Sustainability Report 2016 Accelerating Sustainability Performance Accelerating PT Bank Negara Indonesia (Persero) Tbk BNI Building Jl. Jend. Sudirman Kav. 1 Jakarta 10220, Indonesia Tel. : (62-21) 2511946, 572 8387 Accelerating Fax. : (62-21) 572 8805 www.bni.co.id Sustainability Report 2016 Sustainability Report Sustainability Performance Sustainability Report 2016 Accelerating Sustainability Performance Printed on Recycled Paper 1 NI continues its healthy growth in 2016. In almost every aspect of business, the Company has grown Bsignificantly, well higher than the average industry. The accelerated growth is a reflection of the Company’s business fundamentals, hard work, and smart initiatives from all employees of BNI, accompanied by a positive synergy with stakeholders. We also boost our contribution to sustainable development in Indonesia. On the one hand, one of the focuses of the Company is to support government’s programs to improve the welfare and prosperity of the nation. It is mainly implemented in the form of financing infrastructure and development projects that are immensely needed by the people of Indonesia. Furthermore, BNI also strongly supports programs to improve social welfare. On the other hand, we continuously improve BNI GO Green Program, as an icon of the environmental management of the company. Everything we do is to ensure company’s Sustainability while at the same time to contribute significantly to sustainable development in Indonesia. Forward-looking Statements This report contains forward-looking statements. These statements are based on various projections and estimations made by management of BNI. The projections come from sources that are common reference used as a reference by the business. The overall or some part of it is not guaranteed to be achievable. The statement lists the predictions and assumptions at the time arranged which considered acceptable. 2 2 Table of Contents The Theme of the Sustainability Report 1 Financing Sustainable Development 41 Table of Contents 2 BNI and Tax Amnesty 43 Highlight of 2016 Sustainability 4 Social and Environmental Aspect in Credit 44 Performances Process Message from the President Commissioner 6 BNI Innovation for Public Services 46 Message from the President Director 10 Supply Chain Financing (SCF) 47 BNI 2016 Financial Performance 48 Indirect Impacts of the Bank 50 ABOUT BNI 14 BNI and International Sustainability 51 Corporate Profile 16 Initiatives BNI At A Glance 20 Green Financing Portfolio 52 BNI Milestones 21 2016 Sustainability Events 24 2016 Awards and Appreciations 26 HARMONIOUS SYNERGY IN 54 EMPOWERING THE COMMUNITY BNI Social Responsibility Strategy 56 BNI AND SUSTAINABILITY 28 BNI Partnership Program 58 Vision, Mission and Value 30 Community Social Responsibility Program 60 BNI Sustainability Principles and Strategy 32 Kampoeng BNI 61 BNI Sustainability Pillars 33 KAMI Bersama BNI 62 BNI Sustainability Program Concept 34 Rumah Kreatif BUMN 64 The Implementation of BNI Sustainability 36 BNI KUR 65 Pillars E-Warong KUBE 66 Synergy for Sustainability 37 Testimonies from Partners of BNI 67 THE PRESENCE OF BNI IN THE 38 ENSURING ENVIRONMENTAL 68 SUSTAINABLE DEVELOPMENT OF SUSTAINABILITY INDONESIA Ensuring Environmental Sustainability 70 The Bank’s Policy Direction 40 A More Eco-Friendly Banking Operations 71 Healthy Growth 41 Growing the Spirit of BNI Go Green 76 Bank Sampah BNI 77 (Waste Management Program) BNI Sustainable Banking Apps 78 BNI Urban Parks and Forests 80 BNI Go Green Activities in 2016 84 BNI • Sustainability Report 2016 3 A PRIDE PLACE TO SERVE AND 86 BEING AN EXEMPLARY PRACTICE 118 GAIN ACHIEVEMENTS FOR INSAN IN SUSTAINABLE CORPORATE BNI GOVERNANCE Human Resources Management Strategy 88 Accurate and Effective Risk Management 120 Human Capital Transformation 90 Good Corporate Governance (GCG) in BNI 122 A Pride Workplace 90 Anti-Corruption 124 Work-Life Balance 91 Developing Culture, Ethics and Fraud 125 Occupational Health and Safety 92 Prevention Whistle Blowing System 126 Education and Training 93 GALERI HARI PELANGGAN Employment 95 Good Corporate Governance Performance 127 Employee Engagement Survey 97 Assessment Freedom of Association 98 Stakeholder Engagement 129 Increase Engagement through 99 Reward and Recognition System ABOUT THE SUSTAINABILITY 130 REPORTFoto Pemenang CUSTOMER’S PREFERRED 100 DefiningLomba Report Content, Boundaries, and 132 PARTNER MaterialFoto Hari Topics Testimony from Customers about BNI 102 GRIPelanggan G4 Content Index 134 Assurance Report in accordance to GRI G4 136 Customer Satisfaction 103 (Pemenang hadiah Rp. 500.000) 1. Priscilla Tacazily – KLN Bitung “Melayani Dari Hati“ 2. CoreRiski Putri Amalia – KC Kudus “Mengenalkan Sejak Dini Fungsi Taplus Anak“ Juara 3. Syahrul Effendi – KC Baturaja “Memberi tak Pandang Usia, Tulus Melayani 1 Handling Complaints 103 dari Hati” 4. Endang Sri Wahyuni – KC Surakarta “Tulus Melayani dari Hati” 5. Ghea Diennur Marlia – KK Sindanglaut Cirebon “Tulus Melayani dari Hati” Compliance 106 6. Mohamad Setiadi Wibowo – SMR WJK “Tulus Ikhlas Melayani dari Hati” 7. Rohmadi Elsan Aprianto – KLN Boyolali “Tulus Melayani dari Hati” 8. Achmad Fanzi Indrawan – KK Antapani Bandung “Terimakasih telah menunggu, semangat kami untuk Anda” Inclusive Banking and Financial Literacy 107 9. M. Bayu Pratama Putra – KC Baturaja “Memberikan senyuman dan sambutan Juara 1 (Pemenang Utama) yang tulus kepada nasabah yang datang ” Hestrin Saptati-KCU Fatmawati “Saving Yes, Drugs No” Movement 109 10. Hengki Liberty Siahaan – KC Pematangsiantar “Tulus Melayani dari Hati” “BNI Melayani Dari Hati Segala Jenis Transaksi“ Highlights of BNI Financial Inclusive 110 Products Social Assistance & Non-Cash Subsidy 111 Toll Acceptance Program 112 BNI Mobile Service 113 BNI Digital Credit 114 BNI e-Branch 116 BNIDirect 116 9 Agen46 117 BNI’s excellent service is our commitment to sincerelyEDISI 93 IXserve 2016 our customers BNI • Sustainability Report 2016 Highlight of 2016 4 Sustainability Performance Financial Performance Total Net Asset Profit trillion trillion 603 rupiah 11.34 rupiah Profit Credit Non Performing Loan Growth Growth (NPL) Gross Better than average 25.1% 20.6% industry 8.5% 3.0% Non Performing Loan (NPL) Capital Adequacy Ratio (CAR) Coverage Nett Total Ratio 0.4% 19.4% 146.0% Environmental Performance Number of BNI City Forest/ Size of BNI City Forest/ Reduction Park Park of Paper thousands 13unit 771.2 of sq meter 2,085tonnes Number of total trees planted Total Contribution Disbursed Energy efficiency from 2011-2016 for Tree Planting Earth Hour Program million billion mega watt hour 8.14 trees 31.06 rupiah 42 (mWh) BNI • Sustainability Report 2016 5 President of the Republic of Indonesia, Joko Widodo, conducted a transaction with BNI TapCash at the Surabaya - Mojokerto Toll Road on May 19, 2016 Social Performance Disbursement of KUR Number of MSMEs & Growth of KUR since 2007-2916 Migrant Workers receiving KUR Disbursement 2015-2016 trillion 29.05 rupiah 275,335debtors 153.4% Disbursement of CSR Number of Employee Engagement Survey Score Fund Kampoeng BNI (Much better billion than the average 62.75 rupiah 21 55.22% industry 40%) Duration of Training/ Percentage of Trained Employee Employees 61.34 hour 99.76% BNI • Sustainability Report 2016 Message from the 6 President Commissioner “We believe BNI is committed to continuously support the implementation of the Sustainable Finance Roadmap (SFR) which has been announced by The Indonesia Financial Services Authority (FSA). Essentially, by implementing the Sustainable Finance (SFR) Program, it also means aligning economic, environmental, and social aspects into the Company’s Vision and Mission. Therefore, supporting the SFR stipulated by the Indonesia FSA means implementing the strategic plan of BNI inherently”. Hartadi A. Sarwono President Commissioner BNI • Sustainability Report 2016 7 Respected shareholders and stakeholders, n the midst of an economic slowdown that This year, the company has actualized those occurred for the last few years, the Board still referrals. Human resource development has felt optimistic that BNI would continue to grow been advancing, resulted in increasing capability Ihealthily, be well-managed, and with sufficient of BNI’s employees to compete globally. We are capital able to support the Government in realizing proud that in 2016 the number of trained personnel the Sustainable Development. This view is based are as many as 28,311 people or 99.76% of on our observation on the Company’s solid total employees, a remarkable ratio. The amount business fundamentals, backed with the right of training budget spending 215 billion rupiah strategic initiatives to support business growth in also shows the seriousness of the Company in line with the Corporate Plan 2014-2018. managing human resources. In 2016, the Company made a transformation in Dealing with these challenges, BNI should the Organizational Learning Management Division continue to implement the four compass to be BNI Corporate University. This Corporate directions consistently (Nature, Economy, Well- University will become a center of excellence for Being, and Society) to contribute to the Nation, human resource development of the company. shareholders, the environment, and society. In the In the future, the curriculum will continue to be future, the company should be able to quantify adjusted in response to the needs of employees the entire contribution to the environment and of BNI and market demands. The university will society. The compass will facilitate