Annual Report 2019 PT Bank Danamon Indonesia Tbk
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236 PT Bank Danamon Indonesia Tbk. Annual Report 2019 Reaching New Heights with Local and Global Capabilities Highlights Main Report Management 237 Profile Company Discussion and Analysis Discussion Management PT Bank Danamon Indonesia Tbk. Review Operational Good Good Corporate Governance Governance Good Corporate Social Responsibility Social Corporate 2019 Data Corporate Annual Report Corporate Governance Danamon believes that with high commitment Corporate Data “and consistency in implementing good corporate governance in a sustainable manner, Danamon is able to achieve excellent performance in the long term in various business prospects. In addition, the implementation of good corporate governance can protect the interests of stakeholders, so that it can Corporate Responsibility Social improve the added value as well as make Danamon “ a company that is highly competitive and positively contribute to the Indonesian economy. Good Corporate Governance BASIS OF IMPLEMENTATION OF DANAMON’S CORPORATE GOVERNANCE POLICY Danamon has an Integrated Corporate Governance Policy and a Corporate Governance Policy which serve as practical guidelines and reference in the implementation of good corporate governance (GCG) principles in all activities and organizational levels in Danamon and its Operational Review subsidiaries. Corporate Governance policies are prepared in accordance with the relevant laws and regulations, including Law of Limited Liability Companies, Banking Law, Regulations of the Financial Services Authority, Bank Indonesia Regulations, Indonesian Stock Exchange Regulations, Company’s Articles of Association, ASEAN Corporate Governance Scorecard, Indonesian GCG General Guidelines and Indonesian Banking GCG Guidelines issued by the National Committee on Governance Policy (KNKG), as well as the best practices of good corporate governance. COMMITMENT AND OBJECTIVES OF DANAMON’S CORPORATE GOVERNANCE Management and Analysis Discussion IMPLEMENTATION Danamon is committed to continuously strengthen and improve the implementation quality of GCG principles in all aspects of its business activities including its subsidiaries in an integrated manner. Along with the development of best practices in the implementation of corporate governance, both in the banking industry and the financial services industry, Company Profile Danamon has refined GCG policy as a form of commitment to improve the quality of GCG implementation in Danamon. The implementation of Good Corporate Governance principles is a joint commitment that is carried out consistently at all level of Organization at Danamon. By implementing good corporate governance is a sustainable manner, its is hope that it can further boost company performance, increase investor confidence protect the interests of stakeholders, optimize Danamon’s added value as well as can positively contribute to the financial industry and the Management Report national economy. Main Highlights 238 PT Bank Danamon Indonesia Tbk. Annual Report 2019 Reaching New Heights with Local and Global Capabilities Highlights Main Report Management 239 Profile Company Discussion and Analysis Discussion Management Review Operational Governance Good Corporate Social Responsibility Social Corporate Data Corporate Annual Report 2019 PT Bank Danamon Indonesia Tbk. Corporate Governance Implementation Roadmap of Danamon Danamon has consistently and continuously made improvements to Danamon’s corporate governance as outlined in corporate governance implementation roadmap of Danamon. Corporate governance implementation roadmap of Danamon is as follows: Corporate Data 2020 2019 • Adjustments to the structure and members of the • Refinement of policies supporting the Implementation of Financial Conglomeration. Corporate Governance. • Adjustment of committee membership structure. • Refinement of the Charters for the organs of Corporate • Refinement and update of charters for corporate Governance. governance organs. • Update the Code of Conduct. • Improvement of a number of policies related to the • Changes in Organizational Structure implementation of the Anti-Money Laundering and • Adjustment of Committee membership structure Counter-Financing of Terrorism (AML-CFT) policies. • Refinement and update of the policies related to Risk • Refinement and update of a number of policies Management and Integrated Corporate Governance. related to Risk Management and Integrated Corporate Governance. Corporate Responsibility Social 2018 2017 • Improvement of Danamon’s Corporate Governance implementation • Alignment of Danamon’s corporate • Review the Charters of the Board of Directors, Board of Commissioners, governance implementation with the Committees under the Board of Commissioners. regulation of the Financial Services Authority • Review the Subsidiaries’ Corporate Governance Policy. on the Implementation of Corporate Good Corporate Governance • Adjustment to the membership structure of the Integrated Corporate Governance for Commercial Banks. Governance Committee • Improvement of Danamon’s Website • Refinement of the policies related to the implementation of the Anti Money • Enhancement of supporting policies Laundering and Counter-Financing of Terrorism (AML-CFT) policy of Danamon’s corporate governance • Refinement and Update of Policies related to Risk Management. implementation • Changes in Organizational Structure. Operational Review 2016 • Enhancement of Integrated Corporate Governance implementation and improvement of Subsidiaries’ Corporate Governance guidelines. • Enhancement of Corporate Governance implementation in line with the regulation of Financial Services Authority concerning Corporate Governance Guidelines for Listed Companies. • Updated the Charters of Nomination Committee and Remuneration Committee. • Adjustment and simplification of Committees under the Board of Directors. • Established Communication Policy, Board of Directors Succession Policy, and Directors Performance Assessment Tools. • Enhancement of the Whistleblower Policy. Management and Analysis Discussion 2015 2014 • Implementation of Integrated Corporate Governance and Integrated • Aligned and enhanced good corporate governance Risk Management through the availability of Integrated Structure and practices with the applicable regulations, primarily Infrastructure. to meet the recommendations of the Financial • Addition of Independent Commissioner on the Nomination Committee and Services Authority as set out in the Indonesian Remuneration Committee. Corporate Governance Roadmap. • Established Diversity Policy of the Board of Commissioners and Board of • Aligned and enhanced good corporate governance Company Profile Directors, Nomination Policy for the Board of Commissioners and Board of practices with the ASEAN CG Scorecard. Directors, Performance Assessment Policy for the Board of Commissioners • Facilitated all members of the Board of and Board of Directors, Tools for Performance Assessment of the Board of Commissioners with risk management refreshment Commissioners, Anti Gratification Policy (Providing and Receiving Gifts). course. • Dividend payment within 30 days. • Separated the Nomination Committee & • Disclosure of candidate profiles for members of the Board of Commissioners. Remuneration Committee into 2 (two) Committees, namely Nomination Committee and Remuneration Committee. • Referring to the applicable regulations, adjusted the 2013 membership structure of the Audit Committee, Risk • Disclosure of GMS Agenda and its Explanations. Monitoring Committee, Remuneration Committee, Management Report • Published GMS Resolutions one day after the GMS. and Nomination Committee. • Disclosures on the Bank’s website: Corporate Governance Policy, Article of • Enhanced and updated Charters of the Boards Association, Personal Investment Policy, Transactions of Related Party and of Commissioners, Board of Directors, Audit Transactions with Conflicts of Interest Policy, Shareholders, and groups. Committee, Risk Monitoring Committee, Nomination • Enhancement of the Bank’s website including bilingual. Committee, Remuneration Committee, and • Completed management profile and minutes of the GMS. Corporate Governance Committee. • Disclosure of the Remuneration Policy for the Board of Directors and Board of • Affiliated Transactions and Conflicts of Interest Commissioners in the Annual Report. Policies. Main Highlights 240 PT Bank Danamon Indonesia Tbk. Annual Report 2019 Reaching New Heights with Local and Global Capabilities POLICY, ORGAN AND IMPLEMENTATION OF CORPORATE GOVERNANCE IN DANAMON Highlights Main Corporate Governance Policy of Danamon Corporate Governance Policy of Danamon is part of the Danamon Group Financial Conglomeration’s Integrated Corporate Governance (ICG) Policy which is a guideline in implementing corporate governance at all levels of the organization based on the principles of good corporate governance as follows: Transparency 1 Accountability 2 Danamon is committed to provide adequate, clear, Clear establishment of functions, duties, authorities and responsibilities within Report Management accurate, and timely information disclosure, easily the organization set in accordance with the guidelines and charters of each accessible to both shareholders and stakeholders. function. Danamon as an institution should be accountable and responsible for its performance. Responsibility 3 Independency 4 Danamon is committed to comply with laws and Organs of Danamon perform their activities regulations and established internal policies. In addition,