investment Statutory Reserve Reserve Statutory Requirement (GWM) (NPL) Loans Non Performing Capital Adequacy Ratio (CAR) Ratio Capital Adequacy Compliance with Primary Regulations with Primary Compliance Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 332 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 2. 1. follows: is described in the concept of Three Lines of Defense as The framework AMLandCFTProgramimplementation systems and other initiatives. conducting trainingprograms, improving information active supervision from Management, updating policies, of AML and CFT Program implementation, through Danamon consistently strives toimprove the quality Unit which reports directly tothe Compliance Director andhasthe followingorganizational structure: The implementation ofAMLandCFTPrograminDanamonis coordinated bythe Financial Crime Compliance (FCC) reporting toregulators inaccordance with applicable regulations. the implementation ofthe AMLandCFTProgram, including commitments madebyDanamontothe OJK/BIand The BoardofCommissioners actively supervises the implementation ofthe responsibilities ofBoardDirectors’ on Regulations related toAMLandCFT. always meets the provisions ofFinancial Services Authority (OJK)/BankIndonesia(BI)andother applicable Lawsand and CFT),the BoardofDirectors andBoardofCommissioners continuously provide fullcommitment sothat Danamon In ordertosupportthe implementation ofAnti MoneyLaundering andCombating the Financing ofTerrorism (AML Organization PROGRAMS IMPLEMENTATION OFANTI MONEY LAUNDERING (AML)ANDCOMBATING THEFINANCING OFTERRORISM (CFT) activities asthe frontlineforDanamon. Units/ ControlUnits whocarry outthe dailybusiness Program implementation. BusinessUnits/ Operation and vulnerabilities incontrolling AMLandCFT possibility ofsuch crime andidentifying weaknesses Laundering and Terrorism Funding, detecting the line ofdefenseinpreventing the Crimes ofMoney responsibilities to prepare the methods and tools Working Unitatthe Head Office which hasroleand The Second Line ofDefenseis carried outbyFCC The Second Line ofDefense The First Line ofDefenseis the mostimportant The First Line ofDefense FCC Monitoring & Testing Head Transaction Monitoring Head Compliance Director Compliance Head Financial Crime 1. IMPLEMENTATION OFAML AND CFTPROGRAMIN2019 3. Evaluation ofPolicies andProcedures This function is carried out byInternal andExternal The Third Line ofDefense a. conducted. of Second Line ofDefensehasbeeneffectively implementation inFirst Line andthe responsibility auditors toensurethe AMLandCFT Program properly. First Line ofDefensehascarried outits functions procedures, systems andtrainingensurethat and responsibilities, prepareadequate policies and that canbeusedbyFirst Line tocarry outits duties Advisory & Reporting Head CFT provisions byissuing 22internal regulations. has madeimprovements tothe internal AMLand to the implementation ofAMLandCFT,the Bank Services Authority and other provisions related In ordertomeet the provisions ofthe Financial Assurance & MIS Head Quality Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 333 PT Bank Danamon Indonesia Tbk. or adjustment by Branches or other other or by Branches or adjustment and 4 (four) relevant Business Units to the been escalated have that alerts unit to be Monitoring Transaction FCC news. to negative followed up due CDD (Customer Due Diligence) Diligence) Due CDD (Customer a is there if System AML the on alerts value and risk change in the significant risk high in a new account opening with 2019, has or PEP. As of December level alerts, on 9,894 monitoring conducted or for improvement and has requested if of data/ information completeness inadequate incomplete/ are still there data. a is Filtering), List (Watch Alert WLF opening new CIF for process screening data owned List to PEP and Negative World Check Bank, using the by the OFAC) and DTTOT database (including As of December - WMD Proliferation. on 3,163 analysis conducted 2019, have are There of screening results. alerts with alerts hit positive four) 44 (forty data correction required PEP data that As of December 2019, there were 13,434 CIF were 13,434 CIF 2019, there As of December set target of from the (100%) data updates 13,434 CIF. data quality of customer monitoring The Due (Customer AML System through Filtering): List & Watch Diligence • • During 2019 monitoring the fulfillment of of fulfillment the 2019 monitoring During data on CIF opening AML-CFT mandatory year, current the in accounts new and old CIF in the using opening new accounts current year. the 2019, from 258,833 December Until were 258,538 there CIF opening, accounts/ data completed. CIF with or 99.88% to monitor also a method is Data updating data this data, customer of quality the to OJK Bank’s commitment is updating target data and progress achieved the where to OJK annually through are submitted Report. Director’s Compliance Monitoring on Completion of Customer Data of Customer on Completion Monitoring of and completeness quality the on Monitoring 3) customer data is carried out continuously by by continuously out carried data is customer : processes methods/ several 1) 2) b. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Jakarta), Jakarta Matraman Branch (SnD Jakarta), Jakarta Matraman Branch (SnD 03 Jakarta), Jakarta Cikini Branch (SnD 03 Branch Intercon Jakarta), and Kebon Jeruk 04 Jakarta). (SnD Makassar Slamet Riyadi Branch (SnD 12 12 Branch (SnD Riyadi Makassar Slamet SULAMPUA). in been conducted have monitoring Passive Jakarta Areas i.e. in 4 (four) Branches 5 (five) 01 Jakarta), I Branch (SnD Kelapa Gading 02 Jakarta Panglima Polim Branch (SnD Branch (SnD 03 Jakarta), Bandung Asia Asia Bandung Jakarta), 03 (SnD Branch 05 JABAR), Yogyakarta Branch (SnD Afrika 06 JAMAL Branch - Jalan Magelang (SnD Branch Suryo Gubernur Surabaya JATENG), Diponegoro Branch Medan 07 JATIM), (SnD Wahid Pekanbaru SUMBAGUT), 09 (SnD SUMBAGSEL), and 10 Branch (SnD Hasyim Active monitoring have been conducted in in been conducted have monitoring Active Areas (eight) 8 including Branches (ten) 10 02 Branch (SnD Jakarta Kebon Sirih i.e. Branch (SnD 46 BNI Jakarta), Jakarta Wisma 02 02 Jakarta), Jakarta MBD Branch (SnD Jakarta), Jakarta Tanah Abang Fachrudin 2) monitoring & testing as follows: & testing monitoring 1) provisions. In addition, FCC took the initiative initiative took the FCC In addition, provisions. and compliance on report a establish to through (KYC) data of customer completeness (BAR). Branch AML CFT Report has conducted (M&T) & Testing Monitoring CFT Program in Branch Offices (SNDs), FCC FCC (SNDs), CFT Program in Branch Offices and monitoring and passive active conducted awareness, effectiveness to assess the testing of AML of implementation and data quality applicable with and CFT Program by comparing FCC - December), 2019 (January During of AML and CFT Program on Bank Danamon’s Bank Danamon’s on Program CFT AML and of of Bank’s information by providing website Act, Wolfsberg AML US Patriot General Policy, Questionnaire. & Testing Monitoring of AML and In order to ensure implementation 3 AML Forums to ensure compliance with the the with ensure compliance to 3 AML Forums of AML And CFT Program. implementation regarding and Board of Directors) Commissioners in the of AML and CFT program implementation and monthly in RMC forum form of presentations reports. to implementation related information Publish and application forms based on request from from based on request forms and application disseminate and Danamon Bank at units related of Board (the Management to regularly Report Reviewed 26 draft policies and/ or new products products and/ or new 26 draft policies Reviewed Monitoring and Evaluation Process and Evaluation Monitoring

a. d. c. b. Annual Report 2. Main Management Company Management Operational Good Corporate Corporate Corporate 334 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. BAR Scoreduring 2019ineachofthe branches BAR Scoreduring 2019perSNDArea 3. No No 3 2 2 1 1 modules. to complete the 2019AMLandCFTe-learning period ofJanuary 1–September 30,2019arerequired Furthermore, the newemployees with recruitment and e-learning for all of Danamon employees. induction training in classroomfornewemployees training andsocialization foremployees, including University (DCU) coordinate the AML and CFT Danamon together with DanamonCorporate Staff awareness on AML and CFT is very important. Training andSocialization Total Branches withscore <70 Lowest Score Highest Score Lowest Score Highest Score 5) 4) less than 70(seventy) insemester 22019. in the absence ofbranches that scored Areas showedbetter conditions, reflected that the application ofAMLCFTinallSnD Based onthe results above, itcanbeconcluded Customer dataquality monitoring is also The Bankalsoconducts periodic screening the databaseis updated. customer dataupdating sothat the datain that hasbeensenttoBranches forfurther As ofDecember 2019,there were 238CIFs conducted byTransaction Monitoring Unit. transaction monitoring process which carried outasfollow-upaction tocustomer up action. data update onrelated CIFfortheir follow- Branches orrelated units needtoconduct CIF knownasPEP/related toPEPsothat of those periodic screening, there were445 Negative News andOFAC).Fromthe results Negative List (DTTOT,WMDProliferation, ensure there arenocustomers includedin the methods ofmonitoring customers to of allexisting CIFroutinely which is oneof Description Description 13 Branches from 6Area SnD. As ofJune2019 As ofJune2019

84,03 57,42 95,81 100

Financial Crime Prevention forFirst Line ofDefense In addition toAMLandCFTprovision training, during As ofDecember 2019,6,770 permanentemployees as c. First Line ofDefense. that canbe occurredorbemet bystaffincludedin socialization materials which cover practice ofcrimes Bank’s collaboration. has beenconducted asBankDanamonandMUFG Defense (FLoD) -Financial Crime Prevention which 2019, there weresocializations related toFirst Line of e-learning module. Directorate) have finished the 2019AMLandCFT CFT program,andemployees underCompliance who oversee the implementation ofthe AMLand (including front lineremployees, SKAI employees of September 30,2019or100% targeted employees the obtainedinformation is asfollows: all ofRegional Heads inhalf-yearly period. for allofSnDis submitted tothe CEOaswell established in2018. BAR (BranchAMLCFTReport) project was appetite andinlinewith prevailregulations, EDD is inaccordance with the Danamon’srisk and toensurethat the implementation ofCDD/ Branches and also to carry outproactive control provisions hasbeenconducted properlybyall Based onthe resultofBARReport during 2019, BAR Report which includesBranches assessment In ordertoevaluate the application ofAMLCFT Branch AMLCFTReport (BAR) No branches withscore under<70 As ofDecember 2019 As ofDecember 2019 98,36 99,79 73,61 94,11 Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 335 584 to External Parties to External Response Letter sent sent Letter Response PT Bank Danamon Indonesia Tbk. SIPESAT 289,693 CIF 289,693 data reporting formation data reporting to PPATK to be reported and CTR between data resources transactions Web Improve on system logic withdrawal process and and process withdrawal logic system on Improve need that monitoring control and data Improve of data and nominal of amount the Check In September 2019, SKAI has conducted audit on AML on AML audit 2019, SKAI has conducted In September In addition, Danamon also made enhancement on on enhancement Danamon also made In addition, PPATK reporting application to improve its control, control, its to improve application PPATK reporting in the completeness and information accuracy to PPATK, including: are submitted which reports • • • 2019, end of December As the – CFT implementation. of process in the were still results finding SKAI audit finalizing. Audit 6. Audit

IFTI 123,839 Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Total of Reporting in 2019 Total of Reporting CTR 59,431 2019 STR 1,442 Check the amount of data and nominal of of data and nominal of amount the Check Screening on SWIFT transaction Owner data on Beneficial Enhancement transactions customer workflow of Improve transactions between data resources and AML AML and resources data between transactions System investigation process investigation Management information System information Management on enhancement conducted has Danamon • control and effectiveness in identifying suspicious suspicious in identifying control and effectiveness are adjusted which by using parameters transactions including: periodically, • • • monitoring and screening transactions/ customer customer and screening transactions/ monitoring to improve (AML System) profiles applications The number of reports and responses for information requests from external parties that have been carried out out been carried have that parties from external requests for information and responses number of reports The During August - December 2019, the socialization was given to 1,630 participants/ employees. employees. participants/ to 1,630 given was socialization 2019, the - December August During Transaction Suspicious are reports These by Regulation. as governed activities reporting Danamon has conducted Socialization was given to all RH, AM, RTSH, BM, BSM, ROSM staff, KPW staff, Branch Control staff, SSO KPW staff, Branch Control staff, SSO ROSM staff, BSM, BM, RTSH, to all RH, AM, was given Socialization until December 2019 is as follows: 2019 is December until Report (STR), Cash Transaction Report (CTR), International Fund Transfer Instruction (IFTI) and Integrated User User and Integrated (IFTI) Fund Transfer Instruction (CTR), International Report Cash Transaction (STR), Report for data and responses also provides Danamon reporting, to the In addition (SIPESAT). System Information parties). third and other (PPATK, KPK, BI, Police parties from external requests information representatives, Teller, CRO, and BRO throughout the SnD Area. the throughout CRO, and BRO Teller, representatives, 5. Annual Report

4. Reporting

Main Management Company Management Operational Good Corporate Corporate Corporate 336 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. processes. of risk management, control,andcorporate governance to evaluate andimprove the adequacy andeffectiveness objective bybringing asystematic anddisciplined approach Conduct. SKAIassists the management inaccomplishing its Authority/ FSA(OJK)regulation, andCompany’sCodeof Auditors (IIA), BankIndonesia regulation, Financial Services of Internal Auditing (IPPF) fromThe Institute ofInternal to the International Standardsforthe ProfessionalPractices its subsidiaries toachieve their long-term goalsbyreferring in fostering arobustcontrolculture tosupportDanamonand SKAI aims tobeabusinesspartnerthat provides addedvalue the company. of continuous controlprocess andrisk management within the BoardofCommissioners andBoardofDirectors, aspart assurance activities andproviding consultation services to to provide independentandobjective views inconducting Commissioners through the Audit Committee. SKAI aims (Head ofSKAI)is alsodirectly responsibletothe Boardof of internal audit programs, the Chief Internal Auditor independency andmonitoring ofthe implementation directly responsibletothe PresidentDirector. Tosupport Internal Audit WorkingUnit(SKAI) is anindependentfunction WORKING UNIT (SKAI) STRUCTURE ANDPOSITION OFINTERNAL AUDIT SKAI Organization Structure ( Internal Audit WorkingUnit SKAI Branches Audit Group Head Product & ) Ops. Support Group Head & Ins.Audit President DIrector Treasury & Group Head IT Audit & Analytics Chief Internal Auditor Yenny Linardi the establishment andfunction ofIntegrated Internal Audit Audit Charter andAuditor’s CodeofEthics, which regulate Conduct, SKAIis alsoguided bythe Integrated Internal In addition tocomplying with the Danamon’sCodeof Committee andCompliance Director. President Director andBoardofCommissioners via Audit up that have beensubmitted tothe related units, tothe including recommendations for corrective action follow SKAI reports audit activities andsignificant audit findings Financing ofTerrorism (CFT). in auditing Anti-Money Laundering (AML)andCountering and ensurethe application ofthe anti-tipping offprinciple regulations, professionconfidentiality, andpersonalrights, and personnelbycomplying with the prevailinglawsand and Subsidiaries’ activities, functions, records, property, Board ofCommissioners, SKAIhasaccess toallDanamon’s that hasbeenapproved bythe PresidentDirector and In accordance with the Integrated Internal Audit Charter competency). the principle ofintegrity, objectivity, confidentiality, and Framework by The Institute of Internal Audit (covering standard as defined in the International ProfessionalPractice Working Unit (IIAWU) and include auditor’s professional Acting Credit Audit Group Head Audit Comitee Investigation Group Head Fraud Annual Report Strategic Dev Investigation Acting Audit Group Head & Fraud 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 337 PT Bank Danamon Indonesia Tbk. that are undergoing transformation. that related units, monitor and ensure that management management monitor and ensure that units, related and efficiently been effectively have actions had accepted or Senior Management implemented; yet; could not be mitigated that risks quarter; at least every Audit Internal subsidiaries’ been performed; have that activities audit subsidiaries. audit. risk-based Performed to business lines and areas attention special Placed Recommend corrective actions for audit findings to to findings for audit actions corrective Recommend the with meetings coordination regular Conduct of internal quality the program to evaluate Develop for strategy execution audit internal the Determine IIAWU has conducted the following activities to strengthen to strengthen following activities the IIAWU has conducted in 2019: functions audit internal a. b. h. i. j. k. Integrated in the are regulated and responsibilities Duties Integrated in the and stated Charter Audit Internal Report. Governance Corporate AUDIT WORKING UNIT INTERNAL 2019 INTEGRATED PRIORITIES (IIAWU) Since August 12, 2019, Integrated Internal Audit Working Working Audit Internal 12, 2019, Integrated August Since Internal as Chief Linardi has been led by Yenny Unit (IIAWU) Tanuwidjaja as an Nathan of SKAI) replacing (Head Auditor No. B.194/ letter of SKAI, based on appointment Head acting to OJK has been reported appointment and this HCKP/0819 15, August – DIR dated No. B.748 Letter based on Director Head Acting of the on Dismissal Report 2019 regarding of SKAI in PT Bank Head of the of SKAI and Appointment Tbk (“Company”). Danamon Indonesia, Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Auditor. She had worked at Danamon in 2004-2008 with the last position last position the had worked at Danamon in 2004-2008 with She Auditor. the – 2004) with (1989 at BCA and previously Audit of Branches as Head Audit. Office Head Review, of Analytical as Head last position Yenny Linardi Yenny Audit Chief Internal University, from Trisakti degree in Economics Obtained Bachelor’s 2019. August since Auditor Internal Jakarta. Joined Danamon as Chief Internal as Chief worked at DBS Bank for almost 11 years she Previously, 2019 Communicate with OJK at least once in 1 (one) year; OJK at least once with Communicate to Sharia principles of sharia compliance Convey Improve the adequacy of knowledge, skills, experience, of knowledge, skills, experience, adequacy the Improve implementation audit internal the Monitor and review with to OJK in accordance Prepare and submit reports Develop an annual audit plan using risk-based plan using risk-based an annual audit Develop annual on the recommendation and provide Review sharia banking operations; sharia the continuity of the bank, report from the external external bank, report from the of the continuity the and report of assessor on IIAWU’s performance, audit. Technology Information (1) IIAWU Board and appoint at least one Supervisory of who has knowledge and/ or understanding member and professional certifications; in subsidiaries; semi-annual reports, e.g., prevailing regulations, the to disrupt deemed issue report on each audit special methodology and implement the approved annual annual approved the and implement methodology tasks/projects; special plan, including audit Audit; Internal plan of subsidiaries’ audit Chief Internal Audit Profile Profile Audit Internal Chief f. g. c. d. e. INTERNAL AUDIT WORKING UNIT (IIAWU) AUDIT WORKING UNIT INTERNAL among others: and responsibilities, IIAWU has duties a. b. DUTIES AND RESPONSIBILITIES OF INTEGRATED OF INTEGRATED RESPONSIBILITIES AND DUTIES President Director with the approval from the Board of Board of from the approval the with President Director Head of the and dismissal appointment The Commissioners. reasons by the OJK along with to of SKAI should be reported dismissal. for appointment/ APPOINTMENT, DISMISSAL, AND LEGAL BASIS FOR FOR AND LEGAL BASIS DISMISSAL, APPOINTMENT, OF HEAD OF SKAI APPOINTMENT by the and dismissed appointed of SKAI is Head The Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 338 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Audit Plan&Realization asofDecember 31,2019 Audit Plan&Realization asofDecember 31,2019 2. Audit Plan&Realization asofDecember 31,2019 f. e. d. c. Total Audit b. a. Total Audit c. b. a. c. b. a. Total Audit of DanamonFinancial Conglomeration, thus the AADaudit activity inthis reportis the lastreportfromSKAIDanamon. the Internal Audit unitineachcompanyorjointlywith SKAIDanamon.Since November 2019,AADwasnolongerpart ADMF andAsuransiAdira Dinamika/AAD. Finance/ADMF). industry (Internal Audit Unit-Adira DinamikaMulti in bankingindustry (SKAI Danamon)andfinancing benchmarking with the internal audit best practices to develop the scopeofthe dataanalytics. professional certification. as wellrisk management and audit process and trainings, both inproduct knowledgeandprocedures, Internal audit activities inAdira DinamikaMulti Finance (ADMF)andAsuransiAdira Dinamika(AAD)wereperformed by Performed jointaudits with Internal Audit units of Continued the quality assurance process and Continued todevelop analytic functions bycontinuing Continued toincreaseauditor competency through Self Employed Mass Market Regional Office Audit Head office Audit Branches Audit: Regional Office Audit Head office Audit Total Branches Audit Conventional Branches Branches Audit: Regional Office Audit Head Office Audit Danamon ADMF AAD 2019 Audit Plan 2019 Audit Plan 2019 Audit Plan 1. conducted the followinginternal audit engagements: In 2019,Integrated Internal Audit WorkingUnit(IIAWU) has AUDIT PLANANDREALIZATION ASOFDECEMBER31,2019 h. g. SKAI Danamonhascommenced audit in244entities in Reviewed the SKAI BusinessBankingUnit’s(ex-Bank Conducted regular coordination with ADMFandAAD Danamon: entities. the legalmerger byconsidering the risk level ofBBU Nusantara Parahyangan)audit plansubsequent to sharing. Internal Audit team foralignment andknowledge 223 160 198 158 122 30 36 24 41 4 9 8 5 2019 Audit Realization 2019 Audit Realization 2019 Audit Realization Annual Report 2019 244 201 177 171 48 28 141 36 19 4 9 5 2 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 339 7 days 5 days 10 days Mandays 1 1 1 1 1 1 3 2 2 3 3 8 6 4 111 10 55 46 # Person # Person PT Bank Danamon Indonesia Tbk. 15 78 54 #Training & Workshop Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching #Person 148 staff staff 67 10 staff National Certification National International Certification International IIAWU 2019 Internal Audit Unit-ADMF Audit Internal Unit-AAD Audit Internal SKAI Danamon 1 2 3 No. Certified General Insurance (CGI) Insurance General Certified Risk Management Certification (SMR), Level III (SMR), Level Risk Management Certification IV (SMR), Level Risk Management Certification Dasar Pembiayaan (Sertifikasi Certification Basic Managerial Finance Indonesia (SPPI) Pembiayaan Profesi Sertifikasi Lembaga Managerial) by Indonesia Kerugian/AAIK) Expert (Ahli Asuransi Indonesian Insurance Indonesia Kerugian/AAAIK) Expert (Ajun Ahli Asuransi Indonesian Insurance (CRMO) Risk Management Officer Certified Qualified Internal Auditor (QIA) Auditor Qualified Internal I (SMR), Level Risk Management Certification II (SMR), Level Risk Management Certification Certified Information System Auditor (CISA) Auditor System Information Certified (CISSP) Security Professional System Information Certified Manager (CISM) System Information Certified Financial Risk Manager (FRM) (CAMS) Laundering Specialist Anti-Money Certified Certified Internal Auditor (CIA) Auditor Internal Certified (CFE) Examiner Fraud Certified Ethical Hacking (CEH) Certified Annual Report 2019 Training and workshop

personnel and the Internal Audit of AAD had 10 personnel. of AAD had 10 Audit Internal personnel and the Division Capital Development Human the with together SKAI quality, resource human of standardization To maintain the trainings in the leader to participate and team auditor every a roadmap for is which matrix, a competency has developed level. at every competencies required the meet to and certifications been obtained by IIAWU staff: have following professional certifications 31, 2019, the As of December DEVELOPMENT OF HUMAN RESOURCES OF HUMAN DEVELOPMENT office head in the personnel residing 148 was Danamon of SKAI personnel of number total the 2019, of December As had 67 of ADMF Audit Internal the Moreover, and Makassar. across Jakarta, Surabaya, Medan, offices audit and regional Main Management Company Management Operational Good Corporate Corporate Corporate 340 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data of the Audit Committee. Inmakingrecommendations, the of Commissioners hasconsideredthe recommendations The proposedappointment ofAPand/orKAPbythe Board considering the proposalofthe BoardofCommissioners. been decided bythe GeneralMeeting ofShareholdersby services toannualhistorical financial information has Appointment ofAPand/orKAPthat willprovide audit Committee. by takingintoaccountthe recommendations ofthe Audit requirements associated tothe appointment ofAPandKAP well asdetermined the amountofhonorarium andother consolidated financial statements forfiscal year 2019. As and the Financial Services Authority toaudit Danamon’s at the IndonesianInstitute ofPublic Accountants (IAPI) (member firmofPwC’sglobalnetwork)asKAPregistered Firm (KAP) Tanudiredja, Wibisana, Rintis & Partners Ec., CPAasPublic Accountant(AP)andPublic Accounting 2019, approved the appointment ofDrs.JusufWibisana, M. Based onAGMS Danamonthat washeld onMarch 26, Appointment ofCompany’sAccountant PT Bank DanamonIndonesia Tbk. has beenconducted independently, professionallyand Accounting Firm onDanamon’sfinancial statements The audit carried outbythe Public Accountant/ Public the progressandprocess ofthe audit conducted. the Public Accountant/ Public Accounting Firm todiscuss The Audit Committee periodically conducts meetings with audit, as well as the independence of the external auditor. provisions andstandards,workagreements andscopeof implementation is incompliance with professional audit implementation, including ensuring that the audit The Audit Committee reviews the effectiveness of Effectiveness ofExternal Audit Implementation External Auditor Company’s Accountant/ 2014 2016 2019 2018 2013 2015 2012 2017 Year (member ofErnst &Young GlobalLimited) Purwantono, Suherman&Surja (member ofErnst &Young GlobalLimited) Purwantono, Suherman&Surja (member ofErnst &Young GlobalLimited) Purwantono, Suherman&Surja (member ofErnst &Young GlobalLimited) Purwantono, Sungkoro &Surja (member ofErnst &Young GlobalLimited) Purwantono, Sungkoro &Surja globalnetwork)(member firmofPwC Tanudiredja, Wibisana, Rintis&Rekan globalnetwork)(member firmofPwC Tanudiredja, Wibisana, Rintis&Rekan globalnetwork)(member firmofPwC Tanudiredja, Wibisana, Rintis&Rekan Public Accounting Firm (KAP) Drs. HariPurwantono Drs. HariPurwantono Drs. HariPurwantono Benyanto Suherman Yasir Drs. M.JusufWibisana, M.Ec, CPA Drs. M.JusufWibisana, M.Ec, CPA Drs. M.JusufWibisana, M.Ec, CPA provide financial audit services and honorarium for audit The Public Accountants/ Public Accounting Firms who AUDIT PERIOD ANDACCOUNTANT’SHONORARIUM are quoted arelessthan the feesforaudit services. services other than audit services. Other services feesthat The Public Accounting Firm throughout 2019provided OTHER SERVICES BESIDESFINANCIAL AUDIT g. f. e. d. c. b. a. Audit Committee hasconsidered: by the aforementioned AP/KAPis donethrough: of audit services onannualhistorical financial information Evaluation ofthe Audit Committee onthe implementation b. a. objectively, amongothers: implementation areasfollows: potential risk onthe useofaudit services bythe same benefit offresheye perspectives obtainedthrough the methodology, techniques, andaudit toolsusedbyKAP; skills and experiences of AP,KAP,and Audit team of remuneration ofaudit services; audit scope; the independence ofAP,KAP,andinsidersinKAP; The submission ofaudited consolidated Examinations have beendoneonallmaterial accounts KAP consecutively foralongperiod oftime. changing ofAP,KAP,andAudit Team ofKAP; KAP; Letter). Recommendation toManagement (Management financial statements is accompanied byLetter of Accounting StandardsinIndonesia. Standards andincompliance with the applicable based on the applicable Public Accountant Professional Name ofAccountant Annual Report IDR 4.405billion IDR 4.405billion IDR 3.880billion IDR 4.346billion IDR 4.112 billion IDR 4.112 billion IDR 4.112 billion USD 400,000 Service Fee 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 341 PT Bank Danamon Indonesia Tbk. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 recommendations for improvement provided by AP and/ or KAP. provided for improvement recommendations alignment of audit implementation by AP and/ or KAP with prevailing standards of audit; of audit; prevailing standards by AP and/ or KAP with implementation of audit alignment work time; of field adequacy test; quotation of the adequacy and the provided scope of services of the assessment Annual Report Communication and cooperation with external auditors is always conducted in relation to accounting policy issues and and issues policy accounting to in relation conducted always is auditors external with and cooperation Communication Public Accountant/ Public the by been communicated have results audit The statements. of financial clean presentation Authority. Services and Financial Committee, Audit Management, to the Firm Accounting 4. Authority Services and Financial Accountant, between Bank, Public Relationship Accounting Public Accountant/ Public by the required data and information party openly provide audited Danamon as the conduct independently Firm) Accounting Public Accountants/ (Public Auditors examination. purpose of the for the Firm for follow up. to Danamon’s Management improvements and feedback on submit suggestions and examination 1. 2. 3. Main Management Company Management Operational Good Corporate Corporate Corporate 342 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Annual Report. Risk Management Operational Review inthe Danamon’s the implementation ofrisk management is disclosed inthe exposures intheir business activities. Specific discussion on have applied Risk Management consistently tomanagerisk Danamon andSubsidiaries, both individually andintegrated, responsible toIntegrated Risk Director. by the Integrated Risk Management WorkingUnitwhich is of the integrated risk management function is carried out Danamon’s andSubsidiaries’ activities. The implementation includes the management of the main inherent risks in the Taking Unit(RTU).The Integrated Risk Management function function that is centralized andindependentfromRisk (OJK), DanamonhasanIntegrated Risk Management accordance with the regulation ofFinancial Services Authority In linewith the practice inthe bankingindustry andin d. c. b. a. manner that includes4pillars,namely: approach tomanageDanamon’srisks inacomprehensive implementation ofrisk management is tocarry outaholistic The approachtakeninsupporting the effective Implementation ofIntegrated Risk Management Conglomeration. fulfill the requirement asamember ofDanamon’sFinancial Financial Conglomeration, Adira Insurance is nolonger the Implementation ofIntegrated Risk Management for Based onOJKregulation No.17/POJK.03/2014 regarding Danamon onAdira Insurance haschangedtobe19.81%. Dinamika Tbk(“Adira Insurance”), hence the ownership of divestation ofequity investment inPTAsuransiAdira On November 27, 2019,Danamonhascompleted the in delivering long-term valueforallstakeholders. provides valueaddedforDanamontofacilitate Bank’sgrowth also hasbeencompleted onSeptember 2,2019. This process Danamon assurviving Bank.The operational merger process completed the legalmerger process. BankBNPis merged to and PTBankNusantaraParahyanganTbk(“BankBNP”)have On May1,2019,PTBankDanamonIndonesiaTbk(“Danamon”) potential risks inalllineofbusiness. intended toidentify measure, monitorandcontrolvarious in business.The implementation ofrisk management is line with the development ofregulation andbestpractice management within the Bank andits Subsidiaries tobein Danamon continuously improves the implementation ofrisk RISK MANAGEMENT Management Risk information system and controlprocess aswellrisk management limit setup. Commissioners Internal ControlSystem ofRisk Management Adequacy ofrisk identification, measurement, monitoring Adequacy of risk management policies, procedures and Active supervision ofBoardDirectors andBoardof b. a. the committees: supervise the implementation ofrisk management through The BoardofCommissioners andBoardofDirectors actively Commissioners Supervision ofBoardDirectors andBoardof with risk level at2(lowtomoderate). Danamon and Subsidiaries’ risk management is satisfactory and limits. In2019,the assessment ofthe effectiveness of of management information systems, policies, procedures Auditor onthe risk assessment methodology, adequacy assessments andevaluations carried outbythe Internal is conducted bythe workingunit through periodic self The evaluation ofthe effectiveness ofrisk management principles extensively towardsDanamon’sactivities. cover detailed policies that regulate the limits ofthe prudential is effective andcanmitigate the risks tobefaced aswell responsible toensurethat the Risk Management Framework The Board of Directors and senior management are conditions. the suitability ofRASwith internal andexternal business thresholds bereviewed regularly every 2years, toensure has beencarried outsince 2017.The RASparameters and application ofRAStothe Line ofBusinessandSubsidiaries to achieve the objectives setbythe shareholders.The to beaccepted byDanamonincarrying outits activities outlines the level andcharacteristics ofrisks that areable Danamon hassetRisk Appetite Statement (RAS)which value. order tooptimize businessgrowth andmaximize Stakeholder execution, risk assessment andperformance evaluation, in which linksbetweenstrategic planning, risk appetite, business as anapproachtomanageallrisks inanintegrated manner, Danamon usesthe Integrated Risk Management approach Effectiveness ofthe Risk Management System At the BoardofDirectors level andis responsible Risk Management Committee With the highest authority atthe BoardofCommissioners Risk Monitoring Committee policies andevaluating significant risk issues. by monitoring the implementation of risk strategies, of the overall risk both atDanamonandSubsidiaries the PresidentDirector regarding the management for evaluating andproviding recommendations to exposures. the responsibilityofBoardDirectors inmanaging risk risk management strategies and policies and to evaluate of Commissioners inrelation tothe implementation of to monitorandprovide recommendations tothe Board level, this committee functions asasupervisory board Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 343 Investment Risk Risk Investment the Bank and/ is the risk due to of or Subsidiaries bear the loss is financed that business customer’s sharing or net and loss under a profit Investment sharing scheme. revenue Sharia Business risk is managed by Bank and Subsidiaries. Unit, both for PT Bank Danamon Indonesia Tbk. Strategic risk Strategic in the making inaccuracy Is the risk due to of strategic implementation and/or changes anticipate to decisions and failure risk Strategic environment. in the business the management is carried out through conformity strategy of business analysis conditions. environment with the business business areas: to Risk is related Strategic and human technology plan, information resources. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching on the financial position and reputation of the reputation on the financial position and Risk the Legal manner, Bank. In an integrated with the legal also works management team in the Subsidiaries. risk management team Risk transaction Intra-group other entities in to or indirectly of an entity either directly the dependence is the risk due to and unwritten of written obligation contractual fulfill a to in order a Financial Conglomeration risk is transaction the funds or not. Intra-group either transfer by which followed agreement with Subsidiaries. Bank together managed by Legal Risk Legal weakness and/or lawsuits is the risk due to risk management is of juridical aspects. Legal of identification a process carried out through can cause legal risk in the that of the factors and processes products, line of business, an impact have that technology information is carried out to minimize impacts that can lead to financial losses and reputation damages. reputation and financial losses can lead to that impacts minimize is carried out to security risk (including risk management also includes management of information Operational continuity. risk and business technology security risks), cyber security risk) Security Risk (including cyber Information risk of potential terms the Bank in by owned data and/or the use of information to is the risk related Availability. and Integrity of Confidentiality, the aspect from Risk Technology on computer/ use of or reliance the extensive arising from losses outcomes/ adverse Is the potential processes. and operations support the business to systems related technology Operational Risk Risk Operational and/or failure, system error, human processes, internal failed and/or inadequacy is the risk due to risk management activities. Operational the operation affect that events of external the presence is the risk due to decrease in stakeholder’s in stakeholder’s decrease is the risk due to negative comes from that of confidence level Risk is managed in an Reputation perceptions. handling of customer through way integrated public relations performing complaints, as news negative to functions, responding required information as communicating well basis, On a consolidated stakeholders. the to Risk management team Reputation the Bank’s in the with the risk management team works Subsidiaries. Reputation Risk Reputation 2019 arises due to movement in movement arises due to such as interest factors market on rate and exchange rate on the portfolio Danamon’s as Liabilities, side as well Asset book and in the trading banking book position, which cause to has the potential bank. the to losses Market Risk Risk Market on balance is the risk of losses sheet sheet and off-balance positions, including derivatives overall due to transactions, conditions, changes in market including the risk of option risk Market changes. price is the risk due to the change in the is the risk due to its the Bank to paid by of return rate of a change as an effect customers the Bank by received of return in rate the financing, which can from and/or party of third the behavior affect risk of return Rate fund customers. Unit, Sharia Business is managed by Bank and Subsidiaries. both for dan/atau tidak melaksanakan tidak melaksanakan dan/atau perundang-undangan peraturan Risiko berlaku. yang dan ketentuan kerja oleh satuan dikelola kepatuhan fungsi melakukan independen yang kepatuhan. Risk of return Rate Compliance Risk Compliance tidak mematuhi akibat risiko Adalah Credit Risk Risk Credit risk due Subsidiaries, including credit the Bank and/or to meet its obligation parties to other and/or of the debtors failure is the risk due to policies established risk is managed through risk and settlement risk. Credit credit counterparty risk, concentration credit failure, debtor to loan management non-performing pricing, monitoring, approval, and origination credit criteria, granting credit covering and procedures management. and portfolio which can be pledged, without the activities and disturbing condition of the Bank/ financial Financial Conglomeration. Liquidity Risk Liquidity Risk the inability Is the risk due to of the Bank/ Financial meet its to Conglomeration cash from obligations maturing and/or sources funding flow liquid assets high quality from Annual Report management also include Intra-Group Transaction Risk. Further explanation is as follows : is explanation Further Risk. also include Intra-Group Transaction management Type of Risk and Its Management and Its of Risk Type Risk, Legal Risk, Operational Risk, Liquidity Market Risk, Risk, Credit include in Danamon individually risks inherent The risk in integrated risk inherent While Risk. and Investment Risk of Return Rate Risk, Compliance Risk, Strategic Risk, Reputation Main Management Company Management Operational Good Corporate Corporate Corporate 344 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. • • • • • • • • • • • • • Integrated Risk Management: Achievement ofIntegrated Risk in2019 Operational Review inthe Danamon’sAnnualReport. efforts andorganization aredisclosed inthe Risk Management Specific discussion ofthe typesofrisks, risk management risk management. and various kindsofe-Learning modules related to employees through face-to-face classroomtraining means ofrisk management learningforallBank 14/POJK.03 /2017. has beendone. related toSustainableFinance. conducting several in-classtraningsandE-learning increase employee awarenessamongothers through Finance Action Plan,where the focusin2019is to Service Institutions, IssuersandPublic Companies. Implementation ofSustainableFinance forFinancial fulfill POJKno.51/POJK.03/2017 regarding the Action Plan for period of 2020-2024 in order to with regulatory requirements. Conglomeration. the Bankandits Subsidiaries within the Financial Danamon andBankNusantaraParahyangan. which is related tomerger process betweenBank supervision to the overall change projects, one of and guideline aswellprovide governance and which inchargetodevelop policy, procedure, Management underIntegrated Risk Directorate, Lines ofBusinessandSubsidiaries. (RAS) periodically, including cascadeitdowntothe implementation. focus onthe campaign ofThreeLines ofDefense OJK andBI. template andmacroeconomy scenario provided by at leastonce ayear. been hadbythe Bankcontinuously. Establish newdivision namely ChangeRisk Review and monitor the Risk Appetite Statement Conduct various programs of Risk Culture that Participate inthe JointStress Test exercise using Conduct bank-widestresstests according toBaselII Implementation of ICAAP framework that has already Roll outRisk Academy on anongoingbasis asa Update Recovery Planinaccordance with POJKNo. Development andissuance ofSustainability Policy Implement programs stated inthe Sustainable Preparation andsubmission ofSustainable Finance Improvement ofRisk Profilereportinaccordance Implementation of Integrated Risk Management in • • • • • • Credit Risk Management: • • • • • • • • • Establish andcategorize different typesofindustries Establish Credit Product Program andGuidelines Parallel run the calculation ofPSAK71orIFRS9 Model Implement Behaviour Scorecard andInternal Rating Implementation pilotofEarlyWarningIndicator for Monitor Internal Rating ModelresultforCorporate, Perform backtesting periodically to assessthe Regularly review ofproduct programs, interms Regularly review ofallrelevantprocedures, policies Stop the lending to high-risk loansin the Micro Credit Limit the lending tohigh risk segments such asUPL. Review SME Credit Guideline andrevise credit criteria Continue the focusonacquiring newloansinlowrisk Establish Credit Guideline andcredit authority to In progresstoimprove the implementation into industrial groups of high restricted, high, medium, Guideline. on provision related Credit Product Programand Standard Policy aims toprovide guidance andupdate and Investment. KTA, Micro Credit (SEMM), AutoLoan,Consumption Financing Company,SME, KPR,KMG,Credit Card, for Corporate, Commercial, Financial Institution, business tosupportcredit process. Model forSmallMedium Enterprise (SME) lineof Corporate andCommercial lineofbusiness. Company lineofbusiness. Commercial, Financial Institution andFinancing backtesting results. of credit provision willbedonebasedonthat adequacy ofcredit provision. Ifnecessary, addition requirements, andmakenecessary adjustments. of portfolio, criteria, andrestrictions andother other relevantauthorities. any adjustments required byOJK/BIregulation and and limit,makeadjustment if necessary, including (SEMM) andstrengthen the collection strategy. triggers forhigh risk segments. for segments with badperformance andsetcaps Sell. line ofbusinesssuch asMortgage andconduct Cross part ofthe merger process. manage Business Banking portfolio from ex-BNP as the subsidiary. mechanism ofOneObligor concept inthe Bankand industries with medium andlowrisk levels. and low risk levels. The Bank will focus its growth on Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 345 PT Bank Danamon Indonesia Tbk. calculation aligning with OJK Regulation No. 50/ OJK Regulation with aligning calculation POJK.03/2017. response process to cyber incidents, including the the including incidents, to cyber response process as Playbook document, Response Cyber Incident cyber to identify for employees a simple guideline incidents. program (BCM) Management Business Continuity of the contingency to maintain the implementation of event in the operational and activities business includes critical implementation The emergency. of a coordination by doing units, and non-critical (BCP) Plan Continuity Business of preparation the BCP testing. the and supervising documents and handling in managing active who is Coordinator region and in the office head at the both incidents bank’s operations sustainability of the to ensure the of an incident. event and business in the and of management to all levels Management and Technology BCM, including employees, media, various through Risk Security Information Risk as: e-mail blast, PC/ laptop screen saver, such and online training (e-Learning). Academy, and policies structure functions with stakeholders in the first line of defense first line of defense the stakeholders in with functions information using management to risk related services. technology the to and focusing according by prioritizing Policy strategy. agreed implementation the automate to Modelling system Cyber Threat the activity. assessment threat cyber sensitive process that for vendors risks security of classification the Bank with to the data belonging confidential. strictly confidential/ eMail Exercise as Phishing such exercises simulation to business units, and Cyber Table Top Exercise Management Incident support units, operational Management. and Senior Team comprehensive the continue and Develop Team Management Incident an as acts BCM Risk Information awareness regarding the Build limit Risks Bank’s Market and Liquidity the Updating (NSFR) Ratio Stable Funding of Net Enhancement Perform effective consultation and communication and communication consultation Perform effective Security Bank’s Information the implement Gradually will implement Bank initiative, previous the Continue for handling information a framework Develop through awareness programs risk cyber Conduct the regulates that document framework the Revise • • • Management: Risk Market and Liquidity • • • • • • • • Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Conduct risk assessment and ensure an adequate adequate an ensure and assessment risk Conduct Improve the ability of early detection on the potential potential on the ability of early detection the Improve Management Risk Technology Information Develop Implement an escalation mechanism for potential/ mechanism an escalation Implement to ensure that Acceptance Risk the Implement Implement ORPA (Operational Risk Pre-Assessment) Pre-Assessment) Risk ORPA (Operational Implement a tool for to provide Issue of Self Raise Campaign Build the awareness of Operational Risk Management Management Risk awareness of Operational the Build Improve the independence of functions and roles of and roles of of functions independence the Improve System Management Risk Operational the Refine Credit Quality Assurance (CQA) has been effective has been effective (CQA) Quality Assurance Credit management and use of Information Technology Technology and use of Information management services. Policy, which can be used as a reference in the in the can be used as a reference which Policy, use in the management of risk implementation in a Bank services Technology of Information environment. to minimize control systems internal control in the impact on and their risk and residual inherent fraud by providing the Whistle-blower channel channel Whistle-blower the fraud by providing party. independent third through operational risk event. risk operational the however cannot be mitigated, which issues still is risk out and the will be carried process/activity by relevant Bank, should be approved borne by the management. management. initiatives on new strategic risk the to review mitigation. of risk recommendation the including the arise potentially that an issue to raise employees risk. operational operational risk management comprehensively at at comprehensively management risk operational Danamon and Subsidiaries. email module, Academy Risk e-Learning, through to fraud awareness campaign blast, and anti all of management throughout awareness enhance risk of operational importance the on and employees operational risk officer in lines of business, support in lines of business, support officer risk operational and Subsidiaries. functions in effectiveness the improve to application (ORMS) looking credit review/monitoring, where currently the the currently where review/monitoring, looking credit has Enterprise branch that only to regional coverage are to provide CQA functions portfolio. Banking (EB) decision credit of on appropriateness assurance and policies credit with compliance review making, of outputs and process and review methodologies, approval. credit since 2019 as a second line of defense which of defense which line 2019 as a second since independent forward- responsible to conduct Annual Report • • Information Management, Risk Technology Information and Business Continuity: Security • • • • • • Operational Risk Management, Fraud & QA: Management, Risk Operational • • • Main Management Company Management Operational Good Corporate Corporate Corporate 346 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. THREE LINES OFDEFENSE Indonesia Regulation No.7/3/PBI/2005concerning Legal Regulation No. 8/13/PBI/2006 regarding Amendment toBank Lending Limit forCommercial Banksand Bank Indonesia Indonesia regulation No.7/3/PBI/2005regarding the Legal LLL calculation forperiod ofJanuary –May2019referstoBank Group DebtorandState OwnedEnterprises. Related Parties, NonRelated Parties either Individuals or During 2019,there werenoLLL violations orexceeds tothe and approval fromthe BoardofCommissioners. Compliance Review (HUK) fromthe Compliance WorkingUnit normal commercial requirements andis required to obtain is conducted onanarm’s-length basis andinaccordance with Risk. The provision offundstorelated parties andSubsidiaries groups orindustrial sectors inordertoreduce Concentration Danamon limits the concentration of loans to individuals, Provision ofFundstoRelated Parties andLargeExposures • • management ineachworking unit. that responsible to conduct daily risk units are theFirst LineofDefense units andothersupportingworking Line ofbusiness, operational working • • • No 2. 1. position. 12/SEOJK.03/2018 tobereported starting June2019 (IRRBB) incompliance with OJKCircular Letter No. support Treasury’s newproducts. measurement methodology, including those to Implementation ofInterest Rate Risk inBankingBook Validation of the market and liquidity risk Units Other SupportingWorking Operational Working Units Line ofBusiness First Line ofDefense Largest Group/ Debtor Provision ofFunds Related Parties monitoring function independently. Second LineofDefense to perform risk Compliance Divisionhave arole asthe Integrated RiskDirectorate and • • Board ofCommissioners Supervision Board ofDirectors Supervision Compliance Division Integrated RiskDirectorate Second Line ofDefense Subsidiaries andCore Management INTERNAL CONTROLSYSTEM Commercial Banks. regarding Legal Lending Limit andLargeExposurefor LLL calculation referstoOJKregulation No.32/POJK.03/2018 Lending Limit forCommercial Banks.Starting June1,2019, • • in diagram below: Danamon adopts ThreeLines ofDefenseapproachasshown Risk Management andInternal Controlframework in Liabilities sides. covering allaspects ofbusinessboth fromthe Assets and Danamon’s andSubsidiaries’ internal controlis doneby and Subsidiaries’ activities with arisk-based approach. measure, monitor, andcontrolrisks arise fromDanamon’s procedure andorganizational setting that aimed toidentify, Internal Controlis anintegrated methodology, policy, Study andreview the OJKConsultative Paper Enhancement of ALM System to support alignment Adequacy Requirement forMarketRisk. pertaining to the Revision to the Minimum Capital of NSFR calculation andreporting aswellIRRBB. 25 Groups Debtors by theFirst andSecond LineofDefense. management implementation conducted that is responsible for evaluating risk role astheThird LineofDefense Internal Audit Working Unithasa • (SKAI) Internal Audit Working Unit Third Line ofDefense Nominal (MillionIDR) Annual Report 18,214,307 1,668,460 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 347 PT Bank Danamon Indonesia Tbk. Impacts toward Danamon Conditions Impacts Case had no financial impact for Case had no financial impact for Danamon ongoing is still proceedings Legal 5 80 Criminal Since mid-2018, the Credit QA function specifically for the for the specifically QA function Credit mid-2018, the Since been transferred line has business (EB) Banking Enterprise Risk and Enterprise (Credit Directorate Risk Integrated to the Division). Management Control on Internal Level of Effectiveness Evaluation System part of is which Working Unit (SKAI) Audit Internal The ensure the to audits conducts Control System Internal an control, through of Danamon’s internal effectiveness and compliance of adequacy independent evaluation evaluation The and systems. procedures policies, with one is control system of internal implementation of the of effectiveness the to determine management of basic The control system. internal of the implementation the system control internal of the effectiveness of the evaluation for making basis the is which rating audit by the illustrated is form of updating in the among others, improvements, systems. procedures/ policies/ Total Cases Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 255 546 Civil 2019 Cases Faced by Danamon Cases Faced [possess legally binding verdict] legally binding [possess Ongoing process Resolved Resolved internal control is not only the task of the Quality Assurance Quality Assurance task of the not only the control is internal roles and responsibility of all working units. unit, but the The implementation of internal control carried out by the out by the control carried of internal implementation The 2019 has included divisions, Unit until Quality Assurance to the inspection The and support functions. subsidiaries done regularly. working unit is working of control internal regarding programs Awareness principle, In unit. QA by regularly out carried also are units procedure (SOP) based on Danamon’s Quality Assurance Danamon’s Quality Assurance based on (SOP) procedure Framework. and structure organization Danamon has a well-structured on all based It is management. assurance for quality suitable main person in charge to act as the have business functions in each business unit. management assurance quality in the Quality Assurance (QA) Quality Assurance executor control internal as units (QA) Assurance Quality All standard operational have in Danamon and Subsidiaries Annual Report Legal Disputes involving Danamon Danamon involving Disputes Legal Note: court process. through had been submitted period year reporting by Danamon during cases faced and criminal Civil 2019. of December 2019 as per data during Total cases recapitulation LEGAL DISPUTES OR SIGNIFICANT CASES FACED BY CORPORATION, SUBSIDIARY, MEMBERS OF BOARD OF OF BOARD OF MEMBERS SUBSIDIARY, BY CORPORATION, FACED CASES OR SIGNIFICANT LEGAL DISPUTES BOARD OF COMMISSIONERS OF AND/ OR MEMBERS DIRECTORS and had been period, year reporting the during Subsidiary by Danamon and its cases faced or criminal are civil Disputes Legal court process. through submitted Main Management Company Management Operational Good Corporate Corporate Corporate 348 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Adira Quantum Multifinance is inliquidation process. Note: PT Bank DanamonIndonesia Tbk. Legal Disputes involving Subsidiary Legal Disputes involving members ofBoardCommissioners ormembers ofBoardDirectors becomes PTBankDanamonIndonesia, Tbk.in1989. Announcement No.85dated October25,1977, andfinally dated August 13,1976 which wasincludedinAdditional State becomes PTBankDanamonIndonesiabasedonDeedNo.18 State Announcement No.31dated April 17, 1959, then 159 dated August 21, 1958 which was declared on Additional then becomes PTBankPersatuan Nasinalbased onDeedNo. PT BankKopraIndonesiawasestablished onJuly16, 1956, Jakarta District Court. registered underNo.909/Pdt.G/2016/PN.Jkt.Sel. onSouth Irene RatnawatyRusli (heir ofex-shareholderRoesliHalil) Taty Djuariah (heir ofex-shareholderDaudBadaruddin) and heirs of ex-shareholder of PT Bank Kopra Indonesia namely President Director ofBankDanamonreceived lawsuit from In January 2017, Bank Danamon and Sng Seow Wahas Civil CaseHeir ofEx-Shareholder year’s report,however, wecanconvey itasfollows: That the casesbelowhasbeensubmitted inthe previous SIGNIFICANT CASES FACEDBYDANAMON Legal Disputes involving PTAdira DinamikaMulti Ongoing process [possess legallybindingverdict] Resolved Ongoing process [possess legallybindingverdict] Resolved Ongoing process [possess legallybindingverdict] Resolved Commissioners &members ofBoardDirectors Legal Disputes faced bymembers ofBoard Legal Disputes involving PTAsuransiAdira Dinamika Finance Civil Civil Civil 19 3 - - 1 1 Total Cases Total Cases Total Cases had submitted Appealandregistered Memory ofAppealon of IDR4,841,100,000. Regarding the verdict, Harijanto Karjadi Danamon wascondemnedtopay compensation inamount Karjadi’s claims had been granted partially, and Bank received verdict onSeptember 19,2016 inwhich Harijanto Verdict Announcement onOctober 3,2016, where casehad on Denpasar District Court, Bank Danamon had received ex merger Bank PDFCI) onCaseNo.30/Pdt.G/2016/PN.Dps Bank Danamonfaced lawsuit fromHarijanto Karjadi (Debtor Cases ofDebtorHarjantoKarjadi (ex BankPDFCI) is arequest forreview bythe plaintiff. of the Judicial body anddecision hasalegalforce until there Thus, the bankDanamonasthe party winatthe three levels District Courtverdict. from Plaintiff wasrejected, andreinforce the High Courtand No. 1891 K/PDT/2019 where basically the Cassation request Supreme Court of Republic of Indonesia had given verdict and reinforce the District Courtverdict. OnAugust 15,2019, basically the Appealrequest fromPlaintiff wasrejected October 29, 2018,JakartaHigh Courthadgiven verdict where verdict where basically allofPlaintiff claims arerejected. On On January 3,2018,South JakartaDistrict Courthadgiven Criminal Criminal Criminal ------Impacts towardSubsidiary Conditions Impacts towardSubsidiary Conditions Impacts towardDanamonConditions toward Subsidiary Cases hadnosignificantimpact None None None None None Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 349 PT Bank Danamon Indonesia Tbk. verdict where the Plaintiff claims are rejected entirely. On On entirely. are rejected claims Plaintiff the where verdict No. verdict given Court had Jakarta High 20, 2019, August Court verdict. District the reinforce that 444/PDT/PT.DKI of the party win at 2 levels Bank Danamon as the the Thus, been have report there of this date party and up to the judical t Court related Distric Jakarta South from the no notification plantiff. appeal of the the BY THE SANCTIONS OF ADMINISTRATIVE DISCLOSURE AUTHORITY SERVICES FINANCIAL imposed by sanctions were no material 2019, there During Board of Directors of the on Danamon, members regulators of Danamon. Board of Commissioners of the and members FRAUD INTERNAL management, out by the fraud carried the fraud is Internal and non-permanent employees permanent employees, work to related personnel) outsourced and (honorary table below is The activities. operational and processes impact of financial fraud cases with number of internal the million rupiah): (one hundred IDR 100,000,000 more than Civil Case Debtor PT Prima Ira Jaya (ex Bank Duta) (ex Ira Jaya Case Debtor PT Prima Civil Jakarta on South Case No. 484/Pdt.G/2018/PN.Jkt.Sel. Civil lawsuit had received Bank Danamon Court, where District Bank of ex be Debtor to who claims Ira Jaya Prima from PT to Bank debts to settle its wanted Plaintiff Duta, where Duta), and of Bank successor Danamon (as obligations demands the lawsuit The of collateral. return the request of of Finance Bank Danamon and Ministry Court to declare law the against acts conducted had Indonesia of Republic in amount of IDR 13,500,000,000 (thirteen and compensation of and confiscation million rupiah) hundred billion and five Bank Danamon Headquarters. ex Debtor has the Based on Bank Danamon investigation, time at the transfer documents on the been registered never as transitional registered been and has never merger, of the (IBRA), Agency Debtor of ex Indonesia Bank Restructuring of Republic of Finance managed by Ministry is now which On Assets. General of State Directorate of Indonesia cq Court has given Jakarta District 14, 2019, South February Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Annual Report of Police Force of Republic of Indonesia. of Indonesia. of Republic Force of Police Bank Danamon to Bank Multicor (China Construction Bank), Bank), Construction (China Bank Danamon to Bank Multicor loan syndication 3 (three) currently possess those who is china the information, latest and based on the collateral. to claim right Banks has transfered the construction trust 3 coallateralcredit including loan facility syndicated the on- still is investigation The parties. loans to third syndicate of Headquarters Agency Investigation Criminal going in the LP/948/IX/2016/Bareskrim dated September 21, 2016 where where 2016 21, September dated LP/948/IX/2016/Bareskrim and ex are Bank Danamon employee parties reported the Syndication for the of one of Bank who participate Director Kencana, Bank Windu became then Loan (Bank Multicor, report Bank). The Construction China and finally becomes of 3 (three) of embezzlement allegation the regarding is had been transferred from which loan collateral syndication 22, 2019, and is currently waiting for Judicial Review verdict verdict Review for Judicial currently waiting 22, 2019, and is of Indonesia. Court of Republic from Supreme LTD Ventures Case Fireworks Criminal Ventures by Fireworks Report Criminal Bank Danamon faced of of Headquarters Agency Investigation LTD on Criminal report number Indonesia with of of Republic Force Police Denpasar District Court and High Court verdict, and also and also Court verdict, Court and High Denpasar District So based cannot be accepted. claims Plaintiff the declared bank level casation court the supreme of the decision on the on courts supreme the party won Againts the Danamon is Judicial submitted had Karjadi Harijanto level, casation the 4, 2019 and Bank Danamon had on September request Review on November Review of Judicial Memory Counter submitted on April 26, 2017 with the verdict to reinforce the Denpasar Denpasar the reinforce to verdict the 2017 with 26, on April Bank 19, 2016. September dated Court verdict District Court of on Supreme Cassation Danamon had submitted 2018, Indonesia on July 21, 2017. On October 8, of Republic verdict given had Indonesia of Republic of Court Supreme Court had granted Supreme where No. 2335 K/PDT/2018 the of Bank Danamon, and nullified request Cassation the October 20, 2016, and Bank Danamon had declared Appeal Appeal declared and Bank Danamon had October 20, 2016, of Appeal on Memory and registered on October 13, 2016 Court on High verdict received Case had 2016. 29, November Main Management Company Management Operational Good Corporate Corporate Corporate 350 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. regulations. Reports onfinancial condition includeQuarterly regulators andother institutes inaccordance with applicable non-financial condition are preparedandsubmitted to briefing forums andwebsites. Reports onfinancial and through massmedia, public exposureandthrough analyst financial andnon-financial condition is regularly disclosed Access tocompanyinformation anddatainthe formof FINANCIAL CONDITION TRANSPARENCY OFBANK’SFINANCIAL ANDNON- action Followed upthrough Legal Pending Process In Internal Process Completed Total internal fraud Corporate Governance Report Policies onCorporate Governance Management andOwnership Branch Network Products/Services Annual Report Analyst Presentation ofFinancial ReportPublished Consolidated FinancialReport Internal Fraud Type ofInformation 2019 - - - - - Management 2018 - - - - - Non FinancialInformation Quarterly Quarterly Quarterly Published Annually Annually Financial Information 2017 ------2019 danamon.co.id) : been disclosed andaccessible via Danamonwebsite (www. The followingarethe reports andinformation that have Branch Networks andother non-financial information. Governance report,information onProducts/ Services, Reports andnon-financial reports includeGoodCorporate Published Reports, Published Financial Reports, Annual 15 4 Danamon andresult ofcorporate governance assessment Information oncorporate governance implementation of Information oncorporate governance policiesofDanamon Information onthemanagementandownership structure Information onBranch Offices Information onproducts andservices that are offered segments, product information, profit Financial andnon-financialinformation, business Main financialandnon-financialinformation Summary ofFinancialPerformance according to BI standard ofFinancialAccounting inIndonesia Consolidated FinancialReport inaccordance with the 11 - - Permanent Employees Total CasesInvolving 2018 5 7 12 - - 2017 6 9 15 - - Contents Non-Permanent Employees 2019 - - - - - Annual Report 2018 - - - - - 2017 - - - - - 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 351 PT Bank Danamon Indonesia Tbk. The main factor is Net Profit After Tax (NPAT) before Tax (NPAT) before Profit After Net main factor is The condition, economic factor is second The the cost of restructuring. the etc. market, restructuring, regulation, government employees) voluntarily resigns, the deferred portion that that deferred portion the resigns, voluntarily employees) will be forfeited. matured has not yet as negligence, such violation has committed employees) in the discovered and just year previous the in etc. fraud, bonus, performance the and has received following year (Claw back). bonus can be withdrawn performance the After Tax (NPAT) before the cost of restructuring. Tax (NPAT) before the After of achievement the consider should NPAT the against plan set at the against the Danamon’s performance align should distribution bonus The year. the of beginning performance. individual and unit performance the with of 3 years. least for a period of shares/shares-based instrument. company not because by the terminated is employees) may portion deferred the fraud, or negligence mistake, of in payment. but cannot be accelerated be resumed the larger the level, position the higher The level. position are and schedule deferred portion The portion. deferred Committee. Resources Human by the determined Directors/ Board of (the a Danamon Executive If the provisions of the minimum wage of the relevant area relevant area of the wage minimum of the provisions the work location. employee’s of the Danamon’s of achievement based on the determined plan: against the performance - - pool bonus percentage in the increase or decrease The at deferred is bonus performance annual the of Part form into cash and in the divided is deferred portion The Directors/ Board of (the a Danamon Executive If by differentiated is deferred portion of the size The Directors/ Board of (the a Danamon Executive If For employees with the lowest salary should consider should consider lowest salary the with For employees are and senior management Bonus pool for employees Profit of Net percentage based on a certain Bonus Pool is 6. 3. with performance associated adjustment Remuneration and risk Taker Risk as Material appointed who are Executives For the can making decision in held authority the because (MRT) of part a profile, risk Danamon’s on impact significant a have to bonus will be made according annual performance their No. 45/ by OJK regulation as required following provision the POJK.03/2015: 1. 2. 3. 4. 5. 5. contribution and of performance measurement Based on the will be employees eligible the year, every to Danamon bonus. annual performance rewarded with and encourage to motivate bonuses are aimed Performance to Danamon. higher and contribute to perform employees employee are used to determine following guidelines The bonus: performance 1. 2. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 position market in the of position Scarcity Corporate business strategy Corporate market for a suitable in the Benchmark Study Skill Competency The payment reference of a position in the market is market is in the of a position reference payment The based on: differs salary amount of employee The Danamon implements a ‘Clean Wage’ system where where a ‘Clean Wage’ system Danamon implements for minimum as a guide structure Danamon uses salary - Performance - Experience - based on: - - - there is only a salary without any other allowances. any other without only a salary is there for a level. salary and maximum Annual Report 3. 4. The following guidelines are used for determining the size of of size the are used for determining following guidelines The salaries: employee 1. 2. Performance measurement associated with with associated measurement Performance Remuneration Danamon employee, fair rewards to every In order to give of weight takes into account and considers the always market for the in the and skills and practice job employees’ similar position. with risk associated Remuneration company will the to employees, remuneration In providing from all type of risks. may arise that risk potential consider the taken, the decision from the resulting of a risk event In the of deferral period the to extend right the company reserves variable. given the her own Key Performance Indicator (KPI) as a measure of of measure a (KPI) as Indicator Performance own Key her working unit to KPIs in the not related is that performance supervises. she he/ implementation and its policy Scope of remuneration in both to all business units applies policy remuneration This business unit. Sharia including and in regions headquarter and approach to determine remuneration for all Board of for all Board of remuneration and approach to determine based on and employees Board of Commissioners, Directors, in the equality to Danamon, and its work, contributions their position. same market for the control unit in the remuneration employee To ensure that has his/ each employee ensured that independent, it is is level at Danamon always competitive in the market, so that market, so that in the competitive at Danamon always level to best contribution to make the employees it motivates Danamon’s business continuity Danamon and supporting in institution financial a leading become to and mission Indonesia. process the regulate to aims policy remuneration The Policy Process Drafting Policy Remuneration philosophy important to apply the is Danamon considers it remuneration to keep the of good remuneration and principles Remuneration Main Management Company Management Operational Good Corporate Corporate Corporate 352 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Remuneration Type andFacilities as the Material Risk Taker(MRT)forthe positions asfollows: company hasdetermined DanamonExecutives categorized a significant impacttothe Bank’srisk profile. Therefore, the Executives whohave authority tomake decision that canhave the principle ofremuneration with aprudence torisk for Remuneration forCommercial Banks,Danamonapplies Implementation ofCorporate Governance inProviding Regulation No.45/POJK.03/2015 concerning the In the implementation ofthe Financial Services Authority Material Risk Taker Position andnumberofparties categorized asthe Term Incentive (LTI) program. uses the same consultanttoassist indesigning the Long reference for determining employee salary. Danamon also annually. The resultofthe salary survey willbeusedasa consultant forconducting salary surveys which is conducted Danamon usesconsultantWillis TowersWatson asa Remuneration related Consultants ** * Note: Total which: medical insurance, etc.) form ofNature (housing, Other facilities inthe form ofNonNature other facilities inthe allowance, tantiem,and Salary, bonus,Fixed Remuneration Type and b. Cannotbeown a. Canbeown From 8Commissioners, 2commissioners effectively resigned inthe year 2019and1Commissioner effectively joinedinthe year 2019 Of 12Directors, 2directors effectively resigned inthe year 2019and3directors effectively joinedinthe year 2019 Facilities Number of HC 12* 12* 12* 12* 2019 IDR Mio Board OfDirectors 108,712 100,071 6,080 2,561 Number of HC Amount Received in1(one)Year 9 9 9 9 2018 remuneration structure andnominalamountdetails,as Board ofDirectors andBoardofCommissioners cover the Remuneration andfacilities packagesreceived bythe Commissioners Remuneration ofBoardDirectors andBoardof Committee during the year 2019is IDR13.7billion. Total remuneration paidtoallmembers ofthe Remuneration Human Resources. Board ofCommissioners and1officer whois inchargeof Remuneration Committee consists of3members ofthe Remuneration forThe Remuneration Committee ------indicated inthe tablebelow: IDR Mio 83,433 75,355 Markets &Liquidity Risk Head Senior Credit Officer Enterprise BankingHead Treasury Head Chief Credit Officer Board ofDirectors 5,903 2,175 Number of HC 8** 8** 8** 8** 2019 Board OfCommissioners IDR Mio 24,792 22,351 1,443 998 Number of HC Annual Report 7 7 7 7 2018 IDR Mio 23,206 20,083 1,412 2019 1,711 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 353 1 211,524 - - IDR Mio 6 2018 2018 of HC 7,350 Number Number Employee - - 8** 2019 IDR Mio 222,596 Total Board of Commissioners 2019 PT Bank Danamon Indonesia Tbk. of HC 5,487 Number Number - - - 9 2018 11,150 IDR Mio 2018 6 of HC Number Number - - - 12* 2019 Total Board of Directors Long-term compensation program is provided very selectively selectively very provided is program compensation Long-term who have employees and Senior Board of Directors to the The and or hold key positions. performance excellent prerogative is programs compensation long-term of provision of Commissioners. and Board President Director of the Board of Commissioners number of Board of Directors, The for 1 (one) remuneration variable receiving and employees table below: in the as indicated and total nominal, year of Danamon, the performance of the Line of Business/ Business/ of Line the of performance the Danamon, of of each employee. performance and the Segment compared in salary ratio is the reward received by the Board Board by the reward received the is ratio compared in salary and employees. Board of Commissioners, the of Directors, The Highest and Lowest Salary Ratio and Lowest Salary Highest The in and stated received is that of employee right the is Salary to from company or employer form of money in return the with and paid in accordance stipulated is which employee law, including or regulatory a work contract, agreement family for a work her and his/ employee for the allowances is that has been undertaken. Salary that and/ or service 13,608 IDR Mio Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Board of Commisioners Total Received in 1 (one) Year Total Received 7 of HC Number Number 45,450 IDR Mio 2018 7 of HC Number Number 57,840 IDR Mio Board of Directors 2019 9 of HC Number Number 2019 Total Remuneration Per Person in 1 (one) Year ***) in 1 (one) Year Per Person Total Remuneration Total Of 12 Directors, 2 directors effectively resigned in the year 2019 and 3 directors effectively joined in the year 2019 year joined in the effectively 2019 and 3 directors year in the resigned effectively 2 directors Of 12 Directors, 2019 year joined in the effectively 2019 and 1 Commissioner year in the resigned effectively 2 commissioners From 8 Commissioners, recieved. cash remuneration Annualized Variable Variable Remuneration Above IDR 500 million s/d IDR 1 billion IDR 500 million s/d Above IDR 500 million and below Above IDR 2 billion Above IDR 2 billion IDR 1 billion s/d Above Note: * ** *** Annual Report first 1 (one) year. Remuneration Deferred Variable remuneration variable deferred of implementation The instrument of cash and/ or shares or shares based consists 2018. since has been implemented Unconditionally Guaranteed Variable Remuneration Variable Guaranteed Unconditionally is that remuneration variable Danamon does not provide of of Board candidates the to unconditionally guaranteed in the and/ or employees Board of Commissioners, Directors, compensation program which is aimed to retain the to retain the aimed is program which compensation to keep working at Danamon. company’s key employees Board of awarded to the bonus is Annual performance eligible and the Board of Commissioners the Directors, is year bonus every amount of performance The employees. performance overall by the will be determined which different VARIABLE REMUNERATION VARIABLE Danamon also provides remuneration, to fixed In addition form of annual in the to employees remuneration variable the appreciate to aimed is which bonus performance year every of employees contribution and performance long-term or program retention a of form the in also and Remuneration of Board of Directors and Board of Commissioners Based on Income Levels Based on Income of Commissioners and Board of Board of Directors Remuneration in 1 Board of Commissioners and the Board of Directors by the received level income packages grouped in the Remuneration table below: in the as indicated (one) year, Main Management Company Management Operational Good Corporate Corporate Corporate 354 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. 3) 2) 1) Quantitative information **) *) Keterangan: indicated inthe tablebelow: Employees whoareaffected bytermination ofemployment (Layoff)receive Severance. The Totalamountofseverance paidis Employment Termination andTotalNominalofSeverance Payment Danamon doesnotissue shareoption programforBoardofDirectors, BoardofCommissioners, andemployee during 2019. Share options 3) 2) 1) Details ofThe AmountofRemuneration Provided in1(one)Year IDR 500Millionandbelow Above IDR500Millionupto IDR1Billion Above IDR1Billion The Highest Board ofDirectors andthehighest employee The Highest andLowest Board ofCommissioners The Highest andLowest Board ofDirectors The Highest andLowest Employee Shares/ shares basedinstrument issued by theBank Cash Variable Remuneration *) Shares/ shares basedinstrument issued by theBank Cash A. Fixed Remuneration *)

below: jual/beli saham Total reduction ofremuneration causedbyimplicit adjustments during the reporting period, asindicated inthe table Total reduction ofremuneration causedbyexplicit adjustments during the reporting period; and Total remainingdeferredremuneration either exposedtoimplicit or explicit adjustments; Hanya untuk MRTdandiungkapkan dalamjutarupiah Tahun 2018BankDanamontidak dapatmemberikan remunerasi berupa sahamkarenasedangdalamperiode blackoutdi manadilarang melakukan transaksi the tablebelow: The formofremuneration provided incashand/orsharesorbasedinstrument issued by the Bank,asindicated in Deferred andUndeferredremuneration; and Fixed remuneration andvariable remuneration; Total NominalSeverance PaidPerPersonin1(one)Year Salary Comparison Ratio ** IDR 63,917 Undeferred Deferred ** IDR 62,509 2019 157.2 x 4.4 x 3.0 x 2019 1.3 x Total Employees 4,150 30 45 ** IDR 42,252 Ditangguhkan Annual Report 215.7 x 2018 4.8 x 2.7 x 2018 1.3 x 3,503 2019 19 17 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 355 - - - Description Total (A) + (B) - - - Mio) Value of Value of PT Bank Danamon Indonesia Tbk. Implicit Implicit Caused By Caused By Transaction (IDR (IDR Transaction Adjustment (B) Adjustment Total Reduction During Reporting Period Reporting During Total Reduction - - - Explicit Explicit Type of of Type Caused By Caused By Transaction Adjustment (A) Adjustment Nil Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching ** Variable IDR 42,252 IDR 42,252 Remaining Deferred Deferred Remaining Decision Maker Decision Name and Position of of and Position Name Variable Variable Conflict of Interest Conflict 2019 Name and Position with with and Position Name Remuneration Type *) Type Remuneration issued by the Bank (in number of of the Bank (in number by issued and nominal in IDR Mio as shares of number of shares) conversion Cash (in IDR Mio) based Instrument Shares Shares/ In 2018 Bank Danamon is not able to provide remuneration in the form of shares due to the blackout period where it is prohibited to conduct transactions of of transactions to conduct prohibited it is where blackout period to the form of shares due in the remuneration not able to provide In 2018 Bank Danamon is Only for MRT and disclosed in million rupiah Only for MRT and disclosed buying/ selling shares buying/ No.

1. 2. Annual Report FUNDING FOR POLITICAL ACTIVITIES FUNDING FOR POLITICAL in any donations providing including activities, in political Danamon’s involvement prohibits that Danamon has a policy activities. for political no funding was 2019, there purposes. During for political forms FUNDING FOR SOCIAL ACTIVITIES Annual Report. of this section Responsibility Social Corporate the in disclosed is activities funds for social of Provision CONFLICT OF INTEREST TRANSACTIONS OF INTEREST CONFLICT 2019. during transactions interest of of conflicts were no reports There and Parties Related Parties, Affiliated with Policy Transaction in the stipulated is Transactions of Interest Conflict Board of the member the occurs in a transaction, of interest conflict case that In the Transactions. of Interest Conflict transaction. of the or approval process review shall abstain from the concerned Board of Commissioners of Directors, BANK’S SHARES BUY BACK AND BOND BUY BACK BUY BANK’S SHARES in 2019. shares and bonds of both was no repurchase There Note: Note: *) **) Main Management Company Management Operational Good Corporate Corporate Corporate 356 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. b. Funding a. Credit be taken. In 2020,Danamonhasdetermined the strategic steps to Short Term Plan Danamon canincreaseits abilitytoserve customers. strong relationships with multinational customers, with MUFG’sinternational bestpractice, including their By combiningDanamon’slocalstrengths andnetwork governance. and improvement ofrisk management andgoodcorporate resource capabilities, technology facilities investment, liquidity management, increasedproductivity andhuman selling andinter-segment collaboration, moreoptimum sector, and Enterprise Bankingsector, and through cross- in the smallandmedium sized businesses,consumer diversified businessgrowth through increasedfinancing Danamon formulates amajorpolicy direction toachieve supported bythe latest technology. each segment, basedonsalesandservice excellence, and serving allsegments andoffering unique value-addedfor mission is to become a customer-oriented organization, responsibilities tothe widercommunity. Danamon’s sustainable finance is impossiblewithout carrying out and EnableMillionstoProsper“, because successful Danamon’s strategic planis basedonavision: “We Care Strategic Plan Bank’s taking intoaccountandmaintaining the Macro- Services Authority (FSA)/BankIndonesia(BI)while conditions and prevailing regulations of the Financial accordance with the funding requirements, market (NCD)/ Contingency Convertible Bond/others in Term Note (MTN)/ Negotiable Certificate ofDeposit is toexplorethe issuance ofthe bond/Medium approach. Danamon’sother funding related strategy partners, subsidiary networkandecosystem affluent andaffluent),cooperation with strategic segmentation approach(massmarket,emerging customer acquisition programs through customer growth including by:optimizing office networkand assisted byMUFGcollaboration. financial supplychainwillbedeveloped continuously, several programs including: distributor financing and (ADMF). Community approach basedgrowth through through subsidiary -PTAdira DinamikaMulti Finance motor vehicle financing andmultipurpose financing by loansin SME, Enterprise Banking, Consumer, and strategies. with regulatory provisions andDanamon’s business prudential Intermediation Ratio (RIM) in accordance Increase third-party fundsdeposittosupportcredit Balance growth with sustainable profitabilitydriven e. d. c. g. f. Networks Maintain prudential principles incredit disbursement Asset quality Enhance Danamon’sandsubsidiaries’ productivity Overhead costs Increase fee-based income through cross-selling, Non-interest income In anefforttosupportthe BankIndonesiaprogram, Prime Lending Rate (SBDK) Improve the efficiency and optimization ofdistribution business dynamics, periodical Portfolio Quality customer selection criteria andinaccordance with through adjustment andestablishment of enhanced manual processes. and operational efficiency through automation of out tasks,especially sales,collection andfrontliners, improvement ofhuman resource capabilityincarrying automation capabilities, effective cost management, means toenhance digital banking, dataanalytics and and efficiency through investment intechnological finance, FX, retailbondsandother products. bancassurance business, cash management, trade setting maximum depositinterest rate. supports the Financial Services Authority programby by the funding interest rate, where Danamonalso amount ofloaninterest rate cannotbeseparated in linewith the development ofthe BIRate. The credit quality andaligning Danamon’sfunding costs increasing productivity andefficiency, maintaining Danamon strives tomaintainfairinterest rates by locations. and relocating some branches to more optimal networks, merging similaractivities intoonenetwork including infrastructure through consolidating office networks by adjusting processes and organizations or alternative scoring with external parties. explore Financial Technology (fintech) collaboration lending tocertain SOEandlargecorporations and quality andparticipate inSupplyChainfinancing, collaboration, the Bankwillprovide credit with good Banking business.Additionally through MUFG application ofEarlyWarningSignal onEnterprise capacity, gradual automation ofcredit process, and and risks teams, increasecollection andrecovery awareness through credit risk training to business Review meeting amongIntegrated Risk, increaserisk Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 357 PT Bank Danamon Indonesia Tbk. create a dynamic space for the convenience and and convenience for the space a dynamic create and employees. of customers satisfaction increase customers, corporate and consumer the bank meet to help capabilities data analytics support business precisely, needs more customers’ enables that technology information with teams and customers, with relationships to build them operational in more efficient IT capabilities improve and security. process rating model for credit risk in all business lines in lines in in all business risk credit model for rating the improving process, credit stages to support the management risk of operational implementation risk and operational and strategy framework business lines and Subsidiaries, awareness across all for Pillar II Basel III - BIS Framework implementing (Net Requirement Regulatory Liquidity the measuring Risk Rate and Interest – NSFR) Ratio Stable Funding ALM system through (IRRBB) Banking Book in the FSA and Bank Indonesia Regulations, line with in in resources of human quality the and improving to be teams and support (operations) business, risk, risk- able to understand current business challenges, mitigations. risk and their elements, related to use and encourage customers service customer Continue branches. than networks other alternative and efficiency to achieve processes to centralize technology Information to offerings service digital increase to Continue Operational and CREM Operational to improve services unique simple, fast and Provide e. d. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 The strategic steps to be undertaken in relation to to undertaken in relation to be steps strategic The Risk Management Risk With MUFG collaboration, Danamon can strengthen Danamon can strengthen collaboration, MUFG With Supported by MUFG synergy, Danamon will continue continue Danamon will by MUFG synergy, Supported and implementation of the scorecard/ internal internal scorecard/ of the and implementation risk management are keeping Danamon’s growth are keeping Danamon’s growth management risk maintaining level, and prudent at an acceptable at of Danamon activities implementation optimal and minimizing level, risk liquidity “anticipated” cash in obtaining risk liquidity “unanticipated” the development the continuing sources, flow funding banking. Danamon will strengthen funding by issuing issuing by funding Danamon will strengthen banking. Bond Convertible NCD/ Contingency bonds/ MTN/ market Bank’s liquidity, the with in accordance will Danamon and prevailing regulations. conditions regulations. prevailing to accordance in RIM maintain and criteria of customer selection. of customer and criteria party funds from by increasing third funding motor cross selling with SME, Banking, Enterprise retail from aside payroll, and financing vehicle to grow the loans of consumer, small and medium, medium, and small consumer, of loans the grow to as well as and trade finance, Banking, Enterprise of household of supply chain, financing financing while of motor vehicles goods and financing credit in granting principles maintaining prudential Annual Report

c. b. Funding a. Credit Mid to Long Term Plan (3-5 years) Mid to Long Term next 3 to in the will be implemented that steps Strategic are: 5 years Main Management Company Management Operational Good Corporate Corporate Corporate 358 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. • • following financial andstrategic aspects: Director. The roleofInvestor Relations includesthe Investor Relations is directly responsibletothe Finance Investor Relations co.id inboth IndonesianandEnglish. are presented through the website http://www.danamon. and social activities, corporate actions andothers which reports andimplementation ofcorporate governance office networks,financial statements, annualreports, about products andservices, investor information, Booklets. Inaddition, Danamonprovides information media such asPressReleases andAnalyst Briefing stakeholders regarding Danamon through communication Danamon provides access andeaseofinformation for Information Access toCompany stakeholders. about Danamon’scorporate actions toeach etc. performance exposures,meetings, conferences, and creditors, regulators) inthe formofquarterly analysts, other stakeholders(rating agencies, business strategies, workplanstothe investors/ Provide adequate, reliable andtimely information Deliver regular financial performance updates, [email protected] [email protected] [email protected] Corporate Communications (021) 80645000 Ext. 8706; 8794 (021) 80645000 Ext. 8621;8611 (021) 80645000 Ext.8301; 8328 Corporate Secretary Investor Relations In addition, the public canalsocontact: co.id, andtwitter: @hellodanamon. number 1-500-090 andvia email:hellodanamon@danamon. Danamon. Hello Danamonis accessible 24hoursvia phone Danamon preparescommunication media through Hello handle customer complaints and/orprospective customers, fulfill the needsofproduct andservice information, andto In order to improve customer service and protection, to danamon.co.id. strategy canbeaccessed through the website www. Information aboutDanamon’sperformance update and Secretary andother teams underthe Finance Director. Corporate Communications, Integrated Risk, Corporate with the management, the leadersofeachbusinessunit, In performingits duties, Investor Relations worksclosely • Engage inDanamon’sstrategic projects, including those dealingwith independentconsultants. Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 359 9 11 12 13 Total Investor Date PT Bank Danamon Indonesia Tbk. April 5, 2019 August 6, 2019 August August 26, 2019 August August 20, 2019 20, August Explanation people who need information about Danamon. people who need information service) (customer Be the first door of communication (gateway) for for (gateway) first door of communication Be the account: @danamon, @HelloDanamon Twitter Bank Danamon Facebook: Instagram: @myDanamon Bank Danamon Indonesia LinkedIn: Bank Danamon YouTube: Jakarta Jakarta Location Singapore Singapore • Media Social are: accounts corporate Danamon’s official • • • • • Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Meetings with local/ overseas analysts/ investors to provide information information provide to investors analysts/ Meetings with local/ overseas and performance. strategy on Danamon’s Public Expose for media, analysts and senior management to provide provide and senior management to media, analysts Public Expose for conditions. on financial and non-financial final information with in accordance financial statements Publication of quarterly as a public company. Bapepam-LK requirements on Danamon’s and stakeholders the public to report A comprehensive and other activities. business performance, held by deal and non-deal roadshows in various Participation on information up-to-date provide securities firms to reputable challenges and opportunities and strategies, performance Danamon’s and other stakeholders. analysts investors, to CITI Organizer Macquarie JP Morgan JP Morgan Frequency meetings and 4 meetings and 4 call conference 4 times 4 times 1 time 4 times face to 43 face 2019 Event Forum Carry out external communication functions, functions, communication out external Carry Build and manage Danamon’s image in the community community and manage Danamon’s image in the Build of the function communication out the Carry Danamon management in the wider community wider community in the Danamon management form. and electronic print both mass media, through the determining messages, formulating including to information and delivering form of communication parties. outside through public relations function. relations public through JP Morgan ASEAN Banks Banks ASEAN JP Morgan Forum JP Morgan ASEAN Banks Banks ASEAN JP Morgan Tour Indonesia Investor 2019 Conference ASEAN Conference 2019 Conference ASEAN Roadshow and and Roadshow Conference meetings face to Face call and conference Analyst presentation/ presentation/ Analyst Public expose Financial Report Annual Report Annual Report • public, through mass media. Corporate Communications Communications Corporate mass media. through public, and reliable concise clear, effective, has a role to build and following scope of duties the with communication responsibilities: • • Corporate Communications Corporate for responsible is Unit Communications Corporate The between Danamon and the communication managing Information Disclosure for Investor during 2019 during for Investor Disclosure Information Roadshow/ Conference In 2019 Roadshow/ Conference Main Management Company Management Operational Good Corporate Corporate Corporate 360 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Danamon and further become the “Word of Mouth”. To the Customers, sothat customers willalways remember the region. Thus, allfrontlinerscanapplyanddeliver itto through interactive FunLearning methods throughout create Positive Customer Experience tothe Customers in the formofinsight onhowto deliver memorable and B Service Development involving Branchfrontliners,namely: continually strive toimplement various initiatives by To create memorable services ateachtouch point,we customers. creating Positive Customer Experience that impresses technological changes, being creative and proactive in in operating digital tools,continuously adapting to the digital era, the front liner is expected to be reliable Building technology-based Customer Experience in promote andreferDanamontothe others. Journey asawholebythemselves, sothat Customers will information, but also to experience the Danamon Service the Customer. Customers areexpected tonotonlyobtain provide addedvaluesaswellsustainrelationship to By designing positive andmemorable experiences, itwill aspect ofDanamonService Performance Achievements. based onpositive customer experiences is animportant implementing corporate strategy. Building perceptions Customer Experience plays avery importantrolein SERVICE QUALITY&CONTACTCENTER PT Bank DanamonIndonesia Tbk. ranch front liners are given various service trainings No. 3. 2 1 Indonesia &Infobank Marketing Research Indonesia &Infobank Marketing Research & Infobank Management Studies (ISMS) Institute ofService Organizer Survey 2019 and Engagement Satisfaction Loyalty Awards 2018/2019 Excellence Banking Service Overall 2018/2019 Service Quality Award NPS Index Performance Engagement Index Performance Satisfaction Index Performance -ATM Satisfaction Index Performance -Teller Satisfaction Index Performance -Customer Service Satisfaction Index Performance -Security Experience Index Performance SLE Index 2019 ATM Center Performance Call Center Performance SMS BankingPerformance Opening Account Mobile Application Performance Best Performance for Walk-in Channel Best Performance for Customer Service Best Performance for Teller Best Overall Performance Jakarta andBandung at the Teller andBilingual FormforExpatriate customers Screen hasbeendeveloped foroverbooking transactions simplify the transaction process atthe Branch, Single Danamon Savings Product Introduction. Meanwhile, to Relationship Management (CRM) and QR Code for such as Interactive Learning Games (D’Shima), Customer Front liners to all branches, we introduced Digital Tools communicated fast,easyandrealtime inreaching the Service Society ineazy. Tomakethose information being are alsocommunicated through Service Update and ensure the services areuptostandards.Allinitiatives and Guidelines that canbeusedbyFrontlinersto “Customer Centric”, we have developed Service Module As asupportforFrontlinerswhohave toimplement Service Communication &Tools Customer’s needs. delivering the best solutions based on services that fit confidence level ofthe customers bycollaborating in that end, wealways have tocontinue toincreasethe Danamon inthe Service field areasfollows: In 2019,various awardsthat have beenachieved by service performance. to the bestfrontlinerswhocontribute toBankDanamon’s can improve skills&knowledgeandappreciation events Front liners,wehave organized aservice programthat I Service Program who transactatthe Branch. n providing enthusiasm andmotivation tothe Branch Award Category Annual Report Rank 2019 4 3 3 3 3 5 2 2 2 2 2 1 1 1 1 1 1 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 361 PT Bank Danamon Indonesia Tbk. Digital Service is one of the strategies in accommodating in accommodating strategies one of the is Service Digital conduct to able is that segment customer millennial the independently, as well as for banking transactions to come to time who do not have customers prospective opening can be done of account Verification Branch. the by and assisted Call service Video the through directly D-Bank Officer. out include been carried have that initiatives Other skills & to improve Officers, training for Call Center needs and maximum knowledge in handling customer Experience “Customer to are oriented which service Call and presenting menu IVR the Focus”, by completing in Japanese, so who can communicate Officers Center who speaks Japanese. expatriate can serve they Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Annual Report registering and opening an account through the D-Bank D-Bank the and opening an account through registering a smartphone. installed on is which application, Officers are expected to provide the best solutions and and best solutions the to provide are expected Officers and feel comfortable customers so that services on time Experience. Customer Positive create Customer the realize that services digital latest One of the Prospective D-Bank Registration. Focus is Experience full control in have quickly, easily and customers, 7 days for various customer needs, through telephone telephone needs, through customer for various 7 days email: and @hellodanamon, Twitter number 1-500-090, [email protected] of a series Danamon is at Hello Experience Customer that and conditions in situations experiences customer Call Center so the information, fast and accurate require HELLO DANAMON HELLO easy access and of technologies of a variety presence The 24 hours/ serve to ready Danamon is Hello to information, Main Management Company Management Operational Good Corporate Corporate Corporate 362 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. by HRconsistently sothat Strategic andoperational throughout bank’soperational areas,management facilitated session betweenemployees andleadership representatives based onthe valuesofDanamon,organizing dialogue Danamon Essential People(DEP)trainingtobuild leadership employee, conducting DanamonEssential Leader (DEL)and using E-Learning method that canbeaccessed byevery of activities, including developing Corporate Valuesmodule To embedthe corporate values,Danamonconducts avariety work/ achievement ofemployees. employee development, careerdevelopment, recognition of be inthe formoffinancial ornon-financial, forexample: so that they canperformbetter. Appreciation rewardcan contribute more,aswellconduct coaching toemployees With the aimofproviding appreciation toemployees who an awardsystem basedoncontributions orknownas SIPASTI. In order to grow the corporate culture, Danamon implemented • • • • • Danamon. objectives inaccordance with the vision andmission of carrying outtheir duties andobligations toachieve the of Directors and Board of Commissioners of Danamon in order andcontrolover the conduct ofemployees, Board The corporate culture is the values that become guidelines, Culture Corporate

disciplined thoughts anddisciplined actions. ethics andprofessionalism, through disciplined people, team toachieve commongoals. company. involved and without compromising the solidity of our to achieve the bestresult,whilst mitigating the risk any hidden agenda. advancement ofothers willbring outthe bestinus. Deliver ourresponsibilitywith the highest standardsof Disciplined professionalism Leverage the diversity amongstusasthe strength ofour Teamwork Always daretocome upwith better ways of doing things, Passion toExcel Always holdthe truth toourselves andothers without Honesty Giving agenuine concern forthe well-beingand Caring employees toprovide better performance forthe company. to improve Employee Engagement, motivate and encourage conducted ineachLine ofBusiness/Directorate with the aim employees. SharedSuccess sessionactivities arealso speakers, coaching programs andawardprogramfor such assharing sessionfromboth internal andexternal has run programs that canimprove employee Engagement, Engagement ChampionfromeachLine ofBusiness(LOB) blast. As wasdone in the previous year, each Employee communications media such asmagazine, portal,andemail Engagement Insight articles periodically inseveral internal to Employee Engagement (EE), bypublishing Employee Danamon alsoconducts anumberofinitiatives related trust fromcustomers, shareholderandother stakeholders. the integrity andmutual commitment that canincreasethe training onanE-Learning-based CodeofConduct toenhance and others. Inaddition, Danamonalsoconducts mandatory media such asarticles distributed via emailBlast,newsletter communication canbecascadeddownwell,besidesother of Danamon. is expected tosupportthe businesscontinuity andreputation customers, colleagues andthird parties. The codeofconduct in conducting daily tasks and establishing relationship with committee orRisk Management Committee) andemployees parties outside ofDanamonwhoaremembers ofthe Audit Sharia Supervisory Board, including butnotlimited to management (BoardofDirectors, BoardofCommissioners, The code of conduct becomes a guideline of conduct for all to the vision, mission andvaluesofthe corporate culture. Danamon’s CodeofConduct is anethical valuethat refers In the year 2019,Danamonrenewedthe codeofconduct. Code ofConduct technology. measuring employee engagement periodically through digital addition, Danamonalsobegantobuild internal capabilityin understand Danamon’svision, mission andcultural values.In increase productivity andensurethat newemployees It is expected that the effective onboarding process can effort toprovide apositive experience fornewemployees. well asguidance forthe management ofthe workUnitasan Another initiative is to build the OnBoarding framework as values ofDanamon. strengthening collaboration andimplementing the cultural This activity alsogrowsapositive passionforemployees in Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 363 6 68 117 133 107 431 PT Bank Danamon Indonesia Tbk. Number of Employees of Terrorism: Danamon’s commitment to combating to combating commitment Danamon’s of Terrorism: and any other terrorism financing money laundering, kind of crimes. in Danamon’s ethics personal namely ethics, to work with ethics customers, with ethics environment, between ethics regulators, with ethics parties, third of gifts receiving giving/ and employees, management facilities, and use of customer protection banquets, and and corruption, and bribery associates, and relationship competitors. with ethics the and employees, of management and responsibilities of violation system, whistle-blowing annual statement, of the implementation and the Code of Conduct, the Code of Conduct. Anti-Money Laundering and Combating the Financing Financing the and Combating Laundering Anti-Money related all matters to govern Danamon Business ethics: roles the requires Code of Conduct: of the Enforcement • • • Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Type of Sanction Type 2019 Danamon Information Management: to govern all all to govern Management: Danamon Information Introduction: contains things related to the background background to the related contains things Introduction: concerning all matters to govern of interest: Conflict information to other parties. to other information Danamon’s interests, activities outside Danamon, the Danamon, the outside activities Danamon’s interests, and personal investment. use of Danamon assets management, about Danamon’s information matters the of Danamon information, safeguarding the namely and recordkeeping, reporting of Danamon’s accuracy usage and providing media social Danamon’s identity, of the Code of Conduct, objectives, vision, mission, and and mission, vision, objectives, Code of Conduct, of the values of Danamon. and interest personal between interest of conflict Warning Letter II Letter Warning III Letter Warning Letter Reprimand Total Termination Employement Termination I Letter Warning • The content of the Code of Conduct includes: Code of Conduct of the content The • • understand, obey, and implement the Danamon Code of Danamon Code of the obey, and implement understand, and therefore binding is Code of Conduct The Conduct. to sanctions may be subject Code of Conduct of the violation with in accordance or criminal civil administrative, of either Consequences and procedures. provisions applicable the up to will be sanctioned Code of Conduct of the of violation of employment. termination The Code of Conduct Statement Applies at All Levels of of at All Levels Applies Statement Code of Conduct The Organization Corporate know, must exception, without and employees Management Annual Report Sanction Imposed During 2019 Imposed During Sanction Main Management Company Management Operational Good Corporate Corporate Corporate 364 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. - - - - through several communication channels, asfollows: Danamon provides aneasilyaccessible reporting facility Mechanism ofViolation Report Submission co.id). Danamon Portal,and website (www.danamon. all employees through various media such asemailblast, Danamon hasawhistleblower policy that is socialized to Whistleblower Policy Danamon. and followedupbythe Whistleblower team appointed by that enters the whistleblower channelwillbereviewed Management and the Audit Committee. Any information are registered every month tobe reported periodically to Reports received together with the investigation results confidentiality ofthe reporter’s identity. is guaranteed. Danamon willprotect and maintainthe good faith andwithout fearorworry because confidentiality deviations that have takenplace openly,responsibly,in Any employee mayreportanydeviations orsuspected Danamon Whistleblowing Service (WBS). collaborates with third partyinmanaging andproviding protected andmonitoredforreporters, Danamon that is moreindependent,transparent,simple,confidential, In anefforttoimprove whistleblowing reporting system integrity inbusinesspractices. the implementation ofgoodcorporate governance and system is a form of Danamon’s commitment in supporting reporter’s identity keptconfidential. The whistleblowing employees and/or parties related to Danamon with the other codeofconduct violations involving Danamon embezzlement, financial report fraud, illegal activity and money fromcustomers, sexual harassment, theft/ related tofraud, policy offenders, bribes/lending-borrowing facilitate whistleblower(s) toreport incidents orallegations Whistleblowing System is acommunication channelto System Whistleblowing 10210 BDI Wisma GKBIFloor35,Jl.Jend. Sudirman 28,Jakarta Postal Address:KPMGSiddharta Advisory –EthicsLine SMS/Whatsapp: 0811-825-2662 Website: https://danamon-wbs.info/ E-mail address:[email protected] c. b. a. among others: security forreporters. Protection provided toreporters, Danamon provides protection tothe reporters toprovide Protection forReporters of the BoardofCommissioners. Audit Committee (Independent Commissioner) orChairman suspected partyinthe report,such asthe Chairmanofthe will beescalated toanindependentpartyother than the reported through the above communication channelsand Board ofCommissioners orthe BoardofDirectors canbe Potential orsuspected violations bymembers ofthe Board ofDirectors Potential Violations bythe BoardofCommissioners and of Directors andthe Audit Committee periodically. Reports onInvestigation Results arereported tothe Board have committed the violations. regulations tothe parties orperpetratorswhoareproven to applicable lawsandregulations and/orDanamon’sinternal actions and/orimposesanctions inaccordance with the Investigation results willbethe basis forthe decision totake presumption ofinnocence principle andobjectivity. independent Internal Investigation Team that upholds Investigation ofpotential violations is undertakenbyan investigation stageorforwardedtothe appropriate party. to beevaluated whether itwillbefurther processed tothe will forward the report received tothe Danamon WBS team administration ofthe complaints. Third partyWBSmanager the Danamon WBS, including managing the follow up and Danamon appoints anindependentthird partyinmanaging and ImposingSanction Managing Complaint,PartyWhoManagesComplaints, from physical and/ormental threats. as protection forpersonaland/orreporter’s familysafety covers protection fromcriminal and/orcivil claims, aswell with the prevailinglawsandregulations. This commitment Danamon alsoprovides legal protection that is inline d. Protection frompressure,employee rights, lawsuits, Protection againstretaliation fromthe reported party Protection ofconfidentiality ofthe reporter’s identity Protection is notonlyforthe reporter butcanalsobe or other interested parties. reporter. including information that canbeusedtocontactthe extended tofamilymembers ofthe reporting party. property andphysical retaliation. Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 365 11 Progress Investigation in in Investigation PT Bank Danamon Indonesia Tbk. 8 Not Proven Completed 3 Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Investigation Status of Complaints Status Investigation Proven Fraud/ Fraud/ Proven Code of Ethics Violation of Procedure/ of Procedure/ Violation 11 #Completed #Completed Investigation 2019 22 Received #Complaint #Complaint Annual Report not proven to be fraud. While the remaining 11 reports are still being investigated. are still remaining 11 reports the While to be fraud. not proven Result of Complaint Handling in 2019 of Complaint Handling in Result had been completely 11 reports end of 2019, WBS channels. As of the through 22 complaint reports Danamon has received were and 8 reports of conduct code of procedures/ violation to be fraud or have were proven 3 reports of which investigated, Main Management Company Management Operational Good Corporate Corporate Corporate 366 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Guidelines inPublic Companies, there are5(five) aspects, No. 32/SEOJK.04/2015concerning Corporate Governance Guidelines inPublic Companies andFSACircular Letter concerning the Implementation ofCorporate Governance Referring toFSARegulation No.21/POJK.04/2015 Guidelines InPublic Companies The Implementation ofCorporate Governance No. A. 2. 1. (GMS) Shareholders Meeting of of theGeneral Implementation the Value of Increasing CompanyPublic Relationship With Shareholders InEnsuringShareholder Rights or Investors with Shareholders Communication CompanyPublic Quality of Improve the Principle 2.1 2.2 1.3. 1.2. Guidelines onGoodCorporate Governance forPublic Companies 1.1. investors. communication withshareholders or companyPublic hasapolicy of (one) year. Company’sPublic Website for at least 1 Summary oftheGMSisavailable inthe GMS. CompanyPublic present at theAnnual and Board ofCommissioners ofthe All membersoftheBoard ofDirectors and theinterests ofshareholders. closed whichprioritizes independence procedures for voting bothopenlyand CompanyPublic hastechnical meansor or investors ontheWebsite. communication policy withshareholders CompanyPublic discloses the Implementation of25Recommendations Recommendation accordance with the applicable POJK. the aspects, principles andrecommendations ofthe OJKin as a public company haspaid attention to and implemented of goodcorporate governance delivered byOJK.Danamon 8 (eight) principles and25(twentyfive) recommendations Status :Comply (www.danamon.co.id). accessed through theDanamon’s website code ofconduct are available andcanbe of shareholders. AllGMSprocedures and prioritize theindependence andinterests making, andcalculation ofvotes that including thevoting procedures, decision which governs theholdingofGMS, Danamon hasaGMSCode ofConduct Status: Comply Danamon’s Website. Danamon which can be accessed through including for Shareholders orInvestors of Communication Policy ispubliclyavailable Status: Comply Danamon. communities to beactively involved with as enableshareholders andinvestment performance canbeassessed, aswell strategy, progress, operations andfinancial reasonable basis sothat Danamon’s investment community on atimelyand information to shareholders andthe governing theprocess ofproviding Danamon hasapolicy ofcommunication Status :Comply until now. both inIndonesianandEnglishsince 2015 has beenavailable intheBank'swebsite, held. The summaryoftheminutes ofGMS of GMS2(two) days after theGMSwas Danamon uploadedthesummaryofminutes Status: Comply Board andAudit Committee Members. was alsoattended by theShariaSupervisory March 26,2019. Inaddition,theAnnualGMS Danamon attended theannualGMSheldon members of theBoard of Commissioners of All membersoftheBoard ofDirectors and Explanation Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 367 Explanation PT Bank Danamon Indonesia Tbk. of Danamon’s members of the Board of of members of the Board of Danamon’s of Directors. and Board Commissioners Policy Danamon has a Succession maintain leadership to Directors for in the future. sustainability Comply Status: of the Board of Commissioners of Danamon Danamon of of Commissioners of the Board expertise knowledge, to attention paid have optimizing aimed at and experience of of the Board the implementation functions. supervisory Commissioners' Comply Status: Appraisal Danamon has a Performance Commissioners of Board the of Policy the assess as a guide to prepared of in the implementation performance of of the Board duties and responsibilities Commissioners. Comply Status: appraisal Danamon has a performance The of Commissioners. of the Board policy is disclosed policy appraisal performance on available is and Report Annual the in Website. Danamon’s Comply Status: of Board Members of Danamon’s in involved who are Commissioners the Board from resign financial crime must resign to obligation This of Commissioners. of of Board in the Charter is regulated Commissioners. Comply Status: Danamon of Commissioners of Board The and Committee has Nomination the which assist Committee Remuneration to in duties related of Commissioners Board functions and remuneration the nomination The amount, composition and structure and structure amount, composition The in are of Commissioners of the Board and in with the requirements compliance of complexity and size with the accordance business. Danamon’s of Board Danamon’s of 2019, the end At of 8 (eight) consisted Commissioners members members and 50% of the total are of Commissioners of the Board Independent Commissioners. number of members of the total The does not exceed of Commissioners Board of the number of members of the Board persons. 10 (ten) amounting to Directors, Comply Status: members for policy has a diversity Danamon of Commissioners. of the Board of members and structure composition The Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Recommendation Implementation of 25 Recommendations Implementation The Board of Commissioners or the or the of Commissioners Board The the Nomination performing Committee function shall and Remuneration in the policy a succession establish of the members of Nomination process of Directors. of the Board the performance of the Board of of Board of the the performance Commissioners. assess to policy self-assessment The of Board of the the performance the through disclosed is Commissioners, of the Public Company. Annual Report has a policy of Commissioners Board The of members the resignation to related they if Commissioners of Board the of financial crimes. in involved are Determination of the composition of of composition of the Determination of Commissioners members of the Board of skills, the diversity account into takes required. and experience knowledge, has of Commissioners Board The assess to policy a self-assessment Determination of the number of of the number of Determination of Commissioners members of the Board Public of the the conditions considers Company. Guidelines on Good Corporate Governance for Public Companies for Public Governance Good Corporate on Guidelines 4.4 4.2 4.3 3.2 4.1 3.1 2019 Principle Commissioners Improving Improving the Quality of Implementation of Duties and Responsibilities of of the Board Function and Role of the Board of Commissioners of the Board Function and Role the Strengthen Membership and Composition of of the Board Commissioners 3. 4. B. No. Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 368 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. No. C. 6. 5. Responsibilities of Dutiesand the Quality Improving Board ofDirectors Composition ofthe Membership and Strengthen the Function andRole oftheBoard ofDirectors Directors of theBoard of Principle 6.3 6.2 6.1 5.3 5.2 5.1 Guidelines onGoodCorporate Governance forPublic Companies involved inafinancialcrime. of theBoard ofDirectors ifthey are related to theresignation ofmembers The Board ofDirectors hasapolicy Annual Report Company. ofthePublic Directors isdisclosedthrough the the performance oftheBoard of The self-assessment policy to assess performance oftheBoard ofDirectors. assessment policy to assess the The Board ofDirectors hasaself- accounting. have expertise and/orknowledge in in charge ofaccounting orfinance Members oftheBoard ofDirectors knowledge, andexperience required. considers the diversity of skills, members oftheBoard ofDirectors Determination of the composition of decision making Company andtheeffectiveness of considers theconditions ofthePublic members oftheBoard ofDirectors Determination of thenumber Implementation of25Recommendations Recommendation making andimprove theperformance ofthe of thecompany, soasto optimize decision experience inaccordance withtheneeds into account theknowledge, expertise and members oftheBoard ofDirectors hastaken The composition andstructure ofthe of theBoard ofDirectors. Danamon hasadiversity policy for members Status: Comply members oftheBoard ofCommissioners. of Directors ismore thanthenumberof The numberofmemberstheBoard of Directors consists of10(ten) members. As ofDecember 31,2019, Danamon’s Board size andcomplexity ofDanamon’s business. requirements andinaccordance withthe of theBoard ofDirectors have metthe The number, composition andstructure Status: Comply Charter ofBoard ofDirectors. obligation to resign is regulated in the resign from theBoard ofDirectors. This who are involved in financial crime must Members of Danamon’s Board of Directors Status: Comply Report andisavailable onDanamonWebsite. appraisal policy is disclosed in the Annual of theBoard ofDirectors. The performance Danamon hasaperformance appraisal policy Status: Comply of Directors. the dutiesandresponsibilities oftheBoard the effectiveness oftheimplementation of for theBoard ofDirectors as aguideto assess Danamon hasaPerformance Appraisal Policy Status: Comply AccountantPublic -Indonesia. of Accounting degree andisaCertified Danamon's Finance Director hasaBachelor Status: Comply Company. Explanation Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 369 Explanation PT Bank Danamon Indonesia Tbk. Rights to obtain sufficient explanation obtain sufficient explanation Rights to and conditions the terms access Rights to through do transactions to Conveniences the amount in interest profit/ Obtain settling and handling for Procedures on product characteristics characteristics on product of funding products or e-banking services branches, any the Bank set out by other services applicable regulations to according complaints customer • • • • • in the procurement activities of goods activities of goods in the procurement and is available policy This and services. disclosed in Danamon Website. Comply Status: rights in the form Fulfillment of creditor their who place (customers of depositors governed is company) the within funds and policy protection under the customer that service of customer of conduct code covers: Comply Status: that Policy Danamon has a Whistleblower The system. the Whistleblowing regulates third is managed by system Whistleblowing in its independence guarantee parties to implementation. Comply Status: policy. Danamon has a Remuneration Comply Status: In order to prevent the occurrence of of the occurrence prevent to order In has a Personal Danamon Insider Trading, available is policy This Policy. Investment Website. Danamon’s through and accessible Comply Status: that of Conduct Danamon has a Code the Management and Employees prohibits and corruption bribery any in participate to forms. act in any In addition, Danamon also has a Gift Policy giving of prohibition the governs that management and gifts for and receiving employees. Comply Status: that policy Danamon has a procurement and ethics in the restrictions governs or vendors partners dealing with business Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Recommendation Implementation of 25 Recommendations Implementation Public company has a policy of of has a policy Public company the to incentives longterm providing and employees. of Directors Board Public company has whistleblowing has whistleblowing Public company policy system Public Company possesses a policy a policy possesses Public Company of on the selection and skill-upgrading suppliers or vendors. on the a policy has Public Company rights. fulfillment of creditor Public Company has a policy to prevent prevent to has a policy Public Company of insider trading the occurrence has anti-corruption Public Company policies and anti-fraud Guidelines on Good Corporate Governance for Public Companies for Public Governance Good Corporate on Guidelines 7.6 7.5 7.3 7.4 7.1 7.2 2019 Principle Participation of Stakeholders Participation Aspects Improving of Corporate Governance through Stakeholder Participation 7. D. No. Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 370 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. applicable lawsandregulations. Danamon hasapplied the principles ofgoodcorporate governance. During 2019there wasnomaterial violation tothe STATEMENT OFIMPLEMENTATION OFGOODCORPORATE GOVERNANCE No. E. 8. Information Disclosure of Improving Disclosure OfInformation Principle 8.2 8.1 Guidelines onGoodCorporate Governance forPublic Companies and controlling shareholders. of thepublicCompany through majority beneficial owner intheshares ownership in additionto disclosure oftheultimate ownership ofat least 5%(five percent), ownership ofpubliccompanies’ share discloses theultimate beneficiary Company’sPublic AnnualReport information. Website as amediumofdisclosure of information technology widerthanthe companyPublic makes useofthe Implementation of25Recommendations Recommendation majority and controlling shareholders, Annual Report ofDanamondisclosesthe Status: Comply YouTube :BankDanamon Linkedln :BankDanamonIndonesia Instagram :@mydanamon Facebook :BankDanamon @HelloDanamon (customer service) Twitter :@Danamon Situs Web : access information aboutDanamoneasily. shareholders and other stakeholders to website to provide anopportunityfor for information disclosure includingthe Danamon continues to refine themedia Status: Comply ownership above 5%(five percent). shareholder group profiles withshares 20 largest shareholders, aswell asthe www.danamon.co.id Explanation Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 371 2019 Annual Report PT Bank Danamon Indonesia Tbk. Integrated Integrated Corporate Governance Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching

2019

Annual Report PT Bank Danamon Indonesia Tbk. 371 Main Management Company Management Operational Good Corporate Corporate Corporate 372 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Principle ofIndependency b. a. Principle ofResponsibility b. a. Principle ofAccountability b. a. Principle ofTransparency CORPORATE GOVERNANCE INDANAMON GROUP PRINCIPLES OF THE IMPLEMENTATION OF INTEGRATED for Financial Conglomeration. Implementation ofIntegrated GoodCorporate Governance No. 15/SEOJK.03/2015 dated May25,2015concerning for Financial Conglomeration andCircular Letter ofOJK Implementation ofIntegrated GoodCorporate Governance POJK.03/2014 dated November 18, 2014concerning Financial Services Authority (OJK)Regulation No.18/ of integrated corporate governance asstipulated inthe Conglomeration preparesareportonthe implementation Danamon asthe Main Entity in the Danamon Group Financial able tocontribute positively tothe Indonesian economy. Danamon Groupis abletoincreasecompetitiveness andbe value forallDanamonGroup’sstakeholderssothat the good corporate governance is expected toimprove added independence andfairness.The implementation ofintegrated the principles oftransparency, accountability,responsibility, integrated goodcorporate governance inaccordance with Danamon GroupFinancial Conglomeration implements Implementation Report Application and and internal policies that have been established in ethical values,prudential principles, andregulations values, businessobjectives, andcorporate strategies. the agreedmeasures, andareconsistent with corporate organizations have performance measures based on management ofthe company. Alllevels ofcompany availability ofcheck andbalance system inthe have competencies inlinewith their responsibilities. and strategies, aswellensurethat allcompanyorgans with the company’svision, mission, businessobjectives responsibilities ofeachcompanyorganthat areinline professional secrecy, and personal rights. in accordance with the prevailinglawsandregulations, the confidential provisions of the bank and/ or company and Subsidiaries doesnotreduce the obligation tofulfill stakeholders. easily comparableandaccessible toshareholdersand accurately, andtimely, aswellthe information that is disclose material andrelevantinformation clearly, including caring forthe environment. corporate citizens incarrying outsocial responsibilities maintaining the continuity oftheir business. The MainEntity andSubsidiaries must actas good The MainEntity andSubsidiaries must adhere tothe The MainEntity andSubsidiaries must ensurethe The MainEntity andSubsidiaries must determine clear The principle oftransparency adopted bythe MainEntity The MainEntity andSubsidiaries arerequired to b. a. Principle ofFairness b. a. of the signing ofthe saleagreement andconditional share Company Ltd. (“Zurich”). This transaction is acontinuation Dinamika Tbk(“Adira Insurance”) toZurich Insurance transaction of70% shareownership inPTAsuransiAdira On November 27, 2019,Danamon completed the sales Danamon GroupFinancial Conglomeration. 1, 2019, doesnot change the membership structure of the Parahyangan Tbk(“BNP”),which became effective onMay The merger betweenDanamonandPTBankNusantara is still inthe process ofliquidation settlement. business license. Asofthe date ofthis report,Adira Quantum No.KEP-103/D.05/2017, OJK hasrevoked Adira Quantum’s Board ofCommissioners’ decree dated December 21,2017 activities andis inthe process ofliquidation. Basedonthe OJK it is stated that Adira Quantum has stoppedoperational before HasbullahAbdul Rasyid, SH,M.Kn.,aNotary inJakarta, Shareholders Resolution No.126dated August 22,2017made Multi Finance (Adira Quantum) asoutlinedinthe Deedof Based onthe Extraordinary GMS ofPTAdira Quantum 2. 1. membership is asfollows: Authority. Danamon Group Financial Conglomeration been recorded andadministered bythe Financial Services 29, 2015,DanamonGroupFinancial Conglomeration has Based onthe Letter No.SR-82/PB.32/2015 dated April Structure ofMembership DANAMON GROUPFINANCIAL CONGLOMERATION The MainEntity andSubsidiaries must provide The Main Entity and Subsidiaries must always pay In makingadecision, the MainEntity andSubsidiaries Management ofMainEntity andSubsidiaries is carried Members: Main Entity: PTBankDanamonIndonesia,Tbk. line with the principle oftransparency. company as well as have equal access to information in and expresstheir opinionsforthe interests ofthe opportunities forallstakeholders toprovide feedback the principle ofequality andfairness(equal treatment). attention tothe interests ofallstakeholders basedon professionalism. and committed toconduct businessbyprioritizing must beobjective andfreefromanyparties’ pressures, business. ethical valuesandthe principles ofconducting asound that is notinaccordance with the lawsandregulations, conflict ofinterest, influence orpressurefromanyparty out professionallyandindependently,is freefrom c. b. a. process). PT Adira Quantum Multi Finance (inliquidation PT AsuransiAdira Dinamika. PT Adira DinamikaMulti Finance, Tbk. Annual Report *) 2019 berlaku efektif setelah mendapatkan persetujuan OJK. Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 373 % * in liquidation 94.10 MUFG Bank, Ltd. (Direct and Indirect) (Direct PT Bank Danamon Indonesia Tbk. 92,07% * % Subsidiary/ Member Member Subsidiary/ (Financing Company) (Financing Company) (in liquidation process) (in liquidation Adira Adira PT Adira Quantum Multi Finance Quantum Multi Finance PT Adira 99.00 Quantum Danamon, MUFG Bank has 2 financial conglomerations in in conglomerations has 2 financial Danamon, MUFG Bank Conglomeration Danamon Group Financial Indonesia, namely Conglomeration. branch Financial and MUFG Bank Jakarta Jakarta Bank MUFG with discussed Danamon Therefore, of the structure and the Entity Main the branch to determine in 2020. will be effective which conglomeration new financial Conglomeration Group Financial of Danamon Structure November starting above, explanation the with In accordance Danamon Group Financial of the structure 2019, the 27, as follows. is Conglomeration (Bank) Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Main Entity Main Entity (“Adira Finance”) (“Adira PT Bank Danamon Indonesia Tbk PT Adira Dinamika Multi Finance Tbk Finance Dinamika Multi PT Adira % Adira Adira Finance 92.07 Subsidiary/ Member Member Subsidiary/ (Financing Company) (Financing Company) 7,93% PT Adira Dinamika Multi Finance Tbk Multi Finance Dinamika PT Adira 2019 % 5.9 Public process) PT Adira Quantum Multi Finance (in liquidation (in liquidation Finance Multi Quantum PT Adira PT Adira Dinamika Multi Finance, Tbk. Finance, Dinamika Multi PT Adira Public Main Entity: PT Bank Danamon Indonesia, Tbk. PT Bank Main Entity: b. a. Annual Report Structure of Share Ownership of Subsidiary - PT Adira Dinamika Multifinance Tbk (“Adira Finance”) Tbk (“Adira Dinamika Multifinance - PT Adira of Subsidiary of Share Ownership Structure After the increase of MUFG Bank’s share ownership in in ownership share Bank’s MUFG of increase the After Therefore, since November 27, 2019, the membership membership 2019, the 27, November since Therefore, Conglomeration Financial Danamon Group of the structure follows. has changed to be as 1. 2. Members: participation (CSSA) on September 27, 2018 between between 2018 27, September (CSSA) on participation in Adira sale of share ownership for the Danamon and Zurich Insurance. Share Ownership Structure of Main Entity - PT Bank Danamon Indonesia Main Entity of Structure Share Ownership STRUCTURE OF SHARE OWNERSHIP OF SHARE STRUCTURE shareholders are as follows: ultimate to the conglomeration of the member shareholders of each The berlaku efektif setelah mendapatkan persetujuan OJK. persetujuan mendapatkan setelah berlaku efektif *) Main Management Company Management Operational Good Corporate Corporate Corporate 374 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data December 2019: in the Danamon Group financial conglomeration as of The followingis the management structure ofeachEntity reputation. the requirements ofintegrity, competence andfinancial Commissioners ofeachDanamonGroupentity meet All members of the Board of Directors and Board of Structure ofManagement PT Bank DanamonIndonesia Tbk. *) Note Tbk asofDecember 31,2019is asfollows: The composition ofthe members ofthe BoardofCommissioners andBoardofDirectors ofPTAdira DinamikaMulti Finance, *) Note: • • of the Commissioners ofPTAdira DinamikaMulti Finance, Tbk,namely: At the Extraordinary GMS ofPTAdira DinamikaMulti Finance, TbkonOctober24,2019there wasachangeinthe composition PT Adira DinamikaMulti Finance, Tbk Structure ofManagement inSubsidiaries *) Note 8. 7. 6. 5. 4. 3. 2. 1. 1. Board ofCommissioners 6. 5. 4. 3. 2. Yasushi Itagakiwasappointed asPresidentCommissioner *). Sng SeowWahretired asPresidentCommissioner. will beeffective after obtaining OJKapproval. will beeffective after obtainingOJKapproval. will beeffective after obtainingOJKapproval. Manggi T. Habir Nobuya Kawasaki Noriaki Goto Masamichi Yasuda J.B. Kristiadi Takayoshi Futae Peter B.Stok Made Sukada Yasushi Itagaki (President Commissioner) *) Willy Suwandi Dharma(Commissioner Muliadi Rahardja (Commissioner) Eng HengNeePhilip(Commissioner) Krisna Wijaya (Commissioner/ Independent Commissioner) Djoko Sudyatmiko (Commissioner/ IndependentCommissioner) *) Board ofCommissioners *) Commissioner (Independent) Commissioner (Independent) Commissioner (Independent) Commissioner Commissioner Commissioner (Independent) Vice President Commissioner President Commissioner PT BankDanamonIndonesia,Tbk. PT Adira Dinamika MultiFinance Tbk 5. 4. 3. 2. 1. 10. 9. 8. 7. 6. 2019 is asfollows: of Commissioners and Board of Directors as ofDecember 31, The composition ofthe members ofthe MainEntity’s Board the BoardofDirectors. Report inthe 2019GMS, the BoardofCommissioners, and of the changescanbeseeninthe Corporate Governance Commissioners andBoardofDirectors ofDanamon.Details In 2019there werechangesinthe composition ofthe Boardof Structure ofManagement inMainEntity Adnan Qayum Khan Herry Hykmanto Honggo Widjojo Michellina L.Triwardhany Yasushi Itagaki Naoki Mizoguchi Muljono Tjandra Dadi Budiana Heriyanto Agung Putra Rita Mirasari Kangmasto 5. 4. 3. 2. 1. Board ofDirectors Niko Kurniawan Bonggowarsito (Director) Swandajani Gunadi(Director/ IndependentDirector) I Dewa MadeSusila (Director) Ho LioengMin(Director) Hafid Hadeli(President Director) Board ofDirectors Director Director Director Vice President Director President Director Director Director Director Director Director Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 375 Audit Audit Directors Committee of Board of of of Board of Board of of of Board Committees Committees Committees Commissioners PT Bank Danamon Indonesia Tbk. General General Risk Risk Meeting of Meeting of of Directors Subsidiaries Shareholders Related Related Function Function Function Commissioners Commissioners Functions Compliance Compliance Subsidiary’s Board Board Subsidiary’s Management Management Internal Audit Audit Internal Subsidiary’s Board of of Board Subsidiary’s Guidelines of Integrated Corporate Governance Governance Corporate Integrated of Guidelines Objectives of the implementation of Integrated of Integrated implementation of the Objectives Governance Corporate of Integrated Principles and culture values, corporate mission, Vision, business ethics financial of structure (including implementation of and responsibilities and duties conglomeration conglomeration) in financial entity Corporate Governance Corporate • • • • Integrated Corporate Governance Policy: Governance Corporate Integrated given guidance and recommendation from the Corporate Corporate from the and recommendation guidance given Governance Corporate Integrated Committee, Governance scope of The and Board of Commissioners. Committee Policy Governance Corporate Danamon Group’s Integrated includes: a) Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Integrated Risk Integrated Risk Integrated Corporate Integrated Corporate Governance Committee Management Committee ICWU IIAWU IRMWU Related Related General General Functions Meeting of Meeting of Main Entity Shareholders Board of Director Board Board of Commissioners Board 2019 : Integrated Risk Management Working Unit Management Risk : Integrated Working Unit Compliance : Integrated Working Unit Audit Internal : Integrated Coordination and Monitoring Function Coordination Audit Audit Board Sharia Sharia Directors Committee of Board of of of Board of Board of of of Board Supervisory Supervisory Committees Committees Committees Committees Commissioners Annual Report Integrated Corporate Governance Policy was prepared was prepared Policy Governance Corporate Integrated by and approved Main Entity of the by Board of Directors as well as was Main Entity, of the Board of Commissioners Group’s Integrated Corporate Governance Policy, which which Policy, Governance Corporate Group’s Integrated (Main Entity) Policy Governance as a Corporate applies Governance for Corporate of Reference as well as a Terms Danamon the 2019, In Subsidiaries. for Implementation was Policy Governance Corporate Group’s Integrated updated. The implementation of the corporate governance organs in in organs governance corporate of the implementation The Board of of the Committees the including subsidiaries, the in the disclosed is Board of Directors and the Commissioners annual report of subsidiaries. POLICY GOVERNANCE CORPORATE INTEGRATED Danamon has the Conglomeration Danamon Group Financial Note: IRMWU ICWU IIAWU ORGANS OF INTEGRATED CORPORATE GOVERNANCE CORPORATE OF INTEGRATED ORGANS governance of corporate principles the organs to ensure that governance corporate integrated Danamon Group established organs are as follows: governance corporate Danamon Group’s integrated The are well implemented. Main Management Company Management Operational Good Corporate Corporate Corporate 376 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. ***) **) *) Note: b) 1. Board ofCommissioners ofthe MainEntity include: Governance Policy. The duties andresponsibilities ofthe conglomeration areregulated inthe Integrated Corporate of the MainEntity inthe Danamon Groupfinancial The duties andresponsibilities ofthe BoardofCommissioners Commissioners ofthe MainEntity Duties andResponsibilities ofthe Boardof Nobuya Kawasaki Noriaki Goto Masamichi Yasuda (Commissioner) Peter Benyamin Stok (IndependentCommissioner) Made Sukada (IndependentCommissioner) Manggi T. Habir(IndependentCommissioner) J.B Kristiadi (Vice President Commissioner/Independent Commissioner) Takayoshi Futae(President Commissioner) in the process ofOJKfitandpropertest OJK hasgiven approval onApril 25,2019tothe BoardofCommissioners whowasreappointed after the effective merger betweenDanamonandBNP. Reappointed after the effective merger betweenDanamonandBNPinaccordance with the resolution ofthe EGMS March 26, 2019. • • • • • (Danamon Group): Corporate Governance Framework forSubsidiaries • • Corporate Governance Policy for Danamon and responsibilities shallataminimum include: integrated corporate governance with the duties and Exercise supervision over the implementation of External Audit Function) Management Function, Internal Audit Function, and of Commissioners, Compliance Function, Risk Sharia Supervisory Board, Committees of the Board Board ofCommissioners, BoardofDirectors, shareholders, GeneralMeeting ofShareholders, Structure/ organofcorporate governance (including Business ethics andcodeofethics Vision, mission, andcorporate values corporate governance Commitment forthe implementation ofgood governance Basic principles andcoverage ofcorporate Corporate Governance Reports, assessment, anddisclosure ofIntegrated Working Unit,Integrated Risk Management) Compliance WorkingUnit,Integrated Internal Audit Corporate Governance Committee, Integrated Main Entity’s BoardofDirectors, Integrated (including MainEntity’s BoardofCommissioners, Organ ofIntegrated Corporate Governance Name Commissioners. Allmembers ofthe MainEntity’s Boardof (eight) peopleand4(four) or50%ofthem areIndependent of Commissioners members asofDecember 31,2019are8 in the Financial Conglomeration. The MainEntity’s Board the mainbusinessactivities andmainrisks ofthe entities Commissioners ofthe Bank,alsohasanunderstanding of fulfilling the requirements asamember ofthe Boardof The BoardofCommissioners ofthe MainEntity, besides BOARD OFCOMMISSIONERS OFTHEMAINENTITY currently inthe process offitandpropertest ofOJK. 2 (two)members ofthe BoardofCommissioners who are the Financial Services Authority/ Bank Indonesia, except for Commissioners have passedthe fitandpropertest from • • c. b. a. implementation report corporate social responsibility) blowing system, relationship with stakeholders, proprietary andconfidential information, whistle- procurement policy, remuneration policy, related partyandaffiliated partytransaction, conflict ofinterests, personalinvestment policy, governance implementation (including policy on Self-assessment andcorporate governance Principles ofpolicies related tocorporate improvement ofthe policy. Policy and providing recommendations for Evaluate the Integrated Corporate Governance Corporate Governance Policy; and Main Entity onthe implementation ofIntegrated guidance oradvices to the BoardofDirectors ofthe of Directors ofthe MainEntity aswellprovide oversee the duties and responsibilities ofthe Board Governance Policy; in accordance with the Integrated Corporate Governance ateachEntity toensurethat itis Oversee the implementation ofCorporate 19 November 2018 20 March 2018 *) Approval Date - 1 October 2019 1 October 2019 26 March 2019 9 May 2005*) 9 May 2005*) 7 May 2014 *) AGMS *) 21 February 2019 **) Approval Date -OJK 5 December 2005 8 August 2014 **) Annual Report 22 July2005**) 5 July2018 **) 25 April2019 ***) ***) **) 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 377 OJK Approval Date Approval May 13, 2008 **) May March 16, 2018 **) 16, 2018 March December 5, 2019 December 5, 2019 December 5, 2019 December 5, 2019 December August 8, 2016 **) 8, 2016 August October 17, 2018 **) 2018 17, October December 23, 2016 **) 23, 2016 December September 14, 2016 **) 14, 2016 September PT Bank Danamon Indonesia Tbk. AGMS Approval Date Approval October 1, 2019 October 1, 2019 October 1, 2019 October 1, 2019 October April 3, 2008 *) April 28, 2016 *) April 28, 2016 *) April 28, 2016 March 20, 2018 *) 2018 20, March *) 2018 20, March September 7, 2016 *) 2016 7, September experience of at least 5 (five) years as company’s Executive as company’s Executive years of at least 5 (five) experience Directors of Board the of members All Directors. Officers/ obtained and have fit and proper test passed the have from OJK. approval During 2019, there were 2 (two) meetings of the Board of Board of of the were 2 (two) meetings 2019, there During Integrated the whose agenda discussed Commissioners to the report related Committee’s Governance Corporate which governance corporate of integrated implementation of self-assessment results the others, among included, Group’s Danamon governance, corporate of integrated of updates Policy, Governance Corporate Integrated and Charter, Committee Governance Corporate Integrated Subsidiaries. in the governance of corporate updates OF THE MAIN ENTITY BOARD OF DIRECTORS besides fulfilling Main Entity, of the Board of Directors The of of Directors Board of the a member as requirements the main business of the Bank, also has an understanding the Financial in the entities of the and main risks activities Board of Main Entity of the members The Conglomeration. people. The (ten) 31, 2019 are 10 as of December Directors Board of Directors Main Entity of the members of the majority 25 than for more in banking industry been working have had banks and have international and in national both years Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Position Director Director Director Director Director Director Director President Director President Vice President Director President Vice Director President Vice 2019 Name Board of Commissioners’ meeting are clearly are clearly meeting Board of Commissioners’ the along with meeting of the minutes in the stated reasons for dissent. can be held via video conference; video via can be held the in recorded are meeting Commissioners’ are well documented. and meeting of the minutes Main Entity occur in the opinions that Dissenting The Main Entity Board of Commissioners’ meeting meeting Board of Commissioners’ Main Entity The of Board Main Entity of the results The Hold regular meetings at least 1 (one) time each semester each semester at least 1 (one) time meetings regular Hold Establish an Integrated Corporate Governance Governance Corporate Integrated an Establish c. with the following provisions: the with a. b. Committee in order to support the effective performance performance effective the in order to support Committee duties. of its Reappointed after the effective merger between Danamon and BNP in accordance with the resolution of the EGMS March 26, 2019. 26, March EGMS of the resolution the with between Danamon and BNP in accordance merger effective the after Reappointed between Danamon and BNP. merger effective the after being reappointed Directors 25, 2019 to the on April approval its OJK has given Naoki Mizoguchi Herry Hykmanto Khan Qayum Adnan Rita Mirasari Putra Agung Heriyanto Dadi Budiana Muljono Tjandra Yasushi Itagaki Yasushi Michellina Laksmi Triwardhany Kangmasto Honggo Widjojo Annual Report The implementation of duties of the Main Entity Board Board Entity Main the of duties of implementation The of implementation the in supervising of Commissioners Integrated by the assisted is governance corporate integrated Corporate Integrated The Committee. Governance Corporate implementation the evaluates Committee Governance its and reports governance corporate of integrated Board of Commissioners. to the implementation Implementation of Duties and Responsibilities of the of the and Responsibilities of Duties Implementation in 2019 Commissioners Board of Main Entity 3. 2. Note : Note *) **) Main Management Company Management Operational Good Corporate Corporate Corporate 378 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. in the Integrated Corporate Governance Committee section. Committee in2019canbeseenCorporate Governance Report Implementation ofDuties ofIntegrated Corporate Governance Integrated Corporate Governance Committee Meetings, and Governance Committee, Term of Office, Policy and Holding of Appointment, Independency of Integrated Corporate Structure, Membership, Expertise andLegal Basis for Committee’s Charter, Duties, Responsibilities, Authorities, Details regarding Integrated Corporate Governance Integrated Corporate Governance Committee. 009 dated August 12,2015concerning Establishment of based onthe Directors Decree No.Kep:DIR-Corp.Sec.- established bythe BoardofCommissioners andis determined The Integrated Corporate Governance Committee is integrated corporate governance inthe DanamonGroup. the supervisory function related tothe implementation of assist the BoardofCommissioners ofthe MainEntity in duties ofBoard ofCommissioners ofthe MainEntity and to supportthe effectiveness ofthe implementation ofthe Integrated Corporate Governance Committee is established Corporate Governance for Financial Conglomerates. The concerning the Implementation ofIntegrated Good Financial Services Authority Regulation No.18/POJK.03/2014 Corporate Governance Committee inaccordance with the Danamon asthe MainEntity hasestablished the Integrated INTEGRATED CORPORATE GOVERNANCE COMMITTEE 1) are asfollows: responsibilities ofthe DanamonDirectors asthe MainEntity Policy and Charter of the Board of Directors. The duties and are regulated inthe Integrated Corporate Governance the MainEntity inDanamonGroupfinancial conglomeration The duties andresponsibilities ofthe BoardofDirectors of the MainEntity Duties andResponsibilities ofthe BoardofDirectors of * Note: Yasushi Itagaki* Will beeffective after passingthe OJKfitandpropertest. c) b) a) and responsibilities ataminimum: Governance inthe Financial Conglomeration with duties Ensure the implementation of Integrated Corporate Name Governance Policy. Entity inordertoimprove the Integrated Corporate from the BoardofCommissioners ofthe Main Follow up on the recommendations or advices Integrated Corporate Governance Policy; and Direct, monitorandevaluate the implementation of Policy; Prepare the Integrated Corporate Governance Position inMainEntity President Director (Danamon) President Commissioner ofPTAdira Dinamika MultiFinance, Tbk Position inSubsidiaries -Members ofFinancial Conglomeration Conglomeration tobefollowedup. Governance Policy toSubsidiary’s Directors inthe Financial the updated Danamon Group Integrated Corporate The BoardofDirectors ofthe MainEntity will submit Corporate Governance Policy. Committee updated the DanamonGroupIntegrated Commissioners andthe Integrated Corporate Governance inputs, recommendations anddirections fromthe Boardof In 2019,the BoardofDirectors ofthe MainEntity with Board ofDirectors ofthe MainEntity in2019 Implementation ofthe Duties andResponsibilities ofthe 3) 2) is asfollows. the structure andposition ofthe Integrated Compliance Unit Tbk toZurich Insurance CompanyLtd. onNovember 27, 2019, sale of 70% share ownership in PT AsuransiAdira Dinamika Since the beginning of 2019until beforethe completion ofthe Working Unit Structure andPosition of Integrated Compliance in the DanamonGroupFinancial Conglomeration. monitor andevaluate the compliance function ofallentities Integrated Compliance WorkingUnitfunction tocoordinate, adequate sothat itcansupportthe implementation ofthe (Compliance Director). The structure and infrastructure are of the Director inchargeofthe Compliance Function established independently and is under the responsibility Working UnitofDanamon.The Compliance WorkingUnitis Unit (ICWU) function is carried outbythe existing Compliance The implementation ofthe Integrated Compliance Working INTEGRATED COMPLIANCEWORKINGUNIT Responsible forcarrying outthe supervision function of Ensure that audit findings andrecommendations fromthe Entities inthe Financial Conglomeration. the Entities inthe Financial Conglomeration. and/ orother authority bodies have beenfollowed upby supervisory results ofthe Financial Services Authority Integrated Internal Audit WorkingUnit,External Auditor, Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 379 ) ) Compliance Function Compliance PT Bank Danamon Indonesia Tbk. PT Adira Quantum Multi Finance * Quantum Multi Finance PT Adira Compliance Function Compliance PT Adira Quantum Multi Finance * Quantum Multi Finance PT Adira integrated corporate governance self-assessment self-assessment governance corporate integrated biannually. of the compliance function of subsidiaries, including including of subsidiaries, function compliance of the of implementation the on functions consultative provide compliance. periodically. parameters basis. on a quarterly by subsidiaries submitted functions conglomeration. financial Services Financial by the conducted results audit the Authority. profile report. risk compliance prepare integrated of and preparation assessment the Coordinate Coordinate and monitor related to the implementation implementation to the and monitor related Coordinate regulatory with of subsidiaries compliance Ensuring of compliance implementation on the reports Review of the changes in members and report the Coordinate to subsidiaries. new regulations Deliver on of improvement Monitor follow-up/ commitments and assessment risk compliance integrated Conduct • • • • • • • • Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Compliance Function Compliance PT Asuransi Adira Dinamika Adira PT Asuransi Integrated Compliance Working Unit Working Compliance Integrated Integrated Compliance Working Unit Working Compliance Integrated (Danamon’s Compliance Working Unit) Working Compliance (Danamon’s (Danamon’s Compliance Working Unit) Working Compliance (Danamon’s Director in charge of Compliance Function of Compliance in charge Director Director in charge of Compliance Function of Compliance in charge Director Compliance Function Compliance PT Adira Dinamika Multi Finance Dinamika PT Adira 2019 Compliance Function Compliance PT Adira Dinamika Multi Finance Dinamika PT Adira in liquidation process in liquidation in liquidation process in liquidation Ensure that the compliance function in each subsidiary in each subsidiary function compliance the Ensure that Carry out the duties and responsibilities of the of the and responsibilities duties out the Carry Compliance Working Unit, which can be seen in the the in seen be can which Unit, Working Compliance Working in Compliance Report Governance Corporate Unit part. adequate by supported and independently established is or guidelines. policies compliance Since November 27, 2019, in line with changes in members of the Danamon Group Financial Conglomeration, the structure and and structure the Conglomeration, Danamon Group Financial of the changes in members 2019, in line with 27, November Since changed to be as follows. Working Unit have Compliance Integrated of the position Annual Report • Conglomeration. of the and Responsibilities of Duties Implementation Working Unit in 2019 Compliance Integrated Working Unit has Compliance Integrated 2019, the During including: and responsibilities, duties out its carried • *) Integrated of The and Responsibilities Duties Working Unit Compliance of at duties Working Unit has the Compliance Integrated of implementation the evaluating and monitoring least Financial in the in each Entity function compliance the *) Main Management Company Management Operational Good Corporate Corporate Corporate 380 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. controls periodically. methodology, framework, limitandprocedure aswell overall risk management strategies that includepolicy, Danamon’s Integrated Risk is responsiblefordeveloping risk management inDanamon Financial Conglomeration. and serves asguidance forthe implementation ofintegrated Risk Management Policy covers risk management framework regulations, andis reviewed onregular basis. The Integrated Financial Services Authority (OJK)andother applicable Management Policy preparedbasedonthe regulations of Danamon asthe MainEntity hasIntegrated Risk Implementation Integrated Risk Management Policy andThe IMPLEMENTATION OFINTEGRATED RISK MANAGEMENT Report inthe partInternal Audit WorkingUnit(SKAI). December 31,2019canbeseeninthe Corporate Governance priorities aswellplansandrealization ofaudits asof including duties andresponsibilities, 2019internal audit Further detailsofIntegrated Internal Audit WorkingUnit Indonesia, Tbk(“Company”). SKAI andAppointment ofthe Head ofSKAIPTBankDanamon 2019 regarding Report onDismissal ofthe Acting Head of based onDirector Letter No.B.748 –DIRdated August 15, HCKP/0819 andthis appointment hasbeenreported toOJK acting Head of SKAI, based on appointment letter No. B.194/ Auditor (Head ofSKAI)replacing Nathan Tanuwidjajaasan Unit (IIAWU) hasbeenledbyYenny Linardi asChief Internal Since August 12,2019,Integrated Internal Audit Working Structure andPosition ofIntegrated Internal Audit WorkingUnit(IIAWU) INTEGRATED INTERNAL AUDITWORKINGUNIT President Director Integrated Internal Audit PT Adira Dinamika Multi Working Unit(SKAI Audit Committee FInance Tbk Danamon) SKAI The implementation of Integrated Risk Management is b. a. carried outasfollows: In ordertoimplement acomprehensive andeffective Integrated Risk Management Organization The implementation ofIntegrated Risk Management Supervision ofthe BoardofDirectors andBoardof 1) and Integrated Risk Management WorkingUnit. established Integrated Risk Management Committee Integrated Risk Management, the MainEntity has Financial Conglomeration. Management Committee hasbeenestablished inthe effectively. Inits implementation, Integrated Risk Integrated Risk Management hasbeencarried out Conglomeration tosupportthe implementation of implementation ofRisk Management inthe Financial risk, develop the risk culture, andensure that the of Commissioners ofthe MainEntity understandthe as the MainEntity. The BoardofDirectors andBoard of Directors andBoardofCommissioners ofDanamon involves active monitoring andsupervision ofthe Board Commissioners ofthe MainEntity is the Integrated Risk Director ofBank. Executive Officers. The Chairman of the Committee the Subsidiaries, andthe relevantappointed Director as the Main Entity, Directors representing Committee consists ofBank’sIntegrated Risk The membership of the Integrated Risk Management Integrated Risk Management Committee Commissioners Board of Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 381 PT Bank Danamon Indonesia Tbk. systems, and the precision of policies, procedures and and procedures of policies, precision and the systems, risks. limit of integrated Financial affect and significantly are strategic exposures. risk Conglomeration’s of evaluation to the followed up related need to be that implementation. Management Risk Integrated or refinement improvement to the related Main Entity the based on the policy Management Risk Integrated of the implementation. of the results evaluation Risk Management Committee in the preparation and and preparation in the Committee Management Risk Policy. Management Risk Integrated of the improvement procedures the to develop including Policy Management measurement, identification, risk tools for and and control. monitoring, Financial in the profile of each entity risk the monitoring and in integrated in individual both Conglomeration, in an for each type of risk level risk the including manner, manner. integrated information of management adequacy implementation that proposals of new line of business the Review matters the to IRMC regarding information the Provide of Directors Board of to the recommendations Provide Provide input to the Board of Directors and the Integrated Integrated the and Board of Directors input to the Provide Risk Integrated of implementation Monitor the by Conglomeration Financial in the risks Monitor the Conglomeration. Financial on the stress testing Conduct methodology, assessment risk review Periodically - - b. Risk Integrated in the of member Attendance Meeting Committee Management Committee Management Risk Integrated 2019, the During members of committee attendance the with 2 meetings held as follows: Working Unit, Danamon Integrated Risk Directorate Directorate Risk Integrated Working Unit, Danamon working unit in Management Risk the with coordinates and Authority Conglomeration. Financial in the each entity Working Management Risk Integrated responsibility of the Unit, among others: - - - - - Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Appointed Director from each Subsidiary from Director Appointed Unit Working Risk Management Division Heads in Integrated Appointed • • Integrated Risk Director of the Main Entity (Danamon) of Risk Director Integrated 2019 an Integrated Risk Directorate which is a a is which Directorate Risk Integrated an has risk Working Unit that Management Risk the in responsibilities roles and management Risk as well as an Integrated Bank individually, Unit in implementing Working Management management. risk integrated of Danamon as the Main Entity related to the to the related Main Entity of Danamon as the Management Risk Integrated of the preparation of the or refinement improvement and the Policy on the based Policy Management Risk Integrated implementation. of the results evaluation discuss a very important topic/ issue. The Integrated Integrated The issue. important topic/ a very discuss by chaired is meeting Committee Management Risk Committee. Chairman of the the provide are to Committee Management Risk Board of Directors to the recommendations are held regularly. Each member as an individual as an individual Each member regularly. are held to meeting an extraordinary or group can request Integrated Risk Management Working Unit Management Risk Integrated has established Main Entity Danamon as the The duties and responsibilities of the Integrated Integrated of the and responsibilities duties The Integrated Risk Management Committee meetings meetings Committee Management Risk Integrated Provide recommendations to the Board of Directors of of Directors Board of the to recommendations Provide the Main Entity related to the preparation of Integrated of Integrated preparation to the related Main Entity the and Policies; Management Risk 2)

Chairman Membership INTEGRATED RISK MANAGEMENT COMMITTEE MANAGEMENT RISK INTEGRATED Annual Report a. principle of deliberation and consensus. In the event that that event and consensus. In the of deliberation principle made based on a is a decision consensus does not occur, are vote taken based on majority Decisions vote. majority of 1 (one) person 1 (one) vote. principle based on the Risk Integrated of the Roles and responsibilities Committee Management STATUS OF VOTING RIGHTS AND DECISION MAKING RIGHTS STATUS OF VOTING are taken based on the Meetings of Committee Decisions The Integrated Risk Directorate is an independent unit an independent unit is Directorate Risk Integrated The Risk Integrated to the and reports taking units risk from the President Director. to the directly reports who then Director, Management Risk as an Integrated function out its In carrying Main Management Company Management Operational Good Corporate Corporate Corporate 382 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Meetings andAgendaofIntegrated Risk Management Committee Meeting August 12,2019 February 12,2019 Ari Priyatna Eunice Kurniawan Iwan Dharmawan Musi Samosir Ho LioengMin Adnan Qayum Khan Committee Member Date ------Head Danamon Market &LiquidityRiskManagementDivision Division Head Danamon Operational RiskManagement,Fraud &QA Head Danamon Credit &Enterprise RiskManagementDivision (represent Director ofPTAsuransi Adira Dinamika) Chief RiskOfficer ofPT Asuransi Adira Dinamika Director ofPTAdira Dinamika MultiFinance, Tbk Danamon Integrated RiskDirector Sharia Update Adira Insurance Update Adira Finance Update Capital Adequacy IRRBB Project Credit PPandCredit GuidelineStandard 2019 -Recovery PlanUpdate RAS Review IRMP AnnualReview –2019 Sustainable Finance Update OJK Integrated RiskProfile H1-2019 Risk Profile -Sharia Adira Finance Update Adira Insurance Update Cyber TTXProject Update Capital Adequacy IRRBB Project LCR & NSFRUpdate IFRS 9Project Update Credit QualityAssurance Legal Lending Limit–New POJK Recovery Plan Sustainable Finance Action Plan IRMP 2018 OJK Integrated RiskProfile H2-2018 Title Agenda Meeting Attendance Annual Report 2 2 2 2 2 2 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 383 PT Bank Danamon Indonesia Tbk. implemented Integrated Corporate Governance Governance Corporate Integrated implemented well the loan exposure and off balance sheet such as as such sheet loan exposure and off balance the and commitment. collateral Conglomeration. Financial Conglomeration. Financial the within between entities Conglomeration. entity from another an entity or obtained by provided Conglomeration. Financial the within the within entity or sales to other Asset purchases re-insurance. transfer through Risk exposures party risk to transfer third Transactions Cross ownership between entities within the Financial Financial the within between entities Cross ownership liquidity. of short term management Centralized are that loans, and commitments collaterals, The including controlling shareholder, exposure to the The • • • entity transaction activities in the Financial Conglomeration. Conglomeration. Financial in the activities transaction entity implementation the has regulated Entity Main Danamon as the Intra- in the management risk of intra-group transaction Intra- reviewed. regularly is which Policy Transaction Group coordination through determined are limits transaction group as and Subsidiaries Main Entity the between Danamon as Conglomeration. Financial of the members Risk Intra-Group Transaction of implementation The identification, risk through out carried is Management management and control, and risk monitoring measurement, can be Risk Intra-Group Transaction system. information from: arised • • • • Rating Definition Rating Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Self-Assessment Result Result Self-Assessment Position June and December 2019 June and December Position Integrated Corporate Governance Implementation Implementation Governance Corporate Integrated Financial Conglomeration is considered in general has in general is considered Financial Conglomeration the in weaknesses Any ICG. of principles the of implementation adequate the in reflected is This (ICG). normal through be resolved significant and may not are principles in general of ICG implementation Entities in the Financial Conglomeration. and/or the Main Entity by measures 2019 2 Rating Credit PP and Credit Guideline Standard Guideline PP and Credit Credit Update on new POJK related to Legal Lending Limit Lending to Legal on new POJK related Update Statement Appetite on Group Risk Discussion Plan Update Recovery 9 Update IFRS Update Project Cyber TTX and IRRBB Update NSFR Update Sustainable Finance Approval of the Integrated Risk Profile Risk Integrated of the Approval Update Subsidiaries Profile Update Risk Sharia and Risk Policy on Intra-Group Transaction Update Profile SELF-ASSESSMENT RESULT OF INTEGRATED CORPORATE GOVERNANCE IMPLEMENTATION GOVERNANCE CORPORATE OF INTEGRATED RESULT SELF-ASSESSMENT Annual Report Based on the self-assessment, Danamon has an adequate integrated corporate governance structure and infrastructure and infrastructure structure governance corporate integrated Danamon has an adequate self-assessment, Based on the of the in some reflected is This implemented. to be effectively governance corporate of integrated principles to allow the following indicators: by either transfer the funds or not. transfer the by either Risk of Intra-Group Transaction implementation The inter- out by taking into account carried is Management l. POLICY INTRA-GROUP TRANSACTION dependence the to due risk the is risk transaction Intra-group in a entities to other or indirectly directly either of an entity in order to fulfill a contractual Conglomeration Financial followed which agreement unwritten or written of obligation e. f. g. h. i. j. k. Important activities carried out by the Integrated Risk Risk Integrated the out by carried activities Important 2019 are: during Committee Management a. b. c. d. Implementation of Duties of Integrated Risk Risk of Integrated Duties of Implementation in 2019 Committee Management Main Management Company Management Operational Good Corporate Corporate Corporate 384 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Governance Policy Integrated Corporate Implementation Management Integrated Risk Working Unit Integrated Internal Audit Working Unit Integrated Compliance Committee Governance (ICG) Integrated Corporate the MainEntity Board ofCommissioners of Main Entity Board ofDirectors ofthe Indicator ------the implementation ofintegrated riskmanagementpoliciesandstrategies andhold applicable regulations andcurrent conditions. Statement (RAS) andhasRAS Cascading. each typeofriskcomprehensively. Danamon hasimplemented Group RiskAppetite and theFinancialConglomeration andtheImplementation ofRiskManagementin Management Policy that regulates theRiskManagementFramework for Banks from August 12,2019. responsible to theBoard ofCommissioners through theAudit Committee. the auditandauthorityinmonitoring follow-up, theHeadofSKAIisalsodirectly Director. To supporttheindependency ofSKAIandensure thesmoothrunningof is carriedoutby Danamon’s Internal Audit Working Unit(SKAI). qualifications. duties andresponsibilities. working units and is notinaposition to face conflict ofinterest in carryingoutits Compliance Working Unit. the ICG Committee intheICG Committee meeting. the implementation oftheintegrated compliance functionare regularly evaluated by Representative Commissioners from Subsidiariesare IndependentCommissioners. the chairmanofBankDanamon’s Corporate Governance (CG) Committee. the dutiesofIntegrated Corporate Governance Committee. Conglomeration aswell astheefficiency andeffectiveness oftheimplementation of Governance Committee isinaccordance withtheneedsofFinancial Board ofCommissioners oftheMainEntity. who are currently intheprocess ofOJK fitandproper test. test andhave obtainedapproval letter from OJK, except for 2(two) BOCmembers integrity, competence andfinancialreputation. by theDirectors ofMainEntity. results and/ortheresults ofsupervisionby otherauthoritiesare always followed up fit andproper test, andhave obtainedapproval letter from OJK. competence andfinancialreputation. Policy. Subsidiaries hasbeenguidedby theapplicableIntegrated Corporate Governance Subsidiaries. Entity) aswell asFramework for theImplementation ofCorporate Governance for The policy appliesasaCorporate Governance Policy ofBankDanamon (Main and thefollow-up improvements. discuss othermatters related to riskissues, mitigation mechanisms,potential losses regular meetingsto analyze theperformance ofDanamon andsubsidiaries The Board ofDirectors andBoard ofCommissioners ofMainEntityactively supervise The Integrated Risk Management Policy has been reviewed in accordance with Danamon astheMainEntityinfinancialconglomeration hasIntegrated Risk The implementation ofintegrated corporate governance principlesat theBankand Danamon hasupdated Integrated Corporate Governance Policy ofDanamonGroup. SKAIT isledby Yenny Linardi astheHeadofInternal Audit Working Unitstarting SKAI isheadedby theHeadofSKAIwhoisdirectly responsible to thePresident SKAI isindependentofotheroperational working units. Implementation ofthefunctionsIntegrated Internal Audit Working Unit(SKAIT) Danamon’s Compliance Working Unitissupported by employees whohave adequate The Integrated Compliance Working Unitisindependentfrom otheroperational Danamon’s Compliance Working Unit carries outthefunctionofIntegrated The results ofICG self-assessment whichincludestheinternal control functionand The ICG Committee ischaired by anIndependentCommissioner whoisalso The composition ofthe Independent Commissioner intheIntegrated Corporate During 2019, Board ofCommissioners ofMainEntityhasheld6(six) meetingsofthe All Board ofCommissioners membersofMainEntityhave passed thefitandproper Board ofCommissioners membersofMainEntityhave fulfilledtherequirements of All auditfindingsandrecommendations from SKAI,external auditors, OJK supervision Board ofDirectors membersofMainEntitywhoare currently servinghave passed the Board ofDirectors membersofMainEntityhave fulfilledtherequirements ofintegrity, Summary ofSelf-Assessment Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 385 PT Bank Danamon Indonesia Tbk. Sharia Corporate Governance Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching 2019 Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 386 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. marketing strategy with leverage modelwhere all in 2019,DanamonSyariah hasfullyimplemented a UUS DANAMON INITIATIVES best possibleperformance. encompassing allUUSworkunits andsustainingthe of risk management, improvement ofinternal control compliance with lawsandregulations, implementation The Company’sconsistency inGCGis reflected in in conducting sharia businessactivities. by continuing toobserve fulfillment ofsharia principles improvement andtoprotect the interests ofstakeholders of allCompanyfunctions tosupportperformance The implementation ofGCGprinciples is acommitment 5. 4. 3. 2. 1. as follows: basic principles ofGoodCorporate Governance (GCG), Danamon Sharia (UUS Danamon)is basedon5(five) The implementation ofCorporate Governance at INTRODUCTION Governance Sharia Corporate insurance, andcapitalmarket). Sharia Finance Fair incooperation withOJK (Banking, collaboration withOJK (Banking). Education onSharia banking"iBVaganza Program" in

regulations. of stakeholdersunderthe applicable lawsand the development ofthe sharia bankingbusiness. from anypartyandshowastrongcommitment to objectively andbefreefrominfluence orpressure sound management. with the rules andlegislation and the principles of effective management. implementation of Bank operations leading to relevant information inthe decision makingprocess. Fairness is justice andequity infulfillingthe rights Professionalism is the competence and abilitytoact Responsibility is the Bankmanagement’s compliance Accountability is the clarity ofpurposein Transparency is opennessindisclosing material and Sharia Financial Literacy Program Sharia CapitalMarkets financial products that include:Takaful, ShariaBanking,and Information dissemination to the publicinregard to sharia products Fostering community awareness onshariabanking and e. d. c. b. a. important milestonescarried outin2019wereasfollow: Bank networkleveraging the BranchNetwork. Some Danamon’s Syariah product canbesoldthroughout all programs asfollows: Authority (OJK), the Company has undertaken several financial literacy, launched bythe Financial Services In ordertoraise consumer andcommunity sharia g. f.

Advancement andimprovements ininfrastructure Continuosly improve risk management and good Changes ofsalesanddistribution model,which Focus onsocialisation of DanamonSharia’s superior with 4mainfunctions :receiving bankforHajj Appointment ofDanamonSharia asBPKHpartner with parentbanksystem. process aswellbyintegrating several processes service tocustomers, byminimizing the manual and integrated technology toimprove level of policy andother supporting system. corporate governance through advancement of products. sharia banking and intensif sosialisation onsharia along with enhancement onknowledgeandskills Productivity improvement ofhuman resources, centric. more focusoncustomer centric instead ofproduct Mutanaqisah (MMQ). sharia housemortgage financing iBakadMusyarakah On April 2019,DanamonSharia alsohave completed each newdistribution network. (Proteksi Prima Amanah),andTabunganQurbanon Haji), TabunganUmroh, sharia insurance products Rencana Haji),RTJH(Rekening TabunganRencana products including :Sharia Leasing, TRH(Tabungan and valuebenefitmanagerbanksince 2018. deposit ,placement bank,investment partnerbank, Objectives Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 387 12 12 13 Attendance PT Bank Danamon Indonesia Tbk. Name of the Companies of the Name PT Asuransi Jiwa Generali Indonesia Generali Jiwa PT Asuransi PT Capital Life Syariah PT Capital Life Indonesia Reliance PT Asuransi BNI Syariah Syariah Services Finance Astra Toyota DSN-MUI,the Board of Commissioners, the Director Director the Board of Commissioners, DSN-MUI,the and the Unit Audit Internal of UUS Danamon, the Division Compliance through DPS capacity improving continuously in order to boost and workshops training programs and progress. UUS Danamon growth general and specific on Director Danamon in order to improve of Bank Danamon management UUS and to bolster principles and fulfill sharia and development Danamon growth venue, Details of time, in 2019. times 13 (thirteen) in can be observed agenda, and attendance meeting members DPS of level attendance The 1. Attachment was as follows: Heightened sharia and banking knowledge by and banking knowledge by sharia Heightened to UUS and recommendations advice Provided were convened meetings monthly DPS routine - c) a) b) Trimegah c) a) b) e) f) 2019 DPS Work Realisation 1. Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching - DPS DPS DPS DPS DPS DPS Companies Position Held in Other in Other Held Position Name Name 2019 Prof. Dr. H.M. Din Syamsuddin Dr. Prof. KH. Hasanudin, M.Ag Dr. M.Ag Drs. H. Asep Supyadillah, Prepared the DPS Supervision Result Report every every Report Result DPS Supervision Prepared the Established proper collaboration between the Sharia Sharia between the proper collaboration Established Held at least 12 (twelve) DPS discussion meetings meetings DPS discussion at least 12 (twelve) Held of oversight including reviews periodic Conducted Prof. Dr. H.M. Din Syamsuddin (Chariman) Syamsuddin Din H.M. Prof. Dr. M.Ag (Member) Hasanudin, KH. Dr. M.Ag (Member) Asep Supyadillah, Drs. H. charge of essential matters.. charge of essential to copies with OJK the to besubmitted to months, 6 the fulfillment of sharia principles on fund raising on fund raising principles of sharia fulfillment the funds and UUS of distribution the and mechanisms of sampling by means services of all implementation Unit and UUS in the Assurance and to examine DPS opinon), for (request DPS UUS in from Danamon UUS officials clarification request on sharia principles, filing new products and and filing new products principles, on sharia during occurring situations on opinions for requests operations 1. 2. 3. (Member) M.Ag Drs. H. Asep Supyadillah, (Member) Prof. Dr. H.M. Din Syamsuddin H.M. Din Syamsuddin Dr. Prof. (Chairman) KH. Hasanudin M.Ag Dr. Annual Report d) c) UUS Danamon DPS in 2019 conducted the following following the UUS Danamon DPS in 2019 conducted work programs:: a) b) DPS Work Program 2019 PBI/2009 regarding Sharia Business Unit Dual Positions as follows: Business Unit Dual Positions Sharia regarding PBI/2009 In 2019, the number of UUS Danamon DPS members was 3 (three) persons as mentioned below : persons as mentioned was 3 (three) of UUS Danamon DPS members number In 2019, the a. b. c. Institutions Financial Sharia at Other of DPS Members Dual Position No.11/10/ in Bank Indonesia Regulation as stipulated position of dual terms fulfilled the DPS have of the All members SHARIA SUPERVISORY BOARD (DPS) SUPERVISORY SHARIA of DPS Number and Composition Main Management Company Management Operational Good Corporate Corporate Corporate 388 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 2. PT Bank DanamonIndonesia Tbk. 3. 14 Consumer customers 5 Enterprise Banking(EB)customers 3 BPRScustomers; 10 SMEcustomers; 5 Employee cooperation; Financing: 149 Fundingcustomers; No 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 customer criteria areasfollows: data presented, DPShasconducted samplingsof102 customers, both funding andfinancing customers. The Bank tobeimplemented. registered inthe Minutes ofMeeting, fullydocumented andsubmitted tothe Director andmanagement ofthe during the DPSmeetings werebasedonconsensusdeliberation. The resultofthe meetings decisions hasbeen In ordertoevaluate sharia principles fulfillment performed onaregular basis during 2019,fromthe 186customers’ The execution ofDPSMeetings in2019complied with BankIndonesiaandOJKregulations. The decisions made by issuing 19(nineteen) DPSOpinionswith detailsasfollows: Throughout 2019, DPS hascoordinated with Sharia Assurance Unit - UUSDanamontosupport its function as DPS Sharia OpiniononFinancingandFundingCollaboration Between The BankofTokyo-Mitsubishi UFJ, Ltd (MUFG) Mortgage Syariah iB[new insurance products –fire insurance] . Sharia OpiniononApproval of3(three) ShariaInsurance Partnership Offer to HouseMortgage Customers (PKR)- Sharia OpiniononFinancingofEmployee Cooperation withChanellingScheme . Plus Ib) Sharia OpiniononSubmission ofNew Feature Producsts (DanamonLebih Ib, Fleximax Ib, D'Save Ib, danD'Save Sharia OpiniononUseofAgreement onConventional Cooperation asUnderlyingPayment. Sharia Insurance oncustomers ofHouseMortgage Financing(PKR)Products- Mortgage Syariah iB Sharia Opinionregarding Partnership Approval withAswata Takaful ShariaInsurance asreplacement ofCHUBB Sharia OpiniononExtension ofConventional Loss Insurance for ShariaHouseMortgage. Sharia OpiniononPKS Developer Landed&Nonfor PKRSharia Branches. Sharia OpiniononUseofHTVConventional IDby ShariaBranch Service Manager(BSM)onShariaImplant Sharia OpiniononFinancingSchemeofWakalah BilAlIstitsmar Sharia. Sharia OpiniononRequirement andGeneral RulesofShariaAccount Opening. Sharia OpiniononAddendum PKS withDeveloper inProvision ofShariaFinancingFacility. Sharia OpiniononAgreement ofMusyarakah Revolving (NonInstallment) Sharia OpiniononAgrement ofMudharabah Muqayyadah. not basedonShariaPrinciples. Sharia OpiniononAccount Intended to Investment Purchase ofGovernment BondsorMutualFundswhich (one) Year. Sharia OpiniononVoluntarily Takeover ofCustomer Collateral (AYDA) whichRequired To BeLiquidated Within 1 Sharia OpiniononImplementation ofProgram “DanamonLebih” and“DanamonLebih iBArisan”. D-Save &D-Save Plus,D-Save &D-Save PlusiB) Sharia OpiniononInitiatives ofBrochure Alignment(DanamonLebih/Danamon Lebih iB,Fleximax/Fleximax iB, Al-Maushufah fiAl-Dzimmah-Al-Ijarah al-Muntahiyah bial-Tamlik (IMFZ-IMBT). Sharia OpiniononStandard Operational Procedure (SOP)andLending Agreement BasedonPrincipleofAl-Ijarah with UUSBDI. Customer DataPresented Permasalahan /Topik 10 Consumer customers 3 Enterprise Banking(EB)customers 3 BPRScustomers; 9 SMEcustomers; 3 Employee cooperation; Pembiayaan: 74 Fundingcustomers; Customer DataSampling Annual Report 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 389 Rupiah PT Bank Danamon Indonesia Tbk. - - - 3 Total DPS Total 973,018,926 members) (including family Health Insurance Amount Received in 1 Year (gross) in 1 Year Amount Received programs and workshops to upgrade/optimized DPS DPS and workshops to upgrade/optimized programs table : as detailed in theollowing capabilities In 2019, DPS UUS Danamon have attended training training attended have In 2019, DPS UUS Danamon 3 3 DPS Working Guidelines and Code of Conduct and Code of Conduct DPS Working Guidelines of Code and Guidelines Working the by abides DPS UUS Danamon periodically. are reviewed which Conduct, and Code DPS Working Guidelines constantly aligns of development the with in accordance of Conduct and provisions. prevailing regulations DPS Remunerasi anggota DPS UUS bagi dan fasilitas lainnya Remunerasi Danamon Remunerasi oleh Komite Danamon diusulkan Saham Pemegang Umum Rapat dalam ditetapkan serta dan fasilitas lainnya Danamon. Jumlah remunerasi 2019 adalah sebagai berikut: selama tahun other and remuneration members’ DPS Danamon UUS Danamon Remuneration are proposed by the benefits General Annual in Danamon’s stipulated and Committee and other of Shareholders. Total remuneration Meeting in 2019 are as follows benefits 5. provides also DPS supervision, to addition In Board of Directors to the and advice recommendations UUS Danamon of PT. Bank Danamon Indonesia, Tbk and in of DPS opinions published form in the management requirements. management with accordance Orang Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Training/Workshop 2019 Total Remuneration and other Benefits and other Total Remuneration Ijtima’ Sanawi (Annual Meeting) Dewan Pengawas Syariah (DPS) 2019, dated Ocotber 2- 4, 2019, Aston Bogor Bogor Aston 2- 4, 2019, Ocotber dated 2019, (DPS) Syariah Pengawas Meeting) Dewan (Annual Ijtima’ Sanawi Bogor 16132 Kota Mulyaharja, Pahlawan, BNR) Jl. Dreded (Aston & Resort Hotel Pra Ijtima’ Sanawi (Annual Meeting) Dewan Pengawas Syariah (DPS) 2019, dated September 17, 2019, Aula Kantor Kantor Aula 2019, 17, September dated (DPS) 2019, Syariah Pengawas (Annual Meeting) Dewan Ijtima’ Sanawi Pra 2, Jakarta. Lt. DSN-MUI Total Remuneration per person in 1 year Remuneration Total Other Benefits Other Benefits Remunerations Remunerations DPS opinions issued during the period of such of such period the during DPS opinions issued Report on the Bank’s products and services and services Bank’s products on the Report & working papers on Bank activities Bank supervision Financial reports, branch network development, development, network branch reports, Financial Provided advice and recommendations to UUS to UUS and recommendations advice Provided Submitted a report on the DPS supervision results results DPS supervision a report on the Submitted supervision supervision with Bank Danamon UUS management during the the during UUS management Bank Danamon with supervision of such period DSN-MUI the by followup, accompanied compliance fatwas development product products, human resources, and regular meetings meetings and regular resources, human products, improve and fulfill sharia principles, and to sustain to sustain and principles, sharia and fulfill improve of UUS Danamon. . and growth development Danamon Director during routine DPS meetings meetings DPS routine during Danamon Director to occasions in order or on certain a month once Danamon UUS, the Internal Audit Unit and Bank Unit and Bank Audit Internal Danamon UUS, the Division Danamon Compliance every 6 months to the OJK with copies to DSN- copies OJK with to the 6 months every of Director the Commissioners, Board of MUI, the Below Rp 500 million Below 2. 2 billion Rupiah Above and 2 billion Rupiah 1 billion Between 1 billion Rupiah up to 500 million rupiah Above 1. 2 1 No • • • Danamon Indonesia, Tbk and the National Sharia Board Board Sharia National Tbk and the Indonesia, Danamon of Report Ulama Indonesia (DSN-MUI) through - Majelis are the which for 2 (two) periods, Results Supervision and Year Year (LHP)-Mid Results of Supervision Report of: LHP consists The End 2019. • DPS Supervision DPS Supervision OJK with the to were reported results DPS supervision Work Audit Internal Division, Compliance to the copies of PT. Bank & Commissioner Unit, Board of Directors 6. 4. Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 390 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. (*) Pada tahun 2019,berikut status permasalahanhukum di UUSDanamon: LEGALISSUES In 2019,UUSDanamonuseKarimsyah Lawfirmtopreparestandarisation contracts. Pada tahun 2019,UUSDanamonmenggunakan Karimsyah Lawfirmtopreparestandardization ofsharia financing LIST OFCONSULTANTS ANDLEGALADVISORS e) d) c) b) a) With regardtoGCGimplementation, the UUSDanamonDirector hasperformed the following: DIRECTORS OFUUS Total Not settled/Undersettlement Case closed(permanent&legallybinding) through legalprocess Has beenfollowed upon sought Completion hasnotbeen internal UUS Under settlementwithin Resolved Total internal fraud Internal Fraudwithin 1year branch including operational andmarketing coordination ofsharia products through sharia services atthe Bank’smain regular meetings andSupervision Result Reports. Taking roleasmember ofthe Risk Management Committee. Coordinate with BIandOJK Ensured UUSDanamon’ssoundessinaccordance with OJKprovisions Coordinated with alllevels ofdirectorates forthe development andupgrading ofUUSDanamon’sbusiness, Coordinated with alllevels ofinUUSDanamontocarry outDPS’srecommendations orinputderived from SSB’s CaseNo:PASurabayaNo.673/Pdt.G/2019/PA. Sby, CaseRegistration Date February 4,2019 Legal Issues None None None None None 2019 Directors None None None None None 2019 Number ofcasescommitted by Permanent Employees None None None None None 2019 None None None None None 2019 None None Civil 1 (*) None None None None None 2019 Contract Employees Total Annual Report Criminal None None None None None None None None 2019 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 391 Good redicate 1.75 0.25 0.70 0.20 0.20 0.40 Value (a) x (b) x (b) 0.70 Value (a) Value (a) (b) 100% Weight Weight 10.00% 10.00% 25.00% 35.00% 20.00% (b) PT Bank Danamon Indonesia Tbk. 35 % Weight Weight 2 (a) 1 2 2 2 2 Rank Rank (a) Rank Rank Rank 3 in Best Overall Performance Sharia Business Business Sharia Performance Rank 3 in Best Overall Rank 1 in teller category Rank 1 in teller Minus E-Banking category Rank 2 in Overall category Service Rank II Customer category Center Rank 3 in Branch Call category

2019 : 2019 : • • • • • Brand Awards Bank, Infobank Digital Awards for Infobank Banking Service Exellence Awards Awards Exellence Service Banking Infobank for Awards Business Unit-Conventional Sharia Rank 1 for category the following composite value 2019 summary and the 2019 2019 the and summary 2019 value composite following the results. UUS Danamon GCG self-assessment UUS Danamon Achievements : by UUS Danamon in 2019 received Followings are awards 1. 2. USE AND ITS NON-HALAL INCOME by UUS received was no non-halal income In 2019, there Danamon. RESULTS GCG SELF-ASSESSMENT 2019 UUS DANAMON assessment self- to the working papers related Based on the we present 2019 UUS Danamon GCG implementation, of the Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Factors Factors / Satisfactory / Below Satisfactory / Poor Satisfactory / Below / Satisfactory Good 2019 Excellent / Excellent Director of UUS Danamon shall pass the fit & proper test of of test the fit & proper of UUS Danamon shall pass Director managing for of UUS Danamon shall be responsibile Director for data & provide up on DPS recommendations Shall follow BI, be independent, shall have no conflict of interest and his and his of interest no conflict BI, be independent, shall have BI. to appointment shall be reported UUS Danamon DPS supervision

UUS Director duties and responsibilities UUS Director • • • Composite Value Composite DPS duties and responsibilities Implementation DPS duties and responsibilities activities and in fund raising Sharia principles implementation funds channeling and services and deposit financing customers core Fund disbursement to depositors core of funds by GCG status, Financial and non-financial transparency reporting and internal reports implementation UUS Director duties and responsibilities Implementation duties and responsibilities UUS Director 1 2 5 3 4 No 1 Predicate: Predicate: No Annual Report Table Summary of Self Assessment Result GCG UUS Danamon 2019 GCG UUS Result of Self Assessment Table Summary Table of Composite Value Summary Calculation 2019 Calculation Value Summary Table of Composite Institutions, and Sharia Economic Institutions. Hence, in 2019, in 2019, Hence, Institutions. Economic and Sharia Institutions, funds to establishments, 45 virtue UUS Danamon distributed and eligible mosques/mushola, foundations, institutions, details of these The totaling IDR 446,556,000. individuals 2. in Attachment can be observed proceedings Article 4 paragraph 2 which reads: “Sharia Bank and UUS can Bank and UUS can “Sharia reads: 4 paragraph 2 which Article mal institutions, form of baitul in the functions perform social from zakat, infak, alms, funds derived receive which zakat funds and channeling it to the social or other grants, DSN MUI Nomor 123/ And Fatwa organization.” management Funds of Unrecognized Use The regarding DSN-MUI/XI/2018 Business Sharia Institutions, Financial for Sharia as Income UUS Danamon achievements in the Indonesian banking Indonesian banking in the UUS Danamon achievements descriptions. the following are The industry. Activities for Social Funds of Virtue Distribution Sharia 21 of 2008 concerning Pursuant to Law Number and Functions. Objectives II on Principles, Banking Chapter in stated as functions out social banks also carry Islamic UUS DANAMON ACTIVITIES UUS DANAMON of 2 (two) proceedings, consisted UUS Danamon activities and activities for social funds virtue of the distribution the Main Management Company Management Operational Good Corporate Corporate Corporate 392 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. No 2 Predicate: 5 4 3 • • SSB dutiesandresponsibilities Composite Value • • • • reports andinternal reporting. implementation Transparency offinancialandnon-financialconditions, GCG • • • • Fund disbursementto core financingcustomers anddeposit • • Sharia principlesimplementation infundraising, channelingof • • DPS have ensure andassess thefulfillmentofshariaprinciples DPS membersshallhave 3persons,having integrity, UUS Danamonshall possess appropriate internal reporting UUS Danamonshallconduct GCG Self-Assessment, andshall UUS DanamonshallsubmitDanamon’s targets, strategies UUS DanamonshallpublishQuarterly FinancialPublished A detailedlist ofCore FinancingCustomers andCore Deposit Products ofThe UUSDanamonfundingprogram shall UUS Danamon’s non-specialtreatment for Core Financing UUS Danamonshallapplyprudentialprinciplesinproviding UUS Danamonshallmake efforts intheimplementation of Each product issued by UUSDanamonshallbereviewed by the Multiple positionsasmembersofDPSat otherIslamicfinancial DPS shallconvene 13(thirteen) meetingsin2019. Decisions Danamon’s ITSecurityprocedures. have IT security system knowledge in accordance with Bank personnel withadequate training andexperience and shall support systems. The reporting system shallbesupported by and shallbeableto present data /information from core and OJK regulations. prepare theGCG Implementation Report according to BI/ well asintheBank’s Annual Report. UUS business development intheRBBRealization Report as and development policies inRBBandconvey information on provisions. Reports innational newspapers inaccordance withBI/OJK applicable regulations. Customers shallbesubmitted to BIinaccordance with periodically bereviewed according to theBank’s provisions. customers follows thegeneral policy ofUUSDanamon. Customers andCore Depositors sothat thetreatment to core referring to BI/OJK provisions. funding, especiallyto Core Customers by continuously funds by core depositors. and internal audit. one ofwhich is conducting product policy periodic reviews accordance withtheDSN-MUI Fatwa andBI/OJK provisions, fundraising products, channelingoffundsandservices in product withFatwa DSN -MUI. with requests for DPSopinionsto ensure thesuitabilityof Sharia Assurance Unit,BankDanamonCompliance Division funds, andservices activities of UUSDanamonfor personalgain. Working Procedures, SSB membersshallnottake advantage Business Unit/UUSDanamon.Inaccordance withtheSSB shall notholdconcurrent positionsasconsultants intheentire reported intheGCG Implementation Report. DPS members institutions aswell asremuneration /otherfacilities shallbe follow-up to UUSDanamonmanagement be well documented and submitted as recommendations for of themeetingsshallbebasedonconsensus deliberations, the provisions ofBI guidelines andsubmitsupervisoryreports inaccordance with on UUSDanamon’s operational products andoperational in accordance withBankIndonesiaregulations Commissioners. The dualpositionsofmembersSSB shalbe with tenure notexceeding theBoard ofDirectors /Board of Nomination Committee andrecommendations ofDSN-MUI through theGMS,basedonrecommendations ofthe competence and adequate financial reputation, appointed Excellent / Good /Satisfactory /Below Satisfactory /Poor Factors Rank (a) 2 2 2 1 Weight 100% 20% 25% 10% 10% (b) Value (a) 0.40 0.20 0.20 0.25 x (b) 1.75 Annual Report Excellent redicate Good Good Good Good 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 393 PT Bank Danamon Indonesia Tbk. responsibilities well, for example, all DPS members enjoy enjoy well, for example, all DPS members responsibilities hold regular and show competence, good reputations and recommendations, opinions provide DPS meetings, DPS and prepare the UUS Danamon products, review semester every Report supervision UUS Danamon DPS has performed its duties and and duties its has performed UUS Danamon DPS Director of UUS Danamon, and refinement of compliance , , compliance of refinement and Danamon, UUS of Director audit. and internal management risk strong its support from Bank Danamon with the Finally, awareness, brand excellent and network wide infrastructure, forward for impact going positive continuous will bring industry banking in Syariah Danamon UUS to compete of sharia application in the maintaining consistency while in banking activities. principles 6. of on advancement continue will keep Danamon UUS human on to improvement related sustainable growth on sharia improvement along with productivity resource more effective banking knowledge and skills, provide on work , improvement systems management information chanelling office all and optimize and procedures, processes to provide set targets the networks in order to achieve of all stakeholders. interests the and protect benefits of ongoing out by means endeavors are carried above The SSB’s best principles, and prudential of GCG prioritization of sharia implementation in the possible performance between SSB and the communication better principles, Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Direktur Syariah Direktur Herry Hykmanto Herry Sharia Business Unit Sharia PT Bank Danamon Indonesia, Tbk. 2019 Financial and non-financial transparency, GCG GCG transparency, and non-financial Financial prerequisites, the has met UUS Danamon Director The Fund disbursement activities in financing customers customers in financing activities Fund disbursement Boosted third party fund raising by making the best use best use the by making raising fund party third Boosted At all times complied with the prevailing regulations and and prevailing regulations the with complied At all times fully committed to expanding Danamon UUS, follows up Danamon UUS, follows up to expanding fully committed the submits and punctually on SSB recommendations, at and status report on UUS Danamon growth monthly DPS meetings regular implementation reports and internal reporting reporting and internal reports implementation transparently in accordance and periodically conducted regulations prevailing with is competence, sharia required the for example having and independence based on sharia principles based on sharia and independence with remained consistent party fundraising and third based on and independence of prudence principles the principles sharia fund channeling and sharia unit services. fund channeling and sharia services network and sharia branch office sharia of the network bank’s office the through channeling) (office and improving principles prudent upholding while principlesprudence resource human sharia knowledge of sharia implement principles in fund raising activities and and activities in fund raising principles implement sharia Annual Report 4. 5. 3. 2. category category of “Good.” in UUS Danamon in 2019 have of GCG implementation The : GCG as follows oversee which requirements fulfill several 1. GENERAL CONCLUSIONS GENERAL UUS in 2019, self-assessment of GCG results Based on the attaining the score of 1.75, composite Danamon obtained a Main Management Company Management Operational Good Corporate Corporate Corporate 394 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data PT Bank DanamonIndonesia Tbk. Appendix 1:Detailsoftimes, venues, andagendaofDPS2019meetings No 4 6 3 5 2 1 Jakarta Pusat Dempo No. 19Pegangsaan at DSN-MUI Building,Jl. Tuesday, April16,2019 Setiabudi, Jakarta Selatan Kav. C10Karet Kuningan, floor, JL.HRRasunaSaid Bank DanamonBuilding7 At 7.1 MeetingRoom-Menara Friday, March 22,2019 Setiabudi, Jakarta Selatan Kav. C10Karet Kuningan, floor, JL.HRRasunaSaid Bank DanamonBuilding7 At 7.1 MeetingRoom-Menara Friday, February 1,2019 Setiabudi, Jakarta Selatan Kav. C10Karet Kuningan, floor, JL.HRRasunaSaid Bank DanamonBuilding7 At 7.1 MeetingRoom-Menara Friday, January04,2019 Setiabudi, Jakarta Selatan Kav. C10Karet Kuningan, floor, JL.HRRasunaSaid Bank DanamonBuilding7 At 7.1 MeetingRoom-Menara Thursday, May 232019 Setiabudi, Jakarta Selatan Kav. C10Karet Kuningan, floor, JL.HRRasunaSaid Bank DanamonBuilding7 At 7.1 MeetingRoom-Menara Tuesday, April30, 2019 Hari, Tanggal&Tempat th th th th th th th 2. Update onmatters inUUS 1. Update onDanamonUUS 2. Update onmatters inUUS 1. Update onDanamonUUS Employee Cooperation (Kopkar) to Conventional of Employee Cooperation Discussion on Financing 2. Update onmatters inUUS 1. Update onDanamonUUS 2. 1. coordination withDPS. Beginning of year Danamon UUS activitiesandBank and issues related to Performance Danamon UUS activitiesandBank and issues related to Performance Danamon UUS activitiesandBank and issues related to Performance Bank Danamon to UUSactivitiesand UUS and issues related UUS Performance Update onmatters in Update onDanamon Agenda 3. Drs.AsepSupyadillah, M.Ag 2. DR.Hasanudin,M.Ag 1. Prof. DR.H.MDinSyamsuddin 9. SitiChodidjah 8. DadanSetiawan 7. DedySetiadi 6. Yatno Sukendar 5. Sutarto 4. BudhiHernandi 3. Drs.AsepSupyadillah, M.Ag 2. DR.Hasanudin,M.Ag 1. Prof. DR.H.MDinSyamsuddin 7. DadanSetiawan 6. DedySetiadi 5. SitiChodidjah 4. Sutarto 3. BudhiHernandi 2. Drs.AsepSupyadillah, M.Ag 1. Prof. DR.H.MDinSyamsuddin 9. DadanSetiawan 8. DedySetiadi 7. Yatno Sukendar 6. Sutarto 5. BudhiHernandi 4. HerryHykmanto 3. Drs.AsepSupyadillah, M.Ag 2. DR.Hasanudin,M.Ag 1. Prof. DR.H.MDinSyamsuddin 12. MerisaArdini 11. DwiRachmawaty 10. Anindito 9. Achmadijan Firdaus 8. DadanSetiawan 7. BudhiHernandi 6. Yatno Sukendar 5. Refita RulliArief 4. HerryHykmanto 3. Drs.AsepSupyadillah, M.Ag 2. DR.Hasanudin,M.Ag 1. Prof. DR.H.MDinSyamsuddin 12. DadanSetiawan 11. DedySetiadi 10. Yatno Sukendar 9. Sutarto 8. Refita RulliArief 7. BudhiHernandi 6. Gafar 5. Makhri 4. Edy Haryana 3. Pristiyanto 2. Drs.AsepSupyadillah, M.Ag 1. DR.Hasanudin,M.Ag 9. SitiChodidjah 8. Sara Zathira Siregar 7. AlbiAriza 6. DwiRachmawati 5. Sutarto 4. BudhiHernandi Peserta Annual Report DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI Kemenkop Kemenkop Kemenkop Kemenkop DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI Unit 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 395 Unit UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS UUS BDI PT Bank Danamon Indonesia Tbk. Peserta 5. Sutarto 6. Merisa Ardini Endah Prawanti 7. Zuljuniati 8. Ferdayanti Sri Maryati 9. DR. H. M Din Syamsuddin 1. Prof. 2. DR. Hasanudin, M.Ag M.Ag 3. Drs. Asep Supyadillah, 4. Sutarto 5. Dadan Setiawan 6. Merisa Ardini DR. H. M Din Syamsuddin 1. Prof. 2. DR. Hasanudin, M.Ag M.Ag 3. Drs. Asep Supyadillah, Rulli Arief 4. Refita 5. Budhi Hernandi Sukendar 6. Yatno Sutarto 7. 8. Dadan Setiawan Dedy Setiadi 9. Merisa Ardini 10. DR. H. M Din Syamsuddin 1. Prof. 2. DR. Hasanudin, M.Ag M.Ag 3. Drs. Asep Supyadillah, 4. Herry Hykmanto Rulli Arief 5. Refita Sukendar 6. Yatno Sutarto 7. 8. Dadan Setiawan 1. Prof. DR. H. M Din Syamsuddin 1. Prof. 2. DR. Hasanudin, M.Ag M.Ag 3. Drs. Asep Supyadillah, 4. Budhi Hernandi Sukendar 5. Yatno 6. Sutarto Rachmawaty Dwi 7. 8. Dadan Setiawan Merisa Ardini 9. DR. H. M Din Syamsuddin 1. Prof. 2. DR. Hasanudin, M.Ag M.Ag 3. Drs. Asep Supyadillah, 4. Herry Hykmanto Rulli Arief 5. Refita 6. Budhi Hernandi Sukendar Yatno 7. 8. Sutarto DR. H. M Din Syamsuddin 1. Prof. 2. DR. Hasanudin, M.Ag M.Ag 3. Drs. Asep Supyadillah, 4. Dadan Setiawan Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Agenda Performance to related and issues UUS activities and Bank Danamon Semester I 2019 - Part 2 - Part I 2019 Semester Oponion regarding Implementation & DL iB Danamon Lebih Arisan Program. of Performance to related and issues UUS activities and Bank Danamon Danamon LHP DPS Sampling for 1 - Part I 2019 Semester up on follow Discussion Astra action on Kopkar (Kopkar Motor Honda AHM) on Sharia Opinion Review Brochure to related Alignment (Danamon Lebih Lebih/Danamon Fleximax/Fleximax Ib, Ib & & D-save iB, D-Sve Plus Ib) d-Save Performance to related and issues UUS activities and Bank Danamon Performance to related and issues UUS activities and Bank 1. Update on Danamon UUS on Danamon UUS 1. Update in UUS on matters 2. Update 1. Sampling for LHP DPS LHP DPS 1. Sampling for on Sharia 2. Review on Danamon UUS 1. Update in UUS on matters 2. Update 1. 2. 3. 1. Update on Danamon UUS on Danamon UUS 1. Update in UUS on matters 2. Update UUS on Danamon 1. Update in UUS on matters 2. Update th th th th floor, floor, st floor, floor, st 2019 Hari, Tanggal & Tempat Hari, floor, JL. HR Rasuna Said JL. HR Rasuna Said floor, Kuningan, Karet C 10 Kav. Selatan Setiabudi, Jakarta Setiabudi, Jakarta Selatan Setiabudi, Jakarta 2019 29, October Tueday, Meeting Room-Menara 7.1 At Bank Danamon Building 7 Tuesday, October 01, 2019 01, October Tuesday, Meeting Room-Menara 7.1 At Bank Danamon Building 7 JL. HR Rasuna Said floor, Kuningan, Karet C 10 Kav. Thursday, August 19, 2019 19, August Thursday, 1 Room Meeting At Lapangan Ros BDS BDS Monday, August 12, 2019 August Monday, 1 Meeting Room At Lapangan Ros BDS BDS Tuesday, July 30, 2019 July 30, Tuesday, Meeting Room-Menara 7.1 At Bank Danamon Building 7 JL. HR Rasuna Said floor, Kuningan, C 10 Karet Kav. Selatan Setiabudi, Jakarta At 7.1 Meeting Room-Menara Room-Menara Meeting 7.1 At 7 Bank Danamon Building Rasuna Said JL. HR floor, Kuningan, C 10 Karet Kav. Selatan Setiabudi, Jakarta Tuesday, July 2, 2019 Tuesday, 7 8 9 11 12 10 No Annual Report Main Management Company Management Operational Good Corporate Corporate Corporate 396 Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data Appendix 2:TableofDanamonUUSVirtue FundDistribution 2019 PT Bank DanamonIndonesia Tbk. No 13 No 10 14 19 16 18 13 15 12 17 11 4 9 6 8 3 5 2 7 1 Setiabudi, Jakarta Selatan Kav. C10Karet Kuningan, floor, JL.HRRasunaSaid Bank DanamonBuilding7 At 7.1 MeetingRoom-Menara Tuesday, December 03, 2019 Hari, Tanggal&Tempat 13-May-19 8-May-19 8-May-19 8-May-19 8-May-19 18-Apr-19 15-Apr-19 9-Apr-19 4-Apr-19 4-Apr-19 4-Apr-19 29-Mar-19 15-Mar-19 15-Mar-19 6-Mar-19 13-Feb-19 30-Jan-19 23-Jan-19 4-Jan-19 Tanggal DKM NurulIman Jannah Majelis ta'limRaydhatul Durajaya Yayasan Pon Pes KHSyatori SMP ITAR-RUDHO Rohman Pondok Pesantren Taqdirur Madrisatul Ikbar Yayasan Pendidikan Yayasan Kafila Thoyiba Fintech Syariah 2019 (UNISBA) Universitas IslamBandung ASBISINDO Yayasan AlphaIndonesia & Doeafa IndonesiaTercinta Yayasan Pecinta Anak Yatim PMD BDS Matraman Yayasan Daruttaqwa Berlan PMD BDS Ciracas BPRS Baktimakmur Indah Kemenag Medan GN Guntur Yayasan BairuhaManshurin DKM AlMu'minun Nama Penerima Dana th th Kebajikan 2. 1. regarding Discussion onShariaOpinion Principles not basedonSharia or MutualFundswhich of Government Bonds to Investment Purchase Branches on ShariaImplant Service Manager(BSM) ID by ShariaBranch Sharia Account Intended Use ofHTVConventional : Agenda . Funding assistance on the tsunami Support fundonOrphanChild Doeafa IndonesiaTercinta Duafa Yayasan Pecinta AnakYatim & Support fundonOrphanChild and Support fundonOrphanChild 1440 HYayasan Daruttaqwa Berlan Support fundonRamadhanActivities 1440 HPMDBDS Ciracas Support fundonRamadhanActivities Support fundfor OrphanChild. Chair. Support onProcurement ofMeeting Pesantren BairuhaBalikpapan Support on Construction Pondok Mu'minun Legok Tangerang Banten Support onConstructuionof MasjidAl Nurul ImanTangerang Selatan Banten Support on Constructuionof Masjid Ta'lim Banten Support onConstructuionof Majelis Miftahul UlumHilaliyah Support onConstructuionof Pon Pes Event SMPITAr-Rudho Support onParenthing Education Taqdirur Rohman Building Support onConstruction ofPesantren Pendidikan Madrisatul Ikbar infrastructure of Sekolah Yayasan Funding assistance on facilities and Quran Sekolah -East Jakarta Support onContest Event Tahfiz Depan Keuangan Islam Teknologi danInovasi untukMasa Support onProgram SeminarNasional Karimah) at SDNLegok Pego (Pendidikan, Edukatif, danAkhlakul Support onProgram PENA disaster at Selat Sundaviaasbisindo 7. MerisaArdini 6. DedySetiadi 5. DadanSetiawan 4. BudhiHernandi 3. Drs.AsepSupyadillah, M.Ag 2. DR.Hasanudin,M.Ag 1. Prof. DR.H.MDinSyamsuddin Tujuan Peserta Rp25,000,000 Rp3,000,000 Rp5,000,000 Rp7,500,000 Rp3,000,000 Rp10,750,000 Rp7,500,000 Rp9,900,000 Rp10,000,000 Rp2,500,000 Rp3,000,000 Rp3,000,000 Rp20,000,000 Rp5,000,000 Rp7,500,000 Rp10,000,000 Rp5,000,000 Rp25,000,000 Rp5,000,000 Annual Report Nominal UUS BDI UUS BDI UUS BDI UUS BDI DPS DPS DPS Unit 2019 Main Management Company Management Operational Good Corporate Corporate Corporate Highlights Report Profile Discussion and Analysis Review Governance Social Responsibility Data 397 Nominal Rp 8,056,000 Rp 8,056,000 Rp 5,000,000 Rp 446,556,000 Rp 24,000,000 Rp 24,000,000 Rp 8,400,000 Rp 15,200,000 Rp 2,000,000 Rp 8,000,000 Rp 5,000,000 Rp 10,000,000 500,000 Rp Rp 30,000,000 Rp 10,000,000 Rp 7,000,000 Rp 5,000,000 Rp 2,000,000 Rp 7,500,000 Rp 5,000,000 Rp 5,000,000 Rp 5,000,000 Rp 5,000,000 Rp 3,000,000 Rp 3,000,000 Rp 9,250,000 Rp 1,500,000 Rp 19,500,000 Rp 70,000,000 Rp 10,000,000 PT Bank Danamon Indonesia Tbk. Tujuan Support fund on schools needs for Support fund on schools needs for Genap, Semester orphans and dhuafa, of Ahmad children foster 2019-2020, Chairul Syah Nabi Maulid on fund Support activities Muhammad SAW in several village in Cirebon. in several needs for fund on school Support orphan child, Binaan Chairul of procurement on fund Support based exam. technology for laptop orphan child Support fund for Fatih orphan child Al Support fund for event. post- Support on scholarship for student-1 Sharia Economy graduate person of mosque renovation Support fund for of student Support on scholarship for fortunate. less of Anniversary the 74th Support for of Indonesia event the Republic cost. Support on medical treatment for program Support on trainning student. of UNPAD research of Support fund on Construction Asuhan Panti Asrama Renovation on Mushola Supprot Nabi Maulid on fund Support activities Muhammad SAW of Support fund on Construction Mosque of Support fund on construction Mustaqim Qisthos Pesantren Pondok Support fund to Disable Child Dhuafa Disable Child Dhuafa Support fund to Rumah Hasanah of construction Support fund on Mushola Al Yaqin and Dhuafa Support fund on Eldery of Support fund on Construction Masjid Al Madani Bandung Support fund on Orphan Child Ramadhan 1440 H Support fund on Orphan Child Ramadhan 1440 H Support fund on Orphan Child Activities Ramadhan Fair village empowerment, fund on Support Al Azhar LAZNAS Support fund on Idul Fitri 1440 H gifts and Priest Teacher, Koran Ustadz, for Reaching New Heights with Local and Global Capabilities and Global Local with Heights New Reaching Kebajikan Nama Penerima Dana Dana Nama Penerima Mushola Al Muwahiddin Masjid Jami Al Ma'mur Masjid Al Qodar Mustaqim Qisthos Yayasan Ahmad Chairul Syah Ar Risalah Al Yayasan Islamiyah SMAN 70 Jakarta SMAN 70 Zahra Az Universitas Masjid Al Ikhlas PT Pegawai Koperasi Indonesia III Pelabuhan 005 Bukit RT Taruna Karang Duri Tebet Subagio UNPAD An- Darul Yatama Yayasan Najah Yayasan Mahmudah Yayasan Danamon Syariah Al Azhar LAZNAS Pesantren Pondok Yayasan KH Syathori Ahmad Chairul Syah YPI Darul Ulum Al-Jarkasih PMD Prapatan Rumah Hasanah Mushola Al Yaqin Dana Bantuan Peduli Yayasan Lansia & Dhuafa Masjid Al Madani Lapangan Ros PMD BDS 2019 Tanggal 13-Dec-19 1-Nov-19 1-Nov-19 12-Dec-19 2-Sep-19 4-Oct-19 29-Oct-19 1-Nov-19 7-Aug-19 7-Aug-19 16-Aug-19 21-Aug-19 24-Jun-19 9-Jul-19 17-Jul-19 17-Jul-19 20-May-19 22-May-19 20-Jun-19 16-May-19 17-May-19 17-May-19 17-May-19 14-May-19 15-May-19 15-May-19 Total 21 31 41 27 37 22 25 32 23 35 33 28 24 29 26 38 39 36 42 45 43 34 20 30 44 No 40 Annual Report