Sei sulla pagina 1di 462

Annual Report 2016

PT Bank QNB Indonesia Tbk


Passion for Excellence
at Its Best

Passion for Excellence at Its Best


Annual Report 2016

PT Bank QNB Indonesia Tbk


QNB Tower
18 Parc SCBD
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190
Annual Report 2016

Telp : (+6221) 515 5155


Fax : (+6221) 515 5388
e-mail : corporate.communication@qnb.co.id

qnb.co.id
Disclaimer
Certain of the matters discussed in this Annual Report about future performance, including, without limitation,
future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely
historical constitute “forward-looking statements”.

These prospective statements in this annual report are prepared based on various assumptions on current and
future conditions of the Bank, as well as its business environment in which the Bank operates. The Bank does not
guarantee that the documents which have been ensured of their validity will bring certain results as targeted. Due
care and attention have been used in the preparation of forecast information. Such forward-looking statements are
not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many
of which are beyond the control of PT Bank QNB Indonesia Tbk, which may cause actual results to differ materially
from those expressed or implied in such statements due to changes in the business environment and other factors.

This annual report contains the word “Bank” which are defined as PT Bank QNB Indonesia Tbk that operates in the
field of banking industry.
Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Overview of the 2016 Annual Report

Annual Report 2016 of PT Bank QNB Indonesia Tbk features an elaborated overview of the Bank’s
important information. The report highlights the theme of “Passion for Excellence at Its Best” which
reflects the Bank’s spirit of determination and optimism. The report also addressed how the Bank

Governance
Corporate
focused on developing the integrity of its people through the internalization of QNB Values and
strengthening its digital platform to further developing its retail segment.

The annual report primarily presented to disclose significant and material information on the Bank
to both shareholders and stakeholders including internal employees, general public, regulators,
government, etc. The report contains comprehensive information and in-depth analysis on the Bank’s
performance during the year in terms of financial, operation, governance, and citizenship. Through
Social Responsibility

this annual report, the Bank aims to meet its responsibility in reporting management accountability
to shareholders as well as delivering concerned, accurate, relevant information on the Bank to the
Corporate

internal and external parties.

PT Bank QNB Indonesia Tbk 1


Our Journey

2013
Aligning Strength and Enhancing Values

2013 was a year of consolidation which was reflected in the improvement of processes,
human resources, and products that were utilized as pillars for the growth of the
Bank. Assisted with the hard work of all employees, PT Bank QNB Indonesia Tbk
was successful in improving the quality of customer service, capability, and excellent
processing. The positive growth and competitive benefit were optimally utilized by
PT Bank QNB Indonesia Tbk in order to align its strength and enhance its values.

2014
Commitment on Our Strong Growth

2014 is a commitment year for PT Bank QNB Indonesia Tbk. The solid commitment
to sustainable growth was particularly reflected in the implementation of a series of
strategic steps including applying compliance and prudent principles, improving the
loyalty and quality of human resources, sharpening focus, developing a balance in the
social and economy aspects, maintaining relationship harmony, optimizing potential
and resources, as well as preserving consistency in providing the best service for all
stakeholders. The commitment will guide PT Bank QNB Indonesia Tbk closer and on
track to achieving its vision, which is to be the top tier bank in Indonesia in terms of
financial performance.

2015
Continuous Investment and Growth

2015 was an important chapter in a multi-year story of the growth for PT Bank QNB
Indonesia Tbk (QNB Indonesia). It was also a year of challenges which addressed by
Bank through the actions of further developing its people, enhancing the compliance,
defining and investing in core offerings, as well as improving the efficiency of overall
business process to support growth. The Bank believes that the progress we made this
year shall position us stronger and set us ready for maintaining significant growth in
shareholder value over the future years.
Focus 2016

The Bank’s journey over the past five years encompasses determination in which

each year encapsulates the motivation of all employees. Year 2016 was a challenging

one for the Bank’s journey, however we managed to strive on our own and further

strengthened our pillars to anticipate future growth. To reflect the Bank’s spirit of

determination and optimism, “Passion for Excellence at Its Best” is carried out as the

theme of Annual Report 2016. In addition to portraying the Bank’s position in 2016, it

also strongly upholds the QNB Values which instilled in every employee’s heart and

mind.

Despite the economic challenges and among discrepancies and instability of

financial progress, the Bank managed to keep strong and strive to uphold its

performance at its best. The Bank also managed to maintain its positioning align

with the mission and vision by dedicating to serve better and focus on business

strategies using technology. During 2016, the Bank has further improved its service

and product through savings and digital platform while in terms of human capital

development, the Bank was focusing on better enhancing its human capital while

underlining the value of professionalism and integrity.

In the future, the Bank is committed to move forward while always promoting

compliance and prudent principles to achieve not only significant growth but also

sustainable one. The Bank will strive to keep excel in the future and push forward to

commit with the target and especially fulfill the 2017 vision.
Passion for Excellence at Its Best
Annual Report 2016

t
en
nt
Co
of
b le
Ta

4 PT Bank QNB Indonesia Tbk


Performance
01 82 294 Provision of Funds for Political

2016
Activities
Overview of the 2016 Annual Report Management Discussion and Analysis 295 Bank Strategic Plan
86 Industry Overview 296 Transparency of Bank Financial
02 89 Business Review
and Non Financial Performances

Our Journey 297 Conflict of Interests Transactions


94 Business Supporting Unit Review
297 Shares Option
109 Financial Review
03

Management
297 Shares and Bond Buy Back
126 Marketing Aspect

Report
Focus 2016 297 Investor Relation
129 Business Prospect 2017

06 130 298
2016 Performance Corporate Social Responsibility
Corporate Governance
10 Financial Highlights 302 Basis of CSR Implementation
134 Basis of GCG Implementation
13 Financial Ratio 304 Environmental Responsibility
138 GCG Implementation

Company
14 Share Highlights 305 Occupational Health, Safety,

Profile
140 Implementation Aspects and and Employment
18 Highlights on Shareholders’ Profile Principles of Corporate
Governance pursuant to OJK Rules 308 Social and Community
25 Event Highlights 2016 Development
150 GCG Assessment
30 Awards and Accolades 310 Product and Consumer
151 GCG Structure Responsibility
32 Testimonials from Customers
and Partners 152 General Meeting of Shareholders
(GMS)
314

Management Discussion
165 The Board of Commissioners
34

and Analysis
Responsibility Statement of
184 Commitees Under the Board Annual Report 2016
Letters to Shareholders of Commissioners

201 Board of Directors


38

42
Board of Commissioners’ Report

Profile of the Board of


218 Commitees Under the Board of 316
Directors Profile of Executive Management
Commissioners
229 Compliance Function
46 Board of Directors’ Report

50 Profile of the Directors


241 Internal Audit 320
Governance
245 External Audit

Corporate
Capital Market Supporting Profession

56
and Institutions
247 Corporate Secretary

321
Company Profile 250 Risk Management

60 Corporate Identity 284 Internal Control System


Branch Office Addresses
61 QNB Logo 285 Legal Disputes and
Administrative Sanctions
62 Milestone
324
Social Responsibility

286 Code of Conducts and Corporate


64 PT Bank QNB Indonesia Tbk Culture
Reference of OJK Circular Letter
Corporate

at a Glance
288 Tax Compliance No. 30/SEOJK.04/2016
66 Visions and Missions
288 Anti-Gratification Initiative
68 Service Spirit
289 Whistleblowing System
69 Line of Business
291 Information Disclosure &
70 Product and Services Access to Bank’s Information

78 Work Regions and Operational Map 294 Provision of Funds to Related


Parties and Large Fund Exposures
80 Organizational Structure

PT Bank QNB Indonesia Tbk 5


Passion for Excellence at Its Best
Annual Report 2016

an 16
m 20
ce
r
rfo
Pe

6 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

7
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

8 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Governance
Corporate

Year 2016 was


a challenging
one, however we
Social Responsibility

managed to strive
Corporate

on our own while


strengthening our
business platform.

PT Bank QNB Indonesia Tbk 9


Passion for Excellence at Its Best
Annual Report 2016

Financial Highlights

(in million Rupiah)

Financial Position Statements 2016 2015 2014*) 2013*) 2012

Assets
Cash 51,260 45,432 52,653 56,633 43,671
Current accounts with Bank Indonesia 1,635,116 1,710,947 1,425,155 818,168 292,689
Current accounts with other banks 80,815 31,146 43,324 19,038 98,564
Placements with Bank Indonesia and other banks 2,230,074 2,111,813 3,324,797 1,242,652 469,495
Derivatives receivable 550 2,921 849 3,600 2,639
Acceptances receivable 22,193 61,821 60,744 - -
Securities purchased under agreement to resell 471,350 269,117 268,324 73,881 -
Loans - net 17,551,188 20,788,304 15,093,659 8,197,682 3,168,908
Securities 571,862 325,444 232,642 367,681 365,827
Prepayments 188,969 108,443 57,114 43,881 39,897
Deferred tax assets - net 172,105 - - 11,867 9,865
Fixed assets 144,762 110,577 114,631 111,225 118,302
Intangible assets 41,176 45,670 42,370 34,192 20,817
Foreclosed assets 1, 019,382 - - - -
Other assets - net 191,900 146,014 122,756 70,847 13,980

Total Assets 24,372,702 25,757,649 20,839,018 11,051,347 4,644,654

Liabilities
Liabilities payable on demand 240,658 337,357 252,785 178,304 68,083
Deposits from customers 19,344,962 18,509,008 16,161,710 7,244,934 3,633,084
Deposits from other banks 662,798 3,179,111 1,863,330 1,853,000 36,356
Acceptances payable 22,193 61,821 60,744 - -
Derivatives payable 12,890 661 1,371 141,678 2,534
Current tax payable - 2,401 20,402 - -
Obligation for post - employment benefits 97,407 80,619 63,892 42,954 17,795
Deferred tax liabilities - net - 42,324 7,031 - -
Accruals and other liabilities 198,345 155,213 142,732 88,645 23,734
Marketable securities issued 315.520 - - - -
Subordinated loan - 964,950 - - -

Total Liabilities 20,894,773 23,333,465 18,573,997 9,549,515 3,781,586

Equity
Share capital 2,189,287 2,189,287 2,189,287 1,539,583 890,447
Additional paid-in capital - net (24,570) (24,570) (24,570) (21,983) (19,458)
Disclosed reserve 1.700.509 - - - -
Unrealized gain (loss) on available - for-sale 32 - (58) - 8
securities - net of deferred tax
Actuarial loss, net of deferred tax (12,907) (16,444) (19,503) (14,108) -
Retained earnings (deficit):
Appropriated 5,396 4,396 4,396 4,396 4,396
Unappropriated (379,818) 271,515 115,469 (6,056) (12,325)

Equity - Net 3,477,929 2,424,184 2,265,021 1,501,832 863,068

Total Liabilities and Equity 24,372,702 25,757,649 20,839,018 11,051,347 4,644,654

*) After the transition adjustment to SFAS No. 24 (Revised 2013)

10 PT Bank QNB Indonesia Tbk


Performance
(in million Rupiah)

2016
Comprehensive Income Statement 2016 2015 2014*) 2013*) 2012

Operating Income and Expense


Interest income 2,048,592 2,040,582 1,221,121 506,437 336,359
Interest expense (1,532,175) (1,351,331) (814,499) (275,492) (163,850)

Management
Net interest income 516,417 689,251 406,622 230,945 172,509

Report
Other Operating Income
Fees and commission 123,490 194,258 174,801 95,023 4,129
Gain on foreign exchange transactions - net 72,097 13,434 29,971 46,482 1,606
Gain from sale of securities - - - - 18,185
Recoveries of impairment losses on financial - - - 3,773 4,304
assets - net
Others 4,075 4,826 4,661 10,592 12,562

Total other operating income 199,662 212,518 209,433 155,870 40,786

Company
Profile
Operating Expenses
Personnel expenses (397,332) (375,743) (293,603) (244,885) (161,441)
General and administrative expenses (243,962) (225,106) (149,612) (138,668) (93,139)
Provision for impairment losses on (929,519) (87,472) (1,626) - -
financial and non-financial assets
Others (7,877) (8,175) (12,296) (7,085) (2,200)

Management Discussion
Total other operating expenses (1,578,690) (696,496) (456,137) (390,638) (256,780)

and Analysis
(LOSS) Income From Operations (862,611) 205,273 159,918 (3,823) (43,485)
Non Operating (Expenses) Income - Net (3,339) 3,662 2,910 10,550 9,061
(LOSS) Income before Income Tax EXPENSE (865,950) 208,935 162,828 6,727 (34,424)

Income tax benefit (expenses) 215,617 (52,889) (41,303) (2,140) 4,925

(Loss) Income for the Year (650,333) 156,046 121,525 4,587 (29,499)

Other Comprehensive Income


Items that will be classified to profit or loss

Governance
Corporate
Fair value changes of 43 77 (77) (10) (9)
available for sales securities
Income tax relating to component of other (11) (19) 19 2 3
comprehensive income

32 58 (58) (8) (6)

Items that will not be classified to profit or loss


Actuarial gain (loss) on defined benefit plan 4,716 4,078 (7,193) 4,292 -
Social Responsibility

Income tax related to component of other (1,179) (1,019) 1,798 (1,073) -


comprehensive income
Corporate

3,537 3,059 (5,395) 3,219 -

Other comprehensive gain (loss), net of tax 3,569 3,117 (5,453) (3,211) (6)

Total comprehensive (loss) income for the year (646,764) 159,163 116,072 7,798 (29,505)

(Loss) Earnings per share - basic (in full amount) (74.26) 17.82 16.34 0.66 6.73

*) After the transition adjustments to SFAS No, 24 (Revised 2013)

PT Bank QNB Indonesia Tbk 11


Passion for Excellence at Its Best
Annual Report 2016

Total Assets Total Equity


(in million Rupiah) (in million Rupiah)

4,644,654 11,051,347 20,839,018 25,757,649 24,372,702 863,068 1,501,832 2,265,021 2,424,184 3,477,929

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Loans - Net Allowance for Impairment Losses


(in million Rupiah) (in million Rupiah)

3,168,908 8,197,682 15,093,659 20,788,304 17,551,188 14,633 10,860 12,461 41,740 736,726

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Deposits from Customer Capital Adequacy Ratio


(in million Rupiah) (in Percentage)

3,633,084 7,244,934 16,161,710 18,509,008 19,344,962 27.76 18.74 15.10 16.18 16.46

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

12 PT Bank QNB Indonesia Tbk


Financial Ratio

Performance
(in million Rupiah)

2016
Financial Ratio (%) 2016 2015*) 2014*) 2013*) 2012

Capital
Capital Adequacy Ratio 16.46 16.18 15.10 18.74 27.76

Productive Assets

Management
Productive assets & non productive assets 5.16 2.13 0.21 0.14 0.49

Report
(Non-performing assets) to total productive assets
& non productive assets
Non-performing productive assets to total 5.38 2.13 0.21 0.14 0.56
productive assets
Allowance for impairment losses to productive 3.16 0.16 0.06 0.08 0.31
assets
NPL gross 6.86 2.59 0.31 0.23 0.73
NPL net 2.94 2.39 0.23 0.10 0.31

Profitability

Company
ROA -3.34 0.87 1.05 0.09 -0.81

Profile
ROE -31.96 7.50 6.62 0.40 -3.38
NIM 2.25 3.08 2.80 2.82 4.63
BOPO 137.94 90.95 88.90 100.57 111.53

Liquidity
LDR 94.54 112.54 93.47 113.30 87.37

Management Discussion
Compliance

and Analysis
Percentage of Legal Lending Limit violations
Related parties 0.00 0.00 0.00 0.00 0.00
Non related parties 0.00 0.00 0.00 0.00 0.00
Minimum Rupiah demand deposit 7.24 7.59 8.35 8.01 8.02
Minimum foreign currency demand deposit 8.37 8.54 8.14 8.32 8.19
Net open position 0.25 0.26 0.22 1.49 2.31

*) After the transition adjustments to SFAS No, 24 (Revised 2013)

Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 13


Passion for Excellence at Its Best
Annual Report 2016

Share Highlights

Bank QNB Indonesia Share Performance 2015 – 2016

(in shares) (in Rupiah)

600,000 800

700
500,000
600
400,000
500

300,000 400

300
200,000
200

100,000
100

0 0
Jan, 16
Jan, 15

Feb, 16
Mar, 16

Jul, 16

Sept, 16
Oct, 16
Nov, 16
Feb, 15
Mar, 15
Apr, 15
May, 15
Jun, 15
Jul, 15

Sept, 15
Aug, 15

Oct, 15
Nov, 15

Apr, 16
May, 16
Jun, 16

Aug, 16

Dec, 16
Dec, 15

Volume Closing Price

During 2015, the Bank’s share trading was suspended for 1 day on May 4, 2015, due to significant increase in the cumulative prices of Bank’s shares.
During 2016, there was no suspend on Bank’s share trading.

Share Price, Volume, and Capitalisation

Price
Transaction Market Number of
2016
Volume Capitalisation Listed Shares
Opening Highest Lowest Closing

Q1 290 405 255 345 837,000 2,991,003,215,610 8,669,574,538


Q2 340 404 290 328 262,600 2,843,620,448,464 8,669,574,538
Q3 328 406 302 350 278,200 3,034,351,088,300 8,669,574,538
Q4 350 390 284 320 253,100 2,774,263,852,160 8,669,574,538

Price
Transaction Market Number of
2015
Volume Capitalisation Listed Shares
Opening Highest Lowest Closing

Q1 410 430 330 330 55,000 2,860,959,597,540 8,669,574,538


Q2 330 800 358 434 948,000 3,762,595,349,492 8,669,574,538
Q3 434 480 306 335 860,800 2,904,307,470,230 8,669,574,538
Q4 335 374 253 290 926,200 2,514,176,616,020 8,669,574,538

14 PT Bank QNB Indonesia Tbk


Performance
Shareholders’ Structure

2016
• H.M. Aksa Mahmud (30.70%)
• Hj. Ramlah Aksa (7.68%)
• Erwin Aksa (7.68%)
• Sadikin Aksa (7.68%)
• Melinda Aksa (7.68%)

Management
• Atirah Aksa (7.68%)

Report
• Muhammad Subhan Aksa (7.68%)
• Solfinz Capital Limited (8.45%)
• Monalisa Imprenditore Incorporated (5.07%)
• Inwardvest Overseas Limited (4.86%) Qatar
• Benefiquest Incorporated (4.84%) Government

100.00%

Company
Profile
PT Bosowa Qatar Investment
Sadikin Aksa Public
Corporindo Authority

Management Discussion
94.08% 5.92% 50.00% 50.00%

and Analysis
Qatar National Bank
PT Bosowa Kapital Public
S.A.Q

8.15% 82.59% 9.26%

Governance
Corporate

PT Bank QNB Indonesia Tbk


Social Responsibility

(Shareholders’ structure as of December 2016)


Corporate

PT Bank QNB Indonesia Tbk 15


Passion for Excellence at Its Best
Annual Report 2016

Shareholders’ Composition
Public

9.26%

PT Bosowa Kapital Qatar National Bank S.A.Q

8.15% 82.59%

List of Top 20 Shareholders

Name of Shareholders Number of Shares (Shares) Share Percentage (%)

Domestic Institution Ownership


PT Bosowa Kapital 713,429,674 8.15
PT Jasa Investindo 294,880,950 3.37
PT Raya Niaga Abadi 46,937,778 0.54
PT Bosowa Sekuritas 30,252,684 0.35
PT Bosowa Asuransi 29,646,867 0.34
PT Bosowa Multi Finance 27,042,234 0.31
PT Fbrt Corporindo 9,342,407 0.11
PT Erdikha Elit Sekuritas 7,785,000 0.09
Foreign Institution Ownership
Qatar National Bank 7,232,691,746 82.59
Deutsche Bk Ag (Private Banking) Spore - 2146014000 31,325,155 0.36
Ubs Ag Singapore Non-Treaty Omnibus Account - 2091144090 17,398,927 0.20
Credit Suisse Ag Singapore Trust A/C Clients - 2023904000 7,266,122 0.08
Domestic Individual Ownership
Albert Widjayatmo
191,950,807 2.19
Yulianto Kurniawan
31,640,428 0.36
Simon Koshan
25,000,000 0.29
Lie Lian Tie
22,222,222 0.25
Cherie Thomas
11,940,300 0.14
Sudirja Gunadi
8,333,333 0.10
Donald Adrisurya
4,166,666 0.05
Melinda Lesmana
4,166,666 0.05
Foreign Individual Ownership
NIL NIL NIL

Note:
As of December 31, 2016, members of the Board of Commissioners and Board of Directors do not own any shares of the Bank.

16 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Chronology of Share Listing

Description Corporate Action Paid-up Capital

Before Initial Public Offering (IPO) - 321,200,000 shares


= Rp80,300,000,000
IPO (October 31, 2002) Initial Public Offering of 78,800,800 shares and listed on Indonesia 400,000,000 shares

Governance
Stock Exchange under the code of ”BKSW” = Rp100,000,000,000

Corporate
Warrant Series I (November 21, 2005) Execution of Warrant Serial I into share of 101,219,000 shares 501,219,000 shares
= Rp125,304,750,000
Rights Issue I (June 15, 2009) Limited Public Offering with Preemptive Rights (Rights Issue) I of 626,523,750 shares
125,304,750 shares = Rp156,630,937,500

Rights Issue II (December 27, 2011) Limited Public Offering with Preemptive Rights (Rights Issue) II of 3,561,787,518 shares
2,935,263,768 shares = Rp890,446,879,500

Rights Issue III (May 27, 2013) Limited Public Offering with Preemptive Rights (Rights Issue) III of 6,158,330,518 shares
Social Responsibility

2,596,543,000 shares = Rp1,539,582,629,500


Corporate

Rights Issue IV (June 2, 2014) Limited Public Offering with Preemptive Rights (Rights Issue) IV of 8,757,145,997 shares
2,598,815,479 shares = Rp2,189,286,499,250

PT Bank QNB Indonesia Tbk 17


Passion for Excellence at Its Best
Annual Report 2016

Highlights on Shareholders’ Profile

Qatar National Bank

Qatar National Bank S.A.Q (QNB Group) was established in 1964 as the country’s first Qatari-owned commercial
bank, with an ownership structure split between the Qatar Investment Authority (50%) and (50%) held by
members of the public.

QNB Group has steadily grown to be the biggest bank in Qatar and leading financial institution in the Middle East
and Africa Region with a market share around 45% of banking sector assets.

QNB Group is present, through its subsidiaries and associate companies, in more than 30 countries across three
continents providing a comprehensive range of products and services. QNB Group staff exceeds 28,000 serving
more than 20 million customers through 1,200 locations and 4,300 ATMs.

50% of its shares are owned


It is one
by the Government of Qatar
of the listed companies
through its legal entity,
with the highest
namely Qatar Investment
credit rating.
Authority/ Qatar Holding LLC.

It is currently licensed
It has more than
to conduct business in
28,000 total employees
more than 30 countries,
operating through more
including the UK, France,
than 1,200 locations,
Yemen, Luxembourg, Oman,
with an ATM network of
Kuwait, Egypt, Singapore,
more than 4,300 machines.
China, India, and Vietnam.

Achievements

Based on the Group’s continuous strong financial recognized as “The Best Bank in The Middle East” by
performance and its expanding international presence, Euromoney Magazine. The Global Finance Magazine
QNB is currently ranked as the most valuable bank ranked QNB as “One of The Top 50 Safest Banks in the
brand in The Middle East and Africa according to World” in 2016.
Brand Finance Magazine.
Building with its continued success, QNB Group has
Bloomberg Markets, the leading provider of business, embarked on the aspiration on becoming a Leading
financial, and economic news ranked QNB as “One Bank in the Middle East, Africa, and Southeast Asia
of the World’s Strongest Banks” since 2013. For two (MEASEA) by 2020.
consecutive years, 2014 and 2015, the Bank was

18 PT Bank QNB Indonesia Tbk


Performance
Rating

2016
According to Moody’s, Standard and Poor’s, Capital Intelligence, and Fitch, QNB Ratings are as follows:

Capital Intelligence Moody’s

Foreign Currency Bank Deposits


Financial
Support Rating Financial Strength
Strength

Management
Long Term Short Term Long Term Short Term

Report
AA- A1+ AA- 1 Aa3 P-1 baa1

Standard and Poor’s Fitch

Bank Credit and Deposits


Long Term Short Term Support Viability
Long Term Short Term

Company
Profile
A+ A-1 AA- F1+ 1 a

Subsidiaries

Management Discussion
Subsidiary Country of Incorporation Year of Incorporation Ownership %

and Analysis
QNB International Holdings Limited Luxemborg 2004 100%
Housing Bank for Trade and Finance (HBTF) Jordan 2007 35%
CSI QNB Property France 2008 100%
QNB Capital LLC Qatar 2008 100%
Commercial Bank International (CBI) UAE 2008 40%
QNB Banque Privee Switzerland 2009 100%
QNB – Syria Syria 2009 51%
QNB Finance Ltd. Cayman Island 2010 100%
Bank of Commerce & Development Libya 2010 49%

Governance
Corporate
QNB Financial Services SPC Qatar 2011 100%
QNB Indonesia Indonesia 2011 82.59%
Al-Mansour Investment Bank Iraq 2012 51%
Al Jazeera Finance Company Qatar 2012 20%
QNB Tunisia Tunisia 2013 99.96%
QNB ALAHLI (QNBAA) Egypt 2013 97.12%
QNB India Private Limited India 2013 100%
Social Responsibility

Ecobank Transnational Incorporated (Ecobank) Togo 2014 20%


Corporate

QNB Finansbank Turkey 2016 99.81%

Shareholder Structure as of December 31, 2016

Shareholder Number of Shares Percentage

Qatar Government q.q Qatar Holding LLC 349,864,719 50%


Public 349,864,719 50%
Total Issued and Fully Paid 699,729,438 100%

PT Bank QNB Indonesia Tbk 19


Passion for Excellence at Its Best
Annual Report 2016

Qatar National Bank S.A.Q.


Consolidated Statement of Financial Position
As of December 31, 2016

(All amounts are shown in thousands of Qatari Riyals)

2016 2015

Assets
Cash and Balances with Central Banks 43,183,576 31,565,771
Due from Banks 45,721,215 17,100,764
Loans and Advances to Customers 420,417,271 388,292,129
Investment Securities 79,993,550 81,157,075
Investments in Associates 7,340,355 7,950,721
Property and Equipment 4,208,679 1,753,715
Intangible Assets 3,882,648 5,377,758
Other Assets 14,947,261 5,409,207

Total Assets 719,694,515 538,607,140

LIABILITIES
Due to Banks 61,834,516 36,281,598
Customer Deposits 506,694,587 395,190,302
Debt Securities 28,825,874 16,342,420
Other Borrowings 23,728,887 15,120,489
Other Liabilities 27,757,233 13,616,933

Total Liabilities 648,841,097 476,551,742

EQUITY
Issued Capital 8,396,753 6,997,294
Legal Reserve 24,486,361 23,086,902
Risk Reserve 7,000,000 5,000,000
Fair Value Reserve 24,456 283,607
Foreign Currency Translation Reserve (11,604,928) (2,033,640)
Other Reserves 608,600 1,212,210
Retained Earnings 31,112,008 26,556,932

Total Equity Attributable to Equity Holders of the Bank 60,023,250 61,103,305

Non - Controlling Interests 830,168 952,093

Instrument Eligible for Additional Tier 1 Capital 10,000,000 -

Total Equity 70,853,418 62,055,398

Total Liabilities and Equity 719,694,515 538,607,140

20 PT Bank QNB Indonesia Tbk


Performance
Qatar National Bank S.A.Q.

2016
Consolidated Income Statement
For the Year Ended December 31, 2016

(All amounts are shown in thousands of Qatari Riyals)

2016 2015

Management
Interest Income 36,936,478 20,019,476

Report
Interest Expense (19,049,363) (7,273,706)

Net Interest Income 17,887,115 12,745,770

Fee and Commission Income 4,056,830 2,499,966


Fee and Commission Expense (603,652) (257,049)

Net Fee and Commission Income 3,453,178 2,242,917

Foreign Exchange Gain 1,013,328 746,295

Company
Profile
Income from Investment Securities 240,105 162,418
Other Operating Income 314,062 5,036

Operating Income 22,907,788 15,902,436

Staff Expenses (3,628,234) (2,055,104)


Depreciation (544,462) (241,370)
Other Expenses (2,850,244) (1,208,713)

Management Discussion
Net Impairment Losses on Investment Securities (52,300) (179,774)

and Analysis
Net Impairment Losses on Loans and Advances to Customers (2,493,012) (433,043)
Amortisation of Intangible Assets (77,754) (79,775)
Other Provisions (95,379) (69,040)

(9,741,385) (4,266,819)

Share of Results of Associates 176,924 365,938


Profit Before Income Taxes 13,343,327 12,001,555
Income Tax Expense (939,048) (672,791)
Profit for the Year 12,404,279 11,328,764

Governance
Corporate
Attributable to:
Equity Holders of the Bank 12,364,637 11,264,242
Non - Controlling Interests 39,642 64,522
Profit for the Year 12,404,279 11,328,764
Basic and Diluted Earnings Per Share (QR) 14.4 16.1
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 21


Passion for Excellence at Its Best
Annual Report 2016

Qatar National Bank S.A.Q.


Consolidated Statement of Comprehensive Income
For the Year Ended December 31, 2016

(All amounts are shown in thousands of Qatari Riyals)

2016 2015

Profit for the Year (9,676,445) 11,328,764


Other comprehensive income to be reclassified to income statement in
subsequent periods:
Foreign Currency Translation Differences for Foreign Operations (603,726) (703,843)
Share of Other Comprehensive Income of Associates (24,609) (493,913)
Effective Portion of Changes in Fair Value of Cash Flow Hedges 581,930 (17,329)
Available-for-Sale Investment Securities
Net Change in Fair Value (653,595) (196,495)
Net Amount Transferred to Income Statement (160,185) (76,377)

Total Other Comprehensive Income for the Year, net of Income Tax (10,536,630) (1,487,957)

Total Comprehensive Income for the Year 1,867,649 9,840,807

Attributable to:
Equity Holders of the Bank 1,930,588 9,776,285
Non - Controlling Interests (62,939) 64,522

Total Comprehensive Income for the Year 1,867,649 9,840,807

Qatar National Bank S.A.Q.


Consolidated Statement of Cash Flow
For the Year Ended December 31, 2016

(All amounts are shown in thousands of Qatari Riyals)

2016 2015

Cash Flows from Operating Activities


Profit for the Year Before Income Taxes 13,343,327 12,001,555
Adjustments for:
Interest Income (36,936,478) (20,019,476)
Interest Expense 19,049,363 7,273,706
Depreciation 544,462 241,370
Net Impairment Losses on Loans and Advances 2,493,012 433,043
Net Impairment Losses on Investment Securities 52,300 179,774
Other Provisions 73,124 12,969
Dividend Income (79,920) (86,041)

22 PT Bank QNB Indonesia Tbk


Performance
2016
2016 2015

Net Loss / (Gain) on Sale of Property and Equipment 2,542 (159)


Net Gain on Sale of Available-for-Sale Investment Securities (160,185) (76,377)
Amortisation of Intangible Assets 77,754 79,775
Net Amortisation of Premium or Discount on Financial Investments (11,606) (27,148)
Net Share of Results of Associates 7,644 (178,566)

Management
(1,544,661) (165,575)

Report
Changes in:
Due from Banks (6,208,185) (1,338,061)
Loans and Advances to Customers (78,453,499) (50,595,177)
Other Assets 44,406 (372,896)
Due to Banks 8,085,183 14,167,893
Customer Deposits 85,380,684 37,698,823
Other Liabilities (3,985,840) (2,391,977)

Company
Cash from / (used in) Operations 3,318,088 (2,996,970)

Profile
Interest Received 36,561,563 19,546,140
Interest Paid (18,079,917) (7,600,125)
Dividends Received 79,920 86,041
Income Tax Paid (567,803) (661,824)
Other Provisions Paid (66,005) (5,372)

Management Discussion
Net Cash from Operating Activities 21,245,846 8,367,890

and Analysis
Cash Flows from Investing Activities
Acquisition of Investment Securities (63,962,428) (71,073,236)
Proceeds from Sale / Redemption of Investment Securities 59,714,925 55,220,622
Investments in Associates - (49,909)
Acquisition of Subsidiary, net of Cash Acquired (9,610,068) -
Additions of Property and Equipment (1,105,261) (290,301)
Proceeds from Sale of Property and Equipment 596 1,833

Net Cash used in Investing Activities (14,962,236) (16,190,991)

Governance
Corporate
Cash Flows from Financing Activities
Proceeds from Issuance of Instrument Eligible for Additional Tier 1 Capital 10,000,000 -
Proceeds from Issuance of Debt Securities 13,026,589 -
Repayment of Debt Securities (5,228,893) (5,460,750)
Proceeds from Issuance of Other Borrowings 10,998,695 12,827,191
Repayment of Other Borrowings (4,033,225) (10,264,017)
Dividends Paid (2,468,978) (5,231,852)
Social Responsibility

Net Cash from / (used in) Financing Activities 22,294,188 (8,129,428)


Corporate

Net Increase / (Decrease) in Cash and Cash Equivalents 28,577,798 (15,952,529)

Effect of Exchange Rate Fluctuations on Cash Held (5,764,365) 2,571,816


Cash and Cash Equivalents at January 1 30,050,614 43,431,327

Cash and Cash Equivalents at December 31 52,864,047 30,050,614

PT Bank QNB Indonesia Tbk 23


Passion for Excellence at Its Best
Annual Report 2016

PT Bosowa Kapital

PT Bosowa Kapital was initially established under the name of PT Darmex Corporation pursuant to the Deed No.
94 dated December 14, 1993, prepared and presented before Rukmasanti Hardjasatya, S.H., Notary in Jakarta,
which had received approval from the Minister of Justice of Republic of Indonesia by the issuance of the Decree
No. C2-11223.HT.01.01 year 1994, dated July 21, 1994, registered on February 24, 1999, under the No. 08/1999 at
the Central Jakarta District Court, and published in the State Gazette of Republic of Indonesia No. 32 dated April
20, 1999, Supplement No. 2331.

The Articles of Association of PT Bosowa Kapital has been amended several times, with last amendment in the
Statement Deed of the Shareholders’ decision to circulation No. 110, dated June 27, 2013, prepared and presented
before Karin Christiana Basoeki, S.H., Notary in Jakarta. The amendment of the Articles of Association has been
approved and recorded in the database of Legal Entities Administration System (Sisminbakum) of the Ministry of
Law and Human Rights of Republic of Indonesia No. AHU-AH. 01.10-26349 dated June 28, 2013. As of December
31, 2015, PT Bosowa Kapital owns 8.15% shares of the Bank.

Aims and Objectives


PT Bosowa Kapital is a parent company of Financial Services Group which incorporated with Bosowa Group.
Pursuant to the Article 3 of the Articles of Association of PT Bosowa Kapital, the purpose and objective of the
company is to operate in the fields of services, construction, land transportation, trade, industry, and agriculture.

24 PT Bank QNB Indonesia Tbk


Event Highlights 2016

Performance
2016
January

19 19
Christmas celebration of Bank QNB Indonesia, Cisarua, Bogor

Management
Report
February

Company
Profile
26
16 16
Annual General Meeting of Shareholders, QNB Tower, Jakarta

18

Management Discussion
Customer Gathering Introduction to QNB Indonesia and Market

and Analysis
Outlook, Novotel Hotel, Solo

March
Governance
Corporate

26 22
Soft launching DooEt+,
QNB Tower, Jakarta
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 25


Passion for Excellence at Its Best
Annual Report 2016

April

26 13
Extraordinary General Meeting of Shareholders, QNB Tower, Jakarta

26
QNB Indonesia & Commonwealth Life Signing Ceremony,
QNB Tower, Jakarta

28
Bazar DooEt+, 18 Parc SCBD, Jakarta

May

18 2
QNB Indonesia Peduli: Donor Darah, QNB Tower, Jakarta

18
Penandatanganan Kerjasama QNB Indonesia & Prudential Life
Assurance, QNB Tower, Jakarta

June

22 16
Ramadhan Gathering, QNB Tower, Jakarta

22
QNB Indonesia Peduli: Sobat Berbagi, QNB Tower, Jakarta

29
Breakfasting,
Sunda Kelapa Great Mosque, Jakarta

26 PT Bank QNB Indonesia Tbk


Performance
2016
July

27 27
Wholesale Gathering, JW Marriott Hotel, Surabaya

30

Management
QNB Values Festival, Ecopark Ancol, Jakarta

Report
August

Company
Profile
15 15
Wholesale Gathering: Tax Amnesty, QNB Tower, Jakarta

21

Management Discussion
Sehat Bersama QNB Indonesia, Makassar

and Analysis
25
Infobank Awards 2016, Royal Ambarrukmo Hotel, Yogyakarta

26
Bazaar DooEt+ Payday, QNB Tower, Jakarta

Governance
Corporate
September

15 15
Signing Ceremony QNB Indonesia and PT Artajasa, Century Park
Hotel, Jakarta
Social Responsibility

28
Corporate

Bazaar DooEt+ Payday, QNB Tower, Jakarta

PT Bank QNB Indonesia Tbk 27


Passion for Excellence at Its Best
Annual Report 2016

October

4 1
QNB Indonesia Peduli: Garut, Cimacan, West Java

4
Cluster Raffle Program, QNB Tower, Jakarta, and Cluster Raffle
Program and Wholesale Gathering, V Building Semarang

6
Cluster Raffle Program, QNB Indonesia Medan Pemuda Branch, Medan

13
Anugerah Perbankan Indonesia V 2016, Balai Kartini, Jakarta

19
Financial Literacy, Athirah Islamic School, Makassar

28
DooEt+ Payday, QNB Tower, Jakarta

29
Launching of Loyalty Apps Cinere Bellevue Mall, Depok

November

24 5
Launching of Loyalty Apps Fruit Market, Gadjah Mada, Jakarta

7
Signing Ceremony Loyalty Membership Big Mall, Samarinda
and Duta Mall, Banjarmasin

12
QNB Indonesia Peduli and Cherish BEM FKUI: Mother and Children
Health, Depok

15
MDP Graduation 2015, QNB Tower, Jakarta

18
Launching of Loyalty Apps, Ratu Indah Mall, Makassar

24
Grand Launching DooEt+ Mobile Banking, The Hook, Jakarta

30
DooEt+ Payday, QNB Tower, Jakarta

28 PT Bank QNB Indonesia Tbk


Performance
2016
December

14 4
Children Drawing Competition, QNB Indonesia Denpasar Branch, Bali

Management
Launching Loyalty Apps, Hartono Mall, Solo

Report
12
QNB Indonesia Exhibition, Trans Studio Mall, Bandung

14
Qatar National Day, Raffles Hotel, Jakarta

18

Company
Profile
Launching Loyalty Apps, Big Mall, Samarinda

19
Extraordinary General Meeting of Shareholders and Public Expose,
QNB Tower, Jakarta

Management Discussion
and Analysis
Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 29


Passion for Excellence at Its Best
Annual Report 2016

Awards and Accolades

2015 Vision Awards


(Presented by League of American Communications Professionals)
Platinum Award, Top 80 Annual Reports in the Asia-Pacific Region, Top 10 Indonesian Annual Reports of 2015

Anugerah Perbankan Indonesia V 2016


(Presented by Economic Review Magazine)
1st place of Human Capital category, 2nd place in Finance category, 3rd place of BUKU II Bank, 3rd place in GCG category

Infobank Awards 2016


(Presented by Infobank Magazine)
Excellent Financial Performance in 2015

30 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
ACCOLADE
(Presented by Warta Ekonomi)
Certificate of Appreciation

Company
Profile
Management Discussion
and Analysis
ACCOLADE ACCOLADE
(Presented by Prudential Life Assurance) (Presented by Commonwealth Life)
Bancassurance Signing Agreement Bancassurance Signing Agreement

Governance
Corporate
Social Responsibility
Corporate

ACCOLADE ACCOLADE
(Presented by Perbarindo) (Presented by Bank Indonesia)
National Seminar and Rakernas The Bank which Properly Projected
Perbarindo 2016 Money Demand during Eid-ul-Fitr 2016

PT Bank QNB Indonesia Tbk 31


Passion for Excellence at Its Best
Annual Report 2016

Testimonials from Customers and


Partners

PD BPR Bank Magelang PT Arafura Prima Indopasifik


(Ir. Hery Nurjianto, M.M.) (The Hook Restaurant & Cafe)

"
(Rivano, General Manager)
It is such an immeasurable happiness that
our participation, PD BPR Bank Magelang, in
BPRconnect in cooperation with Bank QNB
" We (The Hook Restaurant & Cafe) would like to
say a big thank to Bank QNB Indonesia, for its
Indonesia to be very meaningful. We realize that cooperation during the time, which always support
as a rural bank (BPR), in terms of financially or us as a merchant of DooEt+. This cooperation
technology, our capabilities are very far below impacted to the increasing number of customers
commercial bank, so as to payment card system that come to The Hook Restaurant & Cafe and
is certainly a desire that is difficult for us to in addition QNB Indonesia also helps us in other
realize. The dynamics of community demands us promotional activities to introduce and provide
(rural bank) to be able to meet customers’ needs information to the public about the existence and
for banking products including fast, secure, and promos in The Hook Restaurant & Cafe. Once
accurate transaction processing. again, The Hook Restaurant & Cafe really grateful
for such cooperation.”
We are very grateful that our cooperation
with Bank QNB Indonesia was not just the
ordinary cooperation. Bank QNB Indonesia
with its BPRconnect Program was able to build PD BPR Bank Bapas 69
determination, guide, direct, support, motivate, and (Fran Suharmaji, President Director)
significantly realize that rural banks (BPR) could be
the ATM card issuer.
" QNB is a Smart Bank. In the end, QNB succeeded in
realizing the needs of BPR in improving services to
Profuse gratitude is addressed to all Board of Bank BPR’s customers after failing to cooperate with the
QNB Indonesia, may the existing partnership will two previous banks.
continue to synergize and continue to provide
meaning for us all in the future.” The partnership is very remarkable ranging from
service to assistance capable of delivering BPR
to the licensing of BPR ATM card issuance. In
addition, QNB also held a training facility for BPR
Tokyo Skip Jack so that BPR could expand wider horizons for the
(Cahyono) progress of the BPR. Just one more step to realize

"
the dream as an ATM card issuer and we expect
It has been a very pleasant experience to be able to many other facilities that we could get from Bank
cooperate and grow together with QNB Indonesia, QNB.”
mainly as a merchant of DooEt +.

DooEt+ as one of the highly innovative payment


methods provides comfort and convenience for
both Customers and also to Merchants.

The support that we received from the entire staffs


of QNB Indonesia was incredible. We hope that
this cooperation could be further improved. Keep
moving forward, QNB Indonesia!”

32 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility
Passion for Excellence at Its Best
Annual Report 2016

de o
ol rs t
rs
eh te
ar et
L
Sh

34 PT Bank QNB Indonesia Tbk


2016 Letters to Company Management Discussion Corporate Corporate
Performance Shareholders Profile and Analysis Governance Social Responsibility

35
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

36 PT Bank QNB Indonesia Tbk


Performance
2016
Shareholders
Letters to
Company
Profile
Management Discussion
and Analysis
By the strong
capital support
from the QNB Governance
Corporate

Group, we are
confident and
fully committed
Social Responsibility

to achieve our
Corporate

vision and grow


significantly in the
future.

PT Bank QNB Indonesia Tbk 37


Passion for Excellence at Its Best
Annual Report 2016

Board of Commissioners’ Report

" The Board of Commissioners believes that the Board of Directors


has worked hard to implement best management practices through
a well-planned strategy, risk control, and corporate governance
practices. Overall, the Bank has shown quite considerable
performance.“

Dear valued shareholders and


stakeholders,

All praise and gratitude to God around the world. Businesses have
Almighty, the Most Gracious and to prepare for more disruptions
Most Merciful. May His grace and from geopolitical tensions, policy
blessings be always upon us. The uncertainty, financial market
Board of Commissioners is grateful volatility, and rapid changes in
that the Bank has successfully technology, but they also need
passed 2016 considering the to stay focused on leveraging the
unfavorable economic conditions qualitative sources of growth with
of both global and domestic. It is investment in technology and
an honor for me representing the business productivity even—or
Board of Commissioners of PT Bank especially—in times of stagnation.
QNB Indonesia Tbk in presenting
the Annual Report 2016. Prospects for major advanced
Ali Ahmed Z A Al Kuwari economies have deteriorated,
President Commissioner Global and Indonesia amid weak global trade and
Economic Development manufacturing activity. Growth
is generally expected to level off
The global economy has now in 2016, rather than strengthen,
entered its sixth year of stagnation, despite the positive effects on real
and the growth outlook still shows incomes from lower oil prices and
a continuation of this trend. improving labor market conditions.
Modest positive signals showed With increasing downside risks to
some strengthening in qualitative growth, and inflation persistently
growth factors, such as more below target, the European
advanced technology, improved Central Bank (ECB) and Bank
labor force skills, and greater of Japan pursued further policy
productivity. But those potentially accommodation, while the U.S.
favorable factors are under Federal Reserve has normalized
pressure from ongoing political, policy interest rates more slowly
policy, and economic uncertainties than expected in December. China
continued its gradual slowdown
and rebalancing, as reforms were
implemented and their impact

38 PT Bank QNB Indonesia Tbk


Performance
was calibrated by policy easing. In external sector. The manufacturing indicators, in line with the Bank’s

2016
addition, the geopolitical situation PMI (Purchasing Managers’ Index) focus on selective credit expansion,
also contributed greatly to the picked up in November, although the Board of Directors managed to
world economic situation ranging it remained in contractionary maintain asset quality with NPL
from the US Presidential Election, territory, while the trade balance net of 2.94%. In terms of capital
uncertainty in the aftermath of the was broadly steady in October and adequacy, the Bank received capital
UK Referendum (Brexit), as well as for the rest of the year. Meanwhile, injection and able to maintained
the Syrian civil war which led to the government is focused on the CAR at 16.46%, far above

Shareholders
the Syrian refugee crisis. correcting its revenue shortfall and the defined terms. The Board of

Letters to
keeping the deficit below the 3.0% Commissioners also appreciates
Overall, the world economy which of GDP legal limit. In terms of the the continuous support of QNB
originally projected to grow 3.5% fulfillment of State Budget target Group to increase the Bank’s capital
shall be corrected to 3%, lower especially in tax revenue target, the and business support in order to
than previous year of 3.1%. Such government has raised over USD7 facilitate the Bank’s growth.
potential downward bias was billion from the tax amnesty plan.
driven by the expectation of US The Board of Commissioners
economic growth which was not as Assessment on the Board believes that the Board of Directors
strong as previously projected and of Directors’ Performance has worked hard to implement best

Company
Profile
the decelerating Chinese economy. management practices through
The increased in interest rates It was a grateful thing that the a well-planned strategy, risk
on the US Federal Reserve (Fed Bank has managed to thrive amid control, and corporate governance
Funds Rate) which was occured a slowdown in the growth of the practices. Overall, the Bank
in December 2016 contributed to Indonesian economy which also has shown quite considerable
the uncertainty in the market and affected the financing quality of performance.

Management Discussion
influence the development of the banking industry. The Board of
global economy. The Fed’s policy Commissioners is aware that it The Role of Monitoring

and Analysis
normalization could potentially is very challenging to the Bank on the Bank’s Strategy
trigger capital outflows, which in meeting the target of Bank’s Implementation
could cause financial market Business Plan. Therefore, the Board
pressures in the region, including of Commissioners appreciates the It has always been the duties
Indonesia. hard work of the Board of Directors of the Board of Commissioners
in the achievement of the Bank’s to make sure that the Bank’s
These development of global Business Plan 2016. strategy implementation is on the
economic slowdown and right track without neglecting
geopolitical situation have affected On the financial aspect, total assets the compliance to prevailing
Governance
Corporate
the Indonesian economy and the posted at Rp24.37 trillion or decline regulations. Therefore, during
impact was evenly distributed by 5.38% from the previous year. 2016 the Board of Commissioners
across all sectors of industry In addition, loans-net also declined has strived to do the best in
including banking which led to by 15.57% to Rp17.55 trillion ensuring the Bank’s monitoring
the Rupiah volatility and GDP in line with the Bank’s decision went well. In particular, the Board
growth of around 5.0% as robust to allocate higher allowance of Commissioners has further
private consumption supported allowance for impairment losses improved its monitoring function
Social Responsibility

activity. Households have benefited amounted to Rp736.73 billion by carrying out monitoring on
Corporate

from low inflation and loosening or increased significantly by various operation aspects by
monetary policy, which has shored 1,665.04% compared to previous holding intensive communication
up growth in the face of a demure year. While in terms of key ratio with the Board of Directors.

PT Bank QNB Indonesia Tbk 39


Passion for Excellence at Its Best
Annual Report 2016

The Role of Providing aim at realizing the long-term improved to better support the
Advice transformation of corporate tasks and responsibilities of the
governance that is expected to Board of Commissioners, among
In addition to the implementation generate sustainable value. This others, the Audit Committee
of monitoring role, the Board of commitment is manifested in has further improved its role
Commissioners is also obliged 2016, among others, by reviewing through the implementation
to provide advice to the Board of and improving certain procedure of intensive Audit Committee
Directors regarding the Bank’s and process of credit provision, meeting to held discussion
business activity. The mechanism implementing a more prudent regarding the improvement of
of providing advice in normative risk management system, and credit procedure and process, as
manner is held through the implementing a more professional well as other relevant issues. On
implementation of Board of nomination mechanism to fill the the other hand, the Remuneration
Commissioners and Board of Bank’s strategic positions. & Nomination Committee has
Directors meeting which is held provided recommendation for the
bimonthly. While functionally, the Along with the development of the best nomination of new member
Board of Commissioners via Audit Bank’s business activities, it also of Board of Directors in connection
Committee holds regular meeting requires adequate risk management with the resignation of some
every month to discuss findings practices in order to be able to members of Board of Directors. As
and reach conclusion in the form of identify potential risks that may for the Risk Oversight Committee,
advice which later conveyed to the arise. Upon the importance of it reviewed the anticipation of
Board of Directors. In addition, the these risk factors, the Board of economic changes and the risk that
Board of Commissioners also holds Commissioners monitors and may arise from such changes.
occasional or informal discussion provides improvement suggestion
with the Board of Directors in to the risks that are managed by Compared with previous year,
which the Board of Commissioners the Bank. Overall, the Board of the role of the committees under
requests the Board of Directors to Commissioners considers that the Board of Commissioners
brief any arising matter or issue QNB Indonesia has built a proper has increased much more
that needs immediate attention. controlling system as a strong significant since in 2016 there
The Board of Commissioners foundation and implemented the were many things that drive these
later provides its advice directly principles of corporate governance, committees to further improve
to the Board of Directors which risk management, and internal their functional tasks. Assisted
immediately follows up or control system. by these three committees, the
implements such advice. Board of Commissioners continued
Performance of the to encourage the application of
Implementation of Good Committees good governance standard in all
Corporate Governance operation aspects of the Bank.
In carrying out the monitoring
Along with the Board of Directors, role, the Board of Commissioners Changes in the
the implementation of good is assisted by three committees, Composition of the Board
governance remains to be the focus namely Audit Committee, of Commissioners
of the duties and responsibilities Remuneration & Nomination
of the Board of Commissioners. In Committee, and Risk Oversight On this occasion, we would also like
carrying out monitoring function, Committee. During 2016, to inform that in 2016 there was a
the Board of Commissioners is these committees have shown change in the composition of the
not only held accountable on good performance and have Board of Commissioners with the
the results but also constantly contributed to the growth of resignation of Muthu Chidambaram
monitors the process to achieve the Bank. In addition to the and the appointment of Andrew
the intended results. This is due proper implementation of the McGregor Duff as the new
to the Board of Commissioners work program, the role of each Commissioner of the Bank. The
along with the Board of Directors committee was also greatly Board of Commissioners would like

40 PT Bank QNB Indonesia Tbk


Performance
to appreciate to the contribution on the Indonesian economy due to Our Appreciation

2016
of Muthu Chidambaram during his its fairly robust financial structure.
term of office and also welcoming The Board of Commissioners also On this occasion, we would
Andrew McGregor Duff to the Board believes that Indonesia will have like to address our gratitude to
and hopes that his appointment better financial stability in the shareholders and stakeholders
will contribute greatly to the future despite the global economic upon their trust and support.
growth of QNB Indonesia. condition will be pretty much the Our deepest appreciation is also
same. addressed to the entire Board of
Business Outlook

Shareholders
Directors, employees, and business

Letters to
On the other hand, 2017 will be partners that always support the
In terms of prospect for the the year of realization of the 2017 Bank to continue to grow and
national economy in 2017, vision for QNB Indonesia. In order thrive. The Board of Commissioners
the government is targeting to achieve this goal, the Board of and the Board of Directors will
a significant increase in the Commissioners believes that the always be committed to make
state budget and the portion of Board of Directors shall particularly QNB Indonesia as a distinguished
infrastructure development is still improve the quality of productive Bank which is excel and highly
the focus in 2017. It serves as a assets and increase the capital so competitive. May the Bank’s
good sign for entrepreneurs due to that the Bank will be ready to get

Company
sustainable growth that we aspire

Profile
the expected trickle-down effect. back on its feet, compete in the together will always drive our
Upheaval political situation that industry, and excel in the future. passion to achieve the excellence.
occurred at the end of 2016 also
did not have a significant impact

Management Discussion
and Analysis
On behalf of the Board of Commissioners,

Ali Ahmed Z A Al Kuwari

Governance
President Commissioner

Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 41


Passion for Excellence at Its Best
Annual Report 2016

Profile of the Board of Commissioners

Citizen of Qatar, 55 years old. Domiciled in He is also Chairman of MasterCard Middle


Doha, Qatar. He has a Bachelor Degree in East and North Africa Advisory Board,
Math and Computer Science from Eastern Chairman of QNB Capital (the Investment
Washington University in 1984 and a Banking and Advisory of QNB Group),
Master Degree of Science in Management and Chairman of QNB Privee Suisse in
Information System from the Seattle Pacific Switzerland, Vice Chairman of Commercial
University in 1987. He also attended a Bank International in the UAE and Vice
number of Executive programs at Wharton Chairman in Qatar Exchange.
School of Business, London Business School,
Cambridge University and Duke University. In 2016, he actively attended several
He was first appointed as a President competence development programs, among
Commissioner of the Bank based on the others, Institute of International Finance
Resolution of Extraordinary GMS dated (IIF) Board Meeting held in January, Business
January 27, 2012 and it was declared effective Forum Qatar held in January, MEED – Qatar
by Bank Indonesia on May 10, 2012. Project Conference held in March, Doha
International Maritime Defence Conference
He has joined Qatar National Bank (QNB) in and Exhibition 2016 (DIMDEX) held in March
1988. Prior to his appointment as QNB Group and Institute of International Finance (IIF)
Chief Executive Officer in July 2013, he was and Emerging Markets Advisory Council

Ali Ahmed Z A Al Kuwari the Executive General Manager and Group


Business Officer. He was responsible for all
(EMAC), CEO and Spring Membership
Meetings held in May.
President Commissioner business lines of QNB and he played a key
role in QNB becoming the leading financial He has no affiliate relationship with other
institution in the Middle East and North members of Board of Commissioners and
Africa. Board of Directors of the Bank, yet, affiliated
with the Bank’s ultimate shareholder, namely
Qatar National Bank (QNB).

Citizen of Australia, 58 years old. Domiciled Strategy & Design, IT & Operations (2000-
in Doha, Qatar. Earned his Chartered 2001). He has also served as Group Auditor
Accountant (CA) Degree in Accounting/ & General Manager Operational Risk at St.
Finance from New Zealand Society of George Bank (2001-2004), Executive General
Accountant Examination in 1979. He was Manager Group Audit at CBA (2004-2007),
appointed as a Commissioner of the Bank Acting Group Chief Risk Officer at CBA
based on the Resolution of Extraordinary (2007-2008), Deputy Group Chief Risk Officer
GMS dated March 4, 2013 and it was declared at CBA (2008), Chief Risk Officer of Regional
effective by Financial Services Authority Banking & Support at CBA (2008-2010),
(OJK) on January 16, 2014. He has been re- Chief Risk Officer of International Financial
assigned as a member of Remuneration and Services CBA, and Chief Risk Officer of
Nomination Committee in the Bank based on Bankwest, CBA (2010-2012). In addition to
Decree of BoD No. 002/SK-DIR/I/2016 dated serving as Commissioner of the Bank, he also
January 4, 2016 with period of assignment served as a Group Chief Risk Officer at Qatar
from 2016 to 2018. National Bank (2012-present), as a Board
Member of QNB Al Ahli (2013-present), and
He started his career in the KPMG a member of the Board of Directors of QNB
Christchurch (New Zealand), London Finansbank in Turkey (2016).
(UK), Sydney (Australia) (1984-1988).

Grant Eric Lowen Subsequently, he served at Westpac Banking


Corporation as Manager of Financial
In 2016, he actively attended several
competence development programs, among
Commissioner Management Consulting (1988-1991), Group others, Prima Forum on IFRS held in May and
Management Accountant (1991-1994), Cyber Maturity Review Training held in July.
Chief Manager Portfolio Management –
Institutional and International Banking He has no affiliate relationship with other
Group (1994-1996), Chief Manager Group members of Board of Commissioners and
Credit Risk Analysis (1996-1998), Head of Board of Directors of the Bank, yet, affiliated
Business Banking Product and Services with the Bank’s ultimate shareholder, namely
(1998-1999), Chief Manager Business Qatar National Bank (QNB).
Re-Design (1999-2000), Chief Manager of

42 PT Bank QNB Indonesia Tbk


Performance
Citizen of Indonesia, 64 years old. Domiciled Started the career in PT Bank Negara

2016
in Jakarta, Indonesia. Graduated with a Indonesia (Persero) Tbk from 1979 until
Bachelor Degree in Economy from the retired in 2008, occupying various positions
University of Jember, East Java (1979) and including Director of Commerce (2003-2005),
earned Master of Business Administration Director of Human Resources (2005-2007)
from Tulane University, New Orleans, USA and lastly as the Director of Operations &
(1988). He formerly served as the President General Services (2008). In 1991-1994, also
Commissioner of the Bank (2010-2011) and served as Director in PT BNI Nomura Jafco,
it was declared effective by Bank Indonesia Commissioner of PT Bank Finconesia (2001-
on June 7, 2010, afterward, appointed as 2002), Vice Rector of University of Pancasila

Shareholders
Letters to
the Independent Commissioner of the Bank (2008-2012), and Extraordinary Lecturer of
based on the Resolution of Annual GMS dated University of Pancasila (2008-present).
June 24, 2011. In addition, he also has been
assigned as a Chairman of Remuneration & In 2016, actively attended several
Nomination Committee in the Bank based on competence development programs, among
Decree of BoD No. 002/SK-DIR/I/2016 dated others QNB Values Festival held in July.
January 4, 2016 with service period effective
from 2016 to 2018. He has no affiliate relationship with other
members of Board of Commissioners, Board

Suroto Moehadji of Directors and ultimate shareholder of the


Bank.

Company
Independent Commissioner

Profile
Management Discussion
and Analysis
Citizen of Indonesia, 59 years old. Domiciled Deputy Head of Regional Office Area 02
in Jakarta, Indonesia. Earned his Bachelor Padang – Branch Development Sector (2002-
Degree in Law from Trisakti University, 2003), Deputy Head of Legal and Compliance
Jakarta (1989) and Master of Laws from Division – Legal Development Sector
Tulane University, New Orleans, USA (1998). (2003-2004), Deputy Head of Compliance
He was first appointed as the Independent Division (2004), Head of Compliance
Commissioner of the Bank based on the Division (2004-2006), and Head of Internal
Resolution of Extraordinary GMS dated Control (2006-2011). He has also served as
September 16, 2011 and it was declared the Commissioner of PT Swadarma Sarana
effective by Bank Indonesia on November 24, Informatika (2012-2013). In addition to
2011. He has been assigned as a Chairman of serving as Independent Commissioner of

Governance
Corporate
Risk Oversight Committee in the Bank based the Bank, he also served concurrently as
on Decree of BoD No. 001/SK-DIR/I/2016 President Commissioner of PT Swadarma
dated January 4, 2016 with service period Sarana Informatika (2013-present).
effective from 2016 to 2018.
In 2016, he actively attended several
During his career, he has held numerous competence development programs, among
position in PT Bank Negara Indonesia others, QNB Values Festival held in July.
(Persero) Tbk, among others, as Deputy
General Manager of Operations at Tokyo He has no affiliate relationship with other
Social Responsibility

Muhammad Anas Malla Branch Office (1998-2001), Head of members of Board of Commissioners, Board
Independent Commissioner
Corporate

Samarinda Branch Office (2001-2002), of Directors and ultimate shareholder of the


Bank.

PT Bank QNB Indonesia Tbk 43


Passion for Excellence at Its Best
Annual Report 2016

Citizen of Indonesia, 66 years old. Assistant to Governor of Bank Indonesia


Domiciled in Jakarta, Indonesia. Earned (2006-2009), joins the Indonesian Banking
his Bachelor Degree in Law from Trisakti Development Institute (LPPI) in 2010 as the
University, Jakarta (1975), Master in Public Advisor to Board and currently serves as
Administration (MPA) from University Senior Faculty (External) since May 2015. He
of Southern California, Los Angeles, USA was the President Commissioner of Pefindo
(1985), and Doctor of Philosophy in Public Rating Agency (2011 – 2014), President
Administration (DPA) from University of Commissioner of PT NISP Asset Management
Southern California, Los Angeles, California, (2013-2014), Vice President Commissioner
USA (1989). He was first appointed as the of PT Aberdeen Asset Management (2014-
Independent Commissioner of the Bank based 2015), Commissioner of Pefindo Research
on the Resolution of Extraordinary GMS dated and Consulting (2014-2015) and President
October 9, 2015 and it was declared effective Commissioner of Pefindo Credit Bureau
by Financial Services Authority (OJK) on (2014-present).
November 11, 2015. In addition to serving as
Independent Commissioner of the Bank, he In 2016, he actively attended several
also assigned concurrently as Chairman of competence development programs, among
Audit Committee in the Bank based on Decree others, National Economy in the Context of
of BoD No. 024/SK-DIR/V/2016 dated May 31, Global, Money Market and Capital Market

Djoko Sarwono 2016 with service period effective from 2016


to 2018.
and Regional Economic, Policy Financial
System Supervision (FSA/OJK) and the
Independent Commissioner Banking System and IKNB Indonesia held in
During his career, he has held numerous September.
position, among others, as Executive
Director of Banking Policy and Regulation He has no affiliate relationship with other
Bank Indonesia (1999-2001), Chief Office members of Board of Commissioners, Board
of Bank Indonesia – Regional Bandung of Directors and ultimate shareholder of the
(2001- 2003), President Director of Indover Bank.
Bank, Amsterdam and concurrently served
as Chairman of the Board of Directors of
Indover Bank, Hong Kong (2003-2006),

Citizen of Australia, 61 years old. Domiciled Qatar (2004-2005), Chief Executive Officer
in Doha, Qatar. Earned his Bachelor Degree of National Bank of Oman (2005-2007) and
in Law from the Queensland Solicitors Board General Manager International of Qatar
Australia (1978). He was appointed as the National Bank (2008-March 2013). Prior to
Commissioner of the Bank based on the serving as Commissioner of the Bank, he
Resolution of Extraordinary GMS dated 13 has served as President Director of the Bank
April, 2016. (2013 - February 2016) and as Commissioner
of the Bank (2011-2013).
He has had a 33-year career in banking.
He practiced law with Heiser Bayly and In 2016, he actively attended several
McDonald until 1980 and then joined Citibank competence development programs.
where he held numerous positions and his
last position was Acting Country Head of He has no affiliate relationship with other
Malaysia (1981-1999). He worked in Standard members of Board of Commissioners, Board
Chartered Bank with the last position as of Directors and ultimate shareholder of the
MENA Wholesale Head (2000-2003), Chief Bank.
Operations Officer of Commercial Bank of

Andrew McGregor Duff


Commissioner*

*) Shall be effective upon the approval from Financial Services Authority (FSA/OJK) on fit and
proper test.

44 PT Bank QNB Indonesia Tbk


2016 Letters to Company Management Discussion Corporate Corporate
Performance Shareholders Profile and Analysis Governance Social Responsibility

45
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

Board of Directors’ Report

" Passion for Excellence at Its Best was carried out as the theme of
Annual Report 2016 to reflect the Bank’s spirit of determination and
optimism.

By the strong capital support from the QNB Group, we are confident
and fully committed to achieve our vision and grow significantly in
the future.“

Dear distinguished shareholders,

Year 2016 posed a very challenging due to Brexit decision, as well as


year to the Indonesian banking unexpected development of US
industry in general and with no Presidential Election which also led
exception to our Bank in specific. to uncertainty of US interest rates
With the strong and unwavering and have all exacerbated domestic
support by the controlling conditions.
shareholder, Qatar National Bank
S.A.Q (QNB Group), we are pleased However, the Indonesian economy
to report to our shareholders and achieved positive growth in the
customers that we have managed end of 2016, albeit at a lower
to overcome 2016 unscathed from growth rate, accompanied by
the capital perspective. QNB Group macroeconomic stability and
is the leading and undisputed financial system that was well
number one financial institution maintained. Economic growth
Azhar bin Abdul Wahab in Middle East and Africa (MEA) has been supported by domestic
Act. President Director in terms of assets, capital, and demand amid the sluggish
profitability. We spent 2016 to global economic condition.
further strengthening our business Macroeconomic stability was
platform, developing our people, maintained as reflected in low
enhancing our compliance, and inflation, declining current account
improving the efficiency of our deficit, and the exchange rate
overall business process to support which was relatively stable.
our future growth.
Overall, against the backdrop of
2016 Performance much lower economic growth rate,
year 2016 was very challenging
The overall Indonesian economic to the Bank especially in terms of
condition in 2016 was much or the significant increase of non-
less the continuation of previous performing loans (NPLs). Upon this
year’s condition. External factors condition, the Bank decided to be
from global economic development more selective and tightened the
such as falling commodity prices, underwriting criteria to adapt to
China’s economic slowdown, the dynamic environment.
Eurozone economic development

46 PT Bank QNB Indonesia Tbk


Performance
Bank’s Financial Performance 2016

2016
In million Rupiah unless otherwise stated

Descriptions 2016 2015 Growth (%)

Total Assets Rp24,372,702 Rp25,757,649 (5.38%)


Loans – Net Rp17,551,188 Rp20,788,304 (15.57%)
Allowance for Impairment Losses (Rp736,726) (Rp41,740) 1,665.04%

Shareholders
Deposits from Customers Rp19,344,962 Rp18,509,008 4.52%

Letters to
Equity, Net Rp3,477,929 Rp2,424,184 43.47%
Net Income (Loss) for the Year (Rp650,333) Rp156,046 (516.76%)
Provision for impairment losses on financial and non (Rp929,519) (Rp87,472) 962.65%
financial assets
CAR 16.46% 16.18% 0.06%
NPL Net 2.94% 2.39% (0.50%)
LDR 94.54% 112.54% (18%)

Company
Profile
“Passion for Excellence at Its Best” aware that this is our chance to aiming for recovery, including
was selected as the theme of the move to the next level of growth injection of additional capital of
Annual Report 2016 to reflect the by focusing on retail banking Rp728 billion by the Controlling
Bank’s spirit of determination development especially through Shareholders that had strengthen
and optimism. The challenging the utilization of digital platform the Bank’s capital structure and
economic and industry condition (digital banking). In the past few improved our Capital Adequacy
provided significant impact for years we have been strengthening Ratio (CAR) at 16.46%. In addition,

Management Discussion
us, therefore we committed to our digital platform to further the Bank also undertook strict

and Analysis
strengthen ourselves through the support our retail banking growth. monitoring on all credit accounts to
implementation of proper strategy prevent a decline in the quality of
and especially by relying on high Therefore, in 2016 the Bank had assets. Upon the implementation
quality and integrity human launched Direct One-on-One of such prudent steps, the Bank
capital. To address the challenging Electronic Transaction (DooEt+) managed to achieve the net NPL
economic and industry condition, mobile banking platform which we ratio of 2.94%.
the Bank has set higher Allowance have been developing in the past
for Impairment Losses (CKPN) two years. As of the end of 2016, Despite the unfavorable
which resulted in the depressed we have successfully increased economic condition, the business

Governance
Corporate
financial result. However, we have the number of our savings account development remained the
managed to strive on our own and significantly. This achievement Bank’s main focus. In 2016, we
further strengthened our pillars to has proven the potential and were challenged to develop our
anticipate future growth. effectiveness of this innovative retail banking to further broaden
product as well as indicated that our customer base and improve
Challenges and Strategies we are on the right track. To the public acceptance towards
in 2016 further expand our reach in the QNB Indonesia. To address such
Social Responsibility

retail segment, we also engaged challenge, the Bank requires a


As part of our determination to in various retail banking activities comprehensive digital platform
Corporate

overcome challenges, we continued especially using the community- to allow the Bank to provide wide
to develop our business despite based approach to further develop range of excellent products and
being significantly affected by the brand awareness of our product services. In addition, such quality
the economic condition. We also as well as QNB Indonesia itself. and high integrity human capital is
believe that this is the appropriate also required to support the growth
time to focus on retail banking The Bank has taken prudent steps of retail banking in particular.
growth in accordance with the to mitigate the challenges that we Therefore, we focused on further
Bank’s business plan. We are faced with cause-effect strategies

PT Bank QNB Indonesia Tbk 47


Passion for Excellence at Its Best
Annual Report 2016

strengthening our digital platform We are consistently enhancing Compared with previous year, the
to support the Bank’s business our compliance to the regulatory role of the committees under the
focus on developing retail banking. requirement and continuously Board of Directors has increased
adapting to the regulatory much more significant since in
The main assets of a bank is framework. We continuously 2016 there were many things that
their human capital and in line review, formulate and implement drive these committees to further
with human capital development GCG principles with due improve their functional tasks.
program, the Bank had undertaken observance to prevailing laws Assisted by these committees, the
several initiatives to develop soft and regulations, the Indonesian Board of Directors continued to
skill either directly or via QNB Corporate Governance Code, as enhance the implementation of
portal to facilitate the employees’ well as recent standards, including good governance standard in all
learning process and improve their ASEAN Corporate Governance operation aspects of the Bank.
efficiency and effectiveness. Scorecard to gain feedback
regarding the quality of the Bank’s Changes to the Board of
While in terms of compliance GCG implementation. Directors
improvement through digital
platform development, the use To ensure the best practices of GCG We were delighted to welcome
of QNB portal also improves at all levels of the organization, new members to the Board during
the employees’ awareness on we have consistently conducted the year. R. Andi Kartiko Utomo,
compliance culture which should an internal socialization program previously Head of E-Banking &
always be upheld. to raise GCG awareness, enhanced Financial Inclusion, joined us in
GCG tools such as whistleblowing November 2016 as E-Banking &
By the strong capital support from system, customer complaint Financial Inclusion Director. His
the QNB Group, we are confident system, and AML function among appointment was established in the
and fully committed to achieve our others. Further, in ensuring Extraordinary General Meeting of
vision and grow significantly in continuous GCG implementation Shareholders on April 13, 2016 and
the future by widening customer improvements, we have also held shall be effective upon obtaining
segmentation, introducing new a GCG assessment, using a self- Fit & Proper Test approval from the
innovative products, and expanding assessment method in line with Financial Services Authority (FSA/
delivery channels. regulatory requirement, evaluating OJK). While, Junita Wangsadinata’s
business performance based on appointment was established in the
Implementation of Good certain predetermined indicators as Extraordinary General Meeting of
Corporate Governance well as policies and system. Shareholders on December 19, 2016
and shall be effective on February
Commitment to the Performance of the 16, 2017 and upon obtaining fit
implementation of Good Corporate Committees & proper test approval from the
Governance (GCG) has always Financial Services Authority (FSA/
become the main foundation for In carrying out the duties and OJK). We hope their appointment
the Board of Directors and the responsibilities, the Board of will bring a good balance of
entire Management in managing Directors is assisted by several additional skills and experience to
the Bank and conducting committees. During 2016, these the Board of Directors.
operational activities. We believe committees played a vital role in
that by consistently applying assisting the Board of Directors We would also like to record our
transparency, accountability, and have shown good performance. gratitude to Andrew McGregor Duff
responsibility, independence, and In addition, the Board of Directors and Rusli for their contribution
fairness principle in every business also established new committee during their terms as member of
process, we could maintain good namely Special Asset Management the Board of Directors. Upon the
performance and provide an added Committee to better support the resignation of Andrew McGregor
value for stakeholders as well. tasks and responsibilities of the Duff as the President Director,
Board of Directors.

48 PT Bank QNB Indonesia Tbk


Performance
Azhar Abdul Wahab was officially there is always opportunity behind We would also like to thank our

2016
appointed as Acting President every challenge. controlling shareholder, QNB
Director based on Circular Group and Bosowa Group, the
Resolutions of the BoD in lieu of Going forward, we will focus on significant minority shareholders
the BoD’s Meeting No. 005/SK- strengthening our retail banking who had been extremely supportive
Dir/I/2016 dated January 22, 2016. in addition to further developing to the growth of the Bank while
wholesale banking as well as respecting appropriate governance.
Realizing the 2017 Vision improve our cooperation with In particular, we appreciate the

Shareholders
Middle East. Thus, in 2017 we are support of all of our customers,

Letters to
The economic condition in 2017 is optimistic in realizing our vision to business partners, and other
expected to be similar to 2016 in be the icon in Indonesia that grows stakeholders. We would like to
which Indonesia will experience together with our stakeholders. thank them to their support so we
moderate growth but still very could overcome many challenges
robust compared to other regional Appreciation and Closing in 2016. Going forward, we are
countries. The external economic Remarks committed to further leverage our
environment is not likely to strong position, robust capital,
support continued but slowing Our successful journey to overcome and excellent innovation to be the
pressure on Rupiah and weak 2016 was the result of dedication leading bank in Indonesia that

Company
Profile
commodity prices. However, we and hard work of our employees continue to grow together with the
believe that we have adapted and we would like to express our stakeholders.
well to the changed environment gratitude to all of them upon
in the past few years and will their efforts. Our gratitude is
continue to invest in the future, also addressed to the regulators,
grow selectively, and especially the Indonesia Financial Services

Management Discussion
take advantages of opportunities Authority and Bank Indonesia,
which may emerge as a result upon the direction and support

and Analysis
of the dynamic environment given to the Bank throughout the
improvement. We believe that year.

On behalf of the Board of Directors,

Governance
Corporate

Azhar bin Abdul Wahab


Act. President Director
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 49


Passion for Excellence at Its Best
Annual Report 2016

Profile of the Directors

Citizen of Malaysia, 47 years old. Domiciled based on Decree of BoD No. 030/SK-Dir/
in Jakarta, Indonesia. Earned his Bachelor VI/2016 dated June 8, 2016, (7) Procurement
Degree from the Faculty of Management, Committee based on Decree of BoD No. 031/
Universiti Teknologi Malaysia (1992), SK-Dir/VI/2016 dated June 8, 2016, and (8)
Graduate Diploma in Applied Finance & Special Asset Management Committee based
Investment from the Securities Institute on Decree of BoD No. 041/SK-Dir/X/2016
of Australia (2003), and Program for dated October 18, 2016, as well as (9) as an
Executive Development (PED) from Institute Alternate Chairman and a member of Risk
for Management Development (IMD), Management Committee based on Decree of
Switzerland (2004). He was first appointed BoD No. 022/SK-Dir/V/2016 dated May 27,
as the Director of the Bank based on the 2016.
Resolution of Annual GMS dated June 24,
2011 and it was declared effective by Bank Previously, started his career in Permodalan
Indonesia on July 5, 2011. Appointed as Nasional Berhad (1992-1997) and later
Acting President Director based on Circular worked in Nomura Jafco Investment Asia
Resolutions of the BoD in lieu of the BoD’s Ltd., (1996-1997); rejoined Permodalan
Meeting No. 005/SK-Dir/I/2016 dated January Nasional Berhad (1997-2006), Maybank
22, 2016. Investment Bank Berhad (2006-2008), and
joined Qatar National Bank (2008-June 2011)

Azhar bin Abdul Wahab Appointed for special assignments as a


Chairman of several committees under Board
with the last position as Head of Mergers &
Acquisitions, International Banking.
Act. President Director of Directors of the Bank, namely: (1) Asset
& Liability Committee (ALCO) based on In 2016, he actively attended several
Decree of BoD No. 032/SK-Dir/VI/2016 dated competence development programs,
June 8, 2016, (2) Credit Committee based among others, Effective Public Speaking
on Decree of BoD No. 040/SK-Dir/X/2016 & Media Handling held in January, QNB
dated October 18, 2016, (3) Fraud Oversight Values Festival held in July, Refreshment
Committee based on Decree of BoD No. 045/ of Risk Management Certification held in
SK-Dir/XI/2016 dated November 10, 2016, September, and Executive Coaching for BoD
(4) HR Committee based on Decree of BoD held in September and Professionalism with
No. 028/SK-Dir/VI/2016 dated June 8, 2016, Integrity for Leaders held in September.
(5) IT Committee based on Decree of BoD
No. 029/SK-Dir/VI/2016 dated June 8, 2016, He has no affiliate relationship with other
(6) New Products and Activities Committee members of Board of Directors, Board
of Commissioners, and the ultimate
shareholders of the Bank.

50 PT Bank QNB Indonesia Tbk


Performance
Citizen of Australia, 58 years old. Domiciled on Decree of BoD No. 045/SK-Dir/XI/2016

2016
in Jakarta, Indonesia. Earned his Bachelor dated November 10, 2016.
Degree in Commerce from the University of
Western, Australia (1981), Post Graduate Previously, he joined ABN AMRO Bank/ Royal
Diploma Course from the Securities Institute Bank of Scotland in 1986-2011 and has held
of Australia, Australia (1985) and Project numerous position, including Country Risk
Management Professionals (2011). He was Officer at ABN AMRO Bank N.V. Indonesia
first appointed as the Director of the Bank (1998-2001), Senior Vice President Group Risk
based on the Resolution of Extraordinary Management at ABN AMRO N.V. Amsterdam,
GMS dated September 16, 2011 and it was The Netherlands (2002-2003), Head of

Shareholders
Letters to
declared effective by Bank Indonesia on May Risk Management Bank of Asia, Bangkok,
10, 2012. Thailand (2003-2004), Senior Risk Advisor at
ABN AMRO Bank N.V. Singapore (2004-2008),
Appointed for special assignment as a and last position as Head of Commercial Risk
Chairman of Risk Management Committee – Asia Royal Bank of Scotland N.V. Singapore
based on Decree of BoD No. 022/SK- (2008-2011).
Dir/V/2016 dated May 27, 2016. In addition,
also appointed as an Alternate Chairman In 2016, he actively attended several
as well as a member of (1) New Products competence development programs, among

Lloyd William Rolston and Activities Committee based on Decree


of BoD No. 030/SK-Dir/VI/2016 dated June
others, Effective Public Speaking & Media
Handling held in January, Leaders Talk held

Company
Risk Director

Profile
8, 2016, (2) Asset & Liability Committee in March & May, Sharing Session: Awareness
(ALCO) based on Decree of BoD No. 032/ on New Accounting Standard on Financial
SK-Dir/VI/2016 dated June 8, 2016, (3) Credit Instrument/ Impairment (IFRS 9) held in
Committee based on Decree of BoD No. 040/ May, Refreshment of Risk Management
SK-Dir/X/2016 dated October 18, 2016, (4) Certification held in September, Executive
Special Asset Management Committee based Coaching for BoD held in September and
on Decree of BoD No. 041/SK-Dir/X/2016 Professionalism with Integrity for Leaders
dated October 18, 2016, and also assigned as a held in September.

Management Discussion
member of (1) HR Committee based on Decree
of BoD No. 028/SK-Dir/VI/2016 dated June He has no affiliate relationship with other

and Analysis
8, 2016, (2) IT Committee based on Decree of members of Board of Directors, Board
BoD No. 029/SK-Dir/VI/2016 dated June 8, of Commissioners, and the ultimate
2016, (3) Fraud Oversight Committee based shareholders of the Bank.

Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 51


Passion for Excellence at Its Best
Annual Report 2016

Citizen of Indonesia, 55 years old. Domiciled Action Task Force on Money Laundering
in Jakarta, Indonesia. Earned his Bachelor (FATF) against Indonesia held in May,
Degree from Jenderal Soedirman University, QNB Values Festival held in July, BARa
Purwokerto (1984) and Graduate Degree Sharing Session: Financial Conglomeration-
of Finance and HRM & Organizational Horizontal Structure-Implementation &
Behaviour from Rensselaer Polytechnic Challenges held in July, Refreshment of
Institute, Troy New York (1994). He was first Risk Management Certification held in
appointed as the Director of the Bank based September, Executive Coaching for BoD
on the Resolution of Extraordinary GMS held in September, Indonesia National
dated November 29, 2012 and it was declared Seminar on Economic Outlook: How Much
effective by Bank Indonesia on February 25, Impact of Economic Policy Package? held in
2013. October, Indonesia Banking Human Capital
Conference: Preparation of banking HR
Appointed for special assignments as a Indonesia in the ASEAN Financial Services &
Member of several committees under Board Banking Integration in 2020 held in October
of Directors, namely: (1) Risk Management 2016, Socialization Licensing/Approval of
Committee based on Decree of BoD No. 022/ Participation Bank on Monetary, Payment
SK-Dir/V/2016 dated May 27, 2016 (non- Systems and Management of Rupiah, as
voting member), (2) HR Committee based well as Macroprudential of Bank Indonesia

Windiartono Tabingin on Decree of BoD No. 028/SK-Dir/VI/2016


dated June 8, 2016, and (3) Fraud Oversight
held in October, BARa Sharing Session:
Sustainability Risk Management in Lending
Compliance Director Committee based on Decree of BoD No. 045/ Program held in November, Seminar on
SK-Dir/XI/2016 dated November 10, 2016. Economic Outlook 2017: Opportunities and
Challenges in the Banking Industry held
Previously, started his career at Bank in November, Socialization Tax Amnesty:
Rakyat Indonesia (Persero) from 1986 until Dialog Taxation with Finance Minister of
2012 and held various positions, among the Republic of Indonesia held in November,
others, Deputy General Manager of Human Thought Leadership Financial Services:
Resources Division (1999-2001), Deputy Application Regime Anti-Money Laundering/
Regional Manager of Yogyakarta and Combating the Financing of Terrorism in
Central Java Region (2001-2002), Deputy Indonesia, Evaluation and Perspectives for
Regional Manager of Semarang - Central the Future held in November, International
Java Region (2002-2004), Deputy Regional Business Integrity Conference & Collective
Manager of Surabaya - East Java Region Action held in November, Risk Management
(2004-2006), Head of Risk Management Certification Program, BARa Risk Forum:
Division (2006-2009), Head of Audit of “Revisit Enterprise Risk Management and
Bali, West Nusa Tenggara and East Nusa Learning Best Practices of Credit Risk
Tenggara Regions (2009-2010), Head of Management” held in December, Risk
Audit of East Java Region (January 2010-June Management Certification Refresher Program
2010), Head of Micro Business Division (July held in December , and Seminar on “Facing
2010-June 2012), Head of Audit of West Global Challenges for Better Economic
Java Region (July 2012-December 2012) and Growth in 2017” and “Managing Compliance
Commissioner of PT Asuransi Jiwa Bringin Risk while Controlling Cost” held in December
Jiwa Sejahtera (July 2011-November 2012). 2016.

In 2016, he actively attended several He is also active in various associations in


competence development programs, among the Indonesian banking industry, such as
others, BARa Sharing Session: Mandiri’s Banker Association for Risk Management
Implementation of Integrated Management (BARa) as Secretary-General, the Indonesian
Framework for financial Conglomerates Bankers Association (IBI) as Member of
(POJK 17 & 18) in January, Leaders Talk held the Board of Social Affairs and Sports,
in March 2016, BARa Sharing Session: Global the Association Forum Communications
and Indonesia’s Macroeconomics Trend and Director of Compliance (FKDKP) as leading
Forecast held in April, Compliance & AML members of Public Relations of Banking and
Certification Workshop Executive Level held as Deputy Treasurer. Currently he also has
in April and has Competence Certification the competency certification as assessor of
Executive Level in Banking Compliance the National Professional Certification Board
held in April, BARa Sharing Session: Risks (BNSP).
and Mitigation for Infrastructure Financing
in Indonesia held in May, Sharing Session: He has no affiliate relationship with other
Awareness on New Accounting Standard members of Board of Directors, Board
on Financial Instrument/Impairment (IFRS of Commissioners, and the ultimate
9) held in May, Seminar Banking System shareholders of the Bank.
Readiness Assessment Facing the Financial

52 PT Bank QNB Indonesia Tbk


Performance
Citizen of Indonesia, 45 years old. Domiciled Tractors Pandu Engineering (1996 - 2000),

2016
in Jakarta, Indonesia. Earned her Bachelor HR Associate for Eli Lilly Indonesia (2000-
Degree in Economics from Padjadjaran 2001). She joined Citibank N.A. Indonesia
University, Bandung (1994) and MBA from from September 2001 to September 2014
the Faculty of Economics and Business of with last position as HR Head for Consumer
Gadjah Mada University, Yogyakarta (2013). Bank - Senior Vice President. Prior to serving
She was appointed as the Director of the as Director of the Bank, she has served as HR
Bank based on the Resolution of Annual GMS Head - Executive Vice President (September
dated February 27, 2015 and it was declared 2014 - February 2015).
effective by Financial Services Authority

Shareholders
Letters to
(OJK) on October 2, 2015. Beside as a Human In 2016, she actively attended several
Resources Director, she appointed to hold competence development programs, among
concurrent position as an Acting Operations others, Effective Public Speaking & Media
Director based on Circular Resolutions of the Handling held in January, Competitive
BoD in lieu of the BoD’s Meeting No. 016/SK- Strategy of the Bank in the Middle
Dir/I/2016 dated April 1, 2016 and has been Turbulence held in February, Leaders Talk
renewed based on Circular Resolutions of the held in March & May, Basic Trade Finance
BoD in lieu of the BoD’s Meeting No. 044/SK- held in May, Risk Management Certification
Dir/XI/2016 dated November 10, 2016. level 5 held in May, 2016 Indonesian Mercer

Novi Mayasari Appointed for special assignments as an


Pension Action (IMPACT) Workshop –
Criticism New Regulations Affecting HR

Company
Human Resources Director

Profile
Alternate Chairman as well as a member of Strategy held in May, Sharing Session:
several committees under Board of Directors, Awareness on New Accounting Standard on
namely: (1) HR Committee based on Decree Financial Instrument/ Impairment (IFRS 9)
of BoD No. 028/SK-Dir/VI/2016 dated June held in May, Implementation Certain Time
8, 2016, (2) Procurement Committee based Employment Agreement and Outsourcing
on Decree of BoD No. 031/SK-Dir/VI/2016 held in June, QNB Values Festival held in July,
dated June 8, 2016, (3) Fraud Oversight Investigative Interview held in September,
Committee based on Decree of BoD No. 045/ Executive Coaching for BoD held in

Management Discussion
SK-Dir/XI/2016 dated November 10, 2016. In September, Professionalism with Integrity for
addition, also assigned as a member of Risk Leaders held in September, SID Reporting in

and Analysis
Management Committee based on Decree of the Context of Quality Control of SID in 2016
BoD No. 022/SK-Dir/V/2016 dated May 27, held in September, 3rd Indonesia Industrial
2016. Relations Conference held in November.

Previously, started her career as Management She has no affiliate relationship with
Trainee on HRODP of PT Astra International other members of Board of Directors,
Tbk (1994-1995), Analyst on Remuneration Board of Commissioners, and the ultimate
& Organization Development of PT. United shareholders of the Bank.

Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 53


Passionfor
Passion forExcellence
Excellenceatat
ItsIts Best
Best
Annual Report 2016

Citizen of Indonesia, 51 years old. Domiciled Corporation (2005-2008), Western Union


in Jakarta, Indonesia. Earned his Bachelor Company (2008-2014), Blackberry Indonesia
Degree from Brawijaya University, Malang (20012-2014). He joined Telkomsel Indonesia
(1989) and Master Degree in General Business from 2004 to October 2015 with last position
Management from IPMI Business School, as Vice President – Digital Payment & Mobile
Jakarta (2009). He was appointed as the Banking. Prior to serving as Director of the
Director of the Bank based on the Resolution Bank, he has served as Head of E-Banking &
of Extraordinary GMS dated November 18, Financial Inclusion (October 2015- now).
2016.
In 2016, he actively attended several
Appointed for special assignments as a competence development programs, among
member of several committees under Board others, Preparation of Risk Management
of Directors, namely: (1) IT Committee based Certification Level 4 held in January,
on Decree of BoD No. 029/SK-Dir/VI/2016 Managing Team held in February, Leaders
dated June 8, 2016, (2) New Products and Talk held in March, Preparation of Risk
Activities Committee based on Decree of BoD Management Certification Level 5 held in
No. 030/SK-Dir/VI/2016 dated June 8, 2016, April, Risk Management Certification Level
(3) Procurement Committee based on Decree 5 held in May, QNB Values Festival held in
of BoD No. 031/SK-Dir/VI/2016 dated June July, Executive Coaching for BoD held in

R Andi Kartiko Utomo 8, 2016, and (4) Asset & Liability Committee
(ALCO) based on Decree of BoD No. 032/SK-
September, Professionalism with Integrity for
Leaders held in September, The 1st Manager –
E-Banking & Financial Inclusion Dir/VI/2016 dated June 8, 2016. Leader Summit held in October.
Director*
He started his career at HM Sampoerna Group He has no affiliate relationship with other
(1989-1991), Markplus & Co (1991-1992), members of Board of Directors, Board
Mead Johnson Indonesia (1992-1996), Phillip of Commissioners, and the ultimate
Morris Indonesia (1996-2005), Samsung shareholders of the Bank.

*) Shall be effective upon the approval from Financial Services Authority (FSA/OJK) on fit and
proper test.

Citizen of Indonesia, 54 years old. Domiciled In 2016, she actively attended several
in Jakarta, Indonesia. Earned her Bachelor competence development programs, among
Degree in Finance & Banking from San others, Media Handling Skills Training held
Francisco State University, USA in 1983 and in January and 2016 Indonesia Certificate
MBA degree in Finance from San Francisco in Banking Risk & Regulation Refreshment
University, USA in 1984. She was appointed Program held in April.
as the Director of the Bank based on the
Resolution of Extraordinary GMS dated She has no affiliate relationship with other
December 19, 2016. members of Board of Directors, Board of
Commissioners, and the main ultimate
Started her career at Bank of Trade, San shareholders of the Bank.
Francisco, USA in 1984-1985 as Credit
Trainee. She joined Worthern Bank, Arkansas
- USA in 1985-1986 as Credit Analyst, Bank
Central Asia, New York, USA in 1986-1987
as Credit Manager and Bank Lippo in 1987 -
2008 with last position as Corporate Banking
Group Head and Bank CIMB Niaga in 2008
– Dec 2016 with last position as Chief of

Junita Wangsadinata Commercial Banking Officer.

Wholesale Banking Director*

*) Shall be effective on February 16, 2017 and upon obtaining approval from the Financial
Services Authority (FSA/OJK) on fit and proper test.

54 PT Bank QNB Indonesia Tbk


2016 Letters to Company Management Discussion Corporate Corporate
Performance Shareholders Profile and Analysis Governance Social Responsibility

55
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

ofi y
Pr pan
le
m
Co

56 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

57
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

58 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

59
professional and

PT Bank QNB Indonesia Tbk


human capital.
of QNB Values,
internalization

we generate a

high integrity
Through the
Passion for Excellence at Its Best
Annual Report 2016

Corporate Identity

Company Name PT Bank QNB Indonesia Tbk

Line of Business Banking

Share Ownership » Qatar National Bank S.A.Q (82.59%)


» PT Bosowa Kapital (8.15%)
» Public (9.26%)

Date of Establishment April 28, 1913

Legal Basis of Established pursuant to the Deed No. 53 dated April 28, 1913, prepared before Leonard
Establishment Hendrik-Willem Van Sandick, a Notary in Medan, approved by Besluit Gouverneur
Generaal of the Dutch East Indies No. 58 dated July 16, 1913, and announced in the
Extra Bijvoegsel der Javasche Courant No. 78 dated September 30, 1913.

Authorized Capital Rp8,000,000,000,000 (eight trillion Rupiah)

Issued and Fully Paid Rp2,189,286,499,250 (two trillion one hundred eighty nine billion two hundred
Capital eighty six million and four hundred ninety nine thousand two hundred fifty Rupiah).

Share Listing The Company’s shares were listed on the Indonesia Stock Exchange (previously
Jakarta Stock Exchange) on November 21, 2002.

Ticker Symbol BKSW

SWIFT Code AWANIDJA

Ratings PT Bank QNB Indonesia Tbk is rated “idAA” with “Stable” Outlook by Pefindo.

Number of Employees 908

Address QNB Tower 18 Parc SCBD


Jl. Jenderal Sudirman Kav. 52-53,
Jakarta 12190
Phone : (+62 21) 515 515 5
Fax : (+62 21) 515 538 8

Website qnb.co.id

Contact Center (+62 21) 300 55 300

Publication & Media corporate.communication@qnb.co.id

Network 1 (one) head office


16 (sixteen) branch offices
32 (thirty two) sub branch offices
72 (seventy two) ATMs

Subsidiaries By the end of 2016, PT Bank QNB Indonesia Tbk has no subsidiaries.

60 PT Bank QNB Indonesia Tbk


QNB Logo

Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Governance
Corporate

• Four arrows directed to a single center A ribbon consisting of two colors portrays a
Social Responsibility

symbolize the energy and skills focused commitment to always generating progress
Corporate

to serve and assist all customers in and thinking ahead beyond the boundaries
maximizing their potential. in providing added values for institution in
general and for customers in particular.
• The color differences in the arrows show
the diversity of customers that continue
to grow and develop.

PT Bank QNB Indonesia Tbk 61


Passion for Excellence at Its Best
Annual Report 2016

Milestone

1913 1990
The establishment Headquarter relocation to
of Bank Kesawan in Jakarta.
Medan under the name
of NV Chunghwa
Shangyeh Maatschappij
(The Chinese Trading
Company Limited).

1958 1996
Operating as a Obtained the license to be
commercial bank. a Foreign Exchange Bank.

1913 1958 1962 1965 1990 1996 1998 2002

1962 1998
Changed its name to Awarded “Bank A”
PT Bank Chungwa category from Bank
Shangyeh. Indonesia.

1965 2002
Changed its name to Initial Public Offering by
PT Bank Kesawan. listing 78.8 million shares
on the Indonesia Stock
Exchange.

62 PT Bank QNB Indonesia Tbk


Performance
2016
2009 2013
Rights Issue I. Rights Issue III.

Management
Report
2010 2014
Reorganisation, changed Transformed its name
its vision and mission. and logo to PT Bank
QNB Indonesia Tbk.

Rights Issue IV QNB

Company
share ownership

Profile
increased to 82.59%.

Management Discussion
2009 2010 2011 2012 2013 2014 2015 2016

and Analysis
2011 2015
Rights Issue II. Renewal and internalizaton
of QNB Values.
QNB became the

Governance
Corporate
major shareholder, Subordinated loan amounted
owned the Bank by to US$ 70 million for 5 years,
69.59%. which has been calculated
as Tier II Capital as of
Changed its name September 30, 2015.
to PT Bank QNB
Kesawan Tbk.
Social Responsibility

2016
Corporate

Earned rating “idAA”


2012 with Outlook “Stable”
Relocation of headquarter in 2015 & 2016
and launching of new logo. from PT Pefindo,
rating institution in
Received an award Indonesia.
of achievement from
“Indonesia Banking Award” Earned Vision Awards
(“Anugerah Perbankan 2015 from LACP.
Indonesia”)

PT Bank QNB Indonesia Tbk 63


Passion for Excellence at Its Best
Annual Report 2016

PT Bank QNB Indonesia Tbk at a Glance

PT Bank QNB Indonesia Tbk The Bank took a turning point after
Our journey that (henceforward referred as the the relocation of its head office
spans more than a Bank) have recorded historic from Medan to capital city, Jakarta
century has forged us milestones for over a century. It is in 1990. The relocation was then
established in April 1, 1913 as NV followed by the Bank obtaining
to remain committed Chunghwa Shangyeh Maatschappij a license to become Foreign
to sustainable growth (The Chinese Trading Company Exchange Trader in 1995, and in the
as well as Indonesia Limited) in Medan based on the year after, approval to be a Foreign
prosperity. Notarial Deed No. 53 dated April 28, Exchange Bank and National Cash
1913, the Bank is primarily engaged Perception Bank, which is a bank
in the business of savings and loans that may accept tax payments.
as well as general trading. It is only
in 1958, after almost half century The Bank’s history entered a
later, that the company officially new chapter in 2002 as its status
commenced its operation as a changed from a private company to
commercial bank based on Decree public company through the Initial
of the Minister of Finance No. Public Offering of 78.8 million
191547/U.M.II dated October 28, shares in Indonesia Stock Exchange
1958. From there, it continued to (formerly Jakarta Stock Exchange).
be reformed as a Limited Liability In the same year, the Bank also
Company, under a new name of PT implemented online operating
Bank Chunghwa Shangyeh in 1962 system at all of its branches.
and then PT Bank Kesawan in 1965.

64 PT Bank QNB Indonesia Tbk


Performance
For 2 (two) In 2005, the Bank executed warrant the new brand actually marked

2016
series I of 101,219,000 shares or the final stage in the Bank’s
consecutive years, in amounted to Rp25,304,750,000, transformation journey which
which were issued during Initial commenced in the fourth quarter
2015 and 2016, the Public Offering in 2002. of 2011.
Bank has achieved a
In 2009, the Bank executed Limited Furthermore, for 2 (two)
rating of “idAA” with Public Offering I (LPO I) through consecutive years, in 2015 and

Management
the issuance of pre-emptive rights 2016, the Bank has achieved a
“Stable” Outlook from

Report
of 125,304,750 shares or amounted rating of “idAA” with “Stable”
Pefindo, a prominent to Rp40,097,520,000. Outlook from Pefindo, a prominent
credit rating agency. This reflected
credit rating agency. Subsequently in 2011, the a very strong capital support
Bank executed Limited Public from the controller shareholder
Offering II (LPO II) through the i.e, Qatar National Bank S.A.Q, as
issuance of preemptive rights of well as the robust asset quality
2,935,263,768 shares or amounted and well capitalized, thus the
to Rp733,815,942,000, with the Bank as an obligor has very strong

Company
Profile
Qatar National Bank S.A.Q acted ability to meet long-term financial
as a stand-by buyer. The execution commitment to other obligors in
of LPO II changed the status of Indonesia.
share ownership, Qatar National
Bank S.A.Q became the major Eventually, in 2016 the Bank
shareholder by owned 69.59% continued to strive to achieve

Management Discussion
shares of the Bank. Following the excellence despite many
acquisition, the Bank was renamed challenges. Innovations which

and Analysis
to PT Bank QNB Kesawan Tbk. were made one after another
represented our commitment
In 2013 and 2014, the Bank took to keep striving and growing
similar corporate actions as it did sustainably and at the end of the
in the previous year. It decided to year the Bank has once again
execute Limited Public Offering proven its solid performance. The
III (LPO III) and Limited Public Bank has been successfully strived
Offering IV (LPO IV) through the at its best and managed to grow
issuance of pre-emptive rights prudent and sustainable.
Governance
Corporate
amounted to 2,596,543,000 shares
or amounted to Rp649,135,750,000 Our journey that spans more than
and 2,598,815,479 shares or as a century has forged us to remain
much as Rp649,703,869,750, committed to sustainable growth
respectively. It further as well as Indonesia prosperity. PT
strengthening the Bank’s capital Bank QNB Indonesia Tbk is proud
amidst challenging environment to support local people, businesses,
Social Responsibility

and sustaining long-term growth. and communities for more than


Corporate

At the same time, the Bank also a century and look forward to
underwent rebranding by changing continue serving Indonesia
its name and logo; from PT Bank communities in the years ahead.
QNB Kesawan Tbk into PT Bank
QNB Indonesia Tbk. In fact,

PT Bank QNB Indonesia Tbk 65


Passion for Excellence at Its Best
Annual Report 2016

Visions and Missions

Vision ln 2017 we will be:

• An icon* in lndonesia that grows


together with our stakeholders.
• A top tier bank in terms of financial
performance in lndonesia.

* ln terms of technology enabled convenience and simplicity of process.

Mission We provide outstanding technology –


enabled banking products and services
supported by an international network that
delivers enhanced stakeholders value to be
a financial institution of choice.

Adjustment of the Bank’s Vision were established through the Board of


Directors Decree No. 042/SK-Direksi/X/2016 dated October 18, 2016.
The Bank’s Mission were established through the Board of Directors
Decree No. 074/SK-Direksi/VI/2015 dated June 1, 2015.

66 PT Bank QNB Indonesia Tbk


Performance
Professionalism Passion

2016
with Integrity for Excellence
We shall continuously develop We strive to go the extra-
our competencies and behavior to mile to achieve the highest
reliably deliver what is expected professional standards.
from us. We shall be honest, fair,
and accountable.

Management
Report
Company
Profile
QNB Values

Management Discussion
and Analysis
Responsible Innovative
Governance
Corporate
Citizenship
We shall be adaptive to
We shall respects with dignity change and value creative
and be concerned for the thinking to continuously
well-being of people and attain superior benefits.
environment in which we
Social Responsibility

operates.
Synergistic Team
Corporate

We shall effectively harness


our strength to achieve our
common goals with pride.

Note:
In 2015, PT Bank QNB Indonesia Tbk has renewed its core values and service spirit to support the strength organisational
culture and responding to the Bank’s future challenges, as stipulated in the Board of Directors Decree No. 074/SK-Direksi/
VI/2015 dated June 1, 2015.

PT Bank QNB Indonesia Tbk 67


Passion for Excellence at Its Best
Annual Report 2016

Service Spirit

Trusted bank, sincerely


delivering solutions
and convenience.

Trusted Sincerely
Fulfilling commitments with Serving wholeheartedly,
prudence, integrity, responsibility, earnestly, and courteously.
reliability, and ensuring mutual
benefits.

Convenience Solutions
Serving responsively, providing Solving problems, delivering
ease and pleasant experiences. benefits and creating new
opportunities innovatively.

Note:
In 2015, PT Bank QNB Indonesia Tbk has renewed its core values and service spirit to support the strength organisational
culture and responding to the Bank’s future challenges, as stipulated in the Board of Directors Decree No. 074/SK-Direksi/
VI/2015 dated June 1, 2015.

68 PT Bank QNB Indonesia Tbk


Line of Business

Performance
• Acknowledgements of m. Issuing letter of credit in

2016
Based on article 3 of indebtedness and other various forms and bank
the Bank’s Articles trade papers whose terms guarantee.
are no longer than normal n. Engaging in activities in
of Association, the practice in the trading of foreign exchange.
purpose and scope of such papers. o. Engaging in activities of
business activities • State Treasury Certificates capital investment in a bank
and Government or other companies in the
of the Bank is to run

Management
Guarantees. financial sector, such as
a business in the

Report
• Bank Indonesia financing, fund management,
sector of banking Certificates. leasing, venture capital,
• Bonds. securities company, insurance,
in accordance with • Fixed-term trade papers clearing house, and guaranty
the provisions of • Other fixed term as well as clearing settlement
prevailing laws and commercial papers and depository institution.
instruments. p. Engaging in activities of
regulation. e. Transferring funds for the temporary capital investment
Bank’s own interests and for for dealing with non-

Company
Profile
the interests of customers. performing loans, including
To achieve its purpose and f. Placing funds with, borrowing failure of Sharia-based
objectives, the Bank shall perform funds from, or lending funds financing and non-Sharia
main business activities, as follows: to other banks using paper, principles.
telecommunications facilities q. Acting as the founder and
a. Collecting funds from public in and bearer negotiable manager of pension funds.

Management Discussion
the form of deposits including instruments, checks or other r. Purchasing collateral, either
demand deposits, time deposits, means. entirely or partly, through

and Analysis
certificates of deposit, savings, g. Receiving payments of claims or outside an auction, in
and/or other similar forms. in respect of commercial the event that the debtor
b. Extending loans, either long- papers and conducting fails to fulfill its obligation
term, medium-term or short calculations with or in respect to the bank, provided that
term loans or loans in any of third parties. the purchased must be
other forms commonly granted h. Providing places for the immediately saleable.
in the banking sector. storage of valuable items and s. Engaging in such other
c. Issuing promissory notes. papers. activities as are customarily
d. Purchasing, selling, or i. Providing custodian services to engaged in by a bank in so
Governance
Corporate
guarantee at its own risk and other parties on a contractual far as they do not violate the
for the benefit of and under the basis. provisions of the laws and
instruction of its customers, j. Investing customer funds in regulations.
including: other customers through the
• Negotiable instruments, purchase of securities listed on Other than main business activities
including negotiable the stock exchange. as set forth above, the Bank shall
instruments that are k. Providing financing and/or perform additional business
Social Responsibility

accepted by the Bank engaging in other activities activities in so far as they do


Corporate

whose periods of terms in accordance with sharia not violate the provisions of the
are no longer than normal principle, in accordance with laws and regulations, specifically
practice in the trading the provisions stipulated banking regulations.
of such negotiable by Bank Indonesia and/or
instruments. Financial Services Authority. In conducting its business
l. Engaging in factoring operations, the Bank offers a wide
activities, credit card business variety of products and services,
and trustee service. as described in the “Products and
Services” section of this Annual
Report.

PT Bank QNB Indonesia Tbk 69


Passion for Excellence at Its Best
Annual Report 2016

Product and Services

In conducting its business


activities, the Bank
provides various products
divided into savings
and loan products,
other products as well
as various services as
further elaborated below:

Savings Products

Product Description Benefits

Savings Account Savings with extra protection. • Free health insurance; hence the customers do not have to pay for
the premiums of this health insurance.
• Free transaction fee at all of the ATM Bersama networks for
balance inquiry, cash withdrawal, and over booking transfer.

Checking Account Checking account designed • The checking account in Rupiah currency which facilitates the
for the comfort of business customers to withdraw cash using cheque or demand deposit.
transactions.

Premium Saving Account The savings that offer various • Free RTGS, LLG, and clearing transactions.
benefits for the customers. • Free transaction fee at ATM Bersama networks.
• Free cash withdrawal from all MEPS (Malaysian Electronic
Payment System) networks.

Premium Checking Account A checking account that is • Provides benefits similar to the Q Premium Checking Account
designed for the comfort of • Free cheque book fee up to 4 books/month for customers’ account
banking transactions. with average balance Rp50 million/month.

Switching Account A foreign exchange savings • Currency switching can take place at any time.
in which the foreign exchange • Minimum placement of USD100.
can be switched to other foreign
currencies (USD, SGD, AUD,
EUR, JPY, and GBP).

Global Account Savings in foreign • Competitive foreign exchange rate.


currencies for the customers’ • Interest rate is calculated based on the daily balance.
investment needs. • Affordable remittance cost of Rp35,000 for all currencies.
• Reporting medium using a book so that the customers can easily
monitor the transactions.

Global Checking Account A checking account in foreign • Competitive foreign exchange rate.
currencies for secure business or • Interest rate is calculated based on the daily balance.
investment needs. • Affordable remittance cost of Rp35,000 for all currencies.
• Reporting medium using a book so that the customers can easily
monitor the transactions.

Forex Foreign exchange transactions • Covering more than 100 foreign currencies.
with competitive exchange rate. • Accurate, competitive, and real time prices.
• Foreign exchange investment products.

70 PT Bank QNB Indonesia Tbk


Performance
Loan Products

2016
Product Description Benefits

Personal Loan Instant Unsecured Loans up to • Quick process and easy requirements.
Rp250 million and tenor up to
6 years.

Management
Working Capital Loan A short term payment facility • Easy requirements for customers who are in need of business

Report
with tenor up to 1 year. capital.

Investment Loan Medium-term and long-term • Can be used to fund the procurement of capital goods intended for
payment facilities. rehabilitation, modernization, expansion, or establishment of new
projects as well as refinancing.

Bank Guarantees A bond product which is the • Specifically designed to fulfill the needs of businessmen in
choice of all businessmen. terms of Bid Bond, Performance Bond, Advance Payment Bond,
Maintenance, etc.

Company
SBLC The Bank issued an insurance

Profile
on the customers’ demand
to conduct payment to the
beneficiary on the requirement
that all the necessary documents
have been completed.

Issuance of Letter of Credit- A payment bond of the Bank

Management Discussion
Sight and Usance L/C which issued an L/C on the
submission of documents that

and Analysis
corresponds to the requirements
of the L/C for the import
transaction of goods.

Credit Card Payment card as a method of • Free Annual Fee


payment. Free annual fee of credit card for the first year.
• Credit Card Insurance
Providing protection to the QNB Visa Infinite Credit Card holder if
they cannot pay the credit card bill in the event of an accident, as
well as providing free fire insurance.
• Travel Guard & Purchase Protection

Governance
Corporate
1. Free travel insurance for flight accident with the maximum
amount of Rp5 billion.
2. Compensation for travel inconvenience and purchase
protection for the holders of QNB Visa Infinite Credit Card.
• Executive Lounge
Free facility of the executive airport lounge for QNB Visa Infinite
Credit Card (valid for 2 people).
• Partnership
Special discount with 0% installment at various QNB merchants.
Social Responsibility

• Point Reward
Corporate

Points that are obtained from retail or online shopping using QNB
Visa Infinite Credit Card.
• Install Program
Fixed 3 - 24 months installment for any transaction.

PT Bank QNB Indonesia Tbk 71


Passion for Excellence at Its Best
Annual Report 2016

Other Products (Wealth Products)

Product Description Benefits

Q Smarthealth Gold An insurance product with easy • Affordable premium without having to undergo medical check-ups.
payment process specifically • Cashless service for inpatient and surgery at partner hospitals.
prepared for emergency
situations for all customers.

Q Smarthealth Platinum An insurance product with • Cashless service for inpatient and surgery at partner hospitals.
superior benefits. • Local and International ambulance service, Second Medical
Opinion, and Medical Concierge Services.

Q Optima Link Provide customers with 2 (two) • Provide maximum protection and optimum investment.
benefits in one product, namely • Provide the customers with flexibility to freely decide choice and
a maximum protection and allocation, withdrawal, and increase of investment fund.
optimum investment. • Provide loyalty bonus of 50% from the Basic Premium for the
customer who have paid the Basic Premium up to their 11th
Premium Year.

Q Optima Link Assurance Provide customers with one • Hospitalization costs for personal, spouse, and kid packages.
custom main benefit for six • Cash value savings for child gift and retirement packages.
different package such as • Death benefit for legacy package.
personal, spouse, kid, child gift,
retirement, and legacy.

Q Health Care Integrated life and health • Cover customized benefits of inpatient care, outpatient care,
insurance for companies in dental care, delivery and glasses cost.
which the benefits can be
customized based on the
available budget.

Q Health Care Protection Integrated life and health • Cover inpatient care, outpatient care, dental care, delivery and
insurance for companies with glasses cost.
fixed benefits.

Mutual Funds Collaboration of QNB First • Provide potentials for investment growth.
with experienced Investment • Has a high liquidity because can be resold any time.
Managers to help your • Convenient and easy investing.
investment.

Offers four types of mutual


funds: money market funds,
fixed-income funds, mixed-
assets funds, and equity funds
(stocks).

Savings Guard Assurance Bancassurance product that • Insured and maximum development result.
provides life insurance benefits • Easy and fast process.
in the form of compensation • Roll over option on new investment period.
after death-only not and or due • Insurance protection up to Rp5,000,000,000 per insurer.
to accident or total permanent
disability due to accident
and recovery of principal and
optimum investment returns
ensured by Jiwasraya.

72 PT Bank QNB Indonesia Tbk


Performance
2016
Product Description Benefits

Invest Link Assurance Insurance program that • Extra benefits where the investment value has been formed
combines life insurance and since the first year.
investment flexibly with extra • Provides Inflation Link facility that increases the value of the
benefits and offers life insurance Sum Insured and Premium in line with inflation in the future.

Management
protection with a wide range of • Special Benefits without additional charge, namely:

Report
protection for the customers and - If the Insured suffers Terminal Illness then 50% of the
their family. Basic Sum Insured will be paid early.
- Investment Guaranteed Death Benefit (IGDB) for
Death Benefit, if the insured dies and at the same time
investment value drops below the value of the initial
investment, thus it will be guaranteed the difference
between the initial investment with an investment value
when the insured dies with a maximum of Rp200,000,000
for all policyholders with IGDB benefits held at
Commonwealth Life.

Company
Profile
Sparklink Assurance Investment-linked life insurance • The investment value that has been formed from the first year
product that provides life of the policy. The investment value depends on the performance
insurance protection as well as and risks of each type of investment fund.
potential investment results that • Top-up Premium facility (Single Top-up) at any time, in
correspond to the risk profile of accordance with the provisions contained in the policy.
customers, and is designed to • Customers could define the amount of the composition of
provide flexibility in meeting protection value and investment value, in accordance with the

Management Discussion
the needs of customers at every provisions contained in the policy.
stage of life. • Fund Switching facility in accordance with the provisions

and Analysis
contained in the policy.
• Various rider options.
• Daily unit price information in national printed media, also
via Customer Care Prudential and Prudential Indonesia official
website, www.prudential.co.id.
• Fund Progress Report is sent to the customers on a periodic basis.
• Free to determine the investment options available, according
to customers’ preferences, in accordance with the provisions
contained in the policy.
• Free to make a withdrawal any time according to customer
needs, in accordance with the provisions contained in the policy.

Governance
Corporate
• Premium Holiday could be taken after the fourth year, in
accordance with the provisions contained in the policy.
• Assistance and Medical Evacuation Services in the event of a
medical emergency, 24 hours around the world up to the age of
70 years.*

*) In accordance with the provisions contained in the policy.


Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 73


Passion for Excellence at Its Best
Annual Report 2016

Services

Product Description Benefits

ATM Electronic banking services with • Easy cash and cashless through ATM services at ATM Bersama
real time, online access around and MEPS.
the clock. • Free cash withdrawal and balance inquiry fee at all of the Bank’s
ATMs, ATM Bersama, and MEPS.

Remittance/Swift Fund transfer service for foreign • Can take place quickly and securely around the world with a
currencies. variety of foreign currencies as well at competitive telegraph
exchange rate and fee.

RTGS/LLG/Clearing Fund transfer service for Rupiah. • Can take place quickly and securely at a competitive price.

QNB First Priority banking services for • Comfortable lounge service privileges with the best facilities.
preferred customers. • Airport transfer, local airport lounge, luggage handling, and
immigration handling facilities.

74 PT Bank QNB Indonesia Tbk


Performance
2016
Product Description Benefits

SDB Box rental facilities to store • Secure and protected deposit box at a competitive price.
goods, valuables, or important
documents.

Management
Report
Company
Profile
Management Discussion
Letter of Credit Facility of L/C issuance for • Ensure secure transactions for importers in which the payment

and Analysis
purchase of goods and services (to beneficiary) is made after all the documents accepted have met
from abroad to inside or outside the requirements from importers to bank (for transaction).
Indonesia’s custom area.

FX Today Foreign exchange purchase/ • Provide services at an accurate and competitive price.
sale on foreign exchange rate
determined at the time of
transaction, with payment and
delivery on the same day as the
transaction date.

Governance
Corporate
FX Tomorrow Foreign exchange purchase/ • Provide services at an accurate and competitive price.
sale on foreign exchange rate • Customer foreign exchange rate hedging (this transaction allows
determined at the time of customers to hedge foreign exchange risk exposure to fluctuated
transaction, with payment and currency exchange rate).
delivery on the working day after
the transaction date.

FX Spot Foreign exchange purchase/ • Provide services at an accurate and competitive price.
sale on foreign exchange rate • Customer foreign exchange rate hedging (this transaction allows
Social Responsibility

determined at the time of customers to hedge foreign exchange risk exposure to fluctuated
Corporate

transaction, with payment and currency exchange rate).


delivery on 2 (two) working days
after the transaction date.

FX Swap Foreign exchange purchase/ • Provide services at an accurate and competitive price
sale on foreign exchange rate • Customer foreign exchange rate hedging (this transaction allows
determined at the time of customers to hedge foreign exchange risk exposure to fluctuated
transaction, with payment and currency exchange rate).
delivery on 2 (two) different
days, using the agreed swap
price.

PT Bank QNB Indonesia Tbk 75


Passion for Excellence at Its Best
Annual Report 2016

Other Services

Product Description Benefits

DooEt+ Mobile Banking. • Smartphone application with easy-to-use features.


• Various type of financial (transfer, payment, and purchase) and
non-financial transactions are only 2 (two) clicks away.

Corporate Internet Banking Internet Banking service for • Ability to set banking transactions anywhere and anytime.
corporate customers. • Ability to customize limit of daily transaction and number of
registered users on their own.
• Token to secure transaction and SSL-protected web pages.
• No installation or monthly fee on the customers.

QNB Online Banking Internet Banking service for • Can be accessed through computers or smartphones, for various
individual customers. kind of banking activities in practical and safe manner.
• Various services such as inter-bank transfers, bill payments,
prepaid reload, and etc.
• Access to information of various accounts (Checking Account,
Savings, Time Deposits, and Loans) in integrated service.

Corporate ATM Card ATM Card service for corporate • Customized QNB ATM card with design and logo of corporate
customers. customers.
• Can be used for cash withdrawal, payment, and purchase.
• Comes with application to control supplies and demand of cards
related to the Bank.

76 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

77
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

Work Regions and Operational Map

Solo
Palembang
1 Branch Office
1 Branch Office

Jakarta
19 Branch Offices

Semarang
2 Branch Offices

Medan
7 Branch Offices

Pematangsiantar
1 Branch Office

Batam
1 Branch Office Depok
1 Branch Office
Bekasi
2 Branch Offices

Pekanbaru Tangerang
3 Branch Offices 1 Branch Office Bandung
2 Branch Offices

78 PT Bank QNB Indonesia Tbk


Performance
2016
Pasuruan
1 Branch Office

Management
Report
Balikpapan Makassar
1 Branch Office 1 Branch Office

Company
Profile
Management Discussion
and Analysis
Governance
Corporate

Denpasar
1 Branch Office
Social Responsibility
Corporate

At present, Bank QNB Indonesia has 1 head office, 48 branch offices and
more than 49,000 networking with ATM Bersama serving customers
across Indonesia.
Surabaya
Network and Distribution Total
3 Branch Offices

Head Office 1
Branch Office 48
ATM 72

PT Bank QNB Indonesia Tbk 79


Passion for Excellence at Its Best
Annual Report 2016

Organizational Structure

Board of Commissioners

President Director (CEO)


Committees**
Azhar bin Abdul W.*

Chief Business Director


Azhar bin Abdul W.

Retail E-Banking & Financial Wholesale


Risk Director
Banking Director Inclusion Director Banking Director
Lloyd William Rolston
Vacant R. Andi K. U.* Vacant

Head of
Head of Network Head of Head of Head of
E-Banking Sales &
& Distribution Alternate Channel Corporate Banking Risk Management
Business Development
Rasmoro P. Aji Titis S. Utomo Vacant Caroline Halim
Monica Riesanty

Head of IT Head of Head of Head of Head of


& Digital Banking QNB First Financial Inclusion Commercial Banking Commercial Credit
Slamet Riyadi Joyce Puspa C. Thomas H. Tulus Vacant Wendriani Ika L.

Head of
Head of Product Customer Head of Structured
SME Lending Head Corporate Credit Risk
Development Experience Head Finance & Advisory
Edwin Teintang & Credit Administration
Joyce Puspa C.* Fithri R. Vacant
Vacant

Merchant & Credit Card Head of


Retail Funding Head Head of Treasury
Operations Head SME Credit Review
Indra Wardi Novy Angela A.
Kirtiadi Hotama Ervin Gumilar

Head of Retail Banking


Head of Client Services
Credit Review
Hermia K.*
Joseph W.

Wholesale Special Asset


Funding Head Management Head
Yani Suryani Arisman

80 PT Bank QNB Indonesia Tbk


Performance
2016
Remuneration & Risk Oversight
Audit Committee
Nomination Committee Committee

Management
Report
Company
Human Resources

Profile
Operations Director Compliance Director Chief Auditor
Director
Novi Mayasari* Windiartono T. Cut T. Azia
Novi Mayasari

Head of HRBP
Head of Head of Corporate
Head of Operations & Organization
Compliance & Procedure Communication

Management Discussion
Tota M. Tobing Development
Rr. Utami Tjipto Glenn Ranti
Rahma Diana

and Analysis
Head of Strategic
Head of Head of Learning
Head of Legal Planning & Change
General Services & Development
Bambang Wijayanto Management Office
Denny S. Sylvina Savitri Haryanti Kodiat

Head of Head of Finance &

Governance
Corporate
HR Operations Head
Corporate Secretary Accounting
Endang W. L.
Lina Tomi Parisianto

Legend
* Acting
Sub Division Head directly report to Director
Social Responsibility
Corporate

** Committees
• HR Committee
• IT Committee
• Risk Management Committee
• Asset & Liability Committee (ALCO)
• Credit Committee
• Procurement Committee
• Product & New Activity Committee
• Fraud Oversight Committee
• Special Asset Management Committee

This structure has been approved pursuant to the Decree of the Board of Directors
No. 046/SK-Dir/XII/2016 on December 1, 2016

PT Bank QNB Indonesia Tbk 81


Passion for Excellence at Its Best
Annual Report 2016

ly on
s
na si
si
A s
d scu
an i
tD
en
em
ag
an
M

82 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

83
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

84 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Governance
Corporate

Amidst economic
challenges, we
strive to uphold
Social Responsibility

our performance to
Corporate

keep excel and push


forward to commit
with the target.

PT Bank QNB Indonesia Tbk 85


Passion for Excellence at Its Best
Annual Report 2016

Industry Overview

Macroeconomic Overview On the other hand, economic growth relatively strong amid the sluggish
in developing countries such as India global economic recovery. Moreover,
The global economic recovery in and China was still expected to be macroeconomic stability was well
2016 was slow but commodity the driver of the global economy maintained as reflected in low
prices began to improve. In despite China still experienced inflation, declining current account
the midst of global economic a slowdown. In the commodity deficit, and the exchange rate which
uncertainty which increased market, world oil price was still at a was relatively stable.
after the US election, the US low level, in line with the high OPEC
economy showed improvement as oil production. Meanwhile, a number Overall, real GDP growth rose to
reflected in improved GDP, stable of Indonesia’s export commodity 5.02% in 2016 from 4.79% in 2015.
unemployment rate, and inflation prices continued to improve, Real GDP slowed in the second
which is likely to increase. In line such as palm oil, coal, and some half of 2016, but then picked
with these developments, the other minerals. The Indonesian up on higher investment and a
chances of Fed Funds Rate (FFR) economy showed positive growth recovery in commodity prices. The
increase in December 2016 was in the end of 2016, accompanied slowdown of real GDP growth was
also intensified. However, economic by macroeconomic stability and to be expected in the second half of
growth in other developed financial system that was well 2016 from 5.19% in the first half as
countries, such as the European maintained. Economic growth has weak revenue and a ceiling on the
Union, tend to be limited and been relatively well supported by budget deficit were likely to force
overshadowed by political risk. domestic demand which remained the government to rein in spending.

86 PT Bank QNB Indonesia Tbk


Performance
Indonesian GDP Quarterly Growth Rate (2016) Inflation has eased leading to

2016
(in percentage) lower interest rates and reached
7.3% in mid-2015 due to cuts to
5,04 4,91 5,19 5,02 5,04 fuel subsidies and higher import
6,00 tariffs. However, the effects of
these measures have now worked
5,00
through the system and inflation
4,00 has steadily declined, falling

Management
through the 3% floor of Bank

Report
3,00 Indonesia’s target band in August
2,00 2016. The starkest slowdown
was in transport (19% of the CPI
1,00 basket), which fell 1.9% in August
year-on year versus 6.4% in 2015.
0
Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Additionally, housing inflation has
declined to 1.6% in August versus
Source: Statistics Indonesia
6.3% in 2015. Lower inflation and
a more stable exchange rate have

Company
Profile
The 2016’s economic growth of Spatially, the economic growth given the Bank Indonesia room
5.02% was driven mainly by the in Java and Sumatra still grew to lower interest rates. The policy
household consumption which grew strongly, accompanied by increased rate was cut four times between
quite robust. On the investment side, economic growth in Eastern December 2015 and July 2016 by 25
growth in construction investment Indonesia Region which is in line basis points each time. In August,
was relatively well supported by with the increase in mining exports Bank Indonesia changed its target
the continued construction of and the operation of the mineral

Management Discussion
policy rate to a more relevant
government infrastructure projects. smelters. In terms of growth by market rate to ensure that rate cuts

and Analysis
Meanwhile, the role of private sector, the sector of industry, are better transmitted to the rest
investment, especially in non- agriculture, and trade achieved of the economy. In September and
construction was still relatively low, positive growth. October, the rate was cut twice
amid negative growth of government more from 5.25% to 4.75%.
consumption in line with the policy
of fiscal consolidation. Investment
Indonesian Inflation Rate
has contributed quite significantly
(% year-on-year)
to growth in 2016 mainly due to
government efforts to push through 9
Governance
Corporate
the public infrastructure program
and encourage investment. Central 8 CPI
government capital spending also
7
grew quite significant in 2016 and
eleven economic initiatives have Inflation target
6
been announced since September upper limit (5%)
2015 to support investment. These 5
Social Responsibility

include streamlined licensing, tax


relief, energy tariffs cuts, easier 4
Corporate

access to finance, lower trade


3
restrictions, and liberalized foreign 2.8
ownership. The contribution of Inflation target
2 lower limit (3%)
private consumption also slightly
increased, supported by falling 1
inflation and easier monetary policy.
The contribution of net exports to 0
growth has fallen, mainly as exports Jan - 11 Jan - 12 Jan - 13 Jan - 14 Jan - 15 Jan - 16
have decreased due to the slowdown
in China. Sources: Statistics Indonesia and QNB Economics

PT Bank QNB Indonesia Tbk 87


Passion for Excellence at Its Best
Annual Report 2016

In addition, the fiscal deficit has increase in the personal income tax lower subsidy costs. Infrastructure
widened on weak revenue and threshold, lower corporate profits investment is gaining momentum
higher nominal expenditure. The in some sectors, such as coal and as progress is made on 30 priority
budget deficit widened to 3.1% of metals mining, as well as lower oil projects worth US$415 billion,
GDP in the first half of 2016 from and gas prices. Expenditure rose including roads, railways, ports,
2.5% in 2015 due to a 5% drop in in nominal terms due to higher power plants and oil refineries.
revenue compared with the first spending on wages, goods, services, The government has increased its
half of 2015 and a 9% increase in investment, domestic interest as investment spending to 27% of the
expenditure. Revenue was held well as higher regional transfers. budget in the first half of 2016 from
back by lower tax receipts due to an This was more than enough to offset 16% in the same period of 2015.

Fiscal Balance
(% of GDP)
Revenue Expenditure Fiscal Balance

15.3 16.5 15.5 17.2 15.0 17.2 14.5 16.7 13.0 15.6 10.5 13.7

-1.1
-1.7 -2.2 -2.2 -2.5
-3.1
2011 2012 2013 2014 2015 H1 2016

Sources: Bank Indonesia and QNB Economics

Banking Industry passed on lower interest rates to from weaker growth and falling
Overview customers. Lower growth in lending commodity prices. The capital
to manufacturing of 3.9% in July adequacy ratio remained high and
In 2016, banking sector growth has versus 14.3% in 2015 was the largest rising at 21.2% at the end of June
slowed while higher non-performing contributor to the slowdown in 2016.
loans (NPLs) are pressuring addition to weaker lending to trade,
profits. Deposit growth slowed restaurants and hotels, which grew In Q3 2016, the financial system
from 8.0% in 2015 to 6.8% in July 6.8% in July versus 11.0% in 2015. stability was relatively stable and
2016 (year-on-year) as a result of Profits were high but have been well maintained which is supported
easier monetary policy and lower squeezed recently with return on by relatively high banking capital.
nominal GDP growth. Lending equity falling from 21.3% in 2014
growth has slowed from 10.1% in to 15.4% at the end of June 2016,
2015 to 7.6% in 2016 due to weak mainly due to higher NPLs, which
credit demand from consumers and rose to 3.0% at the end of June from
firms and as banks have not fully 2.1% on average in 2014, resulting

88 PT Bank QNB Indonesia Tbk


Business Review

Performance
Retail Banking

2016
QNB Indonesia truly understands
and is aware that to further
improve its competitive strength,
it shall have a robust retail
banking segment with a broad
customer base. Therefore, in

Management
2016 QNB Indonesia focused on

Report
further strengthening its retail
banking segment which was a
continuation of previous year’s
strategy of building a solid retail
banking platform using technology
approach. The segment of retail
banking in QNB Indonesia
comprises of 6 (six) robust pillars,

Company
i.e. Network and Distribution,

Profile
Priority Banking (QNB First), - Constantly improved Net assets management which
Alternate Channel, Retail Product Interest Margin (NIM), boosted includes current account
Development, E-Banking, and portfolio grade, reduced and savings account was
Financial Inclusion, to make sure funding cost, and actively integrated with insurance
that the products and services managed NPL portfolio. To products as well as internet
provided are aligned with customer improve NIM, the Bank strived banking and mobile banking

Management Discussion
satisfaction. to optimize integration of services.
QVA to its banking product - In terms of people

and Analysis
In general, the achievement of key and service while applying development and productivity,
business drivers in retail banking strategic measures to drive the initiatives included
segment reflected a continued higher Business Loans growth certification program for
momentum. Third party fund and fee-based income. The retail banking work unit,
increased more than 40%. Low Bank focused on sharpening branch manager accreditation
cost funding, in the form of Saving its segmentation through Mall program, operational
Account, grew more than 100%. to Mall Acquisition Campaign, certification, and Standard
New customers on board, grew revamped underwriting policy, Operating Procedure (SOP)
and strengthened back-end update.
Governance
more than 45%. SME Lending

Corporate
Product grew almost 34.4% with process to the extent of - In terms of productivity,
manageable NPL. These figures collection while bolstering its the Bank has further
reflected that the Bank’s strategy backbone funding, i.e. QNB promoted sales culture, built
to further strengthen the retail First. accreditation, and boosted
banking segment was on the right - On product development, customer acquisition through
track during 2016 journey despite the Bank particularly effective marketing programs.
the increasing NPL which was to be emphasized on fitting in
Social Responsibility

expected and still manageable. with the customers’ needs Network and Distribution
of diverse risk profiles and To keep up the good momentum,
Corporate

Strategy and Achievement of Retail further equipped its product the Bank is committed to providing
Banking in 2016 and services to achieve service a convenience premise at the
The main strategies of retail excellence. Among others, the hot spot in several cities, such as
banking segment which have been Bank has added some fund Jakarta and Medan, by creating
implemented during 2016, among managers and bancassurance a new look and feel in branch
others, include the following: partners, where the majority of lounges.
the products were channeled
through QNB First. Similarly,

PT Bank QNB Indonesia Tbk 89


Passion for Excellence at Its Best
Annual Report 2016

By leveraging the existing network Retail Funding Strategy for 2017 One of the QNB First’s aim is
and implementing Single Captain Year of 2017 is the year of digital to deliver excellent service to
concept in every business area, the banking and financial technology customers which is realized
synergy among business segments era, therefore to embrace the through the increase of partners
has led to excellence result such as potential business and new to provide investment products.
the increment of cross-sell ratio, market, the Bank has developed Throughout 2016, three new
strong governance implementation mobile app called DooEt+ to bancassurance partners have
and ultimately, positive impact of cater that segment. To boost low been added, namely Jiwasraya,
customer engagement. cost funding and to boost CASA Prudential, and Commonwealth
(current account savings account) Life. On process, mutual funds
In addition, the Bank has penetration, the retail funding partners, namely, CIMB-Principal
consistently developed all of business is leveraging DooEt+ and Aberdeen will be added this
Branches and Head Office staff to create the funding ecosystem year as well. Partners addition will
by creating a robust module of which at the end will increase the provide customers with more varies
several accreditation programs to CASA volume with decent cost of investment products which will
ensure professional capability of fund by providing ultimate mobile meet customers’ need.
QNB Indonesia staff which lead app capability.
to customer satisfaction. As of In line with the regulations, QNB
December 31, 2016, the Bank has “Don’t change the winning team First also provides customers with
48 branches, 72 QNB ATMs, and and program“ is our motto, we still consolidated statement consists of
also connected with more than see Mall to Mall Campaign as one customers’ full portfolio. In further
49,000 ATM Bersama. of our main drivers to acquire new plan, consolidated statement will
customers combined with direct be available in mobile banking and
Retail Funding gift but on top of that, we are internet banking which will provide
In terms of retail funding, the currently leveraging the mobile customer simplicity and flexibility.
Bank organized Mall to Mall banking app called DooEt+ to make Several number of trainings were
Acquisition Campaign and sure our customers more engaged also held during this year with
implemented Customer Acquisition and satisfied with our service the goal of enhancing QNB First’s
Team in which the performance which at the end will generate good marketing staff. Certified Financial
was magnificent. As result, the customer experience. Planner training was given to
Bank’s saving account grew marketing staff in order to enhance
more than 100% in volume and QNB First their knowledge which will impact
grew more than 40% in terms of The establishment of QNB First to their service level. Here in QNB
account. During 2016, the Bank aim has meet customers needs by Indonesia we believe that financial
has organized more than 100 Mall providing investment alternatives advisor skill is required due to high
to Mall Campaigns to achieve from saving to investment variety of investment product to
our saving target. To support the products. Effective and efficient be delivered to high net-worth
saving growth, the Bank also business process has resulted in customers. Overall, we believe
provided direct gift as one of the the growth of new customers to that the customer satisfaction
marketing program with various bank (NTB) in the end of December and experience will be enhanced
gift product for mass and upper 2015 to December 2016 as much as significantly.
mass segment and it has shown 37.2%. Asset Under Management
that our marketing program is (AUM) as of December 31 2016,
accepted by our client and our has grown 164.6% and fee based
target segment. income has also shown significant
increase of 233%.

90 PT Bank QNB Indonesia Tbk


Performance
Financial Inclusion (Branchless)

2016
BPRconnect is a service that aims
to facilitate rural banks (BPR)
so as to provide a more complete
service and comprehensive
services to its customers. The
scope of cooperation between
QNB Indonesia and BPR includes

Management
the use of Card Management

Report
System and QNB Indonesia’s ATM
network with payment system of
BPRconnect.

The cooperation between QNB


Indonesia and BPR is expected to
generate the following results:
• BPR could be connected to
the National Banking and

Company
Profile
Personal Loan • Purchase with QR code also between rural banks
During 2016, Personal Loan We have currently more than which are the participants of
generated progressive performance 200 outlets able to accept BPRconnect, without requiring
of more than Rp499 billion. This purchase using DooEt+ by large investment to build
recorded incremental more scanning QR code. infrastructure.
than 74.7% (December 2015 • Transfer • BPR could develop other

Management Discussion
Outstanding vs December 2016 Our DooEt+ have been sources of income, such as fee
Outstanding). The improving connected to almost all major based income (i.e. admin fee/

and Analysis
performance has shown in the last banks by connecting DooEt+ transaction fee).
three months with the improving with ATM Bersama system. • BPR could add differentiation
Approval Rate, better customer • Ticketing and/or develop products.
segment, and improved Approval Added 2 ticketing services • BPR could improve its services
Time. This momentum will remain are namely Citilink airline – by providing ATM card, ATM,
with healthier segment in 2017 and Garuda Indonesia group and and a connection to the ATM
generate more income to the Bank. Train-inter-city ticket. This Bersama network and MEPS.
enhancement makes DooEt+
The available transactional facility,
Governance
E-Banking the only mobile banking

Corporate
The Bank has enriched the application that has ‘ticketing among others, includes:
application of mobile banking service’ feature. - Saving inquiry limit;
‘DooEt+’ with various features for - Cash withdrawal through
the benefits of our customer. Some The Bank also prepares more QNB Indonesia’s ATM, ATM
of key features that have been features and benefits in the near Bersama network, and MEPS;
added in DooEt+ platform were: future by enriching DooEt+ to fullfil - Bill Payment;
• Bill payment the customer needs and to attract - Inter-bank transfer through
Social Responsibility

All operators of new users. QNB Indonesia’s ATM other


Corporate

telecommunications post-paid ATM networks which in


bills. cooperation with QNB
• Purchase Indonesia; and
Pre-paid airtime for all - PIN changes.
operators of telecommunication
as well as electricity token.

PT Bank QNB Indonesia Tbk 91


Passion for Excellence at Its Best
Annual Report 2016

Retail Banking Strategy for 2017 Corporate Banking is established to In 2016, the Bank was not only
We believe that in addition of attend to multinational companies focused on maintaining customer
traditional channel in banking as well as State Owned Enterprises engagement and strengthening
industry, the digital trend already (SOEs) while commercial banking customer relationship but also
disrupts the way of customer to serves similar target segment with increased cross-selling transactions
pay, do transaction, and access smaller scale profiles. by wholesale banking customers.
other financial services. With the Among the cross-selling initiatives
penetration of more than 100% Structured finance and advisory, were to introduce QNB First
mobile handset in Indonesia, on the other hand, functions to services to the wholesale banking
smart phone has become the most provide companies which require customers.
preferable channel for almost debt restructuring through
everything, including financial syndication loan. In addition, Wholesale Banking Strategy for
services. Statistic showed that 40% the Bank also provides each and 2017
of mass affluent Asian customers every wholesale banking customer In 2017, the development of
prefers online or mobile banking with comprehensive relationship wholesale banking will be focused
and 50% of them look for a full set coverage service to ensure the best on always providing quality
of digital banking services. And possible service and responsiveness wholesale credit, supressing
the data also suggested that digital to our clients. NPL, and maintaining credible
banking customer will increase customers. In particular, the
from 670 million to 1.7 billion in Throughout 2016, the Bank Bank will also focus on the
2020. consistently strives to maintain its establishment of strategic
asset quality while also expanding corporate companies to support
In response to such trend, QNB its Wholesale Banking portfolio the business development of both
Indonesia will focus on developing and footprint in the national funding and financing and other
its digital platform to further banking industry. banking services. The Bank will
expand its customer base. Entering also promote solution approach to
2017, the Bank is planning to Strategy and Achievement of customers through the framework
further improve the service of Wholesale Banking in 2016 or supply chain approach, with a
priority banking. In particular, The wholesale banking still focus on domestic structured trade
we will increase the function of accounted for the bigger share in key sectors. In addition, the Bank
QNB First to include the financial of the Bank’s portfolio in 2016. will also carry out SME segment
advisory function. Generally, key business drivers deepening in order to expand
reflect continued momentum in the coverage of bank funding
Wholesale Banking which corporate lending declined development.
17.55% and commercial lending
Wholesale banking in QNB declined 11.10%.
Indonesia consists of six specific
units: Corporate Banking, Client
Services, Structured Finance &
Advisory, Commercial Banking,
and Treasury Divisions. The Bank’s
wholesale banking provides middle
and large companies with easy
access to award-winning products.

92 PT Bank QNB Indonesia Tbk


Performance
Profitability

2016
The Bank’s profitability is based on which constitutes of several areas, and East Region which could be
geographical segment information namely, Jakarta, Sumatera, Jawa seen in the following table:

Region
2016

Management
Jakarta Sumatera Java East Region Total

Report
Total assets 18,812,829 1,685,439 2,617,297 1,257,137 24,372,702

Total liabilities 13,889,632 3,823,337 2,990,921 190,883 20,894,773

Net Interest income 288,876 92,284 85,086 50,171 516,417

Net fees and commission income 111,458 5,404 34,447 3,181 123,490

Other operating income 74,905 1,151 93 23 76,173

Operating Expenses (1,342,275) (49,054) (82,438) (32,826) (1,506,593)

Company
Profile
Non-operating (expense) income - net (3,970) 628 - 3 (3,339)

Income (loss) before income tax (871,006) 50,413 6,188 20,552 (793,853)

Management Discussion
Region
2015

and Analysis
Jakarta Sumatera Java East Region Total

Total assets 19,333,304 1,854,141 3,081,541 1,488,663 25,757,649

Total liabilities 18,107,169 2,260,257 2,815,819 150,220 23,333,465

Net Interest income 486,019 75,687 73,460 54,085 689,251

Net fees and commission income 173,005 3,848 15,366 2,039 194,258

Other operating income 13,509 2,554 737 1,460 18,260

Governance
Corporate
Operating Expenses (616,524) (44,004) (22,623) (13,345) (696,496)

Non-operating income - net 3,616 50 18 (22) 3,662

Income (loss) before income tax 59,625 38,135 66,958 44,217 208,935
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 93


Passion for Excellence at Its Best
Annual Report 2016

Business Supporting Unit Review

Information Technology efficient business process,


Bank strives for the Bank strives for network
business to thrive Implementation and development and hardware efficient usage
of information technology is which included Cisco network
and economies to backup, hardware virtualization,
paramount to executing the
prosper in which Bank’s business strategy. From bandwidth size remapping,
seamless operational time to time, the Bank actively and licensing optimization. In
improved technology information addition, the Bank also revitalized
banking transactions in-house development with
infrastructure to enhance customer
is one of the keys service and convenience in banking third party which consisted of
to achieving our transaction while also ensuring various platforms: Q Performance
competitiveness and efficiency Management dashboard to monitor
objective. To meet performance of every business line,
in its banking solutions, as well
this particular as posing low operational risk. In ATM Recon system to reconciliate
objective, we 2016, the Bank particularly aligned ATM, Data Mart & BI as data
its strategy to both business plan mapping and warehousing for
constantly focus on BI requirement, Branch front
and most importantly, mission to
business process provide outstanding technology- end sys as front end system for
improvement and enabled banking product and branch offices, SCM platform,
services. DooET+ (Do One On One Electronic
operations efficiency. Transaction) Mobile application,
Information Technology Strategy and CIMS.
in 2016
In 2016, the Bank has set out a In addition, the Bank also
In 2016, the Bank focused on series of information technology believes that the successful IT
improving people and process (IT) strategies which focus on development is a vital key to drive
especially by further internalizing meeting its operational and business growth. As such, the
the QNB Values, enhancing strategic needs. The IT strategies in Bank consistently develops new
our digital platform, as well as 2016 draws heavily on increasing systems and frameworks to expand
enhancing compliance. In terms of internal capacity while further its business. In 2016, among the
compliance, the Bank has launched improving our business processes. new developments that took place
several initiatives to enhance To optimize IT capabilities in were B2B system development,
regulatory compliance and promote achieving the Bank’s objectives, IT B2C system development, and
compliance culture across the Division implemented an initiative digital banking automation. For
organization. to remap and redeploy capacity. To B2B system, the Bank has been
boost internal capacity, the Bank developing SCM, CMS (cash
Moreover, the Bank also intently has planned system infrastructure, management system), B2B
emphasized on improving rerun sharepoint project for Integration, BPR Connect, and CIB
productivity and streamlining enhancing business process (corporate internet banking). On
business process. Among the management, collaboration, the other hand, development of
strategies were to implement and Corp Portal, and reactivated B2C system comprised of DooEt
the concept of Single Captain in Disaster Recovery Center (DRC) site Mobile, DooEt Merchant, CRM
order to build stronger branch for redundancy. Apps (customer relationship
role. In terms of improving management system), Internet
people, the Bank focused to build Next, efficiency is one of the Banking, and QFX (Q Foreign
competencies and engagement of major focus of IT improvement Exchange system). Finally, the
its employees in which the people in the Bank. To foster a more Bank also further promoted digital
competence enhancement was efficient implementation of IT banking automation through EMA,
carried out through certification framework, the Bank strived Estatement, Combined statement,
and accreditation programs aimed to reprioritize cost allocation CBS branch front end, AML, and
to ensure all employees are well- and cost-oriented development. Workflow.
equipped in technical and non- To ensure cost efficiency and
technical aspects accordingly to
their job requirements.

94 PT Bank QNB Indonesia Tbk


Performance
On the last note, the Bank also Management Optimizing, IT Efficiency, Business

2016
concentrated on analyzing IT management of the Bank is Driven IT Development, and
business impact and monitoring focused on managing operation and High Performance IT Service
performance to ensure high core banking. Management. In 2017, the Bank
performance of IT Service will continue the implementation
management. Among the Maintenance of respective initiatives accordingly
initiatives rolled out were Consistent maintenance is part of to project prioritization as detailed
development of business impact the Bank’s efforts to monitor and below.

Management
analysis, performance monitoring mitigate risk impacts.

Report
system which include ATM IT Capabilities Optimizing
Monitoring System, Network Information Technology Plan 2017 • Rerun Sharepoint project
management, and system In banking industry, it is essential • System infrastructure capacity
monitoring alert, as well as for business strategies and IT planning
improvement of security system implementation are in sync. In • Reactivation DRC site for
by implementing IPS (internet addition, it requires consistent redudancy
protocol security system), anti and continuous implementation
virus, and anti malware. for a bank to achieve the speed IT Efficiency
and agility required to meet • Network & HW usage

Company
Profile
Information Technology expectations and at the same efficiency
Framework time remain focused on the cost • Revitalize in-house
Information Technology (IT) effectiveness of IT initiatives. development with third party
Framework in the Bank comprises
of four aspects, namely planning, The Bank is uniquely positioned Business-Driven IT Development
development, management, and to demonstrate that business • B2B system development

Management Discussion
maintenance. Fundamentally, and IT strategic planning can • B2C system development
the four aspects serve as the co-exist. To meet the goal of • Digital banking automation

and Analysis
cornerstone for the Bank to providing technology - enabled
formulate, align, execute, and banking product and services, High Performance IT Service
evaluate its IT strategy to meet the Bank derives from four Management
its objective in accordance with strategic initiatives which see • Develop business impact
business growth, good corporate implementation from 2015 to analysis
governance, risk management, and 2017, namely IT Capabilities • Performance monitoring
profitability. • Improving Security System

Planning
Governance
Corporate
In IT Framework, IT Planning
includes the formulation,
discussion, and proposal of the
Bank’s IT strategies and initiatives
in relation to optimizing capability,
fostering efficiency, providing
outcomes, and maintaining service
Social Responsibility

level.
Corporate

Development
The Bank are fully aware that a
sound IT system plays a key role
in sustaining business growth.
With the commitment to deliver
solutions, the Bank applies System
Development Life Cycle (SDLC) to
ensure zero defect.

PT Bank QNB Indonesia Tbk 95


Passion for Excellence at Its Best
Annual Report 2016

Operations Second, established frontliner and process, carry out coordination


system through Branch Operations with the entire related working
Operational aspect plays an Support System (BOSS) which units, implement a disciplined
important role as a supporter of could accelerate the opening control in every operational
the Bank’s business growth. As for account process both in branch and process.
the operational development of during marketing activity such as
the Bank is under the Operations exhibition. Other operational development
Division which includes Trade during 2016, among others, also
& Loan Operation, Treasury & The implications of BOSS’ includes:
Fund Transfer Operation, Branch implementation are the increase 1. Simplification and integration
Operation, Operation Control, of customer experience in terms of of the existing operational
and E-Banking & Transaction enjoying banking services, namely: procedures.
Service Operations. To support the - Acceleration of processing 2. More efficient and accountable
Bank’s business growth from the time in customer account regulatory reporting process.
operational aspect, there were two opening up to 75%; 3. Reorganization and
major initiatives implemented in - Acceleration of ATM cards strengthened Internal Control
2016. activation; and Unit for better control and
- Acceleration of mobile banking process.
First, the implementation of DooEt+ activation.
“Single Captain” concept in Operational Development Strategy
branches to further empower the Broadly speaking, the Bank in 2017
branches in achieving target and continues to face challenges In 2017, the Bank will keep
implementing a more effective and including in terms of operational improving banking services
efficient without prejudice to the aspect development. Nevertheless, process in every channel which is
applicable regulations and Bank’s the Bank continuously strives realized by means of automation
internal provisions. to overcome these challenges by of operational process which
continuously develop the system aims to provide more value to the
customers and Bank.

96 PT Bank QNB Indonesia Tbk


Performance
Human Resources Along with the intensification • Employee Referral

2016
of the development of digital All employees of the Bank
Human Resources Strategy in 2016 banking business, the Bank also are invited to contribute in
At present, the company that has expanded the organization nominating the candidates
wants to succeed must be able by establishing the Directorate of that may fulfill the Bank’s
to adapt, face challenges, and E-Banking and Financial Inclusion. business needs. This particular
customer oriented. In these This strategy is expected to answer process is very helpful in
conditions, the effectiveness of the challenges and needs of the accelerating recruitment

Management
human resource management Bank to win the competition in the process and meeting the

Report
is an important key to business field of digital banking. expected qualities.
success. To maintain good
performance, the Bank also In relation to maximizing the • Internal Job Posting
continued to align its HR policy potential of resources and capacity, This program provides a wide
with the Bank’s strategy while the Bank has encouraged the opportunity for all employees
considering the prudent principle, effectiveness of organization by to grow and develop through
good corporate governance, and re-mapping the employees and the internal recruitment
best global practices. The Bank’s by giving priority to fulfill key program, or commonly known
positions that support the Bank as job posting.

Company
HR strategy in 2016 focused on the

Profile
development of human resources growth.
which includes continuous • External Recruitment
internalization of QNB Values, Pilot projects that have been External recruitment process
certification and accreditation, done in the past year were also is carried out with due
talent and performance being continued to another level regard to the standard rules
management, Human Resources this year. Such initiative was and procedures that have

Management Discussion
Information System (HRIS), as well expected to trigger new initiatives been designed carefully.
as intensive leadership training and that support the development External recruitment process

and Analysis
accreditation. of a stronger organization on an is generally carried out by
ongoing basis. various methods, including the
Organization Development executive search process.
In order to support business Human Resources Fulfillment
growth, the Bank consistently The main objective of planning • Management Development
reviews its organizational structure and fulfillment of human resources Program (MDP)
to the extent of evaluating its at the Bank is to ensure the MDP is aimed at recruiting
productivity and effectiveness. achievement of Bank’s plans and young leaders for the Bank’s
strategy in the short term and long future needs. The MDP
Governance
For example, in this year the

Corporate
Bank has changed the structure term. Planning and fulfillment is candidates participated
of the organization at the branch also conducted with respect to in various training and
offices with the concept of “Single the strategy map, the direction of development of strategic and
Captain”. This concept was human resource development. The leadership competencies.
introduced to ensure the ability Bank meets the needs of employees During the courses that lasted
of branch offices to answer all through internal and external 3 (three) years, each candidate
the needs of customers through recruitment program, rotation of will follow a special program
Social Responsibility

a single service door. With this employees, and the Management devoted to the development of
Corporate

change, both individual and Development Program (MDP). their competencies.


corporate customers could get
service on all products provided by Internal recruitment and rotation This year, the Bank successfully
the Bank at a nearby location. is always put forward in order graduated 8 (eight) MDP
to provide the opportunity for participants who have completed
employees to develop their the third year of the program.
careers in accordance with their These MDP participants have
competence and their aspirations. been placed to fill a variety of
In general, the program of human strategic positions required by
resources fulfillment held by the the Bank, either as professionals
Bank in 2016 includes:

PT Bank QNB Indonesia Tbk 97


Passion for Excellence at Its Best
Annual Report 2016

who have specialized skills as Performance Management and The Bank is also reviewing and
well as leadership subdivision. Remuneration Strategy adjusting remuneration and other
In 2016 the Bank recruited 6 (six) As a performance-based benefits regularly by participating
talented graduates from prestigious organization, the Bank in salary surveys. Through these
universities to join the MDP implements a modern performance efforts, the Bank expects to maintain
program of QNB Indonesia. management system in which a competitive remuneration
performance is measured based on and ensuring employees obtain
Social Media and Employer achievement of Key Performance remuneration in accordance with
Branding Indicator (KPI) and implementation their competence and their positions
Continuing the previous year’s of QNB Values. The purpose of so employees could maintain a good
excellent growth trend, this year this system is to evaluate the performance and contribute more to
the Bank also intensified the performance of employees from the development of the Bank.
use of LinkedIn social media as both aspects, which are employees’
a medium of employer branding achievement of targets (KPI) and All policies related to remuneration
and candidate search resources. work performance in terms of systems are further elaborated in
Employer branding is needed to behavior (QNB Values). the section of Human Resources
help the Bank win the competition Committee and the Remuneration
of quality talent recruitment. This The Bank has a feedback and Nomination Committee as
year the Bank managed to grow the mechanism for the performance the organizational function which
number of followers of its Linkedin of all employees in various ranks. are authorized to ensure that the
social media to more than 20,000 The purpose of this system is to Bank’s remuneration strategy in
(twenty thousand) followers, help every employee in creating order to balance the organization
these figures represented the third opportunities of development in competitiveness and capability.
highest followers in Indonesia various aspects. As a commitment
for company with the number of of the Bank to provide career Talent Management
employees from 500 to 9,999 people development opportunities to A commitment to being a top
in the month of May 2016. employees, this year the Bank tier Bank in terms of financial
has launched a performance performance will also require
Human Resources Information management system through the superior workforces. In 2015,
System (HRIS) Human Resources Information the Bank continued its talent
To maximize the effectiveness of System (HRIS). With the management program called
every process of human resource establishment of this system, all Developing Great Talent (DGT).
management, this year the employees could perform online Developing Great Talent (DGT)
Directorate of Human Resources and open performance planning is a tool developed and tailored
has launched Human Resources and assessment. especially for the Bank to ensure
Information System (HRIS). the Bank manages and retains
This program was developed On the other hand, the performance potential and well-performed
internally to respond to various evaluation results also play an employees to help the Bank to
work demands related to human important role in determining the reach its goal.
resources and facilitate the remuneration of employees. The
employees to get personnel service. Bank implements transparent Based on the bank’s evaluation
In general, as of the end of 2016 and objective remuneration of DGT program that has been
the HRIS of QNB Indonesia has strategies in which remuneration is done until this year, 87% of the
been able to digitally transfer a determined based on an evaluation employees who fit into the category
large part of personnel information of performance and contribution of “excellent” have been able to
recording and related reports, to the Bank. The Bank provides fulfill their target in accordance
creating employee self service remuneration and other benefits with the individual development
for leave purpose, overtime, as to employees in accordance with goals. In addition, more than 70%
well as performance planning and the existing grading system and of employees who fit into this
assessment. capacity as well as the applicable category and has completed the
standards in the banking industry. entire individual development
program, have consistently
managed to maintain the quality of
excellent performance.

98 PT Bank QNB Indonesia Tbk


Performance
Employee Profile

2016
As of December 31, 2016, the activities. In accordance with Bank Bank’s front line staff, particularly
Bank has a total of 908 people Indonesia Regulation No. 13/25/ Tellers and Customer Service,
including contract employees. PBI/2011 dated December 9, 2011 consists of contract and permanent
This number decline by 3.81% regarding Prudential Principles employees.
compared to 944 people in 2015. for Outsourcing at Commercial
The decline was in line with the Banks, the Bank has ensured that

Management
Bank’s business and operational the employment status of the

Report
Number of Employee Based on Organization Level Number of Employee Based on Age

Organization Level 2016 2015 Age 2016 2015

Executive Vice President 3 4 > =55 1 0

Senior Vice President 18 21 50 - 54 57 50

Company
Profile
Vice President 31 28 45 - 49 123 109

Assistant Vice President 65 67 40 - 44 142 153

Senior Manager 69 65 35-39 169 162

Manager 90 102 30-34 212 222

Assistant Manager 92 92 25-29 167 204

Management Discussion
Senior Officer 114 131 20-24 37 44

and Analysis
Officer 105 98 < 20 0 0

Senior Assistant 135 134 Total 908 944

Assistant 151 166

Non- Clerical 35 36

Total 908 944 Number of Employee Based on Position

Position 2016 2015

Governance
Corporate
Number of Employee Based on Education Level Branch manager/sub branch 119 117
manager/division head/sub
division head
Education Level 2016 2015
Relationship Officer 149 174

Master/PhD 56 63 Teller 71 71

Bachelor 602 611 Customer Service 64 67

Diploma 119 130 Operation Service Manager 49 51


Social Responsibility

High School 128 137 Back Office 421 426


Corporate

Junior High School 3 3 Non-Clerk 35 38

Total 908 944 Total 908 944

PT Bank QNB Indonesia Tbk 99


Passion for Excellence at Its Best
Annual Report 2016

Number of Employee Based on Terms of Office Number of Employee Based on Status

Terms of Office 2016 2015 Status 2016 2015

<1 76 156 Permanent Employees 874 892

1-5 484 469 Contract Employees 34 52

6-10 158 141 Total 908 944

11-15 98 90

16-20 51 54

>=21 41 34

Total 908 944

Employee Turnover Rate well as various corporate culture process of coaching and mentoring
The Bank constantly makes an internalization program, namely to each accreditation participant.
effort to balance the movement QNB Values Festival and QNB Implementation and development
or employees’ turnover rate. The Values Refreshment. E-learning of internal accreditation program
balance could be maintained modules for the topics of AML-CFT, for branch employees will be
by improving the efficiency of Risk Management and General continued in 2017, both for
recruitment system and employee’s Banking, have been prepared Branch Manager and Relationship
rotation. The improvement of to support the deepening of Manager, also for the employees
human resources quality and conventional class-room learning. at the operation, namely Area
proper placement of individuals in and Branch Operation Support
accordance with their talents and In line with the implementation Manager, Teller, Customer Service,
competencies, are the focus of the of “Single Captain at the Branch”, and Operation Staff.
Bank in effectively managing their QNB University as the umbrella of
human resources. internal accreditation program has The Bank also continues to be
implemented internal accreditation committed to ensuring that
Human Resources Training and program of Funding and Lending employees have the certification
Development for the entire Branch Manager required by regulators, such as
In terms of human resources and Relationship Manager. Risk Management, AAJI and
development and competence Modules provided in the internal Waperd, as well as professional
improvement, QNB Indonesia is accreditation of branch employees, accreditation, such as Compliance
committed to providing equitable are compiled in a comprehensive Accreditation, Appraisal
opportunity for employees at way, which includes control and Accreditation, CFP, from a trusted
all levels. Learning framework regulatory modules (compliance, accrediting agencies. Technical
is prepared by considering the legal, risk management, operations, and functional training programs
needs of the organization, the finance, HR), also business modules to support the improvement
needs of division/unit, also the (product knowledge, selling skills), of employee competence and
needs of potential and employees as well as professional development achievement of organization goals,
competence development. The (leadership, soft skills). Method in are continuously implemented
Bank always prioritizes the branch internal accreditation, is a according to the needs of the work
fulfillment of core and mandatory combination of interactive class- unit. In 2016, various trainings
training program for all employees, room courses, and enrichment related to the aspect of operational,
which includes the introduction with the e-learning method. credit and legal, as well as bank
of the organization (induction), The results of the evaluation reporting, are given to employees
AML-CFT, Anti-Fraud, Code of in the internal accreditation on an ongoing basis.
Ethics, Risk Management, Product program is used as material for
Knowledge, Service Excellence, as the management to carry out the

100 PT Bank QNB Indonesia Tbk


Performance
In order to support the effectiveness in performing the role learning activity that also provides

2016
effectiveness of class-room as leader and people management sharing sessions from experts in
learning and accreditation, skills. While employees at the various fields, be it speakers from
coaching and mentoring programs managerial ranks get refreshment external or internal organization,
also continue to be strengthened. supervisory program on an ongoing which aims to increase knowledge,
Top management (Board of basis. To promote a learning motivation, and competence of
Directors, Division Head, Sub- culture, two (2) Learning Forum employees.
division Head) is equipped with the sessions were held in 2016 to

Management
skills to conduct effective coaching all employees. Learning forum The following table describes the

Report
and also get refreshment coaching is planned to become a regular implementation of training and
program regularly to improve the program which serves as a fun development programs in 2016.

Training and Development Programs

Summary Realisasi 2016 Realisasi 2015 Realisasi 2014

Numbers of Program 222 198 192

Company
Profile
Numbers of Participants 8,842 5,064 2,998

Total Learning Hours 7,129.5 5,586 3,431

Average Learning Hours/Employee 7.85 hari/karyawan 5.92 hari/karyawan 3.8 hari/karyawan

Mandays ≥ 3 Days 85.68% 72.88% 82.5 %

Training Distribution 98% 98% 92.72%

Management Discussion
and Analysis
Total training realization is 7.85 days, increased from all employees obtained self-
cost in 2016 amounted to the previous year of 5.92 days/ development and improvement
Rp18,865,239,264 with the average employee. The Bank remains of the necessary competence, by
hours of learning per employee committed to ensuring that maintaining Training Distribution
of 99.2%.

Data of Training Distribution

Training
Total Employees

Governance
Directorate/Division Distribution (TD) % TD 2016 % TD 2015 % TD 2014

Corporate
2016
2016

CBD 488 481 98.6% 99.23% 95.38%

IT & Digital Banking 23 23 100.0% 100.00% 95.38%

Network & Distribution 459 454 98.9% 99.00%

Product Development 6 4 66.7% 100.00%


Social Responsibility

CEO 47 46 97.9% 83.72% 97.22%


Corporate

- 1 1 100.0% -

Audit 13 12 92.3% 100.00% 100.00%

Corporate Communication 10 10 100.0% 70.00% 90.00%

Finance & Accounting 16 16 100.0% 76.00% 100.00%


Strategic Planning & Change

Management Office 7 7 100.0% 100.00% 100.00%

PT Bank QNB Indonesia Tbk 101


Passion for Excellence at Its Best
Annual Report 2016

Training
Total Eployees
Directorate/Division Distribution (TD) % TD 2016 % TD 2015 % TD 2014
2016
2016

Compliance 23 23 95.7% 100.00% 96.00%

- 1 1 100.0% -

Compliance & Procedure 13 13 100.0% 100.00%

Corporate Secretary 3 3 66.7% 100.00% 96.00%

Legal 6 6 100.0% 100.00%

E-Banking & Financial Inclusion 37 37 100.0% 90.00% 100%

Human Resources 49 49 100.0% 100.00% 97.73%

- 9 9 100.0%

HRBP & Organization Development 11 11 100.0% 100.00% 97.73%

Learning & Development 29 29 100.0%

Operations 69 69 98.6% 99.30% 98.74%

General Services 27 27 100.0% 97.00% 98.74%

Operations 42 42 97.6% 100.00%

Retail Banking 34 34 97.2% 100.00% 95.47%

- 1 1 100.0% -

Alternate Channel 26 26 96.3% 100.00% 95.47%

QNB First 7 7 100.0% 100.00%

Risk 123 119 96.7% 99.13% 96.84%

- 8 8 100.0% -

Commercial Credit 19 19 100.0% 95.00%

Corporate Credit Risk & Credit 32 31 96.9% 100.00% 96.84%


Administration

Retail Banking Credit Review 55 52 90.6% 100.00%

Risk Management 6 6 100.0% 100.00%

SME Credit Review 3 3 100.0% 100.00%

Wholesale Banking 38 38 100.0% 97.73% 94.2%

- 7 7 100.0% -

Client Services 15 15 100.0% 100.00%

Commercial Banking 5 5 100.0% 98.00% 94.2%

Corporate Banking 2 2 100.0% 80.00%

Structured Finance & Advisory 1 1 100.0% 100.00%

Treasury 8 8 100.0% 100.00%

Grand Total 908 901 99.2% 98.00% 92.72%

102 PT Bank QNB Indonesia Tbk


Performance
Realization of Learning Framework

2016
2016 2015 2014
Program
∑ Program ∑ Participants ∑ Program ∑ Participants ∑ Program ∑ Participants

A. Mandatory/Core Program 7 3898 9 2457 7 166

B. Accreditation & 15 1788 10 392 8 346

Management
Certification

Report
C. Technical/Functional 58 2391 49 2329 32 1544
Training

D. Leadership & Professional 10 825 11 427 2 13


Development

E. Talent Development 5 30 4 8 1 11
Program

F. Learning Forums 112 1935 100 144 122 878

Company
Profile
A. Core Program of AML-CFT, Code Ethics was not only intended for
Core Program is a mandatory & Conduct, as well as the all employees, but also to
training program for the Anti-Fraud Awareness. In involve multiple stakeholders
employees, carried out in this program, the Board of together to also understand
compliance with provisions Directors and all employees the importance of applying the
from regulators or based attested to the code of ethics, values of the organization and

Management Discussion
on the directives from the as well as the signing of to improve cooperation.

and Analysis
management which is anti-fraud declaration, as a
implemented to encourage the commitment to upholding The Bank also has added
achievement of the company’s professionalism and integrity. e-learning modules, so that
vision and mission. there are four e-learning
In addition to “Professionalism programs on the core modules
In 2016, the Bank required with Integrity” which reflects of the program, namely
all employees to attend one of the company’s values, the APU-PPT Basic, APU-
the “Professionalism with the Bank also implemented PPT Refreshment, Risk
Integrity” program. The a program to internalize the Management, and General

Governance
program emphasized the values of the corporate culture, Banking.

Corporate
importance of integrity in namely through QNB Values
carrying out duties and Festival and QNB Values The detail of Core Program
responsibilities in all their Refreshment. The corporate implementation during 2016 is
functions, in which the values internalization program as follows.
program includes Refreshment of QNB Values Festival
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 103


Passion for Excellence at Its Best
Annual Report 2016

Detail of Core Program Implementation

2016 2015 2014


Program
∑ Program ∑ Participants ∑ Program ∑ Participants ∑ Program ∑ Participants

APU-PPT (Basic & Refreshment) 11 493 54 1026 43 813

Anti Fraud Awareness 27 795 8 190 5 66

Code of Ethics & Conduct 36 860 - - - -

QNB Values 29 1152 - 443 -

Business Continuity Management 7 142 - 90 164

Service Excellence 19 377 - 206 109

Risk Awareness 4 79 - - - -

B. Certification and Accreditation wholesale business unit, B. Branch Internal Accreditation


Program have the knowledge and 1. Branch Manager Internal
The Bank is fully committed skills required to perform Accreditation
to ensuring its employees their duties with full After undergoing 40-
have the competences responsibility. Currently hour modules of “Branch
required in their positions and 83% up to the managerial Effective Management”
work functions through the level, in the business in 2015 which contains
implementation of certification and Risk Reviewer has a control and regulatory
and accreditation program. participated in this credit module (Overview
In total, there were 4 (four) certification. of Retail Banking,
new accreditation programs Branch Leadership,
compared to the previous year. 2. Certified Financial Risk Management,
Thus, the overall certification Planner Compliance, Audit, IT,
and accreditation programs CFP is a professional Operation, Legal, and
implemented by the Bank as of certified financial planner Finance Accounting), in
2016 amounted to 13 programs. with international license, 2016, the participants
who has been recognized of Branch Manager
In 2016, the focus of accreditation/ and awarded by the board Accreditation attended
certification programs include: of standard financial 32 hours of Effective
A. Technical & Professional planners in Indonesia. Business & Sales
Accreditation In 2016, all employees Management Module,
1. Credit Skill Assessment who have sales target which includes a
In cooperation with of Wealth Management comprehensive product
international certification were invited to attend knowledge, as well as
agency, OMEGA, the the first module of the leadership development
Bank re-implemented program. The next module programs, both service
“Credit Skill Assessment” will be given in stages and sales leadership.
certification to ensure as self-development
that employees in the and an appreciation
for the performance of
employees.

104 PT Bank QNB Indonesia Tbk


Performance
E-learning methods are has been implemented mentoring which were

2016
also used to encourage for Relationship guided by expert speakers
continuous learning Manager (RM), both in the field of wealth
and fulfillment of Funding and Lending management. Participants
minimum expected value. Relationship Manager. of QNB First Academy
Participants are required Class-room program has reviewed the performance
to meet a minimum score approximately 45 hours and productivity, and
of 70 in each module. The for RM Lending which formulated an action plan

Management
results of the evaluation/ includes 16 materials, to be able to optimally

Report
assessment in this and 17 materials for implement the knowledge
program are used as an RM Lending. Learning and skills acquired during
essential material for and evaluation will also the QNB First program.
Management, related be provided through
division head, as well e-learning methods to C. Technical & Functional
as the area manager to support the class-room Training Program
implement coaching and learning. Employees are continuously
mentoring, as well as encouraged to improve the
follow-up development 3. QNB First Academy technical competence related

Company
Profile
program, both for the As a continuation of QNB to their work, both through
team and individual. First Academy program in-house and internal training
that had initiated in the programs, as well as external
2. Relationship Manager previous year, in 2016, training. In 2016, 200 technical
Internal Accreditation post-training program and functional training
Branch internal was conducted in the form programs were carried out and

Management Discussion
accreditation program of 2 (two) direct meetings attended by 2.792 employees.
for the retail segment of formal coaching and

and Analysis
Technical & Functional Training Program

2016 2015 2014


Program
∑ Program ∑ Participants ∑ Program ∑ Participants ∑ Program ∑ Participants

Governance
Corporate
In-House & Internal Training 103 2,620 55 2,329 58 2,265

Program

External Training Program 97 172 100 144 89 156

Total Programs 200 2,792 155 2,473 147 2,421


Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 105


Passion for Excellence at Its Best
Annual Report 2016

Some technical training Knowledge Training for The Bank continuously


programs that become the 12 (twelve) days for MDP strives to improve the
main focus in 2016, among participants were also effectiveness of training
others, as follows. given to complement for various modules
1. Credit junior employees who operation with the
In addition to credit will get exposure in the implementation of
training which serves field of credit in order to pre-training, On-the-Job
as refreshment related have adequate knowledge Training (OJT) before
to credit process and related to the field of the core banking system
analysis, as well as credit credit. class-room courses,
systems and procedures, the learning method
credit training with 2. Operation Excellence via video-call, also the
experienced speakers was The Bank continues development of SOP
also given focusing on to strengthen training tutorial video as a means
the aspect of “Problem for employees in the of learning support.
Loan & Recovery”, also operation function,
“Credit Restructuring”, among others, through 3. Legal Knowledge
both for the employees in the trainings of Core Training related to legal
the retail and wholesale Banking System, knowledge is sustainably
business segment. On Mini Bank, Document implemented for
the credit administrative Verification & Counterfeit business and operational
support unit, the Money Detection, DHN & employees in branches.
training was conducted Clearing rejection, State Different from the
with a focus on Loan Revenue Module (MPN). previous year’s class-room
Agreement Syndication, A total of 37 training based training program,
the legal aspects of programs were followed the program in 2016 was
lending. Basic Credit by 479 employees more focused on the
throughout 2016.

106 PT Bank QNB Indonesia Tbk


Performance
process of discussion, facilitated by competent better implementation in

2016
coaching and mentoring speakers in the field of the work unit.
of the legal division. Legal Industrial Relation.
Division also initiated 2. Project Management
the implementation of D. Leadership & Professional The need to encourage the
the legal forum with Development process of improvement
discussion on the legal The Bank continues to in various work units
aspects in the field of develop various Leadership served as the basis of

Management
credit, by inviting a & Professional Development 3 (three) batches of

Report
variety of practitioners programs for employees. In Project Management
and competent speakers 2016, there were 8 Leadership Fundamental. The
for knowledge sharing. & Professional Development training was expected
programs. This number to also encourage the
4. Service Excellence increased from 2015 of 9 implementation of the
The services training programs, and in 2014 which “Innovation” which is one
program in 2016 was were only 3 programs. The of the corporate culture.
focused on mental Leadership & Professional
refreshment and Development programs carried 3. Business English

Company
Profile
implementation of out during 2016, among others, With the demands of
services mindset as as follows: global communication,
well as “Professional English language training
Image and Grooming”, 1. Leadership Program classes were held for
for employees who deal Managing Team Program conversation learning
directly with customers. for the division and sub- and Legal English

Management Discussion
Service training programs division head is focused for employees in the
were held for 19 batches on strengthening the Directorate of Legal &

and Analysis
and attended by 377 role of manager as leader Compliance. Business
employees. and coach to encourage Banking Module in
the development of e-learning has also been
5. Industrial Relations subordinate’s competence. completed to encourage
The Bank believes Commitment to the English independent
the importance of improving coaching learning in 2017.
managers (division culture is marked by the
head, sub division participation of the Board E. Talent & Management
head, area manager) in of Directors in a coaching Development Program
Governance
Corporate
understanding the aspect training program. 1. Management
of Industrial Relations Meanwhile, Managing Development Program
in order to play a role as Others Program, for (MDP)
an effective leader with employees at the level of MDP is training program
attention to basic aspects supervisors and managers especially tailored for
of labor regulation. is focused on optimizing fresh graduate with
This is the basis for the role of supervisor and potentials and talents
Social Responsibility

the implementation manager to encourage a which will be developed


Corporate

of Industrial Relations better work planning, also into candidates of the


for Leaders training, Bank’s future leaders.
At the end of 2016,

PT Bank QNB Indonesia Tbk 107


Passion for Excellence at Its Best
Annual Report 2016

seven participants have mentoring programs Human Resources


completed the MDP are implemented in Strategy for 2017
learning for three years, structured manner
and ready to occupy for credit wholesale In general, 2017 will see the Bank
various positions in the and retail banking continue to support its employees
work unit. In addition, collection. In 2016, the achieve professional excellence and
there are 22 MDP Bank also continued leadership effectiveness through
participants who are still to encourage learning internalization of corporate values,
following an intensive through benchmarking leadership-building trainings,
learning program, and sharing the best- and competence development
through a variety of practice from QNB Group, programs as the major cornerstones
methods, both class-room, where several employees for further projects on human
coaching, as well as on participated in the sharing resources development.
the job training. Through of retail segment best-
accelerated and intensive practice at FinansBank As part of this strategy, the Bank’s
learning program, Turkey which is part of work plan in 2017 include:
MDP participants are QNB Group. • Continue the implementation
expected to have reliable of internal accreditation
competencies, both F. Learning Forum program with Operational
on technical and non- The Bank encourages the Accreditation which focuses
technical aspects of implementation of various on improving employees
banking in order to create learning forum for employees, engaged in the Bank’s
added values for the Bank, either to hone technical skills operational activities such
and also encourages (hard skills) and also to build BOSM/SS, Teller, and Customer
continuous improvement character, mindset, work ethic, Service.
in work units where attitude and other supporting • Continue and improve the
participants are placed. skills (soft skills). This is done implementation of talent
to ensure that employees management program in
2. Talent Development always “agile” and effective to relation to succession plan and
Program (MDP) continue to learn the dynamics sustainable leadership.
The Bank is committed to of change that continue to • Improve performance
encouraging coaching and occur inside and outside the management and overall HR
mentoring programs, both organization. In 2016, two system in accordance with the
from internal sources, learning forums or open organization growth.
and in cooperation with seminars for employees were
experts from external held by inviting external and
sources. Coaching and internal speakers. In addition,
mentoring program is the townhall activities, sharing
expected to improve sessions, and workshops as
the effectiveness of a learning medium, were
knowledge transfer continuously carried out by
and implementation in observing trends and internal
the field. Coaching and needs of the company.

108 PT Bank QNB Indonesia Tbk


Financial Review

Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Financial Performance
Review

The Bank’s financial performance The financial statements are Elaborated discussion and
discussion and analysis are audited by Public Accounting Firm analysis on the Bank’s financial
prepared based on the financial (PAF) of Purwantono, Sungkoro & performance will be detailed in the
statement of PT Bank QNB Surja (a member of Ernst & Young Comprehensive Income Statement,
Indonesia Tbk which ended at Global Limited) appointed by the Financial Position Report, and Cash
December 31, 2016, in accordance Bank and has obtained unqualified Flow Statement.

Governance
Corporate
with with the guidelines of opinion in all material respects.
Indonesian Financial Accounting
Statements Standards (PSAK)
and Accounting and Reporting
Guidelines for Indonesian Banking
Industry.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 109


Passion for Excellence at Its Best
Annual Report 2016

Statement of Comprehensive Income


(In Million Rp)

Growth
Description 2016 2015
Total Percentage

OPERATING INCOME AND EXPENSE


Interest income 2,048,592 2,040,582 8,010 0.39%
Interest expense (1,532,175) (1,351,331) 180,844 13.38%

NET INTEREST INCOME 516,417 689,251 (172,834) (25.08%)

OTHER OPERATING INCOME


Fees and commission 123,490 194,258 (70,768) (36.43%)
Gain on foreign exchange transaction - net 72,097 13,434 58,663 436.68%
Others 4,075 4,826 (751) (15.56%)

Total other operating income 199,662 212,518 (12,856) (6.05%)

OTHER OPERATING EXPENSES


Personnel expenses (397,332) (375,743) (21,589) 5.75%
General and administrative expenses (243,962) (225,106) (18,856) 8.38%
Provision for impairment losses on financial and non (929,519) (87,472) (842,047) 962.65%
financial assets
Others (7,877) (8,175) 298 (3.65%)

Total other operating expenses (1,578,690) (696,496) (882,194) 126.66%

(LOSS) INCOME FROM OPERATION (862,611) 205,273 (1.067.884) (520.23%)


NON-OPERATING (EXPENSES) INCOME - NET (3,339) 3,662 (7,001) (191.18%)
(LOSS) INCOME BEFORE INCOME TAX EXPENSE (865,950) 208,935 (1,074,885) (514.46%)

Income tax benefit (expense) 215,617 (52,889) 268,506 507.68%

(LOSS) INCOME FOR THE YEAR (650,333) 156,046 (806,379) (516.76%)

OTHER COMPREHENSIVE INCOME


Items that will be classified to profit or loss:
Fair value changes of available for sales securities 43 77 (34) (44.16%)
Income tax relating to component of other (11) (19) 8 (42.11%)
comprehensive income

32 58 (26) (44.83%)

Items that will not be classified to profit or loss:


Actuarial gain on defined benefit plan 4,716 4,078 638 15.64%
Income tax relating to component of other (1,179) (1,019) 160 15.70%
comprehensive income

3,537 3,059 478 15.63%

Other comprehensive gain, net of tax 3,569 3,117 452 14.50%

Total comprehensive (loss) income for the year (646,764) 159,163 (805,927) (506.35%)

110 PT Bank QNB Indonesia Tbk


Performance
Net Interest Income

2016
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Interest income 2,048,592 2,040,582 8,010 0.39%

Interest expense (1,532,175) (1,351,331) 180,844 13.38%

Management
Net interest income 516,417 689,251 (172,834) (25.08%)

Report
The Bank posted a decline in from Rp689.25 billion in 2015 decline was primarily due to the
net interest income by 25.08% to Rp516.42 billion in 2016. The decrease of total loans by 15.57%.

Other Operating Income

Company
(In Million Rp)

Profile
Growth
Description 2016 2015
Total Percentage

Fees and commission 123,490 194,258 (70,768) (36.43%)

Gain on foreign exchange transaction – net 72,097 13,434 58,663 436.68%

Management Discussion
Others 4,075 4,826 (751) (15.56%)

and Analysis
Total other operating income 199,662 212,518 (12,856) (6.05%)

The Bank posted a decline in Rp199.66 billion in 2016. This by 36.43% or amounted to Rp70.77
other operating income by 6.05% decline was primarily derived from billion.
from Rp212.52 billion in 2015 to a decline of fees and commission

Other Operating Expenses

Governance
Corporate
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Personnel expenses (397,332) (375,743) (21,589) 5.75%

General and administrative expenses (243,962) (225,106) (18,856) 8.38%


Social Responsibility

Provision for impairment losses on financial and non (929,519) (87,472) (842,047) 962.65%
financial assets
Corporate

Others (7,877) (8,175) 298 (3.65%)

Total other operating expenses (1,578,690) (696,496) 882,194 126.66%

The Bank posted higher other which amounted to Rp696.50 by increasing its provision for
operating expenses in 2016 billion, representing an increase impairment losses on financial and
compared to 2015. Total other of 126.66%. This significant non financial assets as much as
operating expenses at the end of increase was primarily due to the Rp929.52 billion or increased by
2016 stood at Rp1,578.69 billion, Bank’s decision to strengthen 962.65% compared to the previous
compared to the end of 2015 coverage against low quality loans year.

PT Bank QNB Indonesia Tbk 111


Passion for Excellence at Its Best
Annual Report 2016

Income from Operation


(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Net interest income 516,417 689,251 (172,834) (25.08%)

Other operating income 199,662 212,518 (12,856) (6.05%)

Other operating expenses (1,578,690) (696,496) (882,194) 126.66%

(LOSS) INCOME FROM OPERATION (862,611) 205,273 (1.067.884) (520.23%)

In 2016, the Bank recorded loss amounted to Rp205.27 billion. The assets as much as Rp929.52 billion
from operation amounted to decline was particularly derived or increased by 962.65% compared
Rp862.61 billion or declined by from the Bank’s decision to increase to the previous year, thus resulting
520.23% compared to the income its provision for impairment losses in significant increase of other
from operation booked in 2015 on financial and non financial operating expenses by 126.66%.

Non-Operating Expense – Net


(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Gain on sale of fixed assets - net 463 41 422 1,029.26%

(Loss) Gain on foreign exchange translation - net (5,137) 3,631 (8,768) (241.47%)

Others 1,355 (11) 1,346 (12,236.36%)

NON-OPERATING (EXPENSES) INCOME - NET (3,339) 3,661 (7,000) (191.21%)

The Bank posted non-operating (Loss) Income before Income Tax 2015. The income tax benefit was
expenses – net amounted to Rp3.34 Expense primarily due to operational loss
billion or declined by 191.21% In 2016, the Bank booked loss booked by the Bank.
compared to the non-operating before income tax expense
income – net booked at 2015 of amounted to Rp865.95 billion or (Loss) Income for the Year
Rp3.66 billion. The decline was declined by 514.46% compared The Bank posted a loss for the
primarily derived from the decline to the income before tax expense year amounted to Rp650.33 billion
of foreign exchange revaluation. booked in 2015 of Rp208.94 billion. in 2016 or declined by 516.76%
The decline was primarily derived compared to the income for the
from the increase of provision for year booked at 2015 of Rp156.05
impairment losses on financial and billion. The decline was primarily
non financial assets by 962.65%. derived from the Bank’s operational
loss on provision for impairment
Income Tax Benefit (Expense) losses on financial and non
In 2016 the Bank gained Rp215.62 financial assets.
billion from the income tax
benefit compared to the income
tax expense of Rp52.89 billion in

112 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Other Comprehensive Income
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Items that will be classified to profit or loss:


Fair value changes of available for sales securities 43 77 (34) (44.16%)

Income tax relating to component of other (11) (19) 8 (42.11%)


comprehensive income

Governance
Corporate
32 58 (26) (44.83%)

Items that will not be classified to profit or loss:


Actuarial gain (loss) on defined benefit plan 4,716 4,078 638 15.64%

Income tax relating to component of other (1,179) (1,019) 160 15.70%


comprehensive income

3,537 3,059 478 15.63%

Other comprehensive gain (loss), net of tax 3,569 3,117 452 14.50%
Social Responsibility

Total comprehensive (loss) income for the year (646,764) 159,163 (805,927) (506.35%)
Corporate

The Bank’s recorded other Total Comprehensive (Loss) Income comprehensive income for the
comprehensive gain amounted to for the Year year 2015 of Rp159.16 billion. This
Rp3.57 billion in 2016, increased by The Bank recorded total decline was primarily derived from
14.50% from Rp3.12 billion in 2015. comprehensive loss for the the Bank’s operational loss on
This increase was primarily derived year amounted to Rp646.76 provision for impairment losses on
from actuarial gain on defined billion in 2016 or declined by financial and non financial assets.
benefit plan. 506.35% compared to the total

PT Bank QNB Indonesia Tbk 113


Passion for Excellence at Its Best
Annual Report 2016

Statement of Financial Position


(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Assets

Cash 51,260 45,432 5,828 12.83%

Current accounts with Bank Indonesia 1,635,116 1,710,947 (75,831) (4.43%)

Current accounts with other banks


Related party 193 172 21 12.21%

Third parties 80,622 30,974 49,648 160.29%

Placements with Bank Indonesia and other banks 2,230,074 2,111,813 118,261 5.60%

Derivative receivables 550 2,921 (2,371) (81.17%)

Acceptance receivables
Related party - 24,995 (24,995) (100.00%)

Third parties 22,193 36,826 (14,633) (39.74%)

Securities purchased under agreement to resell 471,350 269,117 202,233 75.15%

Loans
Related party 1,895 3,434 (1,539) (44.82%)

Third parties 18,286,019 20,826,610 (2,540,591) (12.20%)

Sub-total 18,287,914 20,830,044 (2,542,130) (12.20%)

Less: allowance for impairment losses (736,726) (41,740) (694,986) 1,665.04%

Net 17,551,188 20,788,304 (3,237,116) (15.57%)

Securities 571,862 325,444 246,418 75.72%

Prepayments 188,969 108,443 80,526 74.26%

Deferred tax assets, net 172,105 - 172,105 100.00%

Fixed assets 144,762 110,577 34,185 30.92%


net of accumulated depreciation of Rp157,163 and
Rp126,483 as of December 31, 2016 and 2015

Intangible assets 41,176 45,670 (4,494) (9.84%)


net of accumulated amortization of Rp37,011,
Rp30,294 as of December 31, 2016 and 2015

Foreclosed assets 1,019,382 - 1,019,382 100.00%

Other assets, net 191,900 146,014 45,886 31.43%

TOTAL ASSETS 24,372,702 25,757,649 (1,384,947) (5.38%)


LIABILITIES AND EQUITY

LIABILTIES

Liabilities payable on demand 240,658 337,357 (96,699) (28.66%)

Deposits from customers


Related party 64,415 1,040,738 (976,323) (93.81%)

Third parties 19,280,547 17,468,270 1,812,277 10.37%

Deposits from other banks


Related party 404,797 2,688,691 (2,283,894) (84.94%)

Third parties 258,001 490,420 (232,419) 47.40%

Acceptances payable
Related party - 24,995 (24,995) (100.00%)

Third parties 22,193 36,826 (14,633) (39.74%)

Derivatives payable 12,890 661 12,229 1,850.08%

114 PT Bank QNB Indonesia Tbk


Performance
2016
Growth
Description 2016 2015
Total Percentage

Income tax payable - 2,401 (2,401) (100.00%)

Obligation for post-employment benefits 97,407 80,619 16,788 20.82%


Deferred tax liabilities, net - 42,324 (42,324) (100.00%)

Management
Accruals and other liabilities 198,345 155,213 43,132 27.79%

Report
Marketable securities issued 315,520 - 315,520 100.00%
Subordinated loan - 964,950 (964,950) (100.00%)

TOTAL LIABILITIES 20,894,773 23,333,465 (2,438,692) (10.45%)

EQUITY
Share capital – par value of Rp250 (full amount) per 2,189,287 2,189,287 - -
share Authorized – 32,000,000,000 (full amount) shares
as of December 31, 2016 and 2015 Issued and fully paid
– 8,757,145,997 (full amount) shares as of December 31,
2016 and 2015, 6,158,330,518 (full amount)

Company
Profile
Additional paid-in capital – net (24,570) (24,570) - -

Disclosed reserve 1,700,509 - 1,700,509 100.00%


Other comprehensive loss (12,875) (16,444) 3,569 (21.70%)

Retained earnings (deficit):


Appropriated 5,396 4,396 1,000 22.75%

Unappropriated (379,818) 271,515 (651,333) (239.89%)

Management Discussion
EQUITY, NET 3,477,929 2,424,184 1,053,745 43.47%

TOTAL LIABILITIES AND EQUITY 24,372,702 25,757,649 (1,384,947) (5.38%)

and Analysis
Assets
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Cash 51,260 45,432 5,828 12.83%

Governance
Corporate
Current accounts with Bank Indonesia 1,635,116 1,710,947 (75,831) (4.43%)

Current accounts with other banks


Related party 193 172 21 12.21%

Third parties 80,622 30,974 49,648 160.29%


Placements with Bank Indonesia and other banks 2,230,074 2,111,813 118,261 5.60%

Derivative receivables 550 2,921 (2,371) (81.17%)

Acceptance receivables
Related party - 24,995 (24,995) (100.00%)
Social Responsibility

Third parties 22,193 36,826 (14,633) (39.74%)


Corporate

Securties purchased under agreement to resell 471,350 269,117 202,233 75.15%

Loans
Related party 1,895 3,434 (1,539) (44.82%)

Third parties 18,286,019 20,826,610 (2,540,591) (12.20%)

Sub-total 18,287,914 20,830,044 (2,542,130) (12.20%)

Less: allowance for impairment losses (736,726) (41,740) (694,986) 1,665.04%

Net 17,551,188 20,788,304 (3,237,116) (15.57%)

Securities 571,862 325,444 246,418 75.72%

Prepayments 188,969 108,443 80,526 74.26%

Deferred tax assets, net 172,105 - 172,105 100.00%

PT Bank QNB Indonesia Tbk 115


Passion for Excellence at Its Best
Annual Report 2016

Growth
Description 2016 2015
Total Percentage

Securities 571,862 325,444 246,418 75.72%

Prepayments 188,969 108,443 80,526 74.26%


Deferred tax assets, net 172,105 - 172,105 100.00%

Fixed assets 144,762 110,577 34,185 30.92%


net of accumulated depreciation of Rp157,163 and
Rp126,483 as of December 31, 2016 and 2015
Intangible assets 41,176 45,670 (4,494) (9.84%)
net of accumulated amortization of Rp37,012,
Rp30,294 as of December 31, 2016 and 2015

Foreclosed assets 1,019,382 - 1,019,382 100.00%


Other assets, net 191,900 146,014 45,886 31.43%

TOTAL ASSETS 24,372,702 25,757,649 (1,384,947) (5.38%)

The Bank’s total assets in 2016 Placements with Bank Indonesia the end of 2016. An increase was
declined by 5.38% from Rp25.76 and Other Banks due to the Bank liquidity excess
trillion at the end of 2015 to The Bank recorded an increase particularly placed in placement
Rp24.37 trillion. The decrease was of total placements with Bank with Bank Indonesia.
especially due to a decrease on Indonesia and other banks by
deposits with other banks in line 5.60%, from Rp2.11 trillion at the
with the decline in loans. end of 2015 to Rp2.23 trillion by

Loans - Net
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Related party 1,895 3,434 (1,539) (44.82%)


Third parties 18,286,019 20,826,610 (2,540,591) (12.20%)
Sub-total 18,287,914 20,830,044 (2,542,130) (12.20%)
Less: allowance for impairment losses (736,726) (41,740) (694,986) 1,665.04%
Loans - net 17,551,188 20,788,304 (3,237,116) (15.57%)

The Bank recorded a decrease end of 2015 to Rp17.55 trillion by which exceeds the amount of loans
of total loans – net as much as the end of 2016. This decrease was disbursed in line with the Bank’s
15.57%, from Rp20.79 trillion at the mainly due to the loan repayment prudent principle to provide loan

116 PT Bank QNB Indonesia Tbk


Performance
Liabilities

2016
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Liabilities payable on demand 240,658 337,357 (96,699) (28.66%)

Deposits from customers

Management
Related party 64,415 1,040,738 (976,323) (93.81%)

Report
Third parties 19,280,547 17,468,270 1,812,277 10.37%

Deposits from other banks


Related party 404,797 2,688,691 (2,283,894) (84.94%)

Third parties 258,001 490,420 (232,419) (47.40%)

Acceptances payable
Related party - 24,995 (24,995) (100.00%)

Third parties 22,193 36,826 (14,633) (39.74%)

Derivatives payable 12,890 661 12,229 1,850.08%

Company
Income tax payable - 2,401 (2,401) (100.00%)

Profile
Obligation for post-employment benefits 97,407 80,619 16,788 20.82%

Deferred tax liabilities, net - 42,324 (42,324) (100.00%)

Accruals and other liabilities 198,345 155,213 43,132 27.79%

Marketable Securities Issued 315,520 - 315,520 100.00%

Subordinated loan - 964,950 (964,950) (100.00%)

Management Discussion
TOTAL LIABILITIES 20,894,773 23,333,465 (2,438,692) (10.45%)

and Analysis
The Bank recorded a decrease of 2015 to Rp20.89 trillion by the end due to the decline of deposits from
total liabilites as much as 10.45%, of 2016. The decline was primarily other banks.
from Rp23.33 trillion at the end of

Deposits from Customers


(In Million Rp)

Governance
Growth

Corporate
Description 2016 2015
Total Percentage

Related parties 64,415 1,040,738 (976,323) (93.81%)

Third parties 19,280,547 17,468,270 1,812,277 10.37%

Total deposits from customers 19,344,962 18,509,008 835,954 4.52%


Social Responsibility
Corporate

In 2016, deposits from customers Rp18.51 trillion. The increase was major cities thereby increasing
increased by 4.52% to Rp19.34 due to the CASA program through customer saving account.
trillion compared to 2015 of exhibitions in shopping malls in

PT Bank QNB Indonesia Tbk 117


Passion for Excellence at Its Best
Annual Report 2016

Deposits from Other Banks


(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Related parties 404,797 2,688,691 (2,283,894) (84.94%)

Third parties 258,001 490,420 (232,419) (47.40%)

Total Deposits from Other Banks 662,798 3,179,111 (2,516,313) (79.15%)

Deposits from other banks 2015 of Rp3.18 trillion. The decline short term loans from other banks.
declined by 79.15% or amounted was due to the Bank’s liquidity are
to Rp662.80 billion compared to sufficient that Bank doesn’t need

Retained Earnings
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Appropriated 5,396 4,396 1,000 22.75%

Unappropriated (379,818) 271,515 (651,333) (239.89%)

Retained Earnings (374,422) 275,911 (650,333) (235.70%)

The Bank’s retained earnings in of 2015 to loss Rp374.42 billion an operating loss for the current
2016 declined by 235.70% from at the end of 2016. The decrease year.
profit Rp275.91 billion at the end especially was due to Bank posted

Equity
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Share capital 2,189,287 2,189,287 - -

Additional paid-in capital – net (24,570) (24,570) - -

Disclosed reserve 1,700,509 - 1,700,509 100.00%

Unrealized gain (loss) from AFS securities 32 - 32 100.00%

Actuarial gain (loss) net of tax (12,907) (16,444) 3,537 (21.51%)

Retained earnings (374,422) 275,911 (650,333) (235.70%)

EQUITY, NET 3,477,929 2,424,184 1,053,745 43.47%

Equity increased by 43.47% the 2015 of Rp2.42 trillion. The paid in capital in form of disclosed
to Rp3.48 trillion compared to increase was due to additional reserve.

118 PT Bank QNB Indonesia Tbk


Performance
Cash Flow

2016
(In Million Rp)
Growth
Description 2016 2015
Total Percentage

Cash Flows from Operating Activities (562,265) (2,003,503) 1,441,238 (71.94%)


Cash Flows from Investment Activities (318,667) (129,151) (189,516) 146.74%

Management
Cash Flows from Financing Activities 1,052,422 964,950 87,472 9.06%

Report
Net Increase (Decrease) in Cash and Cash Equivalent 171,490 (1,167,704) 1,339,194 (114.69%)
Foreign Exchange Income (Loss) (73,563) 221,113 (294,676) (113.27%)
Cash and Cash Equivalents, at the Beginning of the Year 3,899,338 4,845,929 (946,591) (19.53%)
Cash and Cash Equivalents, at the End of the Year 3,997,265 3,899,338 97,927 2.51%

Cash Flows from Operating Cash Flows from Investment Cash Flows from Financing
Activities Activities Activities

Company
Profile
Net cash flow used for operating The net cash flow used for The net cash flow from financing
activities for the year ended investment activities for the activities for the fiscal year end
December 31, 2016 reached fiscal year end December 31, 2016 December 31, 2016 amounted to
Rp562.27 billion, declined by amounted to Rp318.67 billion, up Rp1,052.42 billion, up by 9.06%
71.94% from 2015 at Rp2.00 by 146.74% compared to 2015 at compared to 2015 at Rp964.95
trillion. This was primarily due to Rp129.15 billion. This was mainly billion. This was mainly due to the

Management Discussion
the decrease from deposit from due to the decrease of marketable additional paid in capital.
other banks. securities.

and Analysis
Financial Ratio
(In Million Rp)

Financial Ratio (%) 2016 2015 % Growth

Capital

Governance
Capital Adequacy Ratio (CAR) 16.46 16.18 0.06

Corporate
Productive Assets

Productive assets & non productive assets 5.16 2.13 (3.03)


(Non-performing assets) to total productive assets &
non productive assets

Non-performing productive assets to total productive 5.38 2.13 (3.25)


assets
Social Responsibility

Financial asset ckpn to productive assets 3.16 0.16 2.94

Gross npl 6.86 2.59 (4.27)


Corporate

Net npl 2.94 2.39 (0.50)

Profitability

ROA -3.34 0.87 (4.21)

ROE -31.96 7.50 (39.46)

NIM 2.25 3.08 (0.95)

BOPO 137.94 90.95 (47.49)

PT Bank QNB Indonesia Tbk 119


Passion for Excellence at Its Best
Annual Report 2016

Financial Ratio (%) 2016 2015 % Growth

Liquidity

LDR 94.54 112.54 (18)

Compliance

Minimum Rupiah demand deposit 7.24 7.59 (0.35)

Minimum foreign currency demand deposit 8.37 8.54 (0.17)

Net Open Position 0.25 0.26 (0.01)

*Note: the financial ratio figures presented is for the Bank only.

In 2016, the Bank has been credit management system as well The disclosure of the Bank’s
successful in improving its as stricter monitoring of existing capital structure is pursuant to the
financial performance as reflected debtors. Regulation of Financial Service
in the financial ratio which Authority No.32/POJK.03/2016
demonstrated better capital Capital Structure and Management and the Circular Letter of
adequacy and liquidity detailed as Policy on Capital Structure Financial Service Authority
follow: In correspondence with the No.43/SEOJK.03/2016 on the
• Capital Adequacy Regulation of Financial Service Transparency and Disclosure of
• Liquidity Authority No.34/POJK.03/2016 Bank’s Report and the Regulation of
dated September 22, 2016, the Financial Service Authority No.29/
Solvability and Collectability Bank’s capital structure consists POJK.04/2016 on the Annual
The Bank’s ability to meet its of core capital (Tier I) and Report of Commercial Bank and
obligations both long term and supplementary capital (Tier II). certain Annual Report submitted
short term is reflected in several Core capital comprised of paid-up to Bank Indonesia and will be
ratios including liquidity ratio, share capital and additional capital presented in the discussion of
solvency ratio, and profitability reserves while supplementary Risk Management in this Annual
ratio as presented earlier in the capital refers to capital instrument Report.
Financial Ratio section. In terms of in the stock form or other capital
solvability, the Bank CAR ratio rose instrument that fulfill the In line with regulatory compliance
at 16.46%, which remained high requirements as well as general minimum requirement on capital,
although lower than the previous reserves of PPA over productive thus the Bank Suplementary
year. Liquidity, in similar note, assets. Capital has terminated by USD70
was relatively stable throughout million and be converted to
2016 with LDR rose to 95.54% In the assessment of capital disclosed reserved, otherwise has
in line with the loan expansion adequacy, the Bank uses received another USD56 million
and tightened banking liquidity Standardized Approach to measure as disclosed reserve, thus total
condition against economic capital adequacy for Credit Risk disclosed reserve as amounted to
slowdown. and Market Risk, whereas for USD126 million is counted as tier I
Operational Risk, the Bank uses capital then the Capital Adequacy
In terms of collectability, NPL the Basic Indicator Approach. Ratio (CAR) has increased from
(net) was kept healthy under This assessment refers to the 16.18% in 2015 to 16.46% in
2.94% as of the end of 2016, which provisions of Circular Letter of 2016 and still remains above the
demonstrated positive outcome Financial Service Authority No. 42/ minimum requirement of capital
of the management’s efforts SEOJK.03/2016 dated September required (measured at 8% of risk
to maintain asset quality. The 28, 2016, Bank Indonesia Circular weighted assets).
encouraging achievement also Letter No. 14/21/DPNP dated July
comes as a result of consistent 18, 2012 and Circular Letter of Bank
implementation of prudent Indonesia No. 11/3/DPNP dated
banking principles, strengthened January 27, 2009.
risk management, and improved

120 PT Bank QNB Indonesia Tbk


Performance
The Bank’s policy related to In terms of capital during 2016, Material Information and Facts

2016
capital structure composition had the Bank increased Capital Deposit after Accountant’s Report
considered the level of business Funds as part of the Tier 1 Capital There was no important event
risk. amounted to Rp1.70 trillion. This that has a significant influence
increased the Capital Adequacy or requires disclosures that occur
Material Commitment for Capital Ratio of the Bank to 16.46%, after December 31, 2016 until the
Goods Investment above the minimum requirement Financial Statements is audited
As of December 31, 2016, the Bank according to the Bank’s risk profile. and published on January 30,

Management
did not have material commitment 2017 or until the Annual Report is

Report
for capital goods investment. In 2016, the Bank’s liquidity is quite published.
well as indicated by the Loan-to-
Comparison between Targets Deposit ratio (LDR) amounted to Dividend Policy
and Actual Results in 2016 and 94.5% or better than the target The Bank established dividend
Projections For 2017 of 96.5%, Liquidity Coverage payout through Annual General
Throughout 2016, Indonesia ratio (LCR) amounted to 92.01% Meeting of Shareholders (AGM).
banking experienced a slowdown or better than the target of 70%, The amount and distribution of
in which banking credit condition as well as the Bank’s Statutory dividend is proposed by taking into
suffered a great deal of pressure. Reserves in Rupiah amounted to account various aspects related to

Company
Profile
This is due to unstable national 7.24% or higher than the provision the Bank’s business performance
macroeconomic condition. at 6.50% and capital strength. In 2016,
Therefore, in 2016, the Bank the Bank through AGM held on
focused on increasing the loan For 2017, the Bank has prepared February 16, 2016, approved
loss coverage by increasing the projection and target 2017 the use of Bank’s net profit in
Allowance for Impairment Losses by applying the prudent financial year 2015 amounting to

Management Discussion
(CKPN) of Loan. The Bank has principle in maintaining the Rp155,045,208,672 to strengthen
and always continues to improve portion of productive assets, Bank’s capital adequacy, and thus

and Analysis
a credit provision and monitoring liquidity management, and the no dividend distribution.
system to maintain a lower or strengthening of the capital side.
better NPL than the target set. Employee/Management Share
In 2017, the Bank sets loan growth Ownership Program
Although the Bank’s loans in target of approximately 30%. The During 2016, the Bank did not have
2016 decreased, the Bank has contribution of SME and Retail employee and/management share
established a more significant business segments are projected ownership program (ESOP/MSOP).
Allowance for Impairment Losses to increase in 2017, sustained by
(CKPN) of Loan in 2016, thus excellent products that will be Use of Proceeds from Public
Governance
Corporate
the loan loss coverage of CKPN launched throughout 2017. While Offering
against Allowance for Uncollectible the contribution of the Wholesale In 2016, the Bank did not perform
Accounts (PPA) at the end of 2016 segment will remain the largest share and bond public offering in
increased to 88% of the target portion of the Bank’s business. the stock exchange so that there
of 40%. Also in late 2016, the Along with this, the Third Party was no proceeds from public
Bank could maintain net NPL at Funds is also expected to grow at offering in the Company’s Equity.
2.94%, below the average banking more or less the same percentage
Social Responsibility

industry. over the previous year. The Bank Commitment and Contingency
Corporate

will also continue to improve the As of December 31, 2016, the Bank
low cost fund ratio (CASA) through has entered commitment and
the development of products and contingencies regarding unused
features for the convenience of the loan facilities and Letters of Credit
saving customers such as mobile (L/C) with various parties as
banking, internet banking, etc. detailed below:

PT Bank QNB Indonesia Tbk 121


Passion for Excellence at Its Best
Annual Report 2016

1. The Bank’s unused loan Material Information on Information on Material


facilities (uncommitted) Investment, Expansion, Transaction Containing Conflict of
granted to customers as Divestment, Acquisition or Interest and/or Transaction with
of December 31, 2016 and Restructuring of Debts and Capital Affiliated Parties
December 31, 2015 were During 2016, the Bank did not During 2016, there was no
amounted Rp1,551,036 and have any material transactions or significant transaction containing
Rp2,957,752, respectively. activities related to investments, conflict of interest.
2. As of December 31, 2016 and expansions, divestitures, merger,
December 31, 2015, the term acquisitions or restructuring of The details of the relationship and
of Letters of Credit (L/C) debts and capital. type of significant transactions
were approximately 1 month with related parties are as follows:
to 6 months, while the term
of bank guarantees issued
range between 1 month to 12
months, respectively.

Transaction with Affiliated Parties

Related Party Nature of Relationship Type of Transaction

Muhammad Anas M Key management personnel Time deposits and saving

Andrew McGregor Duff Key management personnel Current accounts and employee loan

Azhar bin Abdul Wahab Key management personnel Saving accounts and employee loan

Rusli Key management personnel Time deposits, current account, Saving accounts
and employee loan

Lloyd Rolston Key management personnel Time deposits, saving accounts, current accounts
and employee loan

Windiarto Tabingin Key management personnel Saving accounts and Employee Loan

Novi Mayasari Key management personnel Employee loan, current accounts, saving
Accounts and time deposits

Suroto Moehadji Key management personnel Employee Loan and Saving Accounts

Qatar National Bank - London Owned by the Same shareholder Acceptances payable

Ooredoo Asia Affiliated company Current Accounts

Qatar National Bank SAQ Parent company Current accounts with other banks, deposit from
other banks and Subordinated Loan

PT Indosat Tbk Entity controlled by the same Current accounts and time deposits
government as the ultimate
shareholder, State of Qatar

122 PT Bank QNB Indonesia Tbk


Performance
Changes in the Regulation and Impact on the Bank

2016
During 2016, Bank Indonesia dan Financial Services Authority (FSA/OJK) have published several regulations
that have significant impacts on the Bank. Those regulations are:

Subject Regulations 2016 Impact

Conversion of Common Stock SE OJK No. 20/SEOJK.03/2016 In the event that the Bank’s point of non-viability is reached, the
or Write Downs for Additional dated June 21, 2016 Bank shall convert common stock or write downs and convert any

Management
Core-Capital Instruments additional capital (Additional Tier 1) and/or supplementary capital

Report
or Supplementary Capital (Tier 2).
Enforcement

Bank Business Plan POJK No. 5/POJK.03/2016 In preparing the Bank Business Plan 2017, the Bank shall use the
dated February 3, 2016, SE OJK attachment in SE OJK No. 25/SEOJK.03/2016.
No. 25/SEOJK.03/2016 dated
August 11, 2016

Annual Report of Public POJK No. 29/POJK.04/2016 Starting from 2017, the Bank in preparing the Annual Report to be
Company dated July 29, 2016, SE OJK submitted to the Financial Services Authority (OJK), it shall be in
No.30/SEOJK.04/2016 dated accordance with SE OJK No.30/SEOJK.04/2016

Company
Profile
August 3, 2016

Loan-to-Value PBI No.18/16/PBI/2016 dated • Changes in the ratio and the tiering of Loan to Value (LTV) ratio
Ratio for Property Loans, August 26, 2016, SE BI No. for Property Loan, for 1st facility, 2nd facility, 3rd facility, and so
Financing-to-Value Ratio 18/19/DKMP dated September on, with due regard to the prudent principle.
for Property Financing and 6, 2016 • Adjustment of the requirement of Non-Performing Loan (NPL)
Advanced Payment for of total Loan for the use of LTV ratio for Property Loan from
Motorized Vehicle Credit or gross to net.
Financing • Top up by commercial banks which is in addition to previous

Management Discussion
funding using the LTV ratio for the same Property Loan as long
as such Property Loan has good quality. Same principle also

and Analysis
applies for Property Loan take over with top up.
• Property Loan for the property ownership that has not been
fully available is allowed up to 2nd facility, with a gradual credit
disbursement.
• Adjustment of data source and value is used in NPL calculation.
• Improvement related to the delivery of Property Loan and
Motorized Vehicle Credit Report use the template provided in
Bank Indonesia website.

Fit and Proper Test for the POJK No. 27/POJK.03/2016 • Fit and proper test for the Bank is carried out by the Financial
Primary Party of Financial dated July 29, 2016, SE OJK Services Authority (OJK) to i). Ultimate Shareholder candidate,
Services Institutions No.39/SEOJK.03/2016 dated ii). Candidate members of the Board of Directors, and iii).

Governance
Corporate
September 13, 2016 Candidate members of the Board of Commissioners.
• The result of fit and proper test that has been set before the
enactment of POJK No. 27/POJK.03/2016 remain valid.
• The consequences of the results of the fit and proper refer to the
provisions in POJK No. 27/POJK.03/2016.
• Upon the enforcement of POJK No. 27/POJK.03/2016, the
members of BOD & BOC shall take the fit and proper test based
on POJK prior to the extension of tenure or change of position in
the same company.
Social Responsibility

Implementation of SE OJK No. 40/SEOJK.03/2016 • Since January 1, 2016:


Corporate

Remuneration Governance dated September 26, 2016 a. Duties and responsibilities of Remuneration Committee
shall be adjusted with POJK No. 45/POJK.03/2015.
b. Article 61 paragraph (2) letter d (remuneration package/
policy and other facilities for the Board of Commissioners
and the Board of Directors), letter e (shares option owned
by the Commissioner, Board of Directors, and Executive
Officers), and letter f (highest and lowest salary ration),
and article (3) PBI No. 8/4/PBI/2006 and also PBI No.
8/14/PBI/2006 regarding the Implementation of Good
Corporate Governance for the Commercial Banks was
declared invalid.

PT Bank QNB Indonesia Tbk 123


Passion for Excellence at Its Best
Annual Report 2016

Subjek Ketentuan 2016 Dampak

• Banks are required to adjust the remuneration policy with


reference to POJK No. 45/POJK.03/2015, deadline in December
31, 2016.
• The provision of sanctions under Article 33 POJK No. 45/
POJK.03/2015 will be effective on January 1, 2019.

Transparency and Publication of POJK No. 32/POJK.03/2016 The Bank in preparing Conventional Commercial Bank Reports refers
Bank Reports dated August 8, 2016, SE OJK to the attachment of SE OJK No. 43/SEOJK.03/2016.
No. 43/SEOJK.03/2016 dated
September 28, 2016

Debtor Information System PBI No. 18/21/PBI/2016 dated • The reporter is obliged to inform the Debtor regarding the
October 3, 2016 reporting of Fund Provision into the Debtor Information System.
Information delivery could be done via form, e-mail, and short
messages service.
• In case the Reporter received complaints from Debtor regarding
the Debtor Information in the Debtor Information System, the
Reporter shall follow up and resolve the complaint no later
than 20 working days after the date of receipt of the complaint.
The Reporter is obliged to report the Debtor’s complaint and
the follow up of Debtor’s complaint no later to Bank Indonesia
on a quarterly basis no later than the 10th after the end of
the quarter which submitted to the Department of Report
Management and Compliance c.q. Credit Information Service
and Complaints Handling Team, Jl. M.H. Thamrin No.2 Jakarta
10350.

Monitoring of Foreign Exchange SE BI No. 18/23/DSta dated • Customers who conduct Outgoing Transfer in the form of
Activities for Bank and Clients October 26, 2016 foreign currency above USD100,000.00 are required to submit
Underlying Documents of Outgoing Transfer to the Bank.
• Bank may only accept Fund Transfer Request as long as it is
supported with:
a. Underlying Document (See Appendix I).
b. If Underlying Document is not available in Appendix I,
Customer shall make statement letter (See Appendix II).
• Bank shall verify the conformity between Outgoing Transfer
Request and Underlying Document Regarding the Recipient
Name and Payment Value.
• Bank shall administer the Underlying Document and statement
letter in the form of hardcopy and/or softcopy.
• Bank shall provide an explanation to the Customer that the
truth and/or conformity of Underlying Document of Outgoing
Transfer or statement letter with the aim of Outgoing Transfer
is the responsibility of the Customer.

Changes in Accounting Policies materiality, flexibility as SFAS No. 19 Intangible Asset


The Bank adopted the following to the order in which they that revenue reflects a pattern
accounting standards, which are present the notes to financial of economic benefits that are
considered relevant, starting on statements and identification generated from operating a
January 1, 2016: of significant accounting business (of which the asset is
• Amendments to SFAS No. policies. part) rather than the economic
1: Presentation of Financial • Amendments to SFAS No. benefits that are consumed
Statements on Disclosures 16: Property, Plant and through use of the asset. As
initiative. This amendments Equipment on Clarification a result, a revenue-based
clarify, rather than of the accepted method for method connot be used to
significantly change, existing depreciation and amortization. depreciate the Property, Plant
SFAS No. 1 requirements, The amendments clarify the and Equipment.
among others, to clarify the principle in SFAS No. 16 and

124 PT Bank QNB Indonesia Tbk


Performance
• Amendment to SFAS No. 24: • SFAS No. No. 7 (2015 • SFAS No. 68 (2015

2016
Employee Benefits on Defined Improvement): Related Party Improvement): Fair
benefit plans: Employee Disclosures. The improvement value Measurement. The
Contributions. SFAS No. clarifies that a management improvement clarifies that the
24 requires an entity to entity (an entity that provides portfolio exception in SFAS No.
consider contributions from key management personnel 68 can be applied not only to
employees or third parties services) is a related party financial assets and financial
when accounting for defined subject to the related party liabilities, but also to other

Management
benefit plans. Where the disclosures. In addition, an contracts within the scope of

Report
contributions are linked entity that uses a management SFAS No. 55.
to service, they should be entity is required to disclose
attributed to periods of service the expenses incurred for The Bank is presently evaluating
as a negative benefit. These management services. and has not yet determined
amendments clarify that, if the • SFAS No. 16 (2015 the effects of these accounting
amount of the contributions Improvement): Property, standards on its financial
is independent of the number Plant and Equipment. The statements.
of years of service, an entity improvement clarifies that in
is permitted to recognise such SFAS No. 16 and SFAS No. 19 Business Sustainability

Company
Profile
contributions as a reduction in that the asset may be revalued Information
the service cost in the period in by reference to observable data In 2016, there were no such
which the service is rendered, on either the gross or the net things that could potentially
instead of allocating the carrying amount. In addition, have a significant effect on the
contributions to the periods of the accumulated depreciation sustainability of the Bank. The
service. or amortisation is the Bank’s management has done a

Management Discussion
• SFAS No. 5 (2015 difference between the gross stress test in order to assess things
Improvement): Operating and carrying amounts of the that have potential significant

and Analysis
Segments. The improvement asset. Carrying amounts of the effect on the Bank’s business
clarifies that: asset is restated by revaluated continuity. The implementation of
a. An entity must disclose amounts. stress test has been adapted to the
the judgements made by • SFAS No. 19 (2015 business scale and complexity as
management in applying Improvement): Intangible well as macroeconomic indicators
the aggregation criteria Assets. The improvement as a reference which underlying
in paragraph 12 of SFAS clarifies that in SFAS No. 16 the assumptions of management
No. 5 including a brief and SFAS No. 19 that the asset that there are no such things which
description of operating may be revalued by reference have potential significant effect on
Governance
Corporate
segments that have to observable data on either the Bank’s business continuity.
been aggregated and the the gross or the net carrying
economic characteristics. amount. In addition, the
b. Disclose the reconciliation accumulated depreciation or
of segment assets to total amortisation is the difference
assets if the reconciliation between the gross and
is reported to the chief carrying amounts of the asset.
Social Responsibility

operating decision maker, Carrying amounts of the asset


Corporate

similar to the required is restated by revaluated


disclosure for segment amounts.
liabilities.

PT Bank QNB Indonesia Tbk 125


Passion for Excellence at Its Best
Annual Report 2016

Marketing Aspect

The economic slowdown that through the provision of facilities strengthening business in the area
occurred in 2016 also had an for electronic transactions such or areas with the most potential
impact on the Bank. Challenging as ATM, SMS, Internet, Mobile and meet the economies of scale
growth and economic conditions Banking, Kiosk, and more. the Bank, namely by strengthening
in 2016 served as opportunities the existing branches by
for the Bank to develop business, By taking into account the performing continuous review and
particularly in the area of QNB economic potential and challenges, developing digital platform.
Indonesia’s business base. With a this will further open up market
business focus on the Wholesale opportunities for QNB Indonesia’s The competitive advantage of
Banking and Retail Banking, business development. On this QNB Indonesia which is majority
Bank business development basis, the Bank has been preparing owned by QNB will improve the
opportunities are still open. Despite for the competition in the business positioning of the Bank in the
the slowdown in the Indonesian in which the Bank has set a policy future, especially by promoting
economy, the SME sector and direction to focus on customers the power and security of QNB.
public sector consumption will keep (customer centric). Where as the majority owner,
growing. In line with the shifting QNB has a strong commitment
of public banking trend from In line with such focus shifting, to develop banking business in
traditional banking, which relies the entire resources owned by the Indonesia, thus one of the aspects
on the service outlet, to modern Bank are directed to strengthen the in developing banking business
banking comunity who prefer foundations of the Bank in order in Indonesia, namely the capital
electronic transactions, it provides to build products and services that factor becomes one of the QNB
a great opportunity for the Bank if suit customers’ expectations and Indonesia’s strengths to develop its
it could provide more efficient and needs. In addition to the focus that business.
effective features of transactions has been set, the Bank focuses on

126 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Of all the banks operating in To be a reckoned player, QNB or supply chain approach, with a
Indonesia, the national banking Indonesia shall focus on several focus on domestic structured trade
market share is still dominated by major segments and utilization of in key sectors. Deepening of the
the major banks. The last few years investment opportunities in the SME segment in order to expand
shows the tight competition where rapidly growing market. To achieve the coverage of bank funding
players from quite reputable global the desired objectives, development development.
and regional/Asian banks featuring of adequate capability is required
an aggressive growth strategy. In to intensively work on the chosen Retail banking market share

Governance
addition, in recent years, small- market, among others, by building continues to grow significantly.

Corporate
medium segment contributes the best products and services Similar with wholesale banking,
significantly to economic growth, capability as well as IT investments the retail banking segment also
in which the trade and services and develop a network of branches used the “customer centric”
sectors are the sectors that and other electronic networks. approach, thus the development
contribute the most to the national of products (assets - liabilities)
economy. One of the major segments of the and the service will be adapted
target market is the wholesale to the retail customer behavior.
Social Responsibility

Such market situation provides banking segment. The strategy The strategy set to work on this
Corporate

implications to the strategic used to work on this segment is segment is focused on “affluent”
measures that should be taken the penetration of the strategic customer for the marketing
by QNB Indonesia to be able to corporates to support the business of funding product and other
grow and develop properly. The development of both funding banking facilities such as wealth
global strategic implications and financing and other banking management and priority banking.
that shall be considered by QNB services. Solution approach to
Indonesia is by immediately join customers through the framework
the competition for the domestic
market that is growing rapidly.

PT Bank QNB Indonesia Tbk 127


Passion for Excellence at Its Best
Annual Report 2016

Branding and Positioning objective to disseminate and Promotion via above the line media is
educate the public regarding the carried out by consistently utilizing
After passing through a period Bank as well as its innovative billboard in the pedestrian bridge
of rebranding with the change of programs. of Polda Metro Jaya, Jakarta to put
name and logo of QNB Indonesia different ads alternately including
in 2015, the Bank continued In terms of activation, the Bank’s corporate tagline and the introduction
to implement the strategy of image strengthening is carried of the latest programs and services
sustainable promotion and out through micro marketing of the Bank. The Bank also focuses
branding to communicate the or exhibition in various cities of its branding at international
existence and also to strengthen its branch offices location. Branch airports, including Soekarno-Hatta
position in the banking industry. offices conducted CASA products International Airport Terminal 2
marketing which held in restaurant, D-E-F, Terminal 3, and Ngurah Rai
The pillar of Bank’s reputation mall, fruit market, and education International Airport.
is based on the Bank’s vision to institutions in cooperation. In
become one of the top tier banks addition, the Bank also promoted PR strategy was also implemented
by promoting technology as the customer engagement for the through management interviews
support of banking products customers who have Current and regular press release via print
and services, thus the Bank’s Account and provide them with the and online media. In addition, to
performance could continue to opportunity for a trip to Europe and complement the knowledge of its
grow following the trends and meet Qatar to visit the QNB Group Head customers, the Bank also issued
the needs of customers and public. Office in Doha. Other activity also a monthly newsletter, “Monthly
Promotion and branding strategy includes the organizing of customer Insights” which contains news about
becomes one of the supporting gathering in the event of economic the country’s economy, financial
pillars of Bank’s reputation. outlook discussion with the latest market, and the latest news from the
financial and economic topics. Bank. By disseminating corporate
In 2016, the Bank has held various actions, it is expected that customers
activities by implementing 360° To support the socialization of could know more about their Bank’s
integrated communication strategy, digital banking services, namely profile.
namely an integrated plan of DooEt+, the Bank’s mobile
implementing communication banking, communication was Initiation of branding and promotion
channels including commercial developed through the exhibition is not only focused on the business
(above the line), activation (below linked to Savings program. Other performance, but the Bank also
the line), public relations, and promotional activities, among promotes education by visiting
digital media. The background of others, include bazaar, school, and educational institutions to hold
this strategy is the communication car free day. financial literacy of “Mari Menabung”.

128 PT Bank QNB Indonesia Tbk


Business Prospect 2017

Performance
- Assets increase Strategic Measures

2016
The Bank has set a - Liquidity management
policy in accordance - Adequate Non-Performing Business Focus Establishment
Loans management In 2017 the Bank sets the target of
with the vision to - Fee-based income business growth which includes
be a top tier Bank in development the growth of total assets and also
terms of financial - Low cost fund increase income target. To achieve such
- Net interest income increase target, the Bank will implement
performance in 2017.

Management
- Continuous efficiency a variety of integrated business

Report
improvement development initiatives with
Several preparations have been due regard to the precautionary
made by the Bank to achieve Some of the main pillars still principle. The bank will also
such target, namely by preparing will be the focus of attention in continue to widen its business
excellent infrastructure and 2017 which include sustainable in 2017 with a series of new
resources. In 2017 the Bank development on the Human business, products, and services by
will consistently improve the Resources (people) and technology; optimizing existing business. All of
business foundation that includes refinement and improvement which are intended to improve the
development of human resource, of business processes (process);

Company
facilities provided to customers.

Profile
infrastructure, business process, as well as product development
and frameworks that support the (product) including the distribution Organizational Structure
implementation of good corporate network in accordance with the Evaluation and HR Strengthening
governance (GCG) as well as target market, both the wholesale The Bank will continue to enhance
the adoption of adequate risk segment and the retail segment. A its organizational structure to
management framework (prudent). focus on these pillars is a strategic match the dynamic development

Management Discussion
Optimization and efficiency remain step in order to strengthen the of the economy and banking, both
a major focus of the Bank in 2017 to business pillars and operational of nationwide and international.

and Analysis
achieve the Bank’s business growth QNB Indonesia in order to develop The fulfillment of some vacant
as expected. The Bank’s business a more strategic initiatives. In positions within the existing
focus still refer to the customer addition, at the same time the Bank organizational structure becomes a
(customer centric) where the Bank will continue to record a significant major concern of the Bank in 2017
will continue to focus on customer growth in order to achieve long- which will be addressed through
needs by creating innovative term target. These conditions internal and external recruitment.
products needed by customers. will result in increased costs in
Such products are expected to the development of the business Along with the improvement of
support the needs and interests of foundation, thus it will directly
Governance
the organizational structure, the

Corporate
the Bank where it would draw the affect the Bank’s ability to generate Bank also strengthens its human
customer’s attention to the Bank. profits in 2017. However, the Bank resources to support organizational
The core strategy which will be will continue to improve efficiency structure, among others,
performed by QNB Indonesia for as well as attempting to manage a through external recruitment
2017 includes: tight and planned budget. process, internal human resource
development, as well as the
development of human resources
Social Responsibility

through Management Development


Corporate

Program (MDP).

PT Bank QNB Indonesia Tbk 129


Passion for Excellence at Its Best
Annual Report 2016

an te
rn ra
ce
ve rpo
Go Co

130 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

131
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

132 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
The Bank has

Management Discussion
consistently

and Analysis
applied GCG
principles in
its day-to-day
operational Governance
Corporate

activities through
comprehensive
internal policies
Social Responsibility

and rules in order


Corporate

to continuously
improve the GCG
implementation.

PT Bank QNB Indonesia Tbk 133


Passion for Excellence at Its Best
Annual Report 2016

Basis of GCG Implementation

QNB Indonesia highly regards that the implementation of Good


Corporate Governance (GCG) will support the achievement of the Bank’s
objectives in terms of performance, profitability, and added value for all
stakeholders, as well as to ensure the long-term business sustainability.
Thus, we continue to increase our commitment to uphold the values of
corporate governance in carrying out business activities. We constantly
keep abreast of best corporate governance practices from time to time.
This effort also indicates the commitment of the top management
and all employees in improving the quality of GCG best practices
implementation.

GCG Legal Reference 7. Indonesia Good Corporate 2. Empowering the function and
Governance Roadmap by independency of each organ in
The implementation of GCG in the Indonesia Financial Services the Bank, namely, the Board
Bank refers to the GCG standards Authority in 2014 of Commissioners, the Board
and guidelines established by of Directors and the General
a series of regulatory pillars, GCG Basic Policies Meeting of Shareholders;
including from Bank Indonesia, the 3. Encouraging shareholders,
Law of the Republic of Indonesia, Apart from the external regulatory members of the Board of
and Financial Services Authority pillar, the Bank has also been Commissioners and members
(FSA/OJK) as follows: supported by the Bank GCG Charter of the Board of Directors to
1. Law of the Republic of as stipulated in Charter No. 1-00 take decisions and actions
Indonesia No.10 year 1998 dated October 10, 2012 which based on high moral values
concerning the amendment highlighted the structure of GCG and compliance with the law
on Law No.7 year 1992 on and principles in implementing and regulations;
Banking; GCG. 4. Stimulating the Bank’s
2. Law of the Republic of awareness of social
Indonesia No.40 year 2007 on GCG Objectives responsibilities in particular
Limited Liability Company the environmental and
(PT); With reference to Indonesia Good societal interests of the
3. FSA/OJK Regulation No.55/ Corporate Governance established communities in which the
POJK.03/2016 dated December by the National Committee on Bank operates;
7, 2016 on Implementation Corporate Governance (KNKG) 5. Optimizing the value of the
of Corporate Governance for in 2006, the main objectives of Bank for its shareholders by
Commercial Banks; GCG implementation which relate also taking into consideration
4. Bank Indonesia Circular Letter to the benefit of the Bank and the interests of other
No.15/15/DPNP/dated April shareholders are: stakeholders; and
29, 2013 on Implementation of 1. Achieving sustainable
Good Corporate Governance for growth of the Bank through a
Commercial Banks; management system based on
5. GCG Code published by the the principles of transparency,
National Committee on accountability, responsibility,
Governance Policies; independency and fairness;
6. ASEAN Corporate Governance
Scorecard; and

134 PT Bank QNB Indonesia Tbk


Performance
6. Enhancing the competitiveness (KNKG) in 2006 as amended in 2012 accountability; builds on prudent

2016
of the Bank, both nationally which also conforms to Indonesia banking practices and ensures
and internationally, in order Corporate Governance Roadmap compliance with applicable
to enhance market confidence and international best practices on provision to demonstrate its
which may promote investment the Organization for Economic Co- responsibility; promotes decision
flow and a sustainable national operation and Development (OECD) making that is independent,
economic growth. Principles. objective, and free of conflicts
of interest; continues to take all

Management
GCG Principles Referring to the framework, the stakeholders’ interest into account

Report
Bank strives to ensure that its based on fairness principle.
The GCG framework in the Bank business uphold transparency;
is based on Indonesia’s Code of has key performance indicators As such, the Bank corporate
Good Corporate Governance for which are consistent with its governance framework is built and
Banking published by National corporate values, business goals, applied on the following values:
Committee on Governance Policy and strategies so as to reflect its

GCG Principle Description Application

Company
Profile
Transparency To preserve and maintain the objectivity in practicing 1. Disclosure of information in timely, appropriate,
business, the Bank shall provide material and clear, accurate and comparable manner in which
relevant information that are easily accessible and they are accessible to stakeholders in accordance
understandable by stakeholders. with their rights
2. Disclosure of information which include but
To take the initiative to disclose not only the issues not limited to the Bank’s vision, mission,

Management Discussion
mandated by laws and regulations, but also other business targets and strategy, financial
information deemed necessary by shareholders, condition, composition and compensation of the

and Analysis
creditors and other stakeholders to form a decision. management, controlling shareholders, shares
owned by members of the Board of Directors
and the Board of Commissioners and its family
members in a company and other companies,
risk management system, oversight and internal
control system, GCG structure and mechanism and
its level of compliance, and important events that
may affect the condition of the Bank
3. Fulfillment of provisions on confidentiality in
accordance with laws and regulations, professional
confidentiality, and personal rights

Governance
Corporate
4. Formal written policies which are proportionally
communicated to stakeholders

Accountability To account for its performance transparently and fairly. 1. Clear definition of the job description and
responsibilities of each organ and all employees
To manage business in a proper and measurable that are in line with the Bank’s vision, mission,
manner, in such that it is aligned with the interest values, and strategy
of the Bank by also considering the interest of 2. Assurance that all of the Bank’s organs and
shareholders and other stakeholders. Accountability is all employees shall have the qualifications
Social Responsibility

a prerequisite to achieve sustainable performance. that fit its duty, responsibility, and role in GCG
Corporate

implementation
3. Assurance of the existence of an effective internal
control system within the Bank
4. Establishment of performance indicators for all
members of the Board of Directors and the Board of
Commissioners as well as the employees that are
consistent with the company’s objectives, and have
a reward and punishment system
5. Assurance that each organ of the Bank and all
employees shall uphold to the business ethics and
an agreed upon code of conduct in executing its
duty and responsibility

PT Bank QNB Indonesia Tbk 135


Passion for Excellence at Its Best
Annual Report 2016

GCG Principle Description Application

Responsibility To abide by laws and regulations and fulfill its 1. Assurance that all the Bank’s organs apply prudent
responsibility to the comunities and environment for banking principles and comply with laws and
the purpose of maintaining long term sustainability of regulations, its articles of association and bylaws
the business and to be recognized as a good corporate 2. Fulfillment of social responsibility by having,
citizen. inter alia, an awareness of the environmental and
societal interests of the communities in which the
Bank operates through an appropriate planning
and implementation to address the issues

Independency To accelerate the implementation of the GCG 1. Assurance that each of the Bank’s organ shall
principles by operating independently with an avoid the occurrence of domination by any party,
appropriate balance of power, in such a manner that shall not be influenced by any certain interest,
no single organ shall dominate the other and that no avoid conflict of interests and any influence or
intervention from other party shall exist. pressure, so that the decision making can be
carried out objectively
2. Assurance that each of the Bank’s organ shall
exercise its function and duties in accordance
with the Articles of Association and rules and
regulations, not dominating each other and or
shifting the responsibility from one to the other

Fairness Always consider the interests of shareholders and 1. Opportunities for stakeholders to give input and
other stakeholders based on a fairness principle in opinions in the interest of the Bank, and establish
conducting business activities access to the Bank’s information in accordance
with the transparency principle and within the
scope of their respective capacities
2. A fair and equitable treatment to stakeholders in
accordance with benefit and contribution given to
the Bank
3. Equal opportunity in recruitment of employees, in
career development and for employees to carry out
their duty professionally

136 PT Bank QNB Indonesia Tbk


Performance
GCG Roadmap

2016
To continuously improve the quality and coverage of GCG implementation, the Bank formulates a roadmap
in which GCG implementation is carried out in several strategic phases, namely: Corporate Governance
Commitment, Good Governed Company, and Good Corporate Citizen. Each phase represents the process of
formulation, implementation, and continuous monitoring and evaluation towards GCG excellence.

Management
Report
GCG GCG GCG
Corporate Good Good
Governance Governed Corporate
Commitment Company Citizen

Company
Profile
Commitment System Culture

Complying with GCG Satisfactory operation The corporation is


Guidelines, both through internal control, accepted as a part of the

Management Discussion
mandatory and advisory risk management, and community through CSR

and Analysis
whistleblowing system approach
implementation

GCG : Creating added values and sustainable development

Governance
Corporate
Source: National Committee on Governance Policy (KNKG)
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 137


Passion for Excellence at Its Best
Annual Report 2016

GCG Implementation

Commitment to GCG 4. Has a set of business ethics Going forward, the Bank will
Implementation and code of conduct which is continue to improve the GCG
formulated by involving GCG’s implementation with the latest
Indonesia Banking Code of organs and its supporting work GCG practices and standards as
Corporate Governance stipulates units. Business ethics and code well as line with its operational
that the commitment to GCG of conduct shall be enforced policies. Initiatives that will be
implementation is highly essential in sustainable and consistent continuously implemented are as
for banks in order to fully achieve manner so as to build a robust follows:
its goals and generate sustainable corporate culture which 1. Enhancement of GCG
value. Implementation of policies manifests the organization’s implementation transparency
and code of conduct enforcement, core values. via website and annual
in particular, shall apply to 5. Take active stance in report based on industry best
everyone in the Bank. The Bank contributing to natural practices.
has also complied with a number of resources and environment 2. Improvement and update
GCG basic principles that validates preservation causes. various charters and policies.
its strong commitment such as: 6. Has internal policies which can 3. Development of Design
1. Has a clear and realistic vision ensure rights and obligation and develop management
and mission. of all parties so as to create a information system to support
2. Has corporate values that conducive workplace. business and control processes.
reflect a good moral attitude in 7. Has a whistleblowing system 4. Increase of Transparency
doing business. which can accomodate Aspects.
3. Has Board Charters which reports, complaints, inputs, 5. Financial Literacy.
contains work guidelines for and corrective feedbacks 6. Dissemination and
the Board of Commisioners and from employees and other socialization of GCG practices.
Directors. stakeholders. 7. Implementation of FATCA and
enforcement of AML/KYC.

138 PT Bank QNB Indonesia Tbk


Performance
Year Good Corporate Governance Program

2016
2012 Establishment of the GCG Charter

2013 1. Establishment of Risk Oversight Committee Charter


2. Renewal of Audit Committee Charter
3. Establishment of Internal Audit Charter

2014 1. Preparation and issuance the Annual Report in accordance with the requirements from FSA/OJK and

Management
2. Evaluation of the GCG implementation through cooperation with the Independent Agency

Report
3. In-depth implementation of corporate value, code of etchics and corporate culture as well as improvement of
the tools which may increase the corporate governance practices in overall

2015 1. Renewal of Board of Commissioners Charter


2. Renewal of Board of Directors Charter
3. Renewal of Nomination Policy for members of Board of Commissioners, Board of Directors and members of the
Committee responsible to the Board of Comissioners
4. Renewal of Audit Committee Charter
5. Renewal of Remuneration and Nomination Charter

Company
2016 1. Establishment of Policy of Insiders Trading and Personal Investment

Profile
2. Renewal of Internal Audit Charter
3. Establishment of Policy of Communication with the Shareholders and Investor
4. Renewal of Policy on the Board of Commissioners Performance Self-Assessment
5. Renewal of Policy on the Board of Directors Performance Self-Assessment
6. Implementation of Good Corporate Governance in relation of the Prohibition to Receive Gratification
7. Renewal of Policies and Procedures for the Nomination, Appointment, Replacement and/or Dismissal of
Members of the Board of Commissioners, Board of Directors and Committees’ Reporting to the Board of

Management Discussion
Commissioners
8. Revision on Communication Policy

and Analysis
9. Policy on the Fulfilment of Creditor’ Rights
10. Policy on the Rotation for Chairman of the Committees Responsible to the BoC

GCG Mechanism of Directors Charter, Nomination institution which gains benefits


Policy, Whistleblowing System from the following expected
As part of efforts to improve the (WBS) Policy and various other results:
GCG implementation quality, the operational policies of the Bank 1. Reduction of cost of capital.
Bank has consistently applied which are also compatible with 2. Increased share value in the

Governance
Corporate
GCG principles in its day-to-day recent GCG best practices. long term.
operational activities through 3. Increased support from the
comprehensive internal policies By ensuring consistent and stakeholders so that the Bank
and rules. Among others are GCG effective implementation of GCG is able to operate and grow in
Charter, Code of Conduct, Board mechanism, the Bank strives to a sustainable manner through
of Commissioners Charter, Board create a better-governed financial various strategies and policies.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 139


Passion for Excellence at Its Best
Annual Report 2016

Implementation Aspects and Principles of


Corporate Governance pursuant to OJK Rules
Governance Guidelines include 2. Governance Guidelines 5 (five) 4. In explaining the
five aspects, eight principles and aspects, 8 (eight) principles of unimplemented
25 recommendations related good corporate governance, recommendations of
to the aspects and principles of and 25 (twenty five) governance aspects and
good corporate governance. The recommendations related to principles implementation in
recommended implementation the the aspects and principles Governance Guidelines and/
aspects and principles of good of good corporate governance or the explanation of other
corporate governance guidelines 3. Disclosure of Governance alternatives in implementing
are the standard implementation Guidelines, at least contains: the governance aspects and
aspects and principles of good Statement that the principles in Governance
corporate governance that should recommendations of Guidelines referred to in
be applied to the Company when Governance Guidelines point 3, the Public Company
implementing the principles of have been implemented; shall ensure that the
governance. The implementation and/or provided explanation is clear,
refers to the Circular Letter of b. Explanation that the informative, and adequate
Financial Services Authority No. recommendations of so that investors and other
32/SEOJK.04/2015 regarding the Governance Guidelines stakeholders understand the
Corporate Governance. have not been reasons:
implemented, which at a. The recommendation of
Objective least contains: governance aspects and
1. Assessment on the 1) The reason for not principles implementation
Implementation of Corporate implementing; and in Governance Guidelines
Governance Guidelines aims to 2) Aternative is not implemented; and/
encourage the public company implementation (if or
to implement good corporate any). b. Use other means in
governance in accordance implementing the
with exemplary international governance aspects and
practice principles in Governance
Guidelines.

Principle & Recommendation Analysis

A. Relationship Between the Public Company and Shareholders in Guaranteeing the Rights
of The Shareholders

1. Increasing the Value of Executing the General Meeting of Shareholders (GMS)


Shareholders have the right to participate in the management of the company
through the decision-making at the GMS as set out in the legislation and the articles
of association of the company. Provisions related to the Public Company’s GMS has
been set in the Financial Services Authority Regulation No. 32/POJK.04/2014 on
the Planning and Organization of the General Meeting of Shareholders of Public
Company, Capital Market Supervisory Agency and Financial Institution No. IX.J.1,
Attachment Decision of the Chairman Capital Market Supervisory Agency and
Financial Institution No. KEP-179/BL/2008 dated May 14, 2008 on the Principles
of Association of Companies that Conduct Public Offering of Equity Securities and
Public Companies, Law No. 40 of 2007 on Limited Liability Companies and articles
of association of the company. Whereas the relevant provisions of the AGM for
a private company regulated in Law Number 40 Year 2007 on Limited Liability
Company and the articles of association of the company. GMS can be held, among
others, with the request of the General Meeting of shareholders that meet the
requirements, followed by the delivery of the agenda to the Financial Services
Authority to the preparation of the minutes of the GMS and the announcement of
the summary minutes of the GMS. In the process, there is also the announcement
and implementation of the GMS to shareholders included therein mechanism to

140 PT Bank QNB Indonesia Tbk


Performance
Principle & Recommendation Analysis

2016
propose the agenda by shareholders. The value of the holding of the meeting can
be enhanced through efforts to promote fairness and transparency in order to
guarantee the rights and interests of shareholders

Recommendation :
1.1) The Public Company has a way or technical procedure of voting in public
or in private, which will put forward the independence and interest of the Telah diterapkan

Management
shareholders.

Report
Explanation
Each share has one vote. Shareholders may use their vote in decision-making,
especially by voting during the process of decision-making. However, the
mechanism of decision-making by voting has not been arranged in a detailed
manner whether it is in public or in private. The public company should have
a voting procedure in decision-making according to the agenda of the GMS.
The procedure should also maintain the independence and the freedom of
the shareholders. For example, the public voting is done by raising hands
according to the instruction of choice that has been offered by the chairman
of the meeting. On the other hand, private voting is done by either voter cards

Company
or electronic voting. This is done to maintain the privacy or according to the

Profile
request of the shareholders.

1.2) The Board of Directors and Board of Commissioners of the public company are
present in the AGMS.
Explanation
Kehadiran seluruh anggota Direksi dan anggota Dewan Komisaris Perusahaan At the Bank’s Annual GMS held on February
Terbuka bertujuan agar setiap anggota Direksi dan anggota Dewan Komisaris 16, 2016, all members of the Board of

Management Discussion
dapat memperhatikan, menjelaskan, dan menjawab secara langsung Directors of the Bank was present in the
permasalahan yang terjadi atau pertanyaan yang diajukan oleh pemegang Annual GMS.

and Analysis
saham terkait mata acara dalam RUPS.
While the attending members of the Board
of Commissioners are the entire Independent
Commissioner. Other Commissioners failed
to attend the Annual GMS. However, the
entire proposed agenda were discussed
and agreed upon by all members of the
Board of Commissioners and Independent
Commissioners who are present and
have the ability to represent the Board of

Governance
Commissioners in the Annual GMS.

Corporate
1.3) The summary of meeting minutes of the GMS is available on the public Telah diterapkan
company website for at least 1 (one) year.
Explanation
Based on Article 34 paragraph (2) of the Financial Services Authority
Regulation No. 32/POJK.04/2014 regarding the Plan and Implementation of
the General Meeting of Shareholders of Public Company, the Public Company
is obliged to make summary of meeting minutes of the GMS in Bahasa
Social Responsibility

Indonesia and in a foreign language (at least in English). It must be announced


in 2 (two) working days after the meeting is executed for the public through
Corporate

the public company website. The availability of the summary of meeting


minutes provides an opportunity to absent shareholders to get important
information during the meeting quickly and easily. The provisions of how
long the summary of meeting minutes may be available is to determine the
adequate time for shareholders to retrieve the information.

PT Bank QNB Indonesia Tbk 141


Passion for Excellence at Its Best
Annual Report 2016

Principle & Recommendation Analysis

2. Increasing the Quality of Communication Between the Public Company and


Shareholders or Investors
The Public Company shall continue to improve the role and participation of
shareholders or investors through effective communication and sustainable in order
to achieve the objectives of the Public Company. Such communication is beneficial
to know the expectations and the views of shareholders or investors, and seek
advice and input for benefit and sustainability of the Public Company.

Recommendation :
2.1) The public company has a communication policy with shareholders or Has been implemented
investors.
Explanation
The communication between the public company and shareholders/
investors aims for a clearer understanding of information that has been made
public, such as newsletters, information disclosure, business prospects and
performance, as well as the execution of public company’s governance. In
addition, shareholder/investors may also give suggestions and opinions to
the management of the public company. The communication policy with
shareholders/investors shows the commitment of the public company in
implementing communication with shareholders/investors. The policy
comprises strategies, programs, time of communication, and guidelines that
support shareholders/investors in participating in the communication.

2.2) The public company discloses the communication policy that the public Has been implemented
company has with shareholders/investors on the website.
Explanation
The disclosure of communication policy is a form of transparency and equality
the public company is committed to give to all shareholders/investors under
the execution of communication. The disclosure also aims for an increase of
participation and role shareholders/investors have in executing the public
company’s communication program.

B. Function and Role of Board of Commissioners

3. Strengthening the Membership and Composition of Board of Commissioners


Matters related to membership of the Board of Commissioners has been regulated
under the Financial Services Authority Regulation No. 33/POJK.04/2014 of the
Board of Directors and Board of Commissioners of Public Company, while the
nomination procedure BoC members stipulated in the Regulation of Financial
Services Authority No. 34/POJK.04/2014 on the Nomination and Remuneration
Committee of Public Company. Nevertheless, the provisions have not described
how the Public Company compose the membership and composition of the Board of
Commissioners are ideal to support the sustainability of the company. Membership
and composition of the Board of Commissioners that the ideal should reflect
the general supervision over the implementation of the functions of the Public
Company and the provision of advice to the Board of Directors in a professional,
effective, and independent. Efforts to strengthen the membership and composition
of the Board of Commissioners is done through the determination of the appropriate
amount and composition in order to achieve the objectives of the Public Company,
so as to build the trust of stakeholders.

142 PT Bank QNB Indonesia Tbk


Performance
Principle & Recommendation Analysis

2016
Recommendation :
3.1) The stipulation of number of commissioners will determine the condition of Has been implemented
the public company
Explanation
The number of commissioners may affect the effectivity of how the Board
of Commissioners execute their duties. The stipulation of number of the
public company’s commissioners must refer to the applicable legislation. At

Management
least 2 (two) individuals are chosen according to the Regulation of Financial

Report
Services Authority No. 33/POJK.04/2014 on Board of Directors and Board
of Commissioners of the Public Company. Additionally, the conditions
of the public company, which ranges from characteristics, capacity, size,
achievement of objectives, and fulfillment of business needs that differs
within the company, must be taken into consideration. However, the large
number of Board of Commissioners has a large potential to hinder the
effectivity to execute the functions of Board of Commissioners.

3.2) The composition stipulation of the Board of Commissioners pays attention to Has been implemented
the diversity of required skills, knowledge, and experiences

Company
Explanation

Profile
The composition of Board of Commissioners is a combination of
characteristics as a whole or as individuals according to the needs of the public
company. These characteristics may be reflected through the stipulation of
required skills, knowledge, and experiences in executing the supervising and
counseling duties by the Board of Commissioners. Composition that pays
attention to the needs of the public company is a positive sign, especially in
relation to the decision-making on the execution of supervising duties that

Management Discussion
considers a wider range of aspects.

and Analysis
4. Increasing the Quality of Performing Duties and Responsibilities of Board of
Commissioners.
The Board of Commissioners is responsible to supervise the handling policy and
the course of maintenance in general, as well as advising the Board of Directors, as
stipulated in the Financial Services Authority Regulation No. 33/POJK.04/2014 of
the Board of Directors and Board of Commissioners of Public Company. Monitoring
and providing advice to the Board of Commissioners include, among other important
strategies and plans of the company, the integrity of the financial statements,
internal control system and risk management, reporting and information
disclosure, compliance, and corporate governance. The Board of Commissioners

Governance
must carry out their duties in good faith, full of responsibility and prudence for

Corporate
the sake of the Public Company and in accordance with the intent and purpose of
the Public Company. In order to support the effective discharge of its duties, the
Board may establish committees. The committees include the Audit Committee,
as has been required in the legislation in the sector of capital market concerning
the Establishment and Implementation Guidance of the Audit Committee and
Nomination and Remuneration Committee, as stipulated in the Regulation of
the Financial Services Authority No. 34/POJK.04/2014 on the Nomination and
Remuneration Committee of Public Company.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 143


Passion for Excellence at Its Best
Annual Report 2016

Principle & Recommendation Analysis

Recommendation:
4.1) The Board of Commissioners has a self assessment policy to evaluate the Has been implemented
performance of the Board of Commissioners.
Explanation
The Board of Commissioners’ self assessment policy is a guideline used
as a form of accountability in collegially assessing the performance of the
Board of Commissioners. The self assessment is done individually by the
commissioners to evaluate the performance of the Board of Commissioners,
and not the individual performances of the commissioners. It is expected
that each commissioner is able to contribute to a better overall performance
by doing the self assessment. The policy may comprise the activity of
assessment, the purposes and objectives, the periods of execution, and the
standard or assessment criteria used based on the recommendation given by
Nomination and Remuneration Function for Public Companies. The required
functions are according to the regulations of OJK on the Nomination and
Remuneration Committees for Public Companies.

4.2) The self assessment policy that evaluates the performance of the Board of Has been implemented
Commissioners is disclosed in this year’s Annual Report of the public company.
Explanation
The disclosure of the self assessment policy on the performance of the Board
of Commissioners is executed not only to fulfill the transparency aspect as
a form of responsibility, but also to convince the shareholders/investors of
the acknowledgement of Board of Commissioners’ efforts to increase their
performance. By disclosing the policy, the shareholders/investors are able
to know the check and balance mechanism for the Board of Commissioners’
performance.

4.3) The Board of Commissioners has a resignation policy if a commissioner is Has been implemented
involved in a financial crime.
Explanation
The resignation policy for a commissioner who is involved in a financial crime
is a policy that may increase the confidence of stakeholders in the public
company, so that the integrity of the company still remains. This policy is
necessary to help ease the legal proceedings and avoid any disruptions in
the company’s activity. In addition to the morality, this policy builds the
ethical culture in the environment of the public company. The policy may
comprise code of ethics that is applicable to the Board of Commissioners. An
involvement in financial crime refers to the conviction of a commissioner by
the authority. Financial crimes refer to manipulation and a variety of financial
frauds in financial services. It also includes Money Laundering as stated in Act
no. 8 of 2010 on the Prevention and Combating of Money Laundering.

144 PT Bank QNB Indonesia Tbk


Performance
Principle & Recommendation Analysis

2016
4.4) The Board of Commissioners or Committee that executes the nomination Has been implemented
and remuneration function arranges the succession policy in the process of
nominating a member of the Board of Directors.
Explanation
According to the Regulation of Financial Services Authority No. 34/
POJK.04/2014 on the Nomination and Remuneration Committees for Public
Companies, the committee that executes the nomination function is tasked

Management
with arranging the policy and criteria needed for the process of nominating

Report
a candidate director. One of the policies that may support the nomination
process is the succession of a director. The succession policy aims for
maintaining the continuity of the regeneration or the leadership cadre in the
company to preserve the business’ progression and the long-term goal of the
company.

C. Function and Role of the Board of Directors

5. Strengthening the Membership and Composition of Board of Directors.


Matters related to membership of the Board of Directors has been regulated under

Company
the Financial Services Authority Regulation No. 33/POJK.04/2014 of the Board

Profile
of Directors and Board of Commissioners of Public Company. However, in such
provisions not outlined how the Public Company compose the membership and
composition of the Board of Directors which is ideal to support the sustainability of
the company. Membership and composition of the Board of Directors should reflect
the ideal implementation of the maintenance functions of the Public Company in
a professional, effective, and efficient. Efforts to strengthen the membership and
composition of the Board of Directors can be done through the determination of the

Management Discussion
appropriate amount and composition in order to achieve the objectives of the Public
Company, so as to build the trust of stakeholders.

and Analysis
Recommendation:
5.1) The stipulation of number of directors will consider the condition of the public Has been implemented
company as well as the effectivity in decision-making.
Explanation
As the persons authorized in managing the company, the stipulation of
number of directors will affect the performance of the public company.
Therefore, the stipulation must be taken into serious consideration and must
be according to the applicable regulations, where, according to the Regulation
of Financial Services Authority Nomor 33/POJK.04/2014 on Board of Directors

Governance
and Board of Commissioners for Public Companies, it must consist of 2 (two)

Corporate
individuals. In addition, the stipulation must be based on the needs to achieve
the purposes, goals, and conditions of the public company. The conditions
comprise characteristics, capacity, and size of the company as well as the
effectivity of decision-making made by the Board of Directors.

5.2) 5.2) The composition stipulation of the Board of Directors pays attention to Has been implemented
the diversity of required skills, knowledge, and experiences.
Explanation
Social Responsibility

Similar to the Board of Commissioners, the diversity of composition in


the Board of Directors is a combination of characteristics as a whole or as
Corporate

individuals, according to the needs of the public company. This combination is


taken into consideration by paying attention to the required skills, knowledge,
and experiences for the tasks and job functions of a director in order to
achieve the goals of the public company. Therefore, the consideration of these
characteristics will impact on nominating or choosing a director, collegially or
individually.

PT Bank QNB Indonesia Tbk 145


Passion for Excellence at Its Best
Annual Report 2016

Principle & Recommendation Analysis

5.3) The member of Board of Directors who oversees accounting or finance has the Has been implemented
skills and/or knowledge in accounting.
Explanation
A financial statement is a report on management accountability of the
resources owned by the public company, which must be prepared and
presented according to the financial accounting standards generally accepted
in Indonesia and also rules that the OJK is related to, which the Capital
Markets Law regulates the presentation and disclosure of financial statements
of the public company. Based on the Capital Markets Law regulating the
responsibilities of directors on financial statements, the Board of Directors are
responsible for the financial statements, which are signed by the President
Director and the Director that oversees accounting or finance. Therefore, the
disclosure and organization of financial information that is presented in the
financial statements highly depends on the skills and/or knowledge of the
Board of Directors, mainly the director who oversees accounting or finance.
The skills or knowledge qualification that a director has in accounting may
create a convincing financial statement that stakeholders are able to rely on as
a groundwork in making an economic decision related to the public company.
Those skills and knowledge may be validated based on education background,
training certification, and relevant job experiences.

6. Increasing the Quality of Performing Duties and Responsibilities of Board of


Directors.
The Board of Directors is authorized, and are fully responsible for the management
of the Public Company for the benefit of the Public Company in accordance with
the intent and purpose of the Public Company, as stipulated in the Regulation of the
Financial Services Authority No. 33/POJK.04/2014 of the Board of Directors and
Board of Commissioners of Public Company. The maintenance task by the Board
of Directors referred to include, among others, the effectiveness and efficiency
of resources, implementation of internal control, risk management, sustainable
management (sustainability), communication with stakeholders, including through
the company secretary, preparing accountability reports, and corporate governance.
The Board of Directors shall carry out their duties in good faith, full of responsibility
and prudence for the sake of public company under the provisions of the applicable
legislation and the articles of association of the company. Roles and responsibilities
among the members of the Board of Directors arrangement done for the efficient
management of the Public Company.

Recommendation:
6.1) The Board of Directors have a self assessment policy to evaluate the Has been implemented
performance of the Board of Directors.
Explanation
Similar to the Board of Commissioners, the Board of Directors’ self assessment
policy is a guideline used as a form of accountability in collegially assessing
the performance of the Board of Directors. The self assessment is done
individually by the directors to evaluate the performance of Board of Directors,
and not the individual performances of the directors. It is expected that
each director is able to contribute to a better overall performance by doing
the self assessment. The policy may comprise the activity of assessment,
the purposes and objectives, the periods of execution, and the standard or
assessment criteria used based on the recommendation given by Nomination
and Remuneration Function for Public Companies. The required functions
are according to the Regulation of Financial Services Authority No. 34/
POJK.04/2014 on the Nomination and Remuneration Committees for Public
Companies.

146 PT Bank QNB Indonesia Tbk


Performance
Principle & Recommendation Analysis

2016
6.2) The self assessment policy that evaluates the performance of the Board of Has been implemented
Directors is disclosed in this year’s Annual Report of the Public Company.
Explanation
The disclosure of the self assessment policy on the performance of Board of
Directors is executed not only to fulfill the transparency aspect as a form of
responsibility, but also to deliver important information on the improvement
efforts regarding the public company. This information is very useful to

Management
convince shareholders/investors that the management of the company is

Report
constantly heading towards a better direction. By disclosing the policy, the
shareholders/investors are able to know the check and balance mechanism for
the Board of Directors’ performance.

6.3) The Board of Directors have a resignation policy if a member of Board of Has been implemented
Directors is involved in a financial crime.
Explanation
The resignation policy for members of Board of Directors who involved in a
financial crime is a policy that may increase the confidence of stakeholders
in the Public Company, so that the integrity of the company still remains.

Company
This policy is necessary to help ease the legal proceedings and avoid any

Profile
disruptions in the company’s activity. In addition to the morality, this policy
builds the ethical culture in the environment of the public company. The
policy may comprise code of ethics that is applicable to the Board of Directors.
An involvement in financial crime refers to the conviction of a director by the
authority. Financial crimes refer to manipulation and a variety of financial
frauds in financial services. It also includes Money Laundering as stated in Act
no. 8 of 2010 on the Prevention and Combating of Money Laundering.

Management Discussion
D. Participation of Stakeholders

and Analysis
7. Increasing the Company’s Governance Aspect By Means of Stakeholders
Participation.
Good corporate governance should include the overall important aspects of Public
Company. In addition, good corporate governance should also be able to recognize
the role, and requires the cooperation of all stakeholders in creating sustainability in
the long term.

Recommendation:
7.1) The Public Company has the policy to prevent insider trading. Has been implemented

Governance
Explanation

Corporate
An individual who has inside information is prohibited from engaging in a
securities transaction using the information as defined in the Capital Markets
Law. The public company is able to minimize insider trading by means of
prevention policy, such as strictly separating public data and/or information
from confidential data and/or information, as well as splitting tasks and
responsibilities for managing information proportionally and efficiently.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 147


Passion for Excellence at Its Best
Annual Report 2016

Principle & Recommendation Analysis

7.2) The Public Company has an anti-corruption policy and anti-fraud policy. Has been implemented
Explanation
The anti-corruption policy is useful to ensure the activities at the Public
Company are executed legally, prudently, and according to the principles
of good governance. The policy is its own form or a part of code of ethics.
The policy comprises programs and procedures that are able to resolve the
practice of corruption, kickbacks, fraud, bribery, and/or gratification within
the Public Company. The scope of the policy must depict the Public Company’s
prevention against all practices of corruption on both the giving and receiving
end.

7.3) The Public Company has a policy on selecting and increasing the ability of Has been implemented
suppliers or vendors.
Explanation
The policy on selecting suppliers or vendors is useful to ensure the public
company has the goods and services with competitive prices and good
qualities. Additionally, the policy on increasing the ability of suppliers
or vendors is useful to ensure the supply chain to operate efficiently and
effectively. The ability of suppliers or vendors in providing or fulfilling the
goods or services needed by the company will affect the company’s output
quality. Thus, the execution of these policies may guarantee supply continuity
from both quantity and quality needed by the public company. These policies
comprise criteria in choosing suppliers or vendors, transparency mechanisms
in procurement, the effort in increasing the ability of suppliers or vendors, and
compliance in rights of suppliers or vendors.

7.4) The Public Company has a policy on complying creditors’ rights. Has been implemented
Explanation
The policy on complying creditors’ rights is used as a guide to get a loan for
creditors. The goal of this policy is to fully preserve the rights and creditors’
confidence in the Public Company. The policy comprises the consideration on
entering into agreements, and following up on the compliance of creditors’
rights by the Public Company.

7.5) The Public Company has a policy on the whistleblowing system. Has been implemented
Explanation
The whistleblowing policy that has been well organized will assure witnesses
or informers of their protection from an indication of violation done by an
employee or management of the public company. The execution of this
policy will impact on the establishment of good governance. This policy
comprises types of violations that are able to be reported through the
whistleblowing system, a guide on accusation, protection and insurance of
informer’s confidentiality, handling the accusation, the party who handles the
accusations, the outcome after handling the situation, and the actions taken
after the accusation.

148 PT Bank QNB Indonesia Tbk


Performance
Principle & Recommendation Analysis

2016
7.6) The Public Company has a policy on giving long-term incentives to Board of Currently, the Bank has no long-term
Directors and employees. incentives policy for the Board of Directors
Explanation and employees. But the adoption of long-term
Long-term incentives are incentives given based on the achievement of long- incentive policy is under study
term performance. The plan of long-term incentives has the basic premise that
the company’s long-term performance is reflected on the growth in value of
the shares or long-term targets of other companies. Long-term incentives are

Management
useful in preserving loyalty and motivating Board of Directors and employees

Report
to perform better or become more productive, as these will impact on the
long-term performance of the company. The policy on long-term incentives
is the company’s commitment to give incentives to directors and employees
under the terms, procedures, and forms that are in accordance to the long-
term goal of the Public Company. This policy comprises the purposes and
objectives of giving long-term incentives, the terms and procedures of giving
incentives, as well as the conditions and risks that must be mindful of by the
Public Company when giving an incentive. This policy is also consisted in the
remuneration policy of the Public Company.

Company
E. Information Disclosure

Profile
8. Increasing the Implementation of Information Disclosure.
Information disclosure should be done accurately and timely on all important
company information including financial condition, performance, ownership and
control, and governance of Public Company.

Recommendation:

Management Discussion
8.1) The Public Company makes use of information technology more openly as the Has been implemented
media of information disclosure.

and Analysis
Explanation
The use of information technology may be useful as a media of information
disclosure. In addition to the informations mentioned in the regulations,
useful informations regarding the Public Company will also be disclosed to
shareholders/investors. By using the information technology more openly,
it is expected that the company may increase their effectivity in sharing the
company’s information. Nevertheless, the use of information technology has
to also pay attention to how it will cost and benefit the company.

8.2) The Public Company’s Annual Report discloses the final beneficial owner of Has been implemented

Governance
shares in the ownership of the Public Company at least 5% (five percent),

Corporate
in addition to the disclosure of the final beneficial ownership of the Public
Company through the major and controlling shareholder.
Explanation
The regulations on the capital markets sector which regulates the delivery
of the Public Company’s Annual Report has also regulated the compliance
of information disclosure on the shareholder who has 5% or more of the
company’s shares, as well as of direct or indirect information disclosure on the
major and controlling shareholder of the company up to the final beneficial
Social Responsibility

owner of the shares ownership. In the Governance Guidelines, it is advised


to disclose the final beneficial owner who owns at least 5% of the Public
Corporate

Company’s shares in addition to disclosing the final beneficial owner of the


shares ownership by the major and controlling shareholders.

PT Bank QNB Indonesia Tbk 149


Passion for Excellence at Its Best
Annual Report 2016

GCG Assessment

The implementation of GCG April 29, 2013 on Implementation GCG self-assessment are carried
principles is also a factor of Good Corporate Governance out comprehensively and in a
considered in assessing the and FSA/OJK Regulation No.55/ focused manner by integrating
soundness of a bank, aside from the POJK.03/2016 dated December 7, assessment factors into 3 (three)
risk profile, rentability, and capital 2016. As such, the Bank regularly governance aspects, namely,
strength as stated in FSA (OJK) conducts GCG self- assessment governance structure, governance
Regulation No.4/POJK.03/2016 on semi-annual basis with the process, and governance outcome.
on Commercial Bank Soundness following eleven criteria defined
Level and supported by Circular by Bank Indonesia, currently
Letter No.15/15/DPNP dated Financial Services Authority (FSA/
OJK).

No. Assessment Criteria 2016 Score

1. Implementation of Duties and Responsibilities of Board of Commissioners 2


2. Implementation of Duties and Responsibilities of Board of Directors 2
3. Integration and Implementation of Tasks of Committees 2
4. Management of Conflicts of Interests 2
5. Implementation of Compliance Function of the Bank 2
6. Implementation of Internal Audit Function 2
7. Implementation of External Audit Function 1
8. Implementation of Risk Management and Internal Control Function 2
9. Provision of Fund to Related Parties and Large Exposure 2
10. Transparency of the Bank’s Financial and Non-Financial Conditions, GCG Implementation 1
Report and Internal Reports
11. Bank’s Strategic Plans 2

Composite Score based on Bank’s Self-Assessment 1.82

Note: Based on the results of the assessment provided by the Financial Services Authority on the implementation
of bank GCG in the second half of 2016 at a value of 3 (three).

Based on the results of GCG This reflects that the GCG implementation, if any, are
Self-Assessment conducted in implementation of Good Corporate generally considered insignificant
the second half of 2016, which Governance principles in general and could be corrected by the
was reflected in the Matrix of by the management of the Bank Bank’s Management.
GCG Rating, the Bank earned the was good. This is reflected from
second rank with predicate of Good the very adequate fulfillment of
and average score of 1.81 on the the Good Corporate Governance
implementation of GCG. principles. Any weakness in the

150 PT Bank QNB Indonesia Tbk


GCG Structure

Performance
Pursuant to the Law of the the Bank’s governance structure In addition, the structure also

2016
Republic of Indonesia Number comprises of several organs: includes a number of supporting
40 of 2007 on Limited Liability General Meeting of Shareholders, functions such as internal control,
Companies and FSA/OJK the Board of Commissioners, and risk management, corporate
Regulation No. 55/POJK.03/2016 the Board of Directors. These secretary, and compliance function
dated Desember 7, 2016 regarding organs carry out their respective as well as committees under the
the Implementation of Corporate functions in accordance with Board of Commissioners and
Governance for Commercial bank, prevailing law and regulation. Directors.

Management
Report
Structure and Governance Relation

GMS

Company
Profile
Board of Commissioners

Management Discussion
and Analysis
Remuneration & Nomination Risk Oversight Committee Audit Committee
Committee

Board of Directors

HR Risk Management Credit Product & New Fraud Oversight


Committee Committee Committee Activity Committee Committee

Governance
Corporate

Special Asset
IT Asset & Liability Procurement
Management
Committee Committee (ALCO) Committee
Committee
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 151


Passion for Excellence at Its Best
Annual Report 2016

General Meeting of Shareholders (GMS)

The GMS as the highest In relation to GCG


General Meeting of organ in the Bank serves to structure, GMS, the Board
Shareholders (GMS) is facilitate in making important of Commissioners and/
decision with due regard to or Board of Directors has a
the Bank’s organ which the Bank’s interest, in fair and clear definition of rights and
has the authorities not transparent manner. GMS and/ authorities which is illustrated
delegate to the Board of or the shareholders can not as follows:
intervene against performing
Directors and the Board of the duties, functions and
Commissioners with the authorities of the Board of
limits as specified in the Commissioners and the Board
of Directors, however such
Law of Republic Indonesia matter shall not diminish the
No. 40 of 2007 on Limited authority of GMS to exercise
Liability Company and/or its rights according to the
Bank’s Articles of Association
Articles of Association of and the prevailing laws and
the Bank. regulations.

«P
» r
ty
ili
ov

ab
nt
id
e
tra

GMS
u
ss

co

ns
mi

h
ac

ug
pa
dis

nd

ro
Ap

B
ren

h
and

rt a

po

t re
int
epo

oa
t

p or
poin

rs

a nd
rd
nt r

de

t an
« Ap

o
pare

dism
hol

fC

d acco
Provide trans

omm
Share

iss »

untability
issioners

Bo
ard
of Directors

Del »
iver ate
regu lar reports and upd

« Pr
ovide ing
G uideline and monitor

152 PT Bank QNB Indonesia Tbk


Performance
Authorities and Annual GMS (AGM) 2. The Bank announced to

2016
Responsibilities of AGM is organized not later than the shareholders through 1
6 (six) months after the end of (one) nationwide circulation
Shareholders financial year. During the meeting, newspaper, 14 (fourteen) days
the shareholders shall discuss the prior to the notice of the GMS,
In the Bank’s corporate governance
predetermined agendas, including excluding the announcement
structure, GMS has the authorities
to make decision and provide date and the notification date
to take decision, among others
approval on matters relating to for GMS.
related to:

Management
governing bodies, major corporate 3. The Bank annouced the
1. Amendment of the

Report
transactions, and other matters notice of GMS through 1
Association.
require the GMS’ approval for (one) nationwide newspaper,
2. Designation and Dismissal
the Bank’s satisfaction without IDXNet, and its website, 21
of the members of Board of
prejudice to provisions in the (twenty one) days prior to the
Commissioners and Board of
Articles of Association of the Bank. GMS date, excluding the notice
Directors.
date of GMS and the GMS date.
3. Approval on the Bank’s Annual
Extraordinary GMS (EGM) 4. The Bank submitted the proof
Report.
EGM is held at any time deemed of announcement and notice
4. Appointment of the Public
necessary for the Bank’s interest of GMS to the FSA/OJK within

Company
Profile
Accountant Firm.
by the Board of Directors at the 2 (two) business days after the
5. Determination of the use of
written request of the Board of publication of announcement
the Bank’s profit in the current
Commissioners or shareholders. and notice of GMS.
financial year.
The shareholders who entitled 5. The Bank submitted the
6. Resolutions related to
to apply such request are 1 (one) results of GMS to the FSA/
consolidation/merger,
or more shareholders which OJK and IDX at the latest 2
acquisition, bankruptcy and

Management Discussion
collectively represent at least 1/10 (two) days after the GMS
dissolution.
(one-tenth) of the total shares with and announced it to the

and Analysis
7. Other possible agendas refer
voting rights. public through nation-wide
to the Bank’s Articles of
circulation newspaper.
Association and the prevailing
Planning and Conducting GMS
laws and regulations.
Both AGM and EGM is convened The GMS is chaired by one of
with careful planning and Board of Commissioners’ member
The shareholders are expected
adherence to procedural guidelines who appointed by the Board
to separate their functions as
in FSA/OJK Regulation No. 32/ of Commissioners and held in
shareholders and as members of
POJK.04/2014 dated December 8, Indonesian. The GMS shall begin
the Board of Commissioners or
2014 on Planning and Conducting with reading of the GMS rules. In
Governance
Corporate
Board of Directors in a situation
of GMS of the Public Company. the GMS opening, GMS Chairman
where a shareholder sits on one of
shall convey the shareholders on
the said two corporate organs.
Bank has complied and organized the Bank’s condition, agendas of
the GMS in accordance with GMS, decision-making mechanism
Mechanism of the Bank’s applicable regulations, with the for agendas of GMS, and procedures
GMS Implementation following steps: to exercise the shareholders’ voting
1. The Bank submitted a rights in asking questions and/or
Social Responsibility

The Bank’s GMS devided into two notification to the FSA/OJK comments.
types which are Annual GMS
Corporate

regarding the plan to hold a


and Extraordinary GMS. GMS of GMS not later than five (5) At the end of discussion of each
the Bank, both Annual GMS and business days prior to the agenda of GMS, the meeting’s
Extraordinary GMS, are organized announcement of a GMS. Chairman shall provide the
refers to the provisions as set out in Shareholders or their proxies an
the Bank’s Articles of Association opportunity to raise questions/
and the prevailing laws and comments related to the agenda
regulations. of GMS. The Chairman of GMS
or a Director appointed by the

PT Bank QNB Indonesia Tbk 153


Passion for Excellence at Its Best
Annual Report 2016

Chairman of GMS shall answer will be adopted by voting. Voting Implementation of 2015
and/or respond to the questions/ was conducted verbally and only GMS
comments raised by the shareholders or their proxies are
shareholders present. entitled to vote. Each share entitles In 2015, the Bank held 2 GMS,
its holder to cast one vote. namely, the Annual GMS (AGM)
After all questions/comments on February 27, 2015, and an
are answered and responded The Bank has appointed an Extraordinary GMS (EGM) on
properly, further, the GMS shall independent party, namely, Notary, October 9, 2015.
adopt the resolutions based on for the purpose of counting and
deliberation to reach consensus. validating votes as well as drafting
In the event of deliberation failed the minutes of GMS.
to reach consensus, resolutions

AGM (February 27, 2015)

AGM Notification AGM AGM AGM AGM


to Regulators Announcement Invitation Execution Results

Submitted the Announced on January Announced on February AGM was held on Announced on March
Notification Letter 21, 2015 through an 5, 2015 through an February 27, 2015, 3, 2015 through an
to FSA (OJK) dated advertisement on advertisement on at QNB Tower 3rd advertisement on
January 14, 2015. Investor daily newspaper Investor daily newspaper Floor, 18 Parc SCBD, Jl. Investor daily newspaper
and Kontan daily and Kontan daily Jenderal Sudirman Kav. and Kontan daily
newspaper, as well as newspaper, as well as 52-53, Jakarta. Chaired newspaper, as well as
through the Bank’s through the Bank’s by Suroto Moehadji, through the Bank’s
website website. the Independent website.
Commissioner
Appointed by the Board
of Commissioners of
the Bank.

No. Agendas Resolutions

1. Approval of Annual Report including a. Accepted and approved the Bank’s Annual Report for the financial year ended
Board of Directors’ Report, Board on December 31, 2014, including Board of Directors Report and Board of
of Commissioners’ Report and Commissioners Supervisory Report, AND Accountability on Use of Limited
Accountability on Use of Rights Issue Public Offering II &IV;
II & IV Proceeds as well as approval of b. Accepted and approved the Bank’s Annual Financial Statements for the
financial statements for the financial financial year ended on December 31, 2014, audited by the Public Accountant
year ended in December 31, 2014 Firm “Purwantono, Sungkoro & Surja” a member of the Ernst & Young Public
Accounting Firm according to its Report No. RPC-6613/PSS/2015 dated January
27, 2015, with “unqualified opinion”, and granted full release and discharge for
all members of the Board of Directors and the Board of Commissioners of any
responsibilities and obligations (acquit et de charge) for the management and
supervision performed in 2014, provided that such actions are reflected in the
Financial Statements of 2014.

2 Approval for the use of net profit for the Approved the use of Bank’s net profit in financial year 2014 amounting to IDR
financial year ended in December 31, 2014 120,836,590,909 to strengthen Bank’s CAR, and thus no dividend distribution.

3. Appointment of Public Accountant Approved to appoint the Public Accounting Firm Purwantono, Sungkoro & Surja,
Firm for the financial year of 2015 affliated with Public Accounting Firm Ernst & Young as the Bank’s Public Accountant
and provide authorization to Board of Firm, to audit the Bank’s book for the financial year ended on December 31, 2015, and
Directors to determine honorarium and authorized the Board of Directors to determine the honorarium amount for the Public
other requirements. Accountant Firm and other requirements.

154 PT Bank QNB Indonesia Tbk


Performance
No. Agendas Resolutions

2016
4. Changes in the composition of the a. Approved changes in composition of the Bank’s Board of Commissioners
Board of Commissioners and Board of and Board of Directors effective from the adjournment of meeting until
Directors. the adjournment of AGM held in 2018 with the composition of Board of
Commissioners and Board of Director as follow:
Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari

Management
Commissioner : Grant Eric Lowen

Report
Commissioner : Muthu Chidambaram
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Muhammad Anas Malla

Board of Directors:
President Director : Andrew McGregor Duff
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Director : Rusli
Independent Director : Windiartono Tabingin

Company
Director : Hery Syafril

Profile
b. Approved the appointment of Novi Mayasari as Director which will be effective
after obtained approval from FSA (OJK).
c. Approved to authorize to the Bank’s Board of Directors to state the changes in
composition of Board of Commissioners and Board of Directors of the Bank in a
separate Notarial Deed and affirmed the meeting resolution after appointment
of Novi Mayasari as the Bank’s Director approved by FSA (OJK) which will be

Management Discussion
conducted at the same time or separately in line with the FSA (OJK)’s approval,
including to notify/report to authorities and to register as well as take all

and Analysis
necessary action in relation to the decision..

Approve tasks, authorities, a. Approved the granting of power and authorities to Qatar National Bank as the
5. honorarium/ salary and other Bank’s major shareholder which has 82.59% of the Bank’s shares to determine
allowances for member of the Board of and distribute the amount of salary or honorarium and allowance for financial
Commissioners and Board of Directors. year 2015 for each member of the Board of Commissioners, and
b. Approved the granting of power and authority to Qatar National Bank as the
major shareholder of the Company to determine the amount of salary, fees and
allowances for the financial year 2015 to each member of the Board of Directors
of the Bank and to grant the power and authority to the Board of Commissioners
to determine the division of duties and authorities to each Director of the Bank.

Governance
Corporate
Approval of the amendment to Article a. Approved the amendment to Article 4 of the Bank’s Articles of Association in
6. 4 of the Bank’s Articles of Association relation to the increase in the Bank’s authorized capital from 10,000,000,000
by increasing Authorized Capital and shares with nominal price of Rp250 per share or with total nominal price of
changes in order to adapt FSA (OJK) Rp2,500,000,000,000 to 32,000,000,000 shares with nominal price of Rp250 per
Regulation share and total nominal price of Rp8,000,000,000,000;
b. Approved the amendment to articles in the Bank’s Article of Association, among
other, to adapt prevailing provision in accordance with Financial Services
Authority (OJK) Regulation Number 32/POJK.04/2014 dated December 8, 2014
Social Responsibility

concerning Planning and Conducting General Meeting of Shareholders of Public


Corporate

Company and Financial Services Authority (OJK) Regulation Number 33/


POJK.04/2014 dated December 8, 2014 concerning the Board of Directors and
Board of Commissioners of Issuers or Public Company and other changes as well
as recomposition of the Bank’s entire Articles of Association;
c. Authorized the Board of Directors of the Bank to:
1) State the resolution of this Meeting’s agenda in Notarial Deed and take all
necessary actions in relation to this Meeting’s resolution;
2) Apply for approval and/or inform the Ministry of Law and Human Rights
of the Republic of Indonesia, register and announce the amendement
of the Articles of Association so that the amendment is legally in force
including to make changes or addition on the amendment of this Article
of Association if required by authorities and take all action needed and
required by the applicable regulation.

PT Bank QNB Indonesia Tbk 155


Passion for Excellence at Its Best
Annual Report 2016

Resolution Making Attendance in 2015 AGM quorum requirements of AGM, so as


and Follow-Up of the The shareholders who entitled valid and entitled to make legal and
Resolution of 2015 AGM to attend the AGM are the binding resolutions. The AGM was
shareholders who registered in attended by several members of
All of the resolutions of the Bank’s the Register of Shareholders as of the Board of Commissioers, namely
2015 AGM were resolved based on February 4, 2015. The Meeting was Suroto Moehadji, Muhammad
an amicable deliberation to reach attended by the shareholders and/ Anas Malla and Nasrul Husin as
a mutual consensus and all of the or their proxies who represented well as all members of the Board
resolutions have been realized. 7,262,346,327 shares or of Directors. In addition, Notary,
approximately 82.93% of the total representative from Share Registrar
shares issued by the Bank. More and Public Accountant also
than 50% or half of the total shares attended the AGM.
were in attendance, thus it met the

EGM (October 9, 2015)

AGM Notification AGM Announcement AGM AGM AGM


to Regulators Invitation Execution Results

Submitted the Announced on September Announced on September EGM was held on October Announced on October
Notification Letter to 2, 2015 through an 17, 2015 through an 9, 2015, at QNB Tower 13, 2015 through an
FSA (OJK) dated August advertisement on Kontan advertisement on Kontan 3rd Floor, 18 Parc SCBD, advertisement on Kontan
25, 2015. daily newspaper, and daily newspaper, and Jl. Jenderal Sudirman Kav. daily newspaper, and
through the Bank’s through the Bank’s 52-53, Jakarta. Chaired through the Bank’s
website. website. by Suroto Moehadji, website.
the Independent
Commissioner, appointed
by the Board of
Commissioners of the
Bank.

No. Agendas Resolutions

1. Changes in the composition of the a. Accepted the resignation of Hery Syafril as a Director of the Bank. The
Board of Commissioners and Board of resignation became effective since the adjournment of the Meeting. The Bank
Directors. thanked Hery Syafril for his contribution to the Bank during his tenure as a
Director of the Bank;
b. Approved the appointment of Djoko Sarwono as an Independent Commissioner
of the Bank. The appointment shall become effective upon FSA (OJK)’s fit and
proper test approval;
c. Approved the appointment of Windiartono Tabingin as an Independent Director
of the Bank. The appointment became effective since the adjournment of AGM
of the Bank held on February 27, 2015 up to the adjournment AGM of the Bank to
be convened in 2018;

The appointment of Djoko Sarwono as the Bank’s Independent Commissioner


shall become effective upon fit and proper test approval from FSA (OJK), thus the
composition of the Board of Commissioners and Board of Directors of the Bank
from the adjournment of the Meeting before Djoko Sarwono received approval
from FSA (OJK) on Fit and Proper Test are as follows:

156 PT Bank QNB Indonesia Tbk


Performance
No. Agendas Resolutions

2016
Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari
Commissioner : Grant Eric Lowen
Commissioner : Muthu Chidambaram
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Muhammad Anas Malla

Management
Board of Directors:

Report
President Director : Andrew McGregor Duff
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Director : Rusli
Director : Novi Mayasari
Independent Director : Windiartono Tabingin

Furthermore, the composition of the Board of Commissioners and the Board of


Directors of the Bank after Djoko Sarwono received approval from FSA (OJK) on
fit and proper test are as follows:

Company
Profile
Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari
Commissioner : Grant Eric Lowen
Commissioner : Muthu Chidambaram
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Muhammad Anas Malla
Independent Commissioner : Djoko Sarwono

Management Discussion
Board of Directors:

and Analysis
President Director : Andrew McGregor Duff
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Director : Rusli
Director : Novi Mayasari
Independent Director : Windiartono Tabingin

The tenure of all members of the Board of Commissioners and the Board of
Directors as mentioned above are up to the adjournment of the AGM of the Bank
to be convened in 2018, without prejudice to the rights of the GMS to dismiss at
any time.

Governance
Corporate
d. Authorized the Board of Directors to state the changes of composition of Board
of Commissioners and Board of Directors of the Bank in a separate Notarial Deed
(if necessary) notify/report the Ministry of Law and Humans Right of Republic
of Indonesia.

Resolution Making Attendance in EGM dated October were in attendance, thus it met the
Social Responsibility

and Follow-Up of the 9, 2015 quorum requirements of EGM, so as


Resolution of 2015 EGM The shareholders who entitled valid and entitled to make legal and
Corporate

to attend the EGM are the binding resolutions. The EGM was
All of the resolutions of the Bank’s shareholders who registered in attended by several members of the
EGM were resolved by deliberation the Register of Shareholders as of Board of Commissioners, namely
to reach a mutual consensus and September 16, 2015. The meeting Suroto Moehadji and Muhammad
all of the resolutions have been was attended by the shareholders Anas Malla as well as all the
realized. and/or their proxies who members of Board of Directors. In
represented 7,299,946,780 shares or addition, Notary, representative
approximately 83.36% of the total from Share Registrar and Public
shares issued by the Bank. More Accountant were also attended the
than 50% or half of the total shares EGM.

PT Bank QNB Indonesia Tbk 157


Passion for Excellence at Its Best
Annual Report 2016

Implementation of 2016 GMS

In 2016, the Bank held three (3) GMS, namely 1 (one) Annual GMS (AGM) on February 16, 2016 and 2 (two) times
the Extraordinary GMS (EGM) respectively on April 13, 2016 and on December 19, 2016.

AGM (February 16, 2016)

AGM Notification AGM Announcement AGM AGM AGM


to Regulators Invitation Execution Results

Submitted the Announced on January Announced on January AGM was held on Announced on February
Notification Letter 8, 2016 through 1 25, 2016 through 1 February 16, 2016, 18, 2016 through 1
to FSA/OJK dated (one) daily nationwide (one) daily nationwide at QNB Tower 3rd (one) daily nationwide
December 23, 2015 circulation newspaper circulation newpaper Floor, 18 Parc SCBD, Jl. circulation newspaper
regarding the AGM namely Investor Daily, namely Investor Daily, Jenderal Sudirman Kav. namely Investor Daily,
Implementation Plan. and through the Bank’s and through the Bank’s 52-53, Jakarta. Chaired and through the Bank’s
website. website. by Suroto Moehadji, website.
the Independent
Commissioner appointed
by the Board of
Commissioners of the
Bank.

No. Agendas Resolutions

1. Approval of Annual Report including a. Well accepted and approved the Bank’s Annual Report for the financial year
Board of Directors’ Report, Board ended on December 31, 2015, including Board of Directors Report and Board of
of Commissioners’ Report and Commissioners Supervisory Report;
legalization of financial statements for b. Well accepted and approved as well as legalized the Bank’s Financial Statements
the financial year ended in December for the financial year ended on December 31, 2015, audited by the Public
31, 2015 Accountant Firm “Purwantono, Sungkoro & Surja” a member of the Ernst &
Young Public Accounting Firm according to its Report No. RPC-216/PSS/2016
dated January 11, 2016, with “unqualified opinion”, therefore, granted full
release and discharge for all members of the Board of Directors and the Board of
Commissioners of any responsibilities and obligations (acquit et de charge) for
the management and supervision performed in 2015, provided that such actions
are reflected in the Financial Statements of 2015.

2 Determination of the use of net Approved the use of Bank’s net profit in financial year ended on December 31, 2015
profit for the financial year ended in amounting to IDR 156,045,208,672, as the following:
December 31, 2015 a. In the amount of IDR1,000,000,000 set aside as reserves to comply with Article
70 paragraph 1 in the Law No. 40 of 2007 on Limited Liability Company;
b. The remainder of the net profit after deducting reserves, which is amounted
to IDR 155,045,208,672, entirely determined as retained earnings of the Bank.
Thereby, not distributed as dividends to the shareholders.

158 PT Bank QNB Indonesia Tbk


Performance
No. Agendas Resolutions

2016
3. Appointment of Public Accountant a. Approved to appoint the Public Accounting Firm “Purwantono, Sungkoro &
Firm for the financial year of 2016 Surja”, a member of the Ernst & Young Global Limited as the Bank’s Public
Accountant Firm, to audit the Bank’s book for the financial year ended on
December 31, 2016;
b. Authorized the Board of Directors to determine the honorarium amount for such
Public Accountant Firm and other requirements.

Management
4. Changes in the composition of the a. Accepted the resignation of Rusli as the Bank’s Director. The resignation is

Report
Board of Commissioners and Board of effective since the closing of AGM;
Directors of the Bank b. Accepted the resignation of Muthu Chidambaram as the Bank’s Commissioner
and Andrew McGregor Duff as the Bank’s President Director. The resignation
shall become effective since February 28, 2016;
c. Approved appointment of M. Agus S. Meliala as the Bank’s Director wih term of
office since the date of FSA/OJK approval on the Fit and Proper Test up to the
Bank’s AGM which will be held in 2018;
d. 1) By the resignation of Rusli as the Bank’s Director, thereby the composition of
members of the Board of Directors and Board of Commissioners since the
closing of AGM, are as follows:

Company
Profile
Board of Directors:
President Director : Andrew McGregor Duff
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Independent Director : Windiartono Tabingin
Director : Novi Mayasari

Management Discussion
Board of Commissioners:

and Analysis
President Commissioner : Ali Ahmed Z A Al-Kuwari
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Djoko Sarwono
Independent Commissioner : Muhammad Anas Malla
Commissioner : Grant Eric Lowen
Commissioner : Muthu Chidambaram

2) By the effectively of resignation of Muthu Chidambaram as the Bank’s


Commissioner and Andrew McGregor Duff as the Bank’s President Director
on February 28, 2016 as well as appointment of M. Agus S. Meliala as the
Bank’s Drector shall be effective since the date of FSA/OJK approval on

Governance
Corporate
Fit and Proper Test, thereby the composition of members of the Board of
Directors and Board of Commissioners of the Bank since February 28, 2016,
are as follows:

Board of Directors:
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Independent Director : Windiartono Tabingin
Director : Novi Mayasari
Social Responsibility

Board of Commissioners:
Corporate

President Commissioner : Ali Ahmed Z A Al-Kuwari


Independent Commissioner : Suroto Moehadji
Independent Commissioner : Djoko Sarwono
Independent Commissioner : Muhammad Anas Malla
Commissioner : Grant Eric Lowen

PT Bank QNB Indonesia Tbk 159


Passion for Excellence at Its Best
Annual Report 2016

No. Agendas Resolutions

3) The composition of members of Board of Directors and Board of Comissioners


of the Bank upon the appointment of M. Agus S. Meliala as the Bank’s
Director has obtained the FSA/OJK approval on Fit and Proper Test, are as
follows:

Board of Directors:
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Independent Director : Windiartono Tabingin
Director : Novi Mayasari
Director : M. Agus S. Meliala

Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Djoko Sarwono
Independent Commissioner : Muhammad Anas Malla
Commissioner : Grant Eric Lowen

4) The term of office of all Board of Directors and Board of Comissioners of the
Bank such above are for the term of office that will be ended upon the closing
of the Bank’s AGM which will be held in 2018, without prejudice the AGM
rights to dismiss at any time.

e. Granted an authorization to the Bank’s Board of Directors to state the changes of


composition of Board of Commissioners and Board of Directors of the Bank in a
separate deed before a Notary (if required) and to arrange announcement to the
Minister of Law and Humans Right of Republic of Indonesia.

5. Determination of the honorarium/ Approved the delegation of power and authority to the Qatar National Bank S.A.Q as
salary and other allowance for the the Bank’s Controller Shareholder which has 82.59% shares of the Bank to determine
Board of Directors and Board of the amount of salary or honorarium, premium and other allowances for the financial
Commissioners’ members. year of 2016 to respectively member of Board of Commissioners and Board of Directors
of the Bank.

6. Accountability of Realization on the Accepted Accountability Report of Realization on the Fund Usage of Initial Public
Fund Usage of Limited Public Offering Offering II.
II Result

Resolution Making Attendance in 2016 AGM quorum requirements of AGM, so


and Follow-Up of the The shareholders who entitled as valid and entitled to make legal
to attend the AGM are the and binding resolutions. The AGM
Resolution of 2016 AGM shareholders who registered in was attended by several members
the Register of Shareholders of the of the Board of Commissioners,
All of the resolutions of the Bank’s
Bank as of January 22, 2016 issued namely Suroto Moehadji, Djoko
AGM were resolved by deliberation
by PT Adimitra Jasa Korpora as Sarwono and Muhammad Anas
to reach a mutual consensus and
the Bank’s Share Administration Malla, as well as all members of
all of the resolutions have been
Bureau. AGM was attended by the the Board of Directors. In addition,
realized.
shareholders and/or their proxies AGM was also attended by the
who represented 7,975,790,928 Notary, representatives from Share
shares or approximately 91.08% of Administration Bureau and Public
the total shares issued by the Bank, Accountant.
therefore, the AGM has met the

160 PT Bank QNB Indonesia Tbk


Performance
EGM (April 13, 2016)

2016
EGM Notification EGM Announcement EGM EGM EGM
to Regulators Invitation Execution Results

Submitted the Announced on March Announced on March EGM was held on April Announced on April
Notification Letter 7, 2016 through 1 22, 2016 through 1 13, 2016, at QNB Tower 14, 2016 through 1
to FSA/OJK dated (one) daily nationwide (one) daily nationwide 3rd Floor, 18 Parc SCBD, (one) daily nationwide

Management
February 26, 2016 circulation newspaper circulation newspaper Jl. Jenderal Sudirman Kav. circulation newspaper

Report
regarding the EGM namely Investor Daily, namely Investor Daily, 52-53, Jakarta. Chaired namely Investor Daily,
Implementation Plan. and through the Bank’s and through the Bank’s by Suroto Moehadji, and through the Bank’s
website. website. the Independent website.
Commissioner, appointed
by the Board of
Commissioners of the
Bank.

Company
Profile
No. Agendas Resolutions

1. Changes in the composition of the a. Approved the appointment of Andrew McGregor Duff as the Bank’s
Board of Commissioners and Board of Commissioner and R. Andi Kartiko utomo as the Bank’s Director, with term of
Directors of the Bank office since the date of FSA/OJK approval on Fit and Proper Test up to the Bank’s
AGM which will be held in 2018. Thereby, the composition of members of Board

Management Discussion
of Commissioners and Board of Directors upon the appointment of Andrew
McGregor Duff as the Bank’s Commissioner as well as M. Agus S. Meliala and R.

and Analysis
Andi Kartiko Utomo respectively as the Bank’s Director, upon obtaining FSA/
OJK approval on Fit and Proper Test, are as follows:

Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Djoko Sarwono
Independent Commissioner : Muhammad Anas Malla
Commissioner : Grant Eric Lowen
Commissioner : Andrew McGregor Duff*)

Governance
Corporate
Board of Directors:
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Independent Director : Windiartono Tabingin
Director : Novi Mayasari
Director : M. Agus S. Meliala*)
Director : R. Andi Kartiko Utomo*)
*) shall be effective upon obtaining FSA/OJK approval on fit and proper test
Social Responsibility

The term of office of all members of Board of Commissioners and Board of


Directors of the Bank shall be expired at the closing of AGM of the Bank which
Corporate

will be held in 2018, without prejudice the GMS’ rights to dismiss at any time.

b. Granted an authorization to the Bank’s Board of Directors to state the changes of


composition of Board of Commissioners and Board of Directors of the Bank in a
separate deed before a Notary (if required) and to arrange announcement to the
Minister of Law and Humans Right of Republic of Indonesia

PT Bank QNB Indonesia Tbk 161


Passion for Excellence at Its Best
Annual Report 2016

Resolution Making Attendance in EGM dated April 13, therefore, the EGM has met the
and Follow-Up of the 2016 quorum requirements of EGM, so as
The shareholders who entitled valid and entitled to make legal and
Resolution of EGM on to attend the EGM are the binding resolutions. The EGM was
April 13, 2016 shareholders who registered in attended by several members of the
the Register of Shareholders of the Board of Commissioners, namely
All of the resolutions of the Bank’s Bank as of March 21, 2016 issued Suroto Moehadji, Djoko Sarwono
EGM were resolved by deliberation by PT Adimitra Jasa Korpora as and Muhammad Anas Malla, as
to reach a mutual consensus and the Bank’s Share Administration well as all members of the Board
all of the resolutions have been Bureau. EGM was attended by the of Directors. In addition, EGM
realized. shareholders and/or their proxies was also attended by the Notary
who represented 7,262,343,962 and representatives from Share
shares or approximately 82.93% of Administration Bureau.
the total shares issued by the Bank,

162 PT Bank QNB Indonesia Tbk


Performance
EGM (December 19, 2016)

2016
EGM Notification EGM Announcement EGM EGM EGM
to Regulators Invitation Execution Results

Submitted the Announced on October Announced on October EGM was held on Announced December
Notification Letter to 12, 2016 through 1 27, 2016 through 1 December 19, 2016, at 21, 2016 through 1
FSA/OJK dated October (one) daily nationwide (one) daily nationwide QNB Tower 3rd Floor, 18 (one) daily nationwide

Management
4, 2016 regarding the circulation newspaper circulation newspaper Parc SCBD, Jl. Jenderal circulation newspaper

Report
EGM Implementation namely Investor Daily, namely Investor Daily, Sudirman Kav. 52-53, namely Investor Daily,
Plan. and through the Bank’s and through the Bank’s Jakarta. and through the Bank’s
website. website. In addition, the website.
Bank also announced Chaired by Djoko
reinvitation on November Sarwono, the
17, 2016 through 1 Independent
(one) daily nationwide Commissioner, appointed
circulation newspaper by the Board of
namely Investor Daily, Commissioners of the
and through the Bank’s Bank.

Company
website.

Profile
No. Agendas Resolutions

Management Discussion
1. Changes in the composition of the a. Approved to cancel the appointment of R. Andi Kartiko Utomo as the Bank’s
Board of Directors of the Bank Director to comply with the prevailing provisions according to the Circular Letter

and Analysis
of OJK No. 39/SEOJK.03/2016 dated September 13, 2016.
b. - Approved the re-appointment of R. Andi Kartiko Utomo and appointment
of Junita Wangsadinata respectively as the Bank’s Director.
- Appointment of R. Andi Kartiko Utomo as the Bank’s Director with length
of service since the date of FSA (OJK) approval on Fit and Proper Test until
the Bank’s AGM which will be held in 2018.
- While, the appointment of Junita Wangsadinata as the Bank’s Director
with length of service since February 16, 2017 and upon obtaining FSA
(OJK) approval on Fit and Proper Test until the Bank’s AGM which will be
held in 2018.
- Therefore, the composition of Board of Commissioners and Board of

Governance
Corporate
Directors members upon the appointment of Andrew McGregor Duff as the
Bank’s Commissioner and R. Andi Kartiko Utomo as the Bank’s Director,
obtained approval from FSA (OJK) on Fit and Proper Test, are as follows:
Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Djoko Sarwono
Independent Commissioner : Muhammad Anas Malla
Commissioner : Grant Eric Lowen
Social Responsibility

Commissioner : Andrew McGregor Duff*)



Corporate

Board of Directors:
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Independent Director : Windiartono Tabingin
Director : Novi Mayasari
Director : R. Andi Kartiko Utomo**)

*) has been appointed through the Bank’s EGM dated April 13, 2016 and
shall be effective upon obtaining approval from FSA (OJK) on Fit and
Proper Test.
**) shall be effective upon obtaining approval from FSA (OJK) on fit and
proper test.

PT Bank QNB Indonesia Tbk 163


Passion for Excellence at Its Best
Annual Report 2016

No. Agendas Resolutions

- While, the composition of Board of Commissioners and Board of Directors


members on April 2, 2017 and appointment of Andrew McGregor Duff
as the Bank’s Commissioner and R. Andi Kartiko Utomo as well as Junita
Wangsadinata, respectively, as the Bank’s Director, obtained approval from
FSA (OJK) on Fit and Proper Test, are as follows:
Board of Commissioners:
President Commissioner : Ali Ahmed Z A Al-Kuwari
Independent Commissioner : Suroto Moehadji
Independent Commissioner : Djoko Sarwono
Independent Commissioner : Muhammad Anas Malla
Commissioner : Grant Eric Lowen
Commissioner : Andrew McGregor Duff*)

Board of Directors:
Director : Azhar bin Abdul Wahab
Director : Lloyd William Rolston
Independent Director : Windiartono Tabingin
Director : Novi Mayasari
Director : R. Andi Kartiko Utomo**)
Director : Junita Wangsadinata***)
*) has been appointed through the Bank’s EGM dated April 13, 2016 and
shall be effective upon obtaining approval from FSA (OJK) on Fit and
Proper Test.
**) shall be effective upon obtaining approval from FSA (OJK) on fit and
proper test.
***) shall be effective since February 16, 2017 and upon obtaining approval
from FSA (OJK) on Fit and Proper Test.

- The length of service of all members of Board of Commissioners and Board of


Directors of the Bank shall be ended at the closing of AGM of the Bank which
will be held in 2018, without prejudice the GMS’ rights to dismiss at any time.

c. Granted an authorization to the Bank’s Board of Directors to state the changes of


composition of Board of Commissioners and Board of Directors of the Bank in a
separate deed before a Notary (if required) and to arrange announcement to the
Minister of Law and Humans Right of Republic of Indonesia.

Resolution Making Attendance in EGM dated therefore, the EGM has met the
and Follow-Up of the December 19,2016 quorum requirements of EGM, so as
The shareholders who entitled valid and entitled to make legal and
Resolution of EGM on to attend the EGM are the binding resolutions. The EGM was
December 19, 2016 shareholders who registered in attended by several members of the
the Register of Shareholders of Board of Commissioners, namely
All of the resolutions of the Bank’s the Bank as of November 16, 2016 Suroto Moehadji, Djoko Sarwono
EGM were resolved by deliberation issued by PT Adimitra Jasa Korpora and Muhammad Anas Malla, as
to reach a mutual consensus and as the Bank’s Share Administration well as several members of the
all of the resolutions have been Bureau. EGM was attended by the Board of Directors, namely Azhar
realized. shareholders and/or their proxies Abdul Wahab and Windiartono
who represented 7,953,409,071 Tabingin. In addition, EGM was
shares or approximately 90.82% of also attended by the Notary
the total shares issued by the Bank, and representatives from Share
Administration Bureau.

164 PT Bank QNB Indonesia Tbk


The Board of Commissioners

Performance
As stipulated in the Indonesia Criteria and Procedures for (5) have never been a member of

2016
Corporate Governance Code, the Appointment of Member the Board of Directors and/or Board
management of a limited liability of Commissioners who have not
company in Indonesia is adopting
of Board of Commissioners organize the Annual GMS; (6) his/
a two board system, namely the her accountability as the Board
Appointment Criteria
Board of Commissioners and of Directors and/or the Board of
In compliance with Financial
the Board of Directors, each of Commissioners was not accepted
Services Authority (FSA/OJK)
which has a clear authority and by the GMS; (7) have not declared
Regulation No.55/POJK.03/2016

Management
responsibility based on their accountability as a member of
dated December 7, 2016 concerning

Report
respective functions as mandated Board of Directors and/or Board of
the Implementaion of Corporate
by the articles of association and Commissioners to GMS; (8) have
Governance for Commercial
laws and regulations. Yet, they both caused a company that obtained
Banks, and refers to the FSA/OJK
have the responsibility to maintain a license, approval, or registration
Regulation No. 33/POJK.04/2014
the company sustainability in the from FSA/OJK did not meet the
regarding the Board of Directors
long term. Accordingly, the Board obligation to deliver annual report
and Commissioners of Issuers
of Commissioners and the Board and/or financial report to FSA/OJK.
and Public Companies, so the
of Directors shall have the same
Board of Commissioners are
perception regarding the company’s Meanwhile, to meet the

Company
Profile
obliged to meet the requirement
vision, mission and values. competence requirement, a member
of integrity, competence, and
of the Board of Commissioners
financial reputation as well as
The Board of Commissioners as an shall have (1) adequate knowledge
passing the Fit and Proper Test
organ of the Bank shall function and/or expertise in banking; (2)
as inquired by PBI No. 23/12/
and be responsible collectively for experience in banking and/or
PBI/2010 dated December 29,
overseeing over the management finance; and; (3) capability to take
2010 on Fit and Proper Test to

Management Discussion
policy, the implementation of the legal action.
the extent not contrary with
management in general, either

and Analysis
the FSA/OJK Regulation No. 27/
regarding the Bank or its business, Apart from posessing required
POJK.03/2016 regarding Fit and
and providing advices to the Board competencies in relation to
Proper Test For the Main Parties
of Directors and ensuring that knowledge, experience, and
of the Financial Institutions
the Bank implements the GCG. In expertise in banking and/or finance
and the FSA/OJK Circular Letter
performing its supervisory duties, industry, all member of Board of
No. 39/SEOJK.03/2016 dated
the Board of Commissioners is Commissioners has to meet the
September 13, 2016 regarding Fit
assisted by an Audit Committee, requirement regarding financial
and Proper Test For the Controller
Remuneration & Nominations reputation as follows:
Shareholders Candidates, the
Committee, and Risk Oversight 1. Has no bad debt;
Governance
Corporate
Member Candidates of the Board of
Committee, which consists 2. Never been declared bankrupt;
Directors and Member Candidates
one or more of the Board of 3. Never being a member of Board
of the Board of Commissioners of
Commissioners members. of Directors and/or Board of
the Bank.
Commissioners that convicted
guilty causing the bankruptcy
In order to meet the requirement
at any company;
of integrity, a candidate member
4. Never been convicted of a
of the Board of Commissioners
Social Responsibility

criminal offense that harm


shall have (1) good character
Corporate

the country financial and/or


and morals; (2) commitment to
related to the financial sector;
comply with the prevailing law and
in 5 (five) years before nomination.
regulations; (3) commitment on the
development of the Bank’s sound
Appointment Procedure
operational (4) is not included in
the Register of Disqualified Person;

PT Bank QNB Indonesia Tbk 165


Passion for Excellence at Its Best
Annual Report 2016

The candidate members of the 5. Term of office for members of Total and Composition of
Board of Commissioners are the Board of Commissioners Board of Commissioners
appointed provided that they have starts since the date defined
met the aforementioned criteria in GMS in which they are Composition and total members
including passing the Fit and appointed and ends for 1 (one) of Board of Commissioners are
Proper Test with the following term. 1 (one) term of office generally established by taking
procedure: for Board of Commissioners into account Bank’s vision, mission,
1. Members of the Board of is 3 (three) years or until the and strategic plans to allow a
Commissioners are appointed adjournment of Annual GMS at more effective, accurate, and
by GMS. the end of 1 (one) service term faster decision making as well as
2. Members of the Board of except defined otherwise by independent actions.
Commissioners shall meet the GMS.
requirements to pass the Fit 6. Independent Commissioners On the AGM held on February 16,
and Proper Test in accordance who have served for 2 2016, the resignation of Muthu
with Bank Indonesia and/or (two) term of office can be Chidambaram as the Bank’s
FSA/OJK regarding Fit and reappointed for the next term Commissioner has been accepted.
Proper Test as well as provision provided that the Independent
of Bank Indonesia and/or FSA/ Commissioners affirm their Based on the resolution of the
OJK regarding Implementation independence before GMS. EGM held on April 13, 2016,
of GCG for Commercial Banks 7. Members of the Board of Andrew McGregor Duff was
3. Members of the Board of Commissioners whose term appointed as a new member in
Commissioners who have of office have ended can be Board of Commissioners and his
been approved on Fit and reappointed, by considering appointment shall be effective
Proper Test from FSA/OJK the prevailing provisions. upon obtaining approval from FSA/
must be appointed by GMS OJK regarding Fit and Proper Test.
within 6 (six) months after Dismissal Procedure
the approval. If the period of Members of the Board of As of December 31, 2016, the
6 (six) months has ended and Commissioners are dismissed by composition and independency of
the candidate has not yet been GMS with the following condition: Bank’s Board of Commissioners
appointed, the FSA/OJK’s 1. The term of office has ended; consist of 6 (six) Commissioners.
approval is marked invalid. 2. Declared bankrupt or placed The total member of Board of
4. Members of the Board of under custody based on a court Commissioners are not exceed the
Commissioners who are ruling; total member of Board of Directors.
appointed in the Bank’s GMS 3. Tender resignation; 50% (fifty percent) of the member
prior to FSA/OJK’s approval 4. No longer meet the prevailing of Board of Commissioners are
will take effect after FSA/OJK’s regulations; Independent Commissioners,
approval. Corporate Secretary 5. Passed away; Indonesian citizens and domiciled
Division is responsible for 6. Dismissed based on GMS in Indonesia. Thus the composition
submitting the application resolution. of the Board of Commissioners
including the documents are in accordance with the Bank
required, to get FSA/OJK’s Indonesia regulation regarding
approval. implementation of GCG for
Commercial Banks.

166 PT Bank QNB Indonesia Tbk


Performance
2016
Basis of BI or FSA/OJK’s Terms of Fit and Proper Test
Name Position
Appointment Approval Office by

Ali Ahmed Z A Al-Kuwari President EGM, January 27, 2012 May 10, 2012 2012-2015 Bank Indonesia
Commissioner 2015-2018

Grant Eric Lowen Commissioner EGM, March 4, 2013 January 16, 2014 2014-2015 Financial Services
2015-2018 Authority (FSA/OJK)

Management
Suroto Moehadji President AGM, March 31, 2010 June 7, 2010 2010-2011 Bank Indonesia

Report
Commissioner

Independent AGM June 24, 2011 2011–2012


Commissioner 2012-2015
2015-2018

Muhammad Anas Malla Independent EGM, September 16, November 24, 2011 2011-2012 Bank Indonesia
Commissioner 2011 2012-2015
2015-2018

Company
Djoko Sarwono Independent EGM October 9, 2015 November 11, 2015 2015-2018 Financial Services

Profile
Commissioner Authority (FSA/OJK)

Andrew McGregor Duff* Commissioner EGM April 13, 2016 - - -

* Shall be effective upon obtaining approval from the Financial Services Authority (FSA/OJK).

Management Discussion
and Analysis
Diversity In the The composition of Board of To ensure the Board of
Composition of Commissioners was determined Commissioners’ Independence, the
by considering the need and shareholders through the General
Members of the Board of complexity of the Bank and to Shareholders Meetings, have
Commissioners support the effectiveness of the appointed 3 (three) Independent
implementation of duty of Board of Commissioners out of the total
The composition of the Board Commissioners. 6 (six) members of the Board of
of Commissioners of the Bank Commissioners.
demonstrates sufficient diversity Independence of Board of
Governance
in the form of a combination of Commissioners
Corporate
Independent Commissioners
independence and expertise, are members of the Board of
education, work experience, and FSA/OJK Regulation No.55/ Commissioners that are devoid
age. Detail explanation/disclosure POJK.03/2016 dated December of any financial, management,
on the background and experience 7, 2016 concerning the share ownership and/or family
of each member of Board of Implementaion of Corporate relations up to the second
Commissioners can be found in the Governance for Commercial Banks degree with other members of
Commissioners Profiles section of and FSA/OJK Regulation No. 33/ the Board of Commissioners,
Social Responsibility

the Annual Report. All members of POJK.04/2014 regarding the Board the Board of Directors, and/or
Corporate

the Board of Commissioners have of Directors and Commissioners controlling shareholders, or any
integrity, competence, and sound of Issuers or Public Companies, other relationships that might
financial reputation, which are stipulates that banks shall have influence their capability of acting
evident by obtaining fit and proper Independent Commissioners independently. The appointment of
test approval from Bank Indonesia at least 50% of the Board of Independent Commissioners will
or FSA/OJK. Commissioners’ members. encourage an impartial working
environment that values fairness

PT Bank QNB Indonesia Tbk 167


Passion for Excellence at Its Best
Annual Report 2016

and equality above all other 1. Do not have authorization 3. Are not affiliated with the
interests including the interests of and responsibilities in Bank, members of the Board
minority shareholders and other planning, leading, controlling, of Commissioners, members of
stakeholders. or supervising the Bank’s the Board of Directors, or the
activities within the last 1 Bank’s major shareholder, and;
In addition to act independently, (one) year, except for the 4. Do not have direct and/or
the Bank’s Independent reappointment as the Bank’s indirect business relationship
Commissioners shall avoid conflicts Independent Commissioner for which is related to the Bank’s
of interest that could interfere their the next term; main activities;
ability to perform their tasks. 2. Do not have direct and/or 5. Meet independence criteria
indirect share ownership in the as regulated in the prevailing
All of the Independent Bank; provision.
Commissioners shall meet the
following requirements:

Statement of Independence of Independent Commissioners


Muhammad Anas
Statement of Independence Suroto Moehadji Djoko Sarwono
Malla
Do not have authorization and responsibilities in planning, leading, √ √ √
controlling, or supervising the Bank’s activities within the last 1
(one) year, except for the reappointment as the Bank’s Independent
Commissioner for the next term.

Do not have direct and/or indirect share ownership in the Bank. √ √ √

Are not affiliated with the Bank, members of the Board of √ √ √


Commissioners, members of the Board of Directors, or the Bank’s
major shareholder.

Do not have direct and/or indirect business relationship which is √ √ √


related to the Bank’s main activities.

Meet independence criteria as regulated in the prevailing provision. √ √ √

Financial or Familial None of the members of the Board With such status, the members of
Relations of Members of Commissioners have familial the Board of Commissioners of the
relationship up to the second Bank shall act independently in the
of the Board of degree with other member of implementation of their duties and
Commissioners Board of Commissioners, Board responsibilities.
of Directors’ members, and/or
Major Shareholders. In addition,
the majority of the Board of
Commissioners do not have
financial relationship with the
controlling shareholder; and at
the same time, all the members of
the Board of Commissioners also
do not have financial relationship
with other members of the Board
of Commissioners and Directors’
members.

168 PT Bank QNB Indonesia Tbk


Performance
Family Relationship with Financial Relationship with

2016
Board of Board of Controlling Board of Board of Controlling
Name Commissioners Directors Shareholder Commissioners Directors Shareholder

Yes No Yes No Yes No Yes No Yes No Yes No

Ali Ahmed Z A Al Kuwari - √ - √ - √ - √ - √ √ -

Grant Eric Lowen - √ - √ - √ - √ - √ √

Management
-

Report
Suroto Moehadji - √ - √ - √ - √ - √ - √

Muhammad Anas Malla - √ - √ - √ - √ - √ - √

Djoko Sarwono - √ - √ - √ - √ - √ - √

Andrew McGregor Duff* - √ - √ - √ - √ - √ - √

* Shall be effective upon obtaining approval from the Financial Services Authority (FSA/OJK).

Company
Profile
Share Ownership by Board The Bank requires the members of As of December 31, 2016,
of Commissioners Board of Commissioners to disclose all the members of Board of
their share ownership amounting Commissioners did not own
to 5% or more, both in the Bank more than 5% (five percent) or
and other companies, which are more of the paid-up capital of

Management Discussion
domiciled in Indonesia or abroad, in the Bank, other banks, non-bank

and Analysis
a report which should be updated financial institution, and any
every year. other companies in Indonesia and
abroad.

Share Ownership
Name
Non-Bank Financial
Bank QNB Indonesia Other Bank Other Companies
Institution

Governance
Corporate
Ahmed Z A Al-Kuwari - - - -

Grant Eric Lowen - - - -

Suroto Moehadji - - - -

Muhammad Anas Malla - - - -

Djoko Sarwono - - - -
Social Responsibility

Andrew McGregor Duff* - - - -


Corporate

* Shall be effective upon obtaining approval from the Financial Services Authority (FSA/OJK).

PT Bank QNB Indonesia Tbk 169


Passion for Excellence at Its Best
Annual Report 2016

Concurrent Position of in a non-financial company, in non-profit organizations or


Board of Commissioners or as a member of the Board institutions, as long as he/she does
of Commissioners, Board of not neglect his/her duties and
Directors or Executive Officer that responsibilities as a member of the
All members of the Board of
undertakes a supervisory role in Bank’s Board of Commissioners.
Commissioners do not hold
a non-bank subsidiary company
concurrent positions that are
controlled by the Bank. All members of the Board of
prohibited by Bank Indonesia
Commissioners have signed
Regulation on the implementation
Not included as holding statement letter stating that
of Good Corporate Governance.
concurrent position when non- they do not hold any concurrent
Bank Indonesia Regulation
independent members of the position prohibited by prevailing
stipulates that Board of
Board of Commissioners conduct regulations. Currently, all members
Commissioners’ members may
functional duties of legal entities of the Board of Commissioners did
only hold 1 (one) concurrent
shareholders in the group business, not have concurrent position other
position as a member of the
and/or members of the Board of than permitted by the prevailing
Board of Commissioners, Board
Commissioners holding positions regulations.
of Directors, or Executive Officer

Concurrent Positions of Board of Commissioners as of December 31, 2016

Board of Commissioners Position Company

Ali Ahmed Z A Al-Kuwari Vice Chairman Commercial Bank International


Chairman QNB Banquee Privée
Chairman QNB Capital
CEO Qatar National Bank
Chairman of Advisory Board MasterCard Middle East and North Africa
Vice Chairman Qatar Exchange

Grant Eric Lowen Board Member QNB AL Ahli


CRO Qatar National Bank

Suroto Moehadji NIL NIL

Muhammad Anas Malla President Commissioner PT Swadarma Sarana Informatiika

Djoko Sarwono President Commissioner Pefindo Credit Bureau

Andrew McGregor Duff* NIL NIL

* Shall be effective upon obtaining approval from the Financial Services Authority (FSA/OJK).

Relationship between Essentially, the Board of 1. The business growth of the


Board of Commissioners Commissioners primarily serves Bank.
as supervisor and advisor to the 2. The Bank’s soundness level
and Board of Directors Board of Directors. While, the main is kept at sound condition in
function of the Board of Directors accordance with the prevailing
is to execute GMS resolution, carry provisions.
out the Board of Commissioners’ 3. Risk management and internal
direction and perform day-to-day control system is carried out
operational activities. However, both adequately.
Board constantly coordinates and 4. The stakeholders’ interest is
collaborates to achieve the Bank’s protected fairly.
goals, vision, and mission. Good 5. Implementation of Good
coordination and teamwork between Corporate Governance
the Board of Commissioners and principles.
Directors is reflected in:

170 PT Bank QNB Indonesia Tbk


Performance
Board of Commissioners’ Transparency of the Board of 4. To perform it duties and

2016
Charter Commissioners responsibilities as stipulated
The Board of Commissioners in point 3 with good will,
Charter also regulates transparency sense of responsibility, and
In order to ensure implementation
aspect in which all of the Bank’s prudent banking principles in
of its supervisory and advisory
Commissioners shall disclose accordance with the Bank’s
duties, the Board of Commissioners
the following matters in the Articles of Association, law
has formulated the Board of
Bank’s Report on Good Corporate and regulation, and the Bank’s
Commissioners’ Manual, which is

Management
Governance Implementation: GMS resolution.
established in the Board Charter No.

Report
1. Share ownership of 5% (five 5. Under certain condition, to
01.08.00 dated August 3, 2015. The
percent) or more, both in the hold Annual GMS and other
Charter contains accountability;
Bank and other banks as well GMS in accordance with its
structure and membership;
as companies which domiciled authorities as stipulated in the
criteria and independency; term of
in Indonesia or abroad. law and the Bank’s Articles of
office; duties and responsibilities;
2. Financial and familial Association.
authorities; work ethics; work value;
relationship with members of 6. In oversight function, to direct,
meeting arrangement; as well as
the Board of Commissioners, monitor, and evaluate the
reporting and responsibilities of the
other member of Board of implementation of the Bank’s

Company
Profile
Board of Commissioners. This Board
Directors, and/or the Bank’s strategic policies.
Manual is formulated by referring to
controlling shareholder. 7. In monitoring function, is
the prevailing regulations from Bank
3. Remuneration and facilities prohibited to involve in the
Indonesia and Financial Services
received from the Bank. decision-making of the Bank’s
Authority (FSA/OJK) as well as
4. Position in other companies. operational activities, except:
best practices, and being reviewed
a. Provision of funds
regularly.

Management Discussion
Duties and to related parties as
Responsibilities of Board regulated in the Bank

and Analysis
Work Ethics of the Board of
Indonesia provision on
Commissioners of Commissioners Legal Lending Limit; and
As stipulated in the Board
b. Other matters established
of Commissioners’ Charter, Duties, responsibilities,
in the Bank’s Articles of
all members of the Board of and authorities of Board of
Association or prevailing
Commissioners: Commissioners are clearly
regulations
1. Shall have good moral. stipulated in the Bank’s
8. In decision-making of
2. Shall be able to take legal Articles of Association, Board
operational activities as
action. of Commissioners Charter in
stipulated in point 7, it is part
Governance
Corporate
3. Shall keep confidentiality of all accordance with the prevailing law
of oversight by the Board of
of the Bank’s documents, data, and regulations:
Commissioners. The Board of
and information.
Commissioners’ involvement
4. Are prohibited to misuse the Duties and Responsibilities of the
or approval did not negate
Bank for personal, family and/ Board of Commissioners
the Board of Directors’
or other party’s interest which 1. To perform its duties and
responsibilities in the Bank’s
can result in the Bank’s loss or responsibilities independently.
management
reduced profits. 2. To ensure the implementation
Social Responsibility

9. To ensure that the Board of


5. Are prohibited to take and/ of GCG principles in any
Corporate

Directors has taken follow-


or receive personal benefit business activities of the Bank
up actions on audit findings
from the Bank, other than at all level of the organization.
and recommendations of
remuneration and other 3. To supervise and responsible
the Internal Audit Division,
facilities established in GMS. on the supervision of the
External Auditor, and
6. Are prohibited to directly management policies, the
monitoring reports of the
and indirectly make a wrong management of the Bank and
Financial Services Authority
statement or hide facts its business in general and to
(FSA/OJK), Bank Indonesia,
about the Bank’s condition provide advice to the Board of
and/or other authorities
at the time the statement is Directors.
made which can results in
misleading statement.

PT Bank QNB Indonesia Tbk 171


Passion for Excellence at Its Best
Annual Report 2016

10. To inform the Financial and prudent banking Duties Implementation of


Services Authority (FSA/OJK) principles for the interest Board of Commissioners
no later than 7 (seven) working and in accordance with
days since the discovery of: the Bank’s goals and Throughout 2016, the Board of
a. Violations of the finance objectives Commissioners have fulfilled
and banking laws and c. Do not have any conflict their supervisory duties and
regulation, and of interest either directly responsibilities including to
b. Condition or potential or indirectly on the advise the Board of Directors
condition which may oversight which leads to concerning the Bank’s operational
harm the Bank’s business loss, and activities for the benefit of the
continuity, among d. Has taken action to Bank in accordance to its purposes
others, based on the prevent the loss or the and objectives. The Board of
recommendations of the continuing of loss Commissioners also provide
Committees which assist 16. To improve their competences recommendation to the Board
the effectiveness of the by continuously participating of Directors, conduct Induction
duties of the Board of in trainings, understanding Program, and participates in
Commissioners. Matters banking regulation and both training and competence
that must be reported general knowledge particularly development program which will
as mentioned above are regarding economy. be detailed as follows:
matters that have not
been or are not being Authorities of the Board of Recommendation of the Board of
reported to the FSA/OJK Commissioners Commissioners
by the Bank and / or by 1. To access documents, data, and 1. Revision of Bank’s Business
the Compliance Director information about the Bank’s Plan for 2016-2018
11. In order to support the employees, fund, assets, and 2. Bank’s Business Plan for 2017-
effectiveness of their duties resources which are deemed 2019
and responsibilities, to necessary. 3. Supervise, evaluate, and
establish: 2. In relation to the provide inputs to actual results
a. Audit Committee implementation of its duties of the Bank’s Business Plan
b. Risk Oversight Committee and responsibilities, to 4. Monitor the implementation
c. Remuneration and communicate directly with the of work plan carried out by
Nomination Committee Board of Directors, employees, Committees under the Board of
12. To ensure that the Committees and other parties. Commissioners
established as stipulated in 3. If required, to involve 5. Approve the schedule and
point 11, performs its duties independent party other agenda of Annual and
effectively. than members of the Board Extraordinary GMS
13. To evaluate on the of Commissioners to help 6. Approve the resignation of 2
Committees’ performance Board of Commissioners in Directors and 1 Commissioner’s
every year end. performing their duties. Bank to the GMS
14. Are collectively responsible for 4. May temporarily dismiss 7. Recommend the Bank’s 3
the Bank’s loss which caused a member of the Board candidate of BoD members and
by the mistake or negligence of Directors from his/her 1 candidate of BoC member to
of the Board of Commissioners position by stating the reasons the GMS
members in performing their therefore. 8. Approve to purchase the land
duties. 5. In certain circumstance, to and building as a branch office
15. Will not be held accountable manage the Bank temporarily 9. Approve the appointment
for the Bank’s loss if they can by following prevailing laws 2 new members of Audit
prove that: and regulations. Committee
a. The loss is not due to their 6. To perform other authorities 10. Approve the appointment a
mistakes or negligence in accordance with the Bank’s new Chief Auditor of the Bank
b. Has conduct supervision Articles of Association and the 11. Approve to sell the foreclosed
with good will, high prevailing law and regulations. assets of the Bank.
sense of responsibility,

172 PT Bank QNB Indonesia Tbk


Performance
Board of Commissioners Induction new Commissioner will also have of members of the Board of

2016
Program discussion with other member Commissioners on current
The Bank has an induction program of the Board of Commissioners, developments in the banking
for the new Commissioner by members of Committees and industry and other knowledge
sharing Annual Report, Quarterly attended the meeting with Board of related to the implementation of
Financial Report, Bank’s Business Directors. the duties and responsibilities of
Plan, and Board of Commissioner the Board of Commissioners.
Charter as a reference and overview Training and Competence

Management
of the Bank’s business activities Development Program The training programs provided to

Report
so as to support him in carrying The Board of Commissioners are Commissioners in 2016 included:
out supervisory function of the enrolled in training programs
Board of Commissioners. The to enhance the knowledge

Name Position Date Program Place

Ali Ahmed Z A Al President Commissioner January 18, 2016 – Institute of International Madrid, Spain
Kuwari January 19, 2016 Finance (IIF) Board

Company
Profile
Meeting

January 21, 2016 Business Forum Qatar Doha, Qatar

March 15, 2016 – MEED – Qatar Project Doha, Qatar


March 16, 2016 Conference

March 29, 2016 – Doha International Doha, Qatar

Management Discussion
March 30, 2016 Maritime Defence
Conference and Exhibition

and Analysis
2016 (DIMDEX)

May 23, 2016 – Institute of International Zurich, Switzerland


May 25, 2016 Finance (IIF) and
Emerging Markets
Advisory Council
(EMAC), CEO and Spring
Membership Meetings

Grant Eric Lowen Commissioner May 31, 2016 Prima Forum on IFRS Doha, Qatar

Governance
Corporate
President Commissioner July 21, 2016 Cyber Maturity Review Doha, Qatar
Training

Suroto Moehadji Independent July 30, 2016 QNB Values Festival Jakarta, Indonesia
Commissioner

Muhammad Anas Malla Independent July 30, 2016 QNB Values Festival Jakarta, Indonesia
Commissioner
Social Responsibility

Djoko Sarwono Independent September 5, 2016 National Economy in Jakarta, Indonesia


Corporate

Commissioner Global Context

September 7, 2016 Money Market and Capital Jakarta, Indonesia


Market as well as Regional
Economic

September 8, 2016 Financial System Jakarta, Indonesia


Oversight Policies

September 13, 2016 Banking and IKBN System Jakarta, Indonesia


in Indonesia

PT Bank QNB Indonesia Tbk 173


Passion for Excellence at Its Best
Annual Report 2016

Evaluation on Board profile, GCG, profitability and related to the implementation of


of Commissioners’ capital. The organs that evaluate its supervisory function to the
the performance of the Board of management of the Bank.
Performance Commissioners is the GMS.
In addition to self-assessment,
Assessment of performance of the
Assessments of the performance assessment of the Board of
Board of Commissioners is held
of the Board of Commissioners has Commissioners is conducted
once every year, using the method
been conducted based on the self- during the presentation of annual
of self-assessment. The success of
assessment report submitted to report to the GMS. At the GMS, the
the performance of the Board of
FSA/OJK regularly, in compliance shareholders approved the annual
Commissioners is the result of the
with Bank Indonesia Circular Letter report of the Bank for financial
collegial work of the entire Board of
number 15/15/DPNP dated April year 2016 and the results achieved
Commissioners which is reflected
29, 2013, on the Implementation during that year. Furthermore, the
in the realization of the Bank’s
of Good Corporate Governance GMS granted full discharge and
Business Plan. The performance
for Commercial Banks, in which acquittal (aquit et decharge) to the
of the Board of Commissioners
the parameters of the Board of Board of Commissioners for 2016
is assessed based on Bank’s risk
Commissioners’ performance are fiscal year.

Policy and Procedure of Board of Commissioners Remuneration

AGM
Stipulation on
Proposal Submission Board of
Board of Salary/Honorarium
to AGM by the Board AGM Commisioners
Commissioners and allowances for
of Commisioners Remuneration
the Board of
Commissioners

Remuneration
& Nomination
Remuneration &
Committee’s (RNC)
Nomination
Recommendations
Committe (RNC)
for BOC to be
submitted to AGM

Board of Commissioners In general, the Bank determines Board of Commissioners


Remuneration Policy remuneration package by referring Remuneration’s Procedures
to the Bank’s internal policies, Board of Commissioners
In accordance with the Bank’s prevailing laws and regulations, Remuneration procedure consists
Articles of Association, salary or industry comparison, and by of several phases which include
honorarium and other allowances taking into account the Bank’s formulation, analysis, proposal, and
for the Board Commissioners are performance in current year. The establishment. The formulation of
established by the General Meeting amount of remuneration for the remuneration policy and proposal
of Shareholders. Board of Commissioners members is carried out by the Remuneration
is set based on their performance. and Nomination Committee by

174 PT Bank QNB Indonesia Tbk


Performance
gathering information about salary or honorarium and other The Board of Commissioners’

2016
remuneration standard for the allowances for each member remuneration package comprised
position and the similar industry in of the Board Commissioners. of:
the market and taking account of The determination of salary or a. Gross remuneration (salary,
the Bank’s performance. honorarium and other allowances allowances, bonus);
for each member of the Board b. Other facilities (health
The AGMS held on February Commissioners by considering insurance)
16, 2016 approved the granting the recommendation from

Management
authority to Qatar National Bank, Remuneration and Nomination The Board of Commissioners’

Report
as the majority Shareholders of Committee of the Bank. remuneration structure and
the Bank to determine the 2016 amount in 2016 are as follows:

Amount Received in a Year

Position Type of Remuneration


Number of People Millions of Rupiah

Company
Profile
Board of Commissioners Remuneration (Gross salary, bonuses, routine 4 4,141
allowances, and other facilities in the form of non-
in kind)

Other Facilities in the form of in kind (housing, 4 66


transportation, health insurance, and others)
a. may be owned
b. may not be owned

Management Discussion
and Analysis
Total 4 4,207

Total Remuneration per Person in 1 (one) year*) Total Board of Commissioners

Above Rp2 billion -

Above Rp1 billion–Rp2 billion 4

Above Rp500 million–Rp1 billion -

Governance
Corporate
Rp500 million and below -

*) received in cash

Ratio of Highest and Lowest Salary


The compared salaries in this ratio are those received by members of the Board of Commissioners, Board of
Social Responsibility

Directors and employees each month.


Corporate

PT Bank QNB Indonesia Tbk 175


Passion for Excellence at Its Best
Annual Report 2016

Ratio Type Ratio

Employee’s Highest and Lowest Salary Ratio 1 : 61.7

Director’s Highest and Lowest Salary Ratio 1 : 2.1

Commissioner’s Highest and Lowest Salary Ratio 1 : 1.0

Director’s Highest and Employee’s Highest Salary Ratio 1 : 2.4

Director’s Highest and Commissioner’s Highest Salary Ratio 1 : 6.3

Director’s Lowest and Commissioner’s Lowest Salary Ratio 1 : 2.9

Meetings of the Board of 3. The Board of Commissioners which attended or represented


Commissioners shall schedule the Board of by majority of member of
Commissioners Meetings for Board of Commissioners.
Meetings of the Board of the following year before the 7. Call for Meeting shall include
Commissioners are held regularly, financial year ends. information on agenda, date,
in accordance with the Bank’s 4. Call for the Board of time and place of the Meeting.
Article of Association and other Commissioners Meetings 8. In the scheduled Board of
prevailing regulations, with the is done by the President Commissioners Meetings,
provision and procedure as follows: Commissioner or one of the meeting material shall be
1. The Board of Commissioners the member of the Board of shared to the participants no
Meetings shall be held Commissioners. later than 5 (five) days before
at least 1 (one) time in 3 5. Call for the Board of the meeting.
(three) months and can be Commissioners Meetings 9. In the un-scheduled meeting,
held any time whenever shall be given in written or the meeting material is shared
deemed necessary by one of delivered or handed directly to the participants before the
the Commissioners or upon with adequate receipt or with meeting is convened, at the
written request from the Board registered mail or with courier latest.
of Directors or upon request service or with telex, facsimile, 10. The Board of Commissioners
from 1 (one) shareholder or through other means of Meetings are held in the
or more which collectively communication. The call territory of the Republic of
represent 1/10 (one tenth) part should be sent to members of Indonesia area, particularly at:
of total shares issued by the the Board of Commissioners no a. Where the Bank is
Bank with valid vote. later than 5 (five) days before domiciled
2. The Board of Commissioners the Board of Commissioners b. Where the Bank conducts
Meetings shall be physically Meeting or in urgent situation its main business
attended by all members of no later than 1 (one) day activities
the Board of Commissioners prior. The urgent situation c. Capital Province where
at least 2 (two) times a year. is defined by the President the Bank is domiciled or
Physical attendance by all Commissioner or the majority conduct its main business
members of the Board of of Commissioners. activities, or
Commissioners, is primarily 6. Call for the Board of d. Domicile Province where
essential for evaluation or Commissioners Meetings is not the Stock Exchange where
establishment of strategic required if all members of the the Bank’s shares are
policies as well as evaluation Board of Commissioners are listed
on the Bank’s business plan present and/or represented in
results. the Board of Commissioners
Meetings or if the Meetings has
been scheduled based on the
decision of the previous Board
of Commissioners Meeting

176 PT Bank QNB Indonesia Tbk


Performance
If all members of the Board 14. a. Every member of the 17. Dissenting opinions occurred

2016
of Commissioners is present Board of Commissioners in the Board of Commissioners
of represented, the Board in attendance is entitled Meeting shall be disclosed
of Commissioners Meeting for 1 (one) vote and clearly in the minutes of the
can be held anywhere in additional 1 (one) vote for meeting including the reason
the territory of Republic of every Commissioner being of such dissenting opinion.
Indonesia and are entitled to represented. 18. Minutes of the Board of
make a legitimate and binding b. Every member of the Commissioners Meeting is a

Management
decision. Board of Commissioners valid proof on the decisions

Report
11. The President Commissioner which direct or indirectly made in the Board of
shall chair the Board of has a conflict of interest Commissioners Meeting, both
Commissioners Meeting. in a transaction, contract, for the members of the Board
In case that the President or proposed contract of Commissioners and third
Commissioner is absent or related to the Bank, such parties.
unavailable to attend the member of the Board of 19. The Board of Commissioners
Meeting which no need to be Commissioners is not can also make a valid and
proven to other parties, the entitled to join the voting binding decision without
Meeting shall be chaired by about matters related holding a meeting provided

Company
Profile
one of the Commissioners to the aforementioned that all members of the Board
appointed by and from transaction or contract of Commissioners have been
members of the Board of except decided otherwise informed in written about
Commissioners who is present by the Meeting. the proposal and all member
in the Meeting. c. Voting related to someone of Board of Commissioners
12. A Commissioner can only be is carried out through have approved and signed

Management Discussion
represented by other member secretly ballot without the proposal. That kind of
of the Board of Commissioners signature while voting decision has a similar power

and Analysis
in the Board of Commissioners on other matters is with the valid decision taken
Meeting with Proxy Letter. carried out verbally in the Board of Commissioners
13. The Board of Commissioners except decided otherwise Meeting.
Meeting is valid and entitled by the Chairman of 20. The Board of Commissioners
to make a binding decision if Meeting without any Meeting can also be convened
more than ½ (half) members objection from the through teleconference,
of the Board of Commissioners meeting’s participants in video conference, and other
are present or represented in attendance. electronic media which enable
the meeting. 15. The results of Board of all participants to directly see
Governance
Corporate
Commissioners Meeting shall and/or hear each other and
Decision in the Board of be stipulated in a minutes participate in the Meeting. The
Commissioners Meeting of the meeting, signed by Meeting should be convened
shall be made by means all members of the Board of in accordance to the prevailing
of deliberations to reach a Commissioners in attendance, provisions and minutes of the
consensus. If no resolution shared to all members of the Meeting should be prepared
can be reached by means Board of Commissioners, and and distributed to all meeting
Social Responsibility

of deliberations to reach a well-documented. participants to be signed.


Corporate

consensus, then the resolution 16. In case there are any The decision taken has a
is made by way of simple Commissioners who did similar power with the valid
majority of votes based on the not sign the minutes of the decision taken in the Board of
agree votes more than ½ (half) meeting, the concerned Commissioners Meeting.
of total legitimate votes in the Commissioner should state
Meeting. In the event of a tie, their reasons in writing in a
the chairman of the meeting separate letter and shall be
shall be entitled to cast the attached to the minutes of
deciding vote. meeting.

PT Bank QNB Indonesia Tbk 177


Passion for Excellence at Its Best
Annual Report 2016

Frequency of Meetings of Board of Commissioners and Attendance Record


In 2016, the Board of Commissioners have conducted 12 (twelve) meetings, included 6 (six) meetings with Board
of Directors of the Bank. The following table shows the attendance frequency of each Commissioner in the
meetings.

Board of Commissioners Meetings and Attendance Level

Name Position Physical Video Conference % Attendance


Attendance

Ali Ahmed ZA Al Kuwari President 2 4 100%


Commissioner

Grant Eric Lowen Commissioner 3 3 100%

Suroto Moehadji Independent 6 - 100%


Commissioner

Muhammad Anas Malla Independent 6 - 100%


Commissioner

Djoko Sarwono Independent 5 - 83%


Commissioner

Andrew McGregor Duff* Commissioner 6 - 100%

*) Attended as an Invitee due to he was appointed as a Commissioner of the Bank based on resolution of the
Bank’s EGM dated April 13, 2016 which shall be effective upon obtaining approval from the Financial Services
Authority (FSA/OJK) on fit and proper test.

Board of Commissioners and Board of Directors’ Meetings

Name Position Physical Video Conference % Attendance


Attendance

Ali Ahmed ZA Al Kuwari President 2 4 100%


Commissioner

Grant Eric Lowen Commissioner 3 3 100%

Suroto Moehadji Independent 6 - 100%


Commissioner

Muhammad Anas Malla Independent 6 - 100%


Commissioner

Djoko Sarwono Independent 5 - 83%


Commissioner

Andrew McGregor Duff* Commissioner 6 - 100%

Azhar bin Abdul Wahab Act. President 6 - 100%


Director

Lloyd William Rolston Director 6 - 100%

Windiartono Tabingin Director 6 - 100%

Novi Mayasari Director 6 - 100%

178 PT Bank QNB Indonesia Tbk


Performance
Name Position Physical Video Conference % Attendance

2016
Attendance

R. Andi Kartiko Utomo** Director 5 - 83%

Junita Wangsadinata*** Director NIL NIL NIL

*) Attended as a President Director of the Bank in 1 (one) meeting and as an Invitee in 5 (five) meetings due

Management
to he was appointed as a Commissioner of the Bank based on resolution of the Bank’s EGM dated April 13,

Report
2016 which shall be effective upon obtaining approval from the Financial Services Authority (OJK) on fit and
proper test.
**) Attended as an Invitee due to he was appointed as a Director of the Bank based on resolution of the Bank’s
EGM dated April 13, 2016 which shall be effective upon obtaining approval from the Financial Services
Authority (OJK) on fit and proper test.
***) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated December 19, 2016 which
shall be effective on February 16, 2017 and upon obtaining approval from the Financial Services Authority
(OJK) on fit and proper test.

Company
Profile
Meetings’ Agendas
In 2016, the Board of Commissioners has held 6 (six) meetings with the agenda as follows:

Date Meeting Agenda

February 25, 2016 1. RNC recommendation on remuneration for BoC, BoD and employee, as well as Performance

Management Discussion
Management;
2. RNC recommendation on the candidacy of Commissioner and Director.

and Analysis
April 19, 2016 1. Meeting opening:
a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting.
2. Committees reports:
a. Audit Committee;
b. Risk Oversight Committee;
c. Remuneration and Nomination Committee.
3. List of BoC approval by circulation.

Governance
4. Meeting close:

Corporate
a. Matters for disclosure;
b. Meeting Evaluation;
c. Next Meeting.

June 16, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting.
Social Responsibility

2. Committees reports:
a. Audit Committee;
Corporate

b. Risk Oversight Committee;


c. Remuneration and Nomination Committee.
3. List of BoC approval by circulation.
4. Meeting close:
a. Matters for disclosure;
b. Meeting Evaluation;
c. Next Meeting.

August 29, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting.

PT Bank QNB Indonesia Tbk 179


Passion for Excellence at Its Best
Annual Report 2016

Date Meeting Agenda

2. Committees reports:
a. Audit Committee;
b. Risk Oversight Committee;
c. Remuneration and Nomination Committee.
3. List of BoC approval by circulation.
4. Meeting close:
a. Matters for disclosure;
b. Meeting Evaluation;
c. Next Meeting.

October 17, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting.
2. Committees reports:
a. Audit Committee;
b. Risk Oversight Committee;
c. Remuneration and Nomination Committee.
3. List of BoC approval by circulation.
4. Meeting close:
a. Matters for disclosure;
b. Meeting Evaluation;
c. Next Meeting.

December 15, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting.
2. 2017 BoC Meeting Schedule.
3. Matters for Discussion:
a. Annual Review on BoC and Committees’ Charters
b. Annual Self-Assessment of BoC
c. Annual Assessment on Committee’s Performance
4. Committees reports:
a. Audit Committee;
b. Risk Oversight Committee;
c. Remuneration and Nomination Committee.
5. List of BoC approval by circulation.
6. Meeting close:
a. Matters for disclosure;
b. Meeting Evaluation;
c. Next Meeting.

180 PT Bank QNB Indonesia Tbk


Performance
Beside the meetings as mentioned above, in 2016, the Board of Commissioners and Board of Directors have held 6

2016
(six) meetings with the agenda as follows:

Date Meeting Agenda

February 25, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting;

Management
d. Matters arising from previous meeting.

Report
2. Matters for decision:
a. Major strategic decision
• RNC recommendation on remuneration for BoC, BoD & employee;
b. Other Decision:
• Performance management;
• Extraordinary GMS.
3. Matters for discussion:
a. CEO’s report;
b. Finance report including liquidity;
c. Business performance update;

Company
Profile
d. Review policies (new or revised policies);
e. Delegations & limits;
f. BI health check;
g. Credit portofolio discussion.
4. Matters for noting:
a. Committee reports:
• Audit Committee;
• Risk Oversight Committee;

Management Discussion
• Remuneration & Nomination Committee.
b. Update on AGM’s resolution.

and Analysis
c. Major correspondence/contract:
• OJK/BI correspondence;
• Contract;
d. List of BoC approval by circulation.
5. Meeting Close:
a. Matters for disclosure.

April 19, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;

Governance
Corporate
c. Minutes of previous meeting;
d. Matters arising from previous meeting.
2. Matters for decision:
a. Renewal of Nomination Policy.
b. Surabaya Darmo Branch Office.
3. Matters for discussion:
a. CEO’s Report;
b. Finance Report including liquidity;
c. Business Performance Update;
Social Responsibility

d. Compliance, AML, Legal & Regulatory Update;


e. Internal Audit Reports;
Corporate

f. Risk Profile;
g. Credit Portofolio Update;
h. Free Float.
4. Matters for noting:
a. Update on EGM’s resolution;
b. Major correspondence/contract:
• OJK/BI correspondence;
• Contract.
5. Meeting Close:
• Matters for disclosure.

PT Bank QNB Indonesia Tbk 181


Passion for Excellence at Its Best
Annual Report 2016

Date Meeting Agenda

June 16, 2016 1. Meeting Opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting;
2. Matters for decision:
a. Revised 2016 Bank’s Business Plan;
b. Capital Injection Proposal.
3. Matters for discussion:
a. CEO’s Reports;
b. Finance Report including liquidity;
c. Business Performance Update;
d. Credit Portofolio Update;
e. Risk Profile;
f. Compliance, AML, Legal & Regulatory Update.
4. Matters for noting:
a. Major correspondence/contract:
• OJK/BI correspondence;
• Contract.
5. Meeting close:
a. Matters for disclosure;
b. Next Meeting

August 29, 2016 1. Meeting Opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting;
2. Matters for decision:
a. Cooperation with Artajasa;
b. Fitch Ratings.
3. Matters for discussion:
a. Update on Result of Meeting with FSA/OJK;
b. Finance Report including liquidity;
c. Update on 6 (six) Points Plan;
d. Risk Profile;
e. OJK’s comments on Revised Bank’s Business Plan;
f. Free Float.
4. Matters for noting:
a. Major correspondence/contract:
• OJK/BI correspondence;
• Contract.
5. Meeting close:
a. Matters for disclosure;
b. Next Meeting

182 PT Bank QNB Indonesia Tbk


Performance
Date Meeting Agenda

2016
October 17, 2016 1. Meeting Opening:
a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting;
2. Matters for decision:
a. 2017 Bank’s Business Plan;
b. Delegation & Limit;

Management
c. Limit for Special Asset Management.

Report
3. Matters for discussion:
a. Finance Report including liquidity;
b. Update on 6 (six) Points Plan;
c. Risk Profile.
4. Matters for noting:
a. Major correspondence/contract:
• OJK/BI correspondence;
• Contract.
5. Meeting close:
a. Matters for disclosure;

Company
Profile
b. Next Meeting.

December 15, 2016 1. Meeting opening:


a. Welcome;
b. Disclosure of conflict interest;
c. Minutes of previous meeting;
d. Follow up on findings from special review on Wholesale Banking Credit.
2. Matters for decision:

Management Discussion
a. Finance Report Including Liquidity;
b. Update on 6 (six) Points Plan;

and Analysis
c. Risk Profile.
3. Matters for noting:
a. Major correspondence/contract:
• OJK/BI correspondence;
• Contract.
4. Meeting close
a. Matters for disclosure
b. Next Meeting

Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 183


Passion for Excellence at Its Best
Annual Report 2016

Commitees Under the Board


of Commissioners
The Audit Committee is
particularly established to support
the Board of Commissioners in
fulfilling its supervisory duties
and responsibilities by monitoring
and evaluating the planning and
implementation of audit as well
as monitoring the follow-up to
audit findings in order to assess
the adequacy of internal control,
including the adequacy of financial
reporting process.

Appointment of Audit Committee


As stipulated in the Audit
Committee Charter, members of
the Audit Committee are required
to meet the competence and
To support the implementation of Audit Committee experience requirements, as well as
Board of Commissioners’ duties the requirement of independence
and responsibilities, the Board of and integrity, namely:
Legal Reference for Audit
Commissioners is assisted by 3 1. Audit Committee members
Committee Establishment
(three) Committees namely Audit shall have high integrity,
Audit Committee was established
Committee, Remuneration and skills, knowledge, experience
by Audit Committee Charter No.
Nomination Committee, and Risk relevant to their profession,
2-00 dated June 12, 2013 as lastly
Oversight Committee, which all and good communication
amended with Audit Committee
work independently. skills.
Charter No. 01. 09.00 dated
2. Audit Committee members
November 16, 2015 as well as based
These committees are established shall have good understanding
on Bank Indonesia Regulation (PBI)
through resolution in the Board of financial statements,
No. 8/4/PBI/2006 dated January
of Commissioners Meeting while company business, particularly
30, 2006 regarding Implementation
the members are appointed by the those related to the business
of Good Corporate Governance For
Board of Directors in accordance to activities of the Bank, audit
Commercial Bank, as amended
the resolution. process, risk management
with PBI No. 8/14/ PBI/2006
and laws and regulations on
dated October 5, 2006, which
Each Committee is required Capital Market as well as other
currently have been revoked and
to perform their duties and relevant laws and regulations.
declared invalid, changed to FSA/
responsibilities by referring to 3. Audit Committee members
OJK No. 35/POJK.03/2016 dated
Committee Charter which is shall be willing to continuously
December 7, 2016 concerning
formulated and reviewed regularly enhance their competencies
the implementation of Corporate
bases on the applicable regulation through education and
Governance for Commercial
in Indonesia. training.
Banks, FSA/OJK Regulation
4. Audit Committee members
No. 33/POJK.04/2014 dated
shall not be a person from
December 8, 2014 concerning the
a Public Accounting Firm,
Board of Directors and Board of
Legal Consulting Firm, Public
Commissioners of Issuers or Public
Appraiser or any other parties
Company as well as FSA/OJK
providing assurance, non-
Regulation No. 55 /POJK.04/2015
assurance, appraisal services
dated December 23, 2015
and/or other consulting
concerning Establishment and
services to the Bank for the
Guideline of Audit Committee Work
past 6 months.
Implementation.

184 PT Bank QNB Indonesia Tbk


Performance
5. Audit Committee members 8. Audit Committee members as a Chairman of the Audit

2016
shall not be individuals are not affiliated to the Bank, Committee and the other 2 (two)
working for or having any member of the Board of members are independent parties
authority and responsibility Commissioners, the Board to the Bank. All members of the
for planning, leading, of Directors or Ultimate Audit Committee are professional
controlling or supervising Shareholder of the Bank. individuals with extensive
the Bank’s activities for the 9. Audit Committee members experience and high competences.
past 6 months, except in the do not have direct or indirect

Management
event of reappointment of the business relations pertaining Concurrent positions of Audit

Report
Independent Commissioner to the Bank’s business Committee has taken into
who concurrently assumes the activities. consideration of competences,
position of Audit Committee 10. Independent Party who independency, discretion, and code
Chairman. is the member of Audit of conduct, as well as respective
6. Audit Committee members do Committee should fulfill all the duties and responsibilities
not, directly or indirectly, own independency criteria as set implementation in accordance with
shares in the Bank. out in the prevailing law and applicable regulations.
7. In the event that any member regulations.
of the Audit Committee The Composition of Audit

Company
Profile
obtains shares in the Bank Membership Structure of Audit Committee of the Bank has been
either directly or indirectly as Committee changed several times in 2016
a result of a legal event, such The Bank’s Audit Committee is which lastly appointed and
shares must be transferred directly responsible to the Board assigned based on Decree of
to another party within no of Commissioners. The Audit the Board of Directors (BoD) as
later than 6 months upon Committee has 3 (three) members, mentioned below. As such, the

Management Discussion
obtainment. consist of 1 (one) Independent Audit Committee members as of
Commissioner who also serves December 31 2016, are as follows:

and Analysis
Name Position Legal Basis of Appointment

Djoko Sarwono Chairman


(also as Member)
Decree of BoD No. 024/SK-DIR/V/2016
Irzal Zaini Member dated May 31, 2016

Tjetjep Hasmitha Member

Governance
Corporate
The above Audit Committee membership shall be effective from the issuance date of Decree of BoD
No. 024/SK-DIR/V/2016 until 2018.

Profiles of Audit Committee Irzal Zaini Bank Niaga Tbk (1984-2008)


Member of Audit Committee included Sharia Project Team
Social Responsibility

Djoko Sarwono Citizen of Indonesia, 62 years (2002-2004) and served as Support


Chairman of Audit Committee old. Earned his Bachelor Degree & Services Division Head in Head
Corporate

Profile of Djoko Sarwono in Economy from University of Office-Sharia Business Unit (2004-
could be found in the Board of Padjadjaran, Bandung in 1981. He 2008). Currently, he is also serving
Commissioners’ Profile section of has been re-appointed as a member as a member of Risk Oversight
this Annual Report. of Audit Committee in the Bank Committee in the Bank.
through Decree of BoD No. 024/SK-
DIR/V/2016 dated May 31, 2016 During 2016, he was actively
attended competence development
Prior to joining the Bank, he had programs, among others QNB
occupied several position in PT Values Festival at Jakarta,
Indonesia on Juli 30, 2016.

PT Bank QNB Indonesia Tbk 185


Passion for Excellence at Its Best
Annual Report 2016

Tjetjep Hasmita During 2016, he was actively 2. Total Independent


Member of Audit Committee attended competence development Commissioners and
Citizen of Indonesia, 60 years old. programs, among others: QNB independent parties as
He earned the Bachelor of Economy Values Festival at Jakarta, members of Audit Committee
degree majoring in Management Indonesia on July 30, 2016. shall at least 51% of the
from University of Pancasila, total members of the Audit
Jakarta in 1984 and later earned Independence of Audit Committee Committee.
the Master of Management degree In accordance with FSA/OJK 3. The member of the Audit
at the same university in 1996. Regulation No.55/POJK.03/2016 Committee who is an
He is appointed as a member dated December 7, 2016 concerning Independent Commissioner
of the Bank’s Audit Committee the implementation of Corporate shall be appointed as Chairman
through Decree of BoD No. 024/SK- Governance for Commercial Banks, of the Audit Committee.
DIR/V/2016 dated May 31, 2016. members of Audit Committee
should meet the independence Moreover, in accordance with
Prior to joining with the Bank, he criteria. the Audit Committee’s Charter,
once served in Bank of Indonesia there are also some additional
with several positions, which was All members of Audit Committee independence criteria required
first served in Human Resources of the Bank are independent in for Audit Committee’s members,
Directorate/Personnel Affairs which they have no management among others are:
(1981-1987), then as an Auditor in relationship, share ownership, 1. Not the Bank’s employees
Internal Audit Directorate/Internal and/or family relationship with 2. Do not have any shares in the
Supervision Directorate (General the Board of Commissioners, the Bank
Audit Team, Special Audit Team, Board of Directors, the Controlling 3. Has an independent behavior
Research and Development Team Shareholder or the Bank which and perspective
as well as Provisions Analysis can affect their capabilities to act 4. Do not have any conflict of
Team), afterwards he was occupied independently. interest with the Bank
several position in Internal
Financial Directorate included The Independence of Audit Family or Financial Relationship of
as a Deputy Head of Payroll and Committee members is also the Audit Committee Members
Administration Implementation reflected in its structure and All members of the Audit
(2003-2004), Deputy Head of membership as follows: Committee has no affiliation with
Financial Statements (2004-2008) 1. The membership of the Audit the Board of Commissioners,
and Division Head of Payroll and Committee shall consist of Board of Directors, members of
Administration Implementation. at least 1 (one) Independent other committees as well as the
He was also incorporated in BLBI Commissioner as Chairman controlling shareholder. Thus, in
Settlement Team (1999-2002). and member, and 1 (one) carrying out their duties, members
independent party who of the Audit Committee does not
In addition as a member of Audit has expertise in finance have a conflict of interest that may
Committee in the Bank, he is also or accounting, and 1 (one) occur, so as ensuring the highest
served as Bureau Head of Internal independent party who has level of independence in performing
Supervision & Quality Assurance in expertise in the field of law or its duties and responsibilities.
Indonesian Banking Development banking.
Institute (LPPI) since 2012 until
now. Currently, he is also appointed
as supervisor in the Karya Usaha
Mandiri Cooperative, Bogor since
2013 and the LPPI Employee
Cooperative, Jakarta since 2012.

186 PT Bank QNB Indonesia Tbk


Performance
Family or Financial Relationship of Audit Committee Members

2016
Family Relationship with Financial Relationship with

Other Other
Board of Board of Controlling Board of Board of Controlling
Name Committee Committee
Commissioners Directors Shareholder Commissioners Directors Shareholder
Members Members

Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No

Management
Djoko Sarwono - √ - √ - √ - √ - √ - √ - √ - √

Report
Irzal Zaini - √ - √ - √ - √ - √ - √ - √ - √

Tjetjep Hasmita - √ - √ - √ - √ - √ - √ - √ - √

Audit Committee’s Charter submitted by the Board of Directors 6. Providing recommendation to


The Audit Committee has a charter to the Board of Commisioners, the Board of Commissioners
that contains work guideline and and identifying matters that pertaining to the appointment

Company
procedure as a foundation for Audit require attention from the Board of of Public Accountant and

Profile
Committee to carry out its function Commissioners, among others: Public Accounting Firm on
and role. The Charter particularly 1. Preparing the Annual Work the basis of its independency,
regulates matters related to Program to be approved by the scope of work, and fee to be
organization, requirement Board of Commissioners. submitted to the General
of membership, duties and 2. Reviewing the financial Meeting of Shareholders.
responsibilities, authorities, and information to be issued by 7. Providing an independent

Management Discussion
meeting as well as term of office. the Bank to the public and/ opinion in the event of
The Audit Committee’s Charter is or other authorities, financial disagreement between the

and Analysis
reviewed regularly. statements, projections and management and the Public
other reports pertaining to the Accountant for services
Duties and Responsibilities of Audit Bank’s financial information. rendered.
Committee 3. Analysing the Bank’s level of 8. Monitoring and evaluating:
The function of Audit Committee compliance towards laws and a. The implementation
is to assist and facilitate the Board regulations pertaining to the of tasks of the Internal
of Commissioners in performing its Bank’s activities. Audit;
monitoring function. Furthermore, 4. Providing input on b. Consistency between

Governance
the Audit Committee focuses on appointment, resignation, or audit implementation by

Corporate
improving the effectiveness of dismissal of the Head of Audit the Public Accounting
internal control system of the Division. Firm and the prevailing
Bank, including the effectiveness 5. Monitoring, analysing and auditing standards;
of implementation of duties of evaluating audit planning and c. Consistency between the
External Auditor and Internal Audit implementation as well as financial reports and the
related to the Internal Control monitoring follow-up actions prevailing accounting
System. to the internal audit results in standards; and
Social Responsibility

order to assess the adequacy of d. Implementation of follow-


Corporate

As stated in the Audit Committee’s internal control, including the up actions by the Board
Charter, the Bank’s Audit adequacy of financial reporting of Directors on findings
Committee has a duty to provide process. made by the Internal
independent professional opinions Audit Work Unit, Public
to the Board of Commissioners Accountant, and the
regarding the reports or matters results of supervision
by Bank Indonesia
and/or the Financial
Services Authority, as
recommendations to the
Board of Commissioners.

PT Bank QNB Indonesia Tbk 187


Passion for Excellence at Its Best
Annual Report 2016

9. Maintaining strict Through the approval of the 5. Issues arising at any meeting
confidentiality of documents, Board of Commissioners, the of the Audit Committee
data and information of the Audit Committee is authorized must be resolved by means
Bank. to ask the internal and external of deliberations to reach a
10. Analyzing complaints received auditors to review and investigate consensus. If no resolution
by the Audit Committee about the problems that may arise and can be reached by means
the Bank’s accounting and impact on the Bank’s performance. of deliberations to reach a
financial reporting processes, consensus, then the issues
as well as ensuring the follow- Audit Committee’s Meetings arising are to be decided by
up to such complaints. In order to support the way of simple majority of
11. Analyzing and providing implementation of its duties votes.
recommendations to the Board and responsibilities according to 6. Every member of the Audit
of Commissioners concerning the Audit Committee’s Charter, Committee shall have one
the existence of potential Audit Committee’s meetings are vote. In the event of conflict
conflicts of interest of the Bank held regularly with the following of interest on a particular
provision: issue, the member of the
Authorities of Audit Committee 1. Meeting of the Audit Audit Committee having an
The Audit Committee is authorized Committee must be conducted interest in the subject matter
to: on a periodical basis, at least under deliberation shall not
1. Access all of the Bank’s once in every 3 (three) months. be entitled to vote on that
documents, data and 2. Meeting of the Audit issue. In the event of a tie, the
information pertaining to Committee can only be held chairman of the meeting shall
the Bank’s employees, funds, when attended by at least be entitled to cast the deciding
assets and resources required. 51% (fifty-one percent) of the vote.
2. Directly communicate with total members, including an 7. Agenda of the Audit
employees, including the Independent Commissioner Committee meeting is based
Board of Directors and parties and an Independent Party. on the Annual Work Plan
performing the internal audit 3. The Audit Division Head is and other matters that are
function, risk management, always present in the meetings important to be discussed.
and Accountant in relation to of the Audit Committee and 8. The result of Audit Committee
the duties and responsibilities when he/she is in absence, it Meeting must be summarized
of the Audit Committee. can be delegated to officials into minutes of meeting and
3. Involve independent parties from the Audit Division. signed by all members of the
outside the Audit Committee 4. If necessary, the Audit Audit Committee present at
required to assist the Audit Committee may invite the the meeting and be properly
Committee in implementing its Board of Directors and/or documented. Dissenting
duties (where necessary) Executive Officers of the Bank opinions in the Audit
4. Executing other functions to discuss issues in the Audit Committee Meeting must be
and authority as given by the Committee meetings. clearly stated in the minutes of
Board of Commissioners meeting, including the reasons
for the dissenting opinions.
Minutes of Audit Committee
meetings are to be reported to
the Board of Commissioners.

188 PT Bank QNB Indonesia Tbk


Performance
Meetings and Meeting Agendas of Audit Committee

2016
No. Meeting Date Meeting Agenda

1. February 9, 2016 1. 2015 QNBI Audited Financial Statements.


2. 2015 2nd Semester of Audit Implementation Report.

2. April 5, 2016 1. 2016 Audit Schedule.


2. Audit Schedule Realization.

Management
3. Audit Follow-Up Status as of Mrch 31, 2016.

Report
4. Details of Audit Follow-Up.

3. April 12, 2016 March 2016 position of QNBI Financial Statements.

4. May 31, 2016 1. QNBI Financial Statements as of April 30, 2016.


2. 2016 2nd Quarterly of Audit Implementation Report.

5. June 7, 2016 May 31, 2016 position of Financial Statements.

6. June 7, 2016 Internal Audit Presentation to Audit Committee as of May 2016

Company
Profile
7. July 12, 2016 2016 Audit Report on Makasar Veteran Main Branch

8. July 26, 2016 Financial Statements as of June 30, 2016

9. August 9, 2016 Update from Compliance

10. August 30, 2016 Early Warning System

Management Discussion
and Analysis
11. September 13, 2016 Continued Discussion on Early Warning System

12. October 4, 2016 1. Audit Quarterly Presentation


2. Special Credit Audit

13. October 11, 2016 Audit Issue Highlights

14. October 25, 2016 Bank Performance in Q3 – 2016

15. November 22, 2016 Discussion regarding Credit Process/Mechanism and its problems

Governance
Corporate
16. November 29, 2016 Continuing Discussion regarding Credit Process

17. December 6, 2016 1. Presentation of 2017 Audit Plan & Result of Vendor Selection for 2017 Quality
Assurance Review.
2. 2017 Submission of Audit Committee Activities Calendar.

18. December 13, 2016 Update from Compliance and Procedure Division

19 December 13, 2016 Proposal for Appointment of KAP Purwanto, Sungkoro & Surja (member firm of “EY”)
Social Responsibility

as the Bank’s 2017 External Auditor


Corporate

20 December 20, 2016 Anti Fraud & Investigation.

PT Bank QNB Indonesia Tbk 189


Passion for Excellence at Its Best
Annual Report 2016

Frequency of Audit Committee’s Meetings and Attendance Record


Throughout 2016, the Audit Committee has conducted 20 (twenty) meetings. The following table shows the
attendance frequency of each member of the Audit Committee in the meetings.

Audit Committee’s Meetings and Attendance Level

Position
Name Physical Attendance Video/Tele Conference Attendance Level
in Audit Committee
Djoko Sarwono Chairman 20 - 100%
(also as Member)

Irzal Zaini Member 20 - 100%

Tjetjep Hasmita* Member 17 - 85%

Rusli Witjahjono** Member 1 - 5%

* Appointed as a Chairman and member of Audit Committee in the Bank since May 31, 2016.
** Resign from his position as an Audit Committee’s Member in May 10, 2016.

Duties Implementation of Audit Auditor together with Internal Remuneration and


Committee Audit division. Nomination Committee
Throughout 2016, the Audit 6. Discussed with related
Committee has carried out a divisions and evaluated on Legal Reference for Remuneration
series of activities to assist Board 2016 Early Warning System and Nomination Committee
of Commissioners in performing Implementation in the Bank. Establishment
supervisory function over the 7. Discussed with related Remuneration and Nomination
Bank’s activities and operation. divisions regarding credit Committee is established by
The implementation of Audit process and the relevant referring to the Remuneration and
Committee work program in 2016 is problems. Nomination Charter No. 4-00 dated
as follows: 8. Discussed and prepared June 12, 2013 as lastly amended
1. Discussed on significant reporting on Audit Committee with the Remuneration and
Internal Audit’s findings in Work Plan realization on Nomination Committee Charter
2015 which required follow up quarterly and semiannually No. 01.10.00 dated November 26,
and monitoring from related basis. 2015. In addition, also based on the
division. 9. Prepared 2017 Workplan and Bank Indonesia Regulation (PBI)
2. Submitted reporting on Meeting Schedule of the Audit No. 8/4/ PBI/2006 dated January
implementation of Audit Committee. 30, 2006 regarding Implementation
Committee duties during 2015. 10. Provided recommendation on of Good Corporate Governance
3. Discussed and evaluated the appointment of Public for Commercial Banks, which has
on 2015 audited financial Accountant Firm in 2017. amended with the PBI No. 8/14/
statements of the Bank 11. Reviewed the 2017 Internal PBI/2006 dated October 5, 2006,
together with Finance & Audit Plan. which currently have been revoked
Accounting division. and declared invalid, changed to
4. Discussed and Evaluated on Audit Committee’s Findings and Its FSA/OJK No. 55/POJK.03/2016
financial statements of the Follow-Up dated December 7, 2016 concerning
Bank periodically for the In 2016, the Audit Committee the implementation of Corporate
position of certain period in did not find any findings which Governance for Commercial Banks,
2016 together with Finance & could provide significantly impact the Bank Indonesia Circular Letter
Accounting division. to financial and non-financial (SEBI) No. 15/15/DPNP dated April
5. Monitored the Internal Audit performance of the Bank. 29, 2013 regarding Implementation
performance as had been of Good Corporate Governance
scheduled as well as discussed for Commercial Banks and the
the follow up on Internal Audit Financial Services Authority (OJK)
findings and also External

190 PT Bank QNB Indonesia Tbk


Performance
Regulation No. 34/POJK.04/2014 from external parties of the Remuneration and Nomination

2016
dated December 8, 2014 regarding Bank shall meet the following Committee no longer hold the
Nomination and Remuneration of requirements: position.
Issuers or Public Company. a. Does not have affiliated 10. Members of the Remuneration
relationship with the and Nomination Committee
The Remuneration and Nomination Bank, any members of can no longer perform their
Committee is formed by and the Board of Directors, function if they are dismissed
responsible to the Board of Board of Commissioners based on the resolution of

Management
Commissioners of the Bank in or Ultimate Shareholder Board of Commissioners

Report
supporting functions and duties of the Bank; meeting, for any of the
of the Board of Commissioners b. Has experience related following reasons:
related to nomination and to Nomination and/or a. Demise;
remuneration of the members of Remuneration; and b. Resignation; or
the Board of Directors and Board of c. Does not hold double c. Permanently unavailable
Commissioners. position as members of thus cause them unable
other committees of the to perform their duties
Appointment of Remuneration and Bank. or have been medically
Nomination Committee 4. Member of Board of Directors diagnosed to be unable

Company
Profile
As stipulated in the Remuneration of the Bank cannot serve as to perform their duties
and Nomination Committee’s member of Remuneration and for more than 6 (six)
Charter, the membership of Nomination Committee. consecutive months.
Remuneration and Nomination 5. In the event the member of
Committee are required to meet the the Committee is set for more The Bank must have
following criteria: than 3 (three) persons, the documentation for the resolution

Management Discussion
1. Members of the Remuneration Independent Commissioner, at of appointment and dismissal of
and Nomination Committee the minimum must be 2 (two) the members of Remuneration and

and Analysis
shall consist of at least 3 persons. Nomination Committee.
(three) members as following: 6. Chairman of the Committee
a. 1 (one) Chairman can only serve as a chairman Membership Structure of
concurrently member, on 1 (one) other committee in Remuneration and Nomination
who is Independent the Bank. Committee
Commissioner. 7. Members of Remuneration Remuneration and Nomination
b. Other members who may and Nomination Committee Committee of the Bank consists
originate from: are appointed and dismissed of 3 (three) members which
1) Member of the Board according to resolution of report directly to the Board of
Governance
Corporate
of Commissioners; Board of Commissioners’ Commissioners. The Remuneration
2) Executive officer meeting for certain period and Nomination Committee
who supervises of service and may be comprises of an Independent
human resources reappointed. Commissioner serving as
or 1 (one) employee 8. The period of service of Chairman of Committee as well
representative who member of Remuneration as as a member and 2 (two) others
has knowledge and Nomination Committee member.
Social Responsibility

in remuneration shall be no longer than


Corporate

and or nomination period of service of Board of The composition of Remuneration


system and Bank’s Commissioners as regulated and Nomination Committee of the
succession plan. in the Bank’s article of Bank has been changed several
2. The majority members of the association. times and lastly appointed and
Remuneration and Nomination 9. Replacement of member of Assigned based on the Board of
Committee cannot be from Remuneration and Nomination Directors’ Decree as mentioned
managerial officers under the Committee who is not from below. Therefore, the Remuneration
Bank’s Director who supervises Board of Commissioners and Nomination Committee
human resources. shall be done no later than 60 members as of December 31, 2016,
3. Members of the Remuneration (sixty) days from the date in are as follows:
and Nomination Committee which the said member of the

PT Bank QNB Indonesia Tbk 191


Passion for Excellence at Its Best
Annual Report 2016

Name Position in Remuneration and Legal Basis of Appointment


Nomination Committee

Soeroto Moehadji Chairman


(also as Member)
Decree of BoD No. 002/SK-DIR/I/2016
Grant Eric Lowen Member dated January 4, 2016

Steven Stevanus Member

The above Remuneration and Nomination Committee Membership shall be effective from the issuance date of
Decree of BoD No. 002/SK-DIR/I/2016 until 2018.

Profiles of Remuneration and Steven Stevanus PT Bank CIMB Niaga Tbk (2011 –
Nomination Committee Member of Remuneration and 2013).
Nomination Committee
Suroto Moehadji Citizen of Indonesia, 32 years During 2016, he was actively
Chairman of Remuneration and old. Earned his Bachelor degree attended competence development
Nomination Committee in Computer Science from Bina programs, among others: QNB
Profile of Suroto Moehadji Nusantara University, Jakarta in Values Festival at Jakarta,
could be found in the Board of 2006. He is lastly appointed as Indonesia in July 30, 2016.
Commissioners’ Profile section of a member of Remuneration and
this Annual Report. Nomination Committee in the Bank Independence of Remuneration and
through Decree of BoD No. 002/SK- Nomination Committee
Grant Eric Lowen Dir/I/2016 dated January 4, 2016. Remuneration and Nomination
Member of Remuneration and Committee performs its duties and
Nomination Committee Prior to joining the Bank as responsibilities independently.
Profile of Grant Eric Lowen Rewards Manager in 2013, he Decisions and policies taken by
could be found in the Board of took up several posts in various the Remuneration and Nomination
Commissioners’ Profile section of companies such as Management Committee is an objective results
this Annual Report. Trainee in Lion Super Indo (2006 – which is not intervened by any
2007), Research and Consulting in parties with any reason and other
PT Spire Indonesia (2007 – 2011), actions which may have potential
Rewards Portfolio & Annual Review to cause conflict of interest.
Manager and Incentive Manager in

Family or Financial Relationship of the Remuneration and Nomination Committee’s Members

Family Relationship with Financial Relationship with

Other Other
Board of Board of Controlling Board of Board of Controlling
Name Committee Committee
Commissioners Directors Shareholder Commissioners Directors Shareholder
Members Members

Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No

Suroto Moehadji - √ - √ - √ - √ - √ - √ - √ - √

Grant Eric Lowen - √ - √ - √ - √ - √ - √ - √ √ -

Steven Stevanus - √ - √ - √ - √ - √ - √ - √ - √

192 PT Bank QNB Indonesia Tbk


Performance
Remuneration and Nomination 2) Assist the Board 1) Financial

2016
Committee’s Charter of Commissioners performance and
The Remuneration and Nomination in conducting fulfillment of reserve
Committee Charter contains performance as provided for in
work guideline and procedure as appraisal in prevailing laws and
a foundation for Remuneration accordance with regulations;
and Nomination Committee to remuneration 2) Remuneration
carry out its function and role. The received by each applicable in the

Management
Charter is continuously improved member of the banking industry and

Report
and renewed in accordance with Board of Directors within the business
the development/changes of and/or the Board of scale of the Bank;
prevailing regulations as well as Commissioners. 3) Duties,
latest condition. The last renewal b. In performing the responsibilities
of Remuneration and Nomination function of remuneration, and authority of
Charter took place in 2015 which the Remuneration and members of the
is affirmed in the Charter No. Nomination Committee Board of Directors
01.10.00 dated November 26, 2015 must follow the following and/or Board of
regarding the Remuneration and procedure: Commissioners

Company
Profile
Nomination Committee Charter. 1) Formulating a which are associated
Among the matters regulated are remuneration with the achievement
about membership, duties and structure for of objectives and
responsibilities, work ethics, work members of the performance of the
mechanism and procedure, meeting Board of Directors Bank;
and resolution, reporting system, and/or the Board of 4) Performance target

Management Discussion
as well as facilities and support. Commissioners; of each member of
2) Formulating and the Board of Directors

and Analysis
Duties and Responsibilities of recommending and/or the Board of
Remuneration and Nomination the Board of Commissioners; and
Committee Commissioner on 5) Balance of allowance
Duties and responsibilities remuneration policy between fixed
of Remuneration Committee for members of the allowance and
as stipulated in Charter of Board of Directors variable allowance.
Remuneration and Nomination and/or the Board of 6) Consideration of
Committee are as follows: Commissioners to Bank’s long term
1. Related to Remuneration be delivered to the target and strategy.
Governance
Corporate
Function General Meeting; d. Remuneration structure,
a. Duties and responsibilities 3) Providing the Board policy, and amount,
of Remuneration and of Commissioner with have to be evaluated
Nomination Committee recommendation in by Remuneration and
are: remuneration policy Nomination Committee at
1) Provide of Executive Officers least once in a year.
recommendation and emplopyees
Social Responsibility

to Board of in general to be 2. Related to Nomination


Corporate

Commissioner delivered to Board of Function.


concerning: Directors; and a. Provide recommendation
a) Remuneration 4) Formulating to Board of Commissioner
structure; remuneration amount on:
b) Remuneration for Board of Directors 1) Composition
policy; and and/or Board of of positions of
c) Remuneration Commissioner. members of the
amount c. Formulation of structure, Board of Directors
policy and amount of and/or the Board of
remuneration must Commissioners;
consider:

PT Bank QNB Indonesia Tbk 193


Passion for Excellence at Its Best
Annual Report 2016

2) Policies and criteria 1) Formulating the 1. The Remuneration and


required in the composition and Nomination Committee
Nomination process; nomination process meeting is held periodically
and of member of with at least once in 4 (four)
3) Performance Board of Directors months.
evaluation policy for and/or Board of 2. The Remuneration and
members of Board Directors and/ or Nomination Committee
of Directors and/or Commissioners; meeting will only be held
members of Board of 2) Formulating required if attended at least by 51%
Commissioners. policies and criteria (fifty one percent) of number
b. Assist the Board of in the nomination of committee member
Commissioners in process of candidate including one Independent
conducting performance of member of Commissioner and Executive
appraisal of member of Board of Directors Officer from Human Resources.
Board of Directors and/ and/or Board of 3. Resolution of Remuneration
or member of Board of Commissioners; and Nomination Committee is
Commissioners based 3) Assisting the taken based on deliberation to
on the benchmark implementation achieve consensus.
determined as evaluation of evaluation on 4. In the event that the
material; the performance consensus is not reached,
c. Provide recommendation of member of decision making shall be held
to the Board of Board of Directors based on majority votes with
Commissioners on and/or Board of principle of 1 (one) person 1
personal development Commissioners; (one) voice.
programs for members of 4) Formulating personal 5. In the event of draw during
Board of Directors and/ development decision making by voting,
or members of Board of programs for decision shall be made by the
Commissioners; and member of the Chairman of the Remuneration
d. Provide recommendation Board of Directors and Nomination Committee.
of qualified candidates and/or Board of 6. In the event that decision
as member of Board of Commissioners; and making process finds dispute,
Director and/or Board g. Review and propose the dispute must be set forth
of Commissioner to the eligible candidates to in the minutes of meeting
Board of Commissioner to become member of complete with the reasons.
be submitted to General the Board of Directors 7. Result of the meeting of
Meeting of Shareholders. and/or Board of Remuneration and Nomination
e. Provide recommendation Commissioners to Board Committee must be set forth
on Independent Party of Commissioners, to be in the minutes of meeting and
who will be member submitted to General documented by the Bank.
of Audit Committee Meeting of Shareholders. 8. Minutes of Remuneration
and Risk Oversight and Nomination Committee
Committee to the Board of Remuneration and Nomination meeting must be submitted
Commissioner. Committee’s Meeting in writing to Board of
f. In performing To support its duties and Commissioners.
nomination function, responsibilities implementation
the Remuneration and as mandated in Charter of
Nomination Committee Remuneration and Nomination
must follow the following Committee, Remuneration and
procedure: Nomination Committee Meetings
are held regularly with the
following provision:

194 PT Bank QNB Indonesia Tbk


Performance
Meetings and Meeting Agendas of Remuneration and Nomination Committee

2016
No. Meeting Date Meeting Agenda

1. January 18, 2016 1. Resignation of Mr. Rusli (Operations Director).


2. Resignation of Mr. Muthu Chidambaram (Komisaris).
3. Resignation of Mr. Andrew McGregor Duff (President Director).
4. Appointment of Mr. Andrew McGregor Duff as Non-Independent Commissioner.

Management
5. Composition of Board of Directors and Board of Commissioners.

Report
2. February 9, 2016 Nomination of Audit Committee Member

3. February 25, 2016 Nomination of E-Banking & Financial Inclusion Director of the Bank.

4. April 5, 2016 Nomination Policy (Amendment).

5. April 12, 2016 Remuneration of Board of Commissioners.

6. April 18, 2016 Self Assessment of Board of Commissioners

Company
Profile
7. May 10, 2016 Nomination of Audit Committee Member.

8. August 29, 2016 1. Sharing on the FSA/OJK concern.


2. Candidate of President Director.

9. November 1, 2016 Re-nomination of E-Banking and Financial Inclusion Director

10. December 6, 2016 Nomination of Wholesale Banking Director

Management Discussion
and Analysis
Frequency of Remuneration and Nomination Committee Meetings and Attendance Record
In 2016, the Remuneration and Nomination Committee has conducted internal meetings for 10 (ten) times with
the level attendance 100% (one hundred percent) for all members in every meetings, as stated in the following
table.

Remuneration and Nomination Committee’s Meetings and Attendance Level

Position in

Governance
Name Remuneration and Physical Attendance Video/Tele Conference Attendance Level

Corporate
Nomination Committee

Suroto Moehadji Chairman 10 - 100%


(also as Member)

Grant Eric Lowen Member 2 8 100%

Steven Stevanus Member 10 - 100%


Social Responsibility

In addition, the Remuneration and Nomination Committee also generates some important decision though
Corporate

circular and approved by all members of the Committee.

Duties Implementation of 1. Provided vision on 2015 3. Provided recommendation


Remuneration and Nomination performance assessment. on nomination of the new
Committee 2. Provided recommendation on member of Board of Directors
During 2016, the Remuneration and remuneration structure of the and Board of Commissioners
Nomination Committee has carried Board of Commissioners, Board in connection with the
out a series of activities to assist of Directors and Committees resignation of some members
Board of Commissioners, among under Board of Commissioners. of Board of Directors and Board
others as follows: of Commissioners.

PT Bank QNB Indonesia Tbk 195


Passion for Excellence at Its Best
Annual Report 2016

4. Provided recommendation The Risk Oversight Committee is 4. Have a good knowledge to


on nomination of the Audit particularly established to support analyze and interpret financial
Committee Member. the Board of Commissioners’ statement.
5. Provided recommendation supervisory function in conducting 5. Have an adequate knowledge
on composition of the Board necessary risk oversight functions on law and regulation
of Directors and Board of on the duties performed by the including Financial Services
Commissioners. Board of Directors in managing the Authority (FSA/OJK) and/or
6. Provided recommendation Bank while implementing GCG in Bank Indonesia Regulation
on establishment of Board of the Bank. as well as other related
Commissioners’ Performance regulations.
Self-Assessment Policy. Appointment of Risk Oversight
7. Provided recommendation on Committee Structure and Composition of Risk
amendment of nomination As stipulated in the Risk Oversight Committee
policy for Board of Oversight Committee Charter, The Risk Oversight Committee
Commissioners, Board of the Risk Oversight Committee consists of 3 (three) members
Directors and Committees members must fulfill the following and reports directly to Board of
Members. requirements: Commissioners, which consist
8. Provided recommendation on 1. Have a high integrity, of 1 (one) member which is an
2017 Performance Appraisal. capability, knowledge, and Independent Commissioner and
experience with adequate also serves as the Chairman of
Risk Oversight Committee educational background, Committee and 2 (two) members.
as well as the ability to
Legal Reference for Risk Oversight communicate effectively. All members of the Risk Oversight
Committee Establishment 2. Members of Risk Oversight Committee are independent
The establishment of Risk Committee from Independent parties who have adequate level of
Oversight Committee refers to Parties are considered having a professionalism to review, measure,
Risk Oversight Committee Charter finance capability if they meet and evaluate risks and Bank’s effort
No. 3-00 dated June 12, 2013 as the following criteria: to mitigate risks.
well as PBI No. 8/4/PBI/2006 a. Have knowledge in
dated January 30, 2006 regarding economics, finance, and/ Concurrent positions of Risk
Implementation of Good Corporate or banking; and Oversight Committee have taken
Governance for Commercial Banks, b. Have work experience in into consideration of competences,
as amended with PBI No. 8/14/ the area of economics, independency, discretion, and code
PBI/2006 dated October 5, 2006, finance and/or banking of conduct, as well as respective
which currently have been revoked at least 5 (five) years duties and responsibilities
and declared invalid, changed to according to the implementation in accordance with
FSA/OJK No. 55/POJK.03/2016 prevailing regulations. applicable regulations.
dated December 7, 2016 concerning 3. Members of Risk Oversight
the implementation of Corporate Committee from Independent As of December 31, 2016, the
Governance for Commercial Parties have capability in risk Risk Oversight Committee are as
Banks, dan Circular Letter Bank management if they meet the follows:
Indonesia (SEBI) No. 15/15/DPNP criteria of:
dated April 29, 2013 regarding a. Have knowledge in risk
Implementation of Good Corporate management, and/or
Governance for Commercial Banks, b. Have working experience
in order to support the effectivity in the area of risk
in implementation of its duties and management at least for
reponsilities. 2 (two) years according to
the prevailing regulations.

196 PT Bank QNB Indonesia Tbk


Performance
Name Position Legal Basis of Appointment

2016
in Risk Oversight Committee

Muhammad Anas Malla Chairman


(also as Member)
Decree of BoD
No. 001/SK-DIR/I/2016
Irzal Zaini Member
dated January 4, 2016

Ani Hadi Setyowati Member

Management
The above Risk Oversight Committee Membership shall be effective from the issuance date of Decree of BoD No.

Report
001/SK-DIR/I/2016 until 2018.

Profiles of Risk Oversight Auditor in Head Office (1981 – for the Board of Directors or
Committee 1986), Finance Control Division Executive Officer who perform
(1986 – 2001), Human Resources supervisory function).
Muhammad Anas Malla Division (2001 – 2004), Compliance 2. Do not have direct or indirect
Chairman of Risk Oversight Division (2004 – 2009), Network relationship with the Bank.

Company
Committee and Services Division (2009 – Provided that the members of

Profile
Profile of Muhammad Anas Malla 2010). Risk Oversight Committee has
could be found in the Board of acquired shares from a legal
Commissioners’ Profile section of During 2016, he was actively action, they should transfer
this Annual Report. attended competence development the shares to other people no
programs, among others: QNB later than 6 (six) months after
Irzal Zaini Values Festival at Jakarta, the obtainment.

Management Discussion
Member of Risk Oversight Indonesia in July 30, 2016. 3. Are not affiliated with
Committee the Bank, the Board of

and Analysis
Independence of Risk Oversight Commissioners, the Board of
Profle of Irzal Zaini could be found Committee Directors and the Controlling
in Audit Committee Profile section In accordance with FSA/OJK Shareholder.
of this Annual Report. Regulation No. 55/POJK.03/2016 4. Do not have a direct or indirect
dated December 7, 2016 concerning business relationship with the
Ani Hadi Setyowati the Implementation of Corporate Bank.
Member of Risk Oversight Governance for Commercial
Committee Banks, as well as Risk Oversight Family or Financial Relationship

Governance
Committee Charter, members of of the Risk Oversight Committee’s

Corporate
Citizen of Indonesia, 61 years Risk Oversight Committee should Members
old. Received her Bachelor degree act independently as reflected in
in Economy from Brawijaya the following criterias: All members of the Risk Oversight
University, Malang in 1991 and 1. Former members of the Committee has no affiliation with
Master degree in Management Bank’s Board of Directors or the Board of Commissioners,
in Labora Management College, Executive Officer or other Board of Directors, members of
Jakarta in 1996 as well as Master in parties who have relationship other committees as well as the
Social Responsibility

Administration from University of with the Bank which can controlling shareholder. Thus, in
Corporate

Indonesia in 2001. She is appointed affect their capabilities to carrying out their duties, members
as member of Risk Oversight act independently, cannot of the Risk Oversight Committee
Committee of the Bank through be appointed as Independent does not have a conflict of interest
Decree of Board of Directors Parties as the Bank’s Risk that may occur, so as ensuring
No. 048/SK-Dir/XI/2011 dated Oversight Committee member the highest level of independence
November 28, 2011. before having cooling-off for 6 in performing its duties and
(six) months. Such provision responsibilities.
Prior to joining the Bank, she took refers to Bank Indonesia’s
up several posts in PT Bank Negara circular letter No. 15/15/DPNP
Indonesia (Persero) Tbk such as dated April 29, 2013 (except

PT Bank QNB Indonesia Tbk 197


Passion for Excellence at Its Best
Annual Report 2016

Family or Financial Relationship of the Risk Oversight Committee’s Members

Family Relationship with Financial Relationship with

Other Other
Board of Board of Controlling Board of Board of Controlling
Name Committee Committee
Commissioners Directors Shareholder Commissioners Directors Shareholder
Members Members

Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No

Muhammad - √ - √ - √ - √ - √ - √ - √ - √
Anas Malla

Irzal Zaini - √ - √ - √ - √ - √ - √ - √ - √

Ani Hadi - √ - √ - √ - √ - √ - √ - √ - √
Setyowati

Duties and Responsibilities of Risk 8. To evaluate accountability of Risk Oversight Committee’s


Oversight Committee the risk management policy of Meetings
Duties and responsibilities of Risk the Board of Directors at least To support its duties and
Oversight Committee as stipulated on quarterly basis. responsibilities implementation
in Risk Oversight Committee’s 9. To Cooperate with external as mandated in Charter of Risk
Charter of the Bank are, as follows: consultants, accountants, Oversight Committee, Risk
1. To prepare the annual general or other external parties, if Oversight Committee Meetings are
working plan of the Committee necessary. held regularly with the following
and submit it for the Board of 10. To perform other tasks, in provision:
Commissioners’ approval. addition to the above, are given 1. The Risk Oversight
2. To evaluate risk appetite and by the Board of Commissioners Committee’s meetings should
limits approved by the Board of to the Committee as needed. be held at least 4 (four) times
Commissioners. a year, additional meetings
3. To evaluate the suitability of Risk Oversight Committee’s Charter can be held at any time if
the Bank’s risk management The Risk Oversight Committee necessary, in accordance
policies and their Charter contains work guideline with the policy of the Risk
implementation. and procedure as a foundation Oversight Committee.
4. To monitor and evaluate for Risk Oversight Committee to 2. The members of Board
the performance of Risk carry out its function and role. The of Directors, Board of
Management Committee and Charter is continuously improved Commissioners, and Bank’s
Risk Management unit in order and renewed in accordance with employees attend Risk
to provide recommendations to the development/changes of Oversight Committee meeting
the Board of Commisioners. prevailing regulation as well as by invitation from the Risk
5. To evaluate the Bank’s risk latest condition. The last renewal Oversight Committee.
management policy at least 1 of Risk Oversight Committee 3. External parties can be invited
(once) a year. Charter took place in 2013 which to attend the meeting if
6. To review the Charter at least is affirmed in the Charter No. 3-00 deemed necessary.
1 (once) a year and perform dated June 12, 2013 regarding the 4. The meeting is chaired by the
the proposed amendments if Risk Oversight Committee Charter. Chairman or the most senior
necessary. Among the matters regulated member of Risk Oversight
7. To conduct self-assessment on about organization, quorum, Risk Committee in the event the
effectiveness of the Committee Oversight Committee meetings, Chairman was absent.
at least 1 (once) a year. duties, procedures, reports and
term of office.

198 PT Bank QNB Indonesia Tbk


Performance
5. In case of dissenting opinions 6. The minutes of the meeting 7. The Risk Oversight Meeting

2016
in the Risk Oversight should be signed by all can only be held if attended by
Committee meetings, the members of Risk Oversight at least 51% (fifty one percent)
dissenting opinions should be Committee in attendance. from total members.
stated in the minutes of the All minutes of the meeting
meeting as well as its reason. should be shared all members
of Risk Oversight Committee,
the Board of Directors, and the

Management
Board of Commissioners.

Report
Meetings and Meeting Agendas of Risk Oversight Committee

No. Meeting Date Meeting Agenda

1. January 14, 2016 1. Executive Summary and Minutes of the Previous Meeting.
2. CRO Report in January 2016.

Company
Profile
3. Risk Based Bank Rating at Semester II/2015.
4. 2016 Risk Appetite Statement.
5. Credit Risk Dashboard.
6. Operational Risk.
7. Others.

2. April 13, 2016 1. Executive Summary and Minutes of the Previous Meeting.
2. Top Bank Risk - March 2016.

Management Discussion
3. Fraud Gap Analysis.
4. Risk Profile Q1-2016.

and Analysis
5. Risk Dashboard.
6. Others.

3. June 14, 2016 1. Executive Summary and Minutes of the Previous Meeting.
2. ROC Checklist.
3. Risk Based Bank Rating at Semester I/2016.
4. Anti-Fraud Strategy.
5. Credit Risk.
6. Market, Liquidity and Operational Risk.
7. Others.

Governance
Corporate
4. August 25, 2016 1. Executive Summary and Minutes of the Previous Meeting.
2. 6-Point Improvement Plan.
3. Risk Based Bank Rating (RBBR) – 1st Semester 2016.
4. Special Asset Management (SAM).
5. Market, Liquidity and Operational Risk.
6. Other Agenda – Risk Register Update.

5. November 24, 2016 1. Executive Summary and Agenda Highlights.


Social Responsibility

2. Top Issues and Credit Projects.


3. RBBR Action Plan.
Corporate

4. Minutes of Meeting.
5. Peer Bank Analysis.
6. Risk Dashboard.
7. Other Agendas.

PT Bank QNB Indonesia Tbk 199


Passion for Excellence at Its Best
Annual Report 2016

Frequency of Risk Oversight Committee Meetings and Attendance Record


In 2016, the Risk Oversight Committee has conducted meetings for 5 (five) times. The following table shows the
attendance frequency of each member of the Risk Oversight Committee in the meetings.

Risk Oversight Committee’s Meetings and Attendance Level

Position in
Name Risk Ovesight Physical Attendance Video/Tele Conference Attendance Level
Committee

Mohammad Anas Malla Chairman 5 - 100%


(also as Member)

Irzal Zaini Member 5 - 100%

Ani Hadi Setyowati Member 5 - 100%

Muthu Chidambaram* Member 1 - 20%

* Resign from his position as the member of Board of Commissioners by GMS Resolution dated 16 February 2016.

Implementation of Duties of Risk 3. Evaluate the implementation 5. Update new regulations and
Oversight Committee of risk management as a base policies related to GCG, tax,
Throughout 2016, the Risk of Risk Profile report and LCR, criminal investigation,
Oversight Committee has carried evaluate the risk management disclosure remuneration and
out many activities to assist Board potential which covers credit nomination.
of Commissioners in performing risk, market risk, liquidity 6. Monitor new procedures and
supervisory function over the risk, operation risk, legal risk, policies related to assets
Bank’s activities and operation. The reputation risk, strategic risk, takeover (AYDA).
implementation of Risk Oversight and compliance risk. 7. Evaluate and monitor anti-
Committee work program in 2016 4. Evaluate several matters such fraud strategy of the Bank.
are as follows: as reports of Risk Director, the 8. Monitor the Risk Based Bank
1. Formulate report on the results Bank’s soundness level, top 30 Rating.
of Risk Oversight Committee obligor, loan portfolio, RCSA 9. Evaluate and monitor the
activities, periodically. update, business continuity Bank’s improvement plans.
2. Evaluate the implementation management update, risk 10. Evaluate the realisation of the
of duties of Risk Management dashboard, risk appetite Risk Oversight Committee’s
division and Risk Management statement, risk register and work plan in 2016.
Committee on semi-annually risk oversight committee
basis. calendar.

200 PT Bank QNB Indonesia Tbk


Board of Directors

Performance
Appointment Criteria

2016
With reference to the Board of
Directors Charter, a candidate
member of the Board of Directors
must meet the criteria and
independence requirements as
follows:
1. Person who meets the

Management
requirements upon

Report
appointment and during his/
her tenure:
a. Have a good character,
morale, and integrity
b. Able to perform legal acts
c. In 5 (five) years before
appointment and during
the service:
1) Never been declared

Company
Profile
The Board of Directors is one of Members of the Board of Directors bankrupt.
the Bank’s organ which authorized are appointed and dimissed 2) Never been a member
and fully responsible on the by the GMS by considering of Board of Directors
management for the interest of the the recommendation from and/or Board of
Bank. Each member of the Board of Remuneration and Nomination Commissioners
Directors could carry out its duty Committee. that convicted

Management Discussion
and take decisions in accordance guilty causing the
with their respective assignments Criteria and Procedures bankrupcy at any

and Analysis
and authorities. However, the for the Appointment company.
execution of tasks by each member of Members of Board of 3) Never been convicted
of the Board of Directors remains Directors of a criminal offense
to be a collective responsibility. that harm the
The position of each member of Pursuant to the FSA/OJK country financial
the Board of Directors including Regulation No. 55/POJK.03/2016 and/or related to the
President Director is equal. The dated December 7, 2016 concerning financial sector, and
duty of the President Director as the Implementation of Corporate 4) Never being a
member of Board
Governance
primus inter pares is to coordinate Governance for Commercial

Corporate
the activities of the Board of Banks, and FSA/OJK Regulation of Directors
Directors. No. 33/POJK.04/2014 dated and/or Board of
December 8, 2014 regarding the Commissioners that
In addition, the Board of Directors Board of Directors and Board during the services:
is also responsible to represent the of Commissioners of Issuers or • Have not
Bank inside and outside the court Public Companies, the members organize the
in accordance with the Articles of of Board of Directors should meet Annual GMS
Social Responsibility

Association and Limited Liability the requirements of integrity, • His/Her


Corporate

Company No. 40 Year 2007. competency, financial reputation as responsibility


well as passing the Fit and Proper as a member
Duties and responsibilities of the Test as required by Bank Indonesia of Board of
Board of Directors are regulated in Regulation No. 12/23/PBI/2010 Directors and/
the Bord of Directors Charter which dated December 29, 2010 regarding or Board of
is also in compliance with the Fit and Proper Test. Commissioners
prevailing laws and regulations. In
performing its duties, the Board of
Directors is responsible to the GMS.

PT Bank QNB Indonesia Tbk 201


Passion for Excellence at Its Best
Annual Report 2016

was not 4. Each member of the Board Appointment Procedure


accepted by the of Directors must meet The candidate members of the
GMS or have the requirement of having Board of Directors are appointed
not declared passed the Fit and Proper provided that they have met the
responsibility Test pursuant to FSA/OJK aforementioned criteria including
as a member Regulation concerning Fit and passing the Fit and Proper Test
of Board of Proper Test with the following procedure:
Directors and/ 1. Members of the Board of
or Board of 5. Each member of the Board of Directors shall be appointed by
Commissioners Directors is prohibited from the Bank’s GMS.
to the GMS, and holding another position as 2. Members of the Board of
• Have caused a a member of the Board of Directors must meet the
company that Commissioners, the Board of requirement of successful
obtained a Directors or Executive Officer completion of Fit and Proper
license, approval, at any other Bank, company Test in accordance with the
or registration and/or institution. provisions of Bank Indonesia
from FSA/OJK and/or FSA/OJK regarding
did not meet the Excluded from the double Fit and Proper Test and must
obligation to position is when the member fulfill the provisions of Bank
deliver annual of the Board of Directors Indonesia and/or FSA/OJK
report and/or responsible for supervising regarding the Implementation
financial report the Bank’s investment in its of Good Corporate Governance
to FSA/OJK. subsidiary, performs functional for Commercial Banks
5) Have a commitment duty as a member of the Board 3. Members of the Board of
to comply with the of Commissioners at a non- Directors who have obtained
prevailing law and Bank or company controlled approval for Fit and Proper
regulation, and by the Bank, insofar that Test from the FSA/OJK shall
6) Have knowledge and/ he/she does not forsake the be appointed by the GMS
or skills need by the implementation of their no later than 6 (six) months
Bank as an Issuers. duties and responsibilities after the date of approval of
7) Meet the requirement as a member of the Board of the FSA/OJK. If the 6 (six)
of integrity, Directors of the Bank. month period has expired
competency and and the appointment has not
financial reputation 6. Each member of the Board of been made by the GMS, the
as determined. Directors both individually approval from FSA/OJK will
or jointly is prohibited from not applicable.
2. The majority of members of owning shares of more than 4. The appointment of members
the Board of Directors shall 25% (twenty-five percent) of of the Board of Directors
have at least 5 (five) years of paid-in capital in any other by the Bank’s GMS shall
experience as an Executive company. be deemed effective after
Officer in a Bank. the relevant member of
7. The majority of members the Board of Directors has
3. Any proposal to replace and/ of the Board of Directors obtained the approval of FSA/
or appoint member of the is prohibited from having OJK. Corporate Secretary
Board of Directors by the family relationship up to the Division shall be responsible
Board of Commissioners to second degree with any other for submitting applications,
the GMS, must consider the members of the Board of including the documentations
Remuneration and Nomination Directors and/or members of required, in order to obtain the
Committee’s recommendation. the Board of Commissioners. approval of Financial Services
Authority (FSA/OJK).

202 PT Bank QNB Indonesia Tbk


Performance
5. The term of office of the Board Dismissal Procedure faster decision making as well as

2016
of Directors shall commence as Dismissal of the member of Board independent actions.
of the date determined by the of Directors shall be performed by
GMS in which she/he (they) is/ GMS. The tenure of the members of Based on the resolution of EGM
are appointed, and shall expire the Board of Directors shall expire on April 13, 2016, R. Andi Kartiko
in 1 (one) term of office. 1 (one) if such member of the Board of Utomo was appointed as the
term of office of the Board of Directors: Bank’s Director which shall be
Directors is 3 (three) years or at 1. The term of office expires effective upon obtaining approval

Management
the adjournment of the Annual 2. Is declared bankrupt or placed from Financial Services Authority

Report
GMS at the end of 1 (one) term under custody based on a court (OJK) on fit and proper test. Then,
of office, unless otherwise ruling; or based on the resolution of EGM
decided by the GMS. 3. Resigns pursuant to the on December 19, 2016, Junita
6. The Bank is obligated to prevailing provisions; or Wangsadinata was appointed as
submit the report on the 4. No longer complies with the the Bank’s Directors which shall
appointment of members of requirements of prevailing be effective on February 16, 2017
the Bank’s Board of Directors laws and regulations; or and upon obtaining approval from
to FSA/OJK by no later than 5. Is deceased; or Financial Services Authority (OJK)
10 (ten) workdays following 6. Is dismissed by the decision of on fit and proper test.

Company
Profile
the effective appointment GMS
date, along with the minutes As of December 31, 2016, the
of the GMS. The report will Total and Composition of Board of Directors consists of 1
be submitted by Corporate Board of Directors (one) Acting President Director
Secretary Division. and 5 (five) Directors, with the
7. Members of the Board of Composition and total members of composition as follows:

Management Discussion
Directors whose term of office the Bank’s Board of Directors are
expires may be reappointed generally established by taking

and Analysis
8. Term of office for Independent into account its vision, mission,
Directors is 2 (two) consecutive and strategic plans to allow a
terms at most more effective, accurate, and

Name Position First Appointment BI or FSA/OJK’s Terms of Fit and Proper


Approval Office Test by

Azhar bin Abdul Wahab Act. AGM, June 24, 2011 July 5, 2011 2011-2012 Bank Indonesia

Governance
Corporate
President 2012-2015
Director 2015-2018

Lloyd William Rolston Director EGM, September 16, 2011 May 10, 2012 2011-2012 Bank Indonesia
2012-2015
2015-2018

Windiartono Tabingin Director EGM, November 29, 2012 February 25, 2013 2012-2015 Bank Indonesia
2015-2018
Social Responsibility

Novi Mayasari Director AGM February 27, 2015 October 2, 2015 2015-2018 Financial Services
Corporate

Authority (FSA/OJK)

R. Andi Kartiko Utomo* Director EGM, April 13, 2016 - - Financial Services
Authority (FSA/OJK)

Junita Wangsadinata** Director EGM, December 19, 2016 - - Financial Services


Authority (FSA/OJK)

*) Shall be effective upon obtaining approval from the Financial Services Authority (FSA/OJK) on fit and proper test.
**) Shall be effective on February 16, 2017 and upon obtaining approval from the Financial Services Authority
(OJK) on fit and proper test.

PT Bank QNB Indonesia Tbk 203


Passion for Excellence at Its Best
Annual Report 2016

Diversity In the Independence of Board of • Not affiliated with institutions


Composition of Members Directors or professionals supporting
the capital markets where its
of the Board of Directors services are used by the Bank
Independent Director
6 (six) months prior to the
Composition of the Board of In accordance with Indonesia
appointment as Director.
Directors is established by taking Stock Exchange regulation, the
consideration of the need and Bank must have at least 1 (one)
The term of office of an
complexity of the Bank. In general, Independent Director, which
Independent Director is at most
the composition is based on fulfilled the requirements as
2 (two) consecutive terms. In the
banking knowledge, capability, follows:
event an Independent Director’s
professional experience as well • Not affiliated with the Bank’s
position is vacant, then the Bank
as experience in order to support controlling Shareholders at
must fill such vacant position
the effectiveness of the Board of least 6 (six) months prior to the
at the latest by the next GMS or
Directors’ duties implementation. appointment as Independent
within 6 (six) months after such
The nomination of candidate is Director;
vacancy occurs. The appointment
carried out with reference to the • Not affiliated with the Board
of Independent Director was
aforementioned criteria regardless of Commissioners or Board of
based on recommendation of
of gender, race, ethnic, or religion, Directors of the Bank;
Remuneration and Nomination
and initial recommendation source. • Not having concurrent position
Committee which approved
as member of the Board of
by Board of Commissioner and
Directors in other companies;
appointed by the GMS. The position
of Independent Director of the
Bank is held by Windiartono
Tabingin.

204 PT Bank QNB Indonesia Tbk


Performance
Financial or Familial Relations of Board of Commissioners The members of the Board of

2016
Members of the Board of Directors and Ultimate Shareholders. Directors of the Bank shall act
All members of the Bank’s Board All members of the Board of independently, so there is no
of Directors are independent, do Directors are not having dual conflict of interest in the execution
not have financial, management, position as member of Board of of their duties and responsibilities.
share ownership, and familial Commissioners, Board of Directors The familial dan financial
relationship with any other or Executive Officer at the Bank or relationship between members
member of Board of Directors, other institution as governed in the of the Board of Directors, Board

Management
regulation on the implementation of Commissioners and Ultimate

Report
of good corporate governance for Shareholders are as follows:
commercial banks.

Family Relationship with Financial Relationship with

Board of Controlling Board of Controlling


Name Board of Directors Board of Directors

Company
Commissioners Shareholder Commissioners Shareholder

Profile
Yes No Yes No Yes No Yes No Yes No Yes No

Azhar bin Abdul - √ - √ - √ - √ - √ - √


Wahab

Lloyd William - √ - √ - √ - √ - √ - √

Management Discussion
Rolston

and Analysis
Windiartono - √ - √ - √ - √ - √ - √
Tabingin

Novi Mayasari - √ - √ - √ - √ - √ - √

R. Andi Kartiko - √ - √ - √ - √ - √ - √
Utomo*

Junita - √ - √ - √ - √ - √ - √
Wangsadinata**

Governance
Corporate
*) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated April 13, 2016 which shall
be effective upon obtaining approval from the Financial Services Authority (FSA/OJK) on fit and proper test.
**) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated December 19, 2016 which
shall be effective on February 16, 2017 and upon obtaining approval from the Financial Services Authority
(OJK) on fit and proper test.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 205


Passion for Excellence at Its Best
Annual Report 2016

Share Ownership by Board


of Directors
The Bank requires the members Each member of the Board of In 2016, all the members of Board
of Board of Directors to disclose Directors both individually or of Directors did not own more
their share ownership, both in jointly is prohibited from owning than 5% (five percent) or more
PT Bank QNB Indonesia Tbk and shares of more than 25% (twenty- than the paid-up capital in the
other companies, which are located five percent) of paid-in capital in Bank, other banks, non-bank
in Indonesia and abroad. Such any other company. financial institution, and any
disclosure should be updated every other companies in Indonesia and
year. abroad.

Share Ownership >5%

Board of Directors
PT Bank QNB Other Non-Bank Financial Other
Indonesia Tbk Bank Institution Companies

Azhar bin Abdul Wahab - - - -

Lloyd William Rolston - - - -

Windiartono Tabingin - - - -

Novi Mayasari - - - -

R. Andi Kartiko Utomo* - - - -

Junita Wangsadinata** - - - -

*) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated April 13, 2016 which shall be
effective upon obtaining approval from the Financial Services Authority (FSA/OJK) on fit and proper test.
**) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated December 19, 2016 which
shall be effective on February 16, 2017 and upon obtaining approval from the Financial Services Authority
(OJK) on fit and proper test.

Concurrent Position of insofar that he/she does not forsake Duties and
Board of Directors the implementation of their duties Responsibilities of Board
and responsibilities as a member of of Directors
Each member of the Board of the Board of Directors of the Bank.
Directors is prohibited from holding As stipulated in Decree of
another position as a member of The Board of Directors must Directors No. 033/SK-DIR/
the Board of Commissioners, the disclose their concurrent positions VI/2016 dated June 8, 2016
Board of Directors or Executive in a statement which is then signed regarding the Divisions of Duties
Officer at any other Bank, company by the concerned Director. and Authorities of members of
and/or institution. Excluded from Board of Directors (the “BoD”),
the double position is when the All members of the Bank’s Board of the BoD is an internal organ that
member of the Board of Directors Directors do not have concurrent is responsible for controlling
responsible for supervising position prohibited by the FSA/OJK and managing the performance
the Bank’s investment in its regulation No.55/POJK.03/2016 on of the Bank. In managing the
subsidiary, performs functional the implementation of Corporate Bank, the BoD carry out duties,
duty as a member of the Board of Governance for Commercial Banks. authorities and responsibilities as
Commissioners at a non-Bank or set forth in the Bank’s Articles of
company controlled by the Bank,

206 PT Bank QNB Indonesia Tbk


Performance
Association, and other prevailing 7. Without prejudice to their d. The BoD are obligated

2016
regulations. Generally, the duties responsibilities, the BoD to communicate the
and authorities of the BoD are as have the right to appoint Bank’s strategic Human
follows: one or more authorized Resource policies to the
1. Carry out management the representatives to act on employees, among others
interest of the Bank and in behalf of the BoD, and for policies on recruitment
accordance with the purposes that purpose should provide system, promotion
and objectives of the Bank authorization letter. In the system, remuneration

Management
and act as a leader in the authorization letter, the system as well as the

Report
management. representatives are authorized Bank’s plan to perform
2. Maintain and manage the to carry out specific actions efficiency by reducing
asset of the Bank. within certain financial the number of employees,
3. The BoD are fully responsible limit and expiry date for subject to confidentiality.
for carrying out their duties for the authorization. Such Such disclosure must
the Bank’s interest in reaching authorization cannot be be conducted through
its goals and objectives. transferred to other party. known methods or easily
4. In performing duties 8. In carrying out their function, accessible by employees.
and responsibilities of the BoD should refer to the e. The BoD are required

Company
Profile
management function, Good Corporate Governance to provide complete,
the BoD must organize implementation standards: accurate, relevant,
Annual General Meeting of a. The Board of Directors and timely data and
Shareholders (“GMS”) and are required to information to the
other GMS as stipulated implement Good Board of Commissioners
in the prevailing law and Corporate Governance (“BoC”).

Management Discussion
regulations as well as Article principles in all Bank’s f. The BoD are required to
of Association of the Bank. business activities in all report the implementation

and Analysis
5. Each member of the BoD organizational level. of their duties to the
shall carry out their duties b. The BoD are required to shareholders in the GMS.
and responsibilities in good establish: 9. In order to support the
faith, full of responsibility and 1) Internal Audit effectiveness of the
prudence and with due regard function unit implementation of duties and
to the law regulations and the 2) Risk Management responsibilities, the BoD may
Articles of Association of the function unit and establish committees.
Bank. Risk Management 10. In the event that the
6. The members of BoD are Committee; and committee was formed,
Governance
Corporate
prohibited from granting 3) Compliance function the BoD shall evaluate the
general authority to other unit. performance of the committees
parties resulting in the transfer c. The BoD are required to at the end of fiscal year.
of duties and functions of follow-up audit finding 11. Each member of the BoD are
the BoD. Granting general and recommendation jointly and severally liable
authority means granting from the Bank’s internal for the Bank’s losses doe
authority to one or more audit, external auditor, to mistakes or negligence
Social Responsibility

employees or another person audit findings of Financial members of BoD in carrying


Corporate

resulting in the transfer Services Authority (FSA/ out their duties.


of duties, authorities and OJK) and/or supervisory 12. Members of the BoD are able to
responsibilities of the BoD results from other implement their competence
in entirety, namely without authorities. in carrying out their duties and
limitation of scope and time. responsibilities.

PT Bank QNB Indonesia Tbk 207


Passion for Excellence at Its Best
Annual Report 2016

13. Members of the Board of 7. Supervise the BoD and Risk Director
Directors must improve Divisions under his/her 1. Lead and direct the
competencies through responsibility directly, in development and
education and training accordance with Bank’s implementation of policies and
continuously, be familiar with organization structure. strategies in risk management
banking regulations and have 8. Lead and direct the human for all risk categories including
general knowledge, especially resources empowerment policy credit review, to be in line with
on economic. to be in line with the Bank’s the Bank’s goals and strategies.
strategies and in order to 2. Responsible for ensuring the
Scope and Description of Duties achieve the Bank’s goal. credit review process operates
and Responsibilities of Each independently and implement
Member of BoD Business Director prudence principles.
In regard to the Bank’s management, 1. Lead and direct the 3. Responsible for asset quality
spesifically, each member of BoD development and monitoring and credit portfolio
has their own scope of duties implementation of policies and oversight.
and authorities in line with their strategies in business area, in 4. Facilitate, coordinate, and
respective positions, as follows: line with the Bank’s goals and advise on the identification,
strategies. analysis, measurement, and
President Director 2. Support the President Director mitigation of all risks on a
1. Coordinate the implementation to build business network for sustainable basis.
of the management of the the benefit of the Bank. 5. Contribute to the
Bank and together with BoD 3. Lead, direct and coordinate competitiveness and
establish the Company’s the development products achievement of the Bank’s
strategic plan. and service launched by the business profits through
2. Leading the business network Bank to ensure achievement effective planning and
development for the benefit of of growth, profitability and control over the management
the Bank. competitive products. of the resources under
3. Coordinate, direct and 4. Ensure the fulfillment of Risk Directorate as well as
supervise each Directorate customer-oriented approach control over the performance
in the Bank continually in and strategic relationship achievement and risk.
order to operate smoothly, approach. 6. Supervise the Divisions under
effectively, efficiently and keep 5. Contribute to the his/her responsibility directly,
on track to the Bank’s long competitiveness and in accordance with Bank’s
term strategies. achievement of the Bank’s organization structure.
4. Direct the business business profits through 7. Perform other duties assigned
performance of the Bank effective planning and control by the President Director.
and maximizing revenue in over the management of the
accordance with short-term and resources under Business Operations Director
long-term targets of the Bank. Directorate as well as control 1. Lead and direct the
5. Promote the Bank’s image over the performance development and
and to participate in building achievement and risk. implementation of policies
good relations with customers, 6. Supervise directly the and strategies in the areas
monetary authorities and Directorates and Divisions of operations, information
other stakeholders. under his/her responsibility, technology, internal control
6. Direct the contribution in accordance with Bank’s and general services, in line
from each Directorate to organization structure. with the Bank’s objectives and
the competitiveness and 7. Perform other duties assigned strategy.
achievement of the Bank’s by the President Director. 2. Responsible for leading
business profits through and managing systems and
effective planning and control processing units in order
over the management of the to provide cost efficiency,
Company’s resources as well as centralized technology and
control over the performance operations support, and
of achievement and risk.

208 PT Bank QNB Indonesia Tbk


Performance
to ensure that the support 2. Formulate strategies to Human Resources Director

2016
meets the latest business encourage compliance 1. Lead and direct the
requirements and that the culture, establish compliance development and
maximum contribution systems and procedures that implementation of policies and
has been given to meet will be used to develop the strategies in human resources
the strategic and business Bank’s internal policies and area, in line with the Bank’s
objectives. guidelines. goals and strategies.
3. Improve the standard and 3. Ensure that all policies, 2. Responsible to manage the

Management
process of operational internal rules, systems, and empowerment of human

Report
activities by sponsoring procedures as well as the resources, such as ensuring
the transformational Bank’s business activities the growing of performance
adoption of the standard are conducted in accordance driven culture and maintaining
core process to delivering with the prevailing law and harmonious relationship
the best result in terms of regulations to minimize the within the Bank.
end-to-end performance, cost Bank’s Compliance Risk. 3. Ensure the Bank’s ability to
management, and customer 4. Coordinate, direct and attract, develop, motivate, and
service. Sharing the best implement the principles of maintain the human resource
practices in each field by good corporate governance. needed by the Bank to achieve

Company
Profile
providing expertise and advice 5. Ensure that the fulfillment of its vision.
in order to achieve efficiency, reporting has been conducted 4. Coordinate and ensure the
scale of economy, and quality. as stipulated by regulators. implementation of good
4. Coordinate and direct 6. Ensure the fulfillment of action industrial relationship.
the development of the plans and commitments of the 5. Ensure that human resource
Bank’s services strategy, Bank to regulators. management operations run in

Management Discussion
communication consolidation, 7. Coordinate, direct and monitor accordance with the prevailing
and programs to enhance the handling of complex bank- legislation.

and Analysis
customer service quality. wide legal matters through 6. Contribute to the
5. Contribute to the legal advice. competitiveness and
competitiveness and 8. Coordinate, direct and monitor achievement of the Bank’s
achievement of the Bank’s the implementation process of business profits through
business profits through corporate action done by the effective planning and control
effective planning and control Bank over the management of
over the management of the 9. Contribute to the the resources under Human
resources under Operations competitiveness and Resources Directorate as
Directorate as well as control achievement of the Bank’s well as control over the
Governance
Corporate
over performance achievement business profits through performance achievement and
and risk. effective planning and control risk.
6. Supervise the Divisions under over the management of the 7. Supervise Divisions under his/
his/her responsibility directly, resources under Compliance her responsibility directly,
in accordance with Bank’s Directorate as well as control in accordance with Bank’s
organization structure. over the performance organization structure.
7. Perform other duties assigned achievement and risk. 8. Perform other duties assigned
Social Responsibility

by the President Director. 10. Supervise the Divisions under by the President Director.
Corporate

his/her responsibility directly,


Compliance Director in accordance with Bank’s E-Banking & Financial Inclusion
1. Lead and direct the organization structure. Director
development and 11. Perform other duties assigned 1. Lead and direct the
implementation of policies and by the President Director, as development and
strategies in compliance, legal long as it does not contradict implementation of policies
and corporate secretary areas, with the function of and strategies in E-Banking &
in line with the Bank’s goals Compliance Director set by the Financial Inclusion (including
and strategies. regulator. cash management business)
businesses, in line with the
Bank’s goals and strategies.

PT Bank QNB Indonesia Tbk 209


Passion for Excellence at Its Best
Annual Report 2016

2. Lead, direct and coordinate 3. Ensure the fulfillment of Banking Directorate and also
the development products customer-oriented approach control over the performance
and service launched by the and strategic relationship achivement and risk.
Bank to ensure achievement approach especially in 5. Supervising directly the
of growth, profitability and Wholesale Banking segment. division under his/her
competitive products in 4. Contribute to the responsibility, in accordance
E-Banking & Financial Inclusion competitiveness and with the Bank’s organization
(including cash management achievement of the Bank’s stucture.
business) segment. business profits mainly in 6. Perform others duties assigned
3. Ensure the fulfillment of Wholesale Banking segment by the President Director and/
customer-oriented approach through effective planning and or Business Director.
and strategic relationship control over the management
approach especially in of the resources under Board of Directors’ Charter
E-Banking & Financial Inclusion Wholesale Banking Directorate
(including cash management as well as control over the In order to ensure the effectiveness
business) segment. performance achievement and of the implementation of its role and
4. Contribute to the risk. functions, the Board of Directors has
competitiveness and 5. Supervise directly the formulated the Board of Directors
achievement of the Bank’s Directorates and Divisions Manual which established in the
business profits mainly under his/her responsibility, Board of Directors Charter No.
in E-Banking & Financial in accordance with Bank’s 01.07.00 dated July 30, 2015. The
Inclusion (including cash organization structure. Charter contains accountability;
management business) 6. Perform other duties assigned structure and membership;
segment through effective by the President Director and/ criteria and independence; term of
planning and control over the or Business Director. office; duties and responsibilites;
management of the resources authorities; work ethics; work value;
under E-Banking & Financial Retail Banking Director Board of Directors meeting; as well
Inclusion Directorate as well as 1. To lead and direct as reporting and responsibility of
control over the performance the development and the Board of Directors. This Board
achievement and risk. implementation of policies and of Directors Manual is established
5. Supervise directly the strategies in Retail Banking by referring to the prevailing
Directorates and Divisions area, in line with the Bank’s regulations as well as best practices
under his/her responsibility, goals and strategies. and being reviewed regularly.
in accordance with Bank’s 2. To lead, direct and cordinate
organization structure. the development products Work Ethics of the Board of
6. Perform other duties assigned and service launched by the Directors
by the President Director and/ Bank to ensure achievement As stipulated in the Board of
or Business Director. of growth, profitability, and Directors Charter, all members of
competitive product in Retail the Board of Directors:
Wholesale Banking Director Banking segment. 1. shall comply with the code
1. Lead and direct the 3. Ensuring the fulfilment of of conduct of the Bank and
development and customer-oriented approach all provisions set by the
implementation of policies and strategic relationship Bank including the Bank’s
and strategies in Wholesale approach especially in Retail Articles of Association and its
Banking area, in line with the Banking segment. amendments in the future;
Bank’s goals and strategies. 4. Contributing to the 2. are prohibited to make use of
2. Lead, direct and coordinate competitiveness and the Bank for personal, familial
the development products achievement of the Bank’s and/or other party’s interest,
and service launched by the business profits mainly in which can harm or reduce the
Bank to ensure achievement Retail Banking segment Bank’s profit;
of growth, profitability and through effective planning and 3. are prohibted to take and/
competitive products in control over the management or receive personal benefit
Wholesale Banking segment. of resources under Retail from the Bank, other than

210 PT Bank QNB Indonesia Tbk


Performance
remuneration and other 2. Financial and familial relation 4. Formulate strategic policies in

2016
facilities established in GMS; with members of the Board of funding and lending.
4. in the event of any incident/ Commissioners, other member
action which has the possibility of the Board of Directors Board of Directors Orientation
adverse impact the Bank’s and/or Bank’s controlling Program
operational, financial and/or shareholders. In the Extraordinary GMS held on
reputation, the members of 3. Other remuneration and November 18, 2016, R. Andi Kartiko
the Board of Directors must facilities package provided by Utomo was appointed as Director

Management
escalate it to all other members the Bank. of the Bank. The Bank conducted

Report
of Board of Directors; 4. His/her positions at other orientation program by sharing
5. must not directly or indirectly, companies Annual Report, Quarterly Financial
make false statement concerning Report, Bank’s Business Plan and
material fact or conceal material In addition, the Board of Directors Board of Directors Manual as well
fact which would make a is obliged to disclose Bank’s as risk management trainings and
statement concerning Bank’s strategic policies in human discussion with Board of Directors
condition at the time of the resouces to the Bank’s employees. as a reference and overview of
statement, misleading. the Bank’s business activities to
Duties Implementation support the implementation of his

Company
Profile
Transparency of the Board of Board of Directors function as a Director.
of Directors
The Board of Directors Charter also Throughout 2016, the Board of Training and Competence
regulates transparency aspect, in Directors have fulfilled their duties Development Program
which all of the members of the and responsibilities for the interest of The Board of Directors also took
Board of Directors must disclose the Bank in accordance to its purposes part in training programs to

Management Discussion
the following matters in the Bank’s and objectives. Among others, the enhance their knowledge on the
Implementation of Good Corporate Board of Directors have made strategic latest developments in the banking

and Analysis
Governance Report: decisions and taken necessary actions industry and other knowledge
1. His/her share ownerships in the following matter: related to the implementation of
which reached a total of 5% 1. Formulate the Bank’s Business the duties and responsibilties of
of the paid-up capital or more, Plan for 2016-2018. the Board of Directors. The training
both in the Bank and other 2. Formulate Bank’s strategic map. programs provided to the Board of
Banks or companies, domiciled 3. Formulate strategic policies Directors in 2016 included:
in Indonesia or overseas. in human resources
management.

Governance
Corporate
Name Position Date Type Program Place

Azhar bin Abdul Act. President January 21, 2016 External Effective Public Speaking & Jakarta
Wahab Director Media Handling-BoD
July 30, 2016 External QNB Values Festival Jakarta
September 15, 2016 Internal Professionalism with Integrity Jakarta
Social Responsibility

for Leaders
September 28, 2016 External Refreshment of Risk Management Jakarta
Corporate

Certifications for BoD


September 29, 2016 External Executive Coaching for BoD Jakarta

Lloyd William Director January 6, 2016 – External Bahasa Indonesia Jakarta


Rolston May 18, 2016
January 21, 2016 External Effective Public Speaking & Jakarta
Media Handling-BoD
March 16, 2016 Internal Leaders Talk Jakarta
May 30, 2016 Internal Leaders Talk Jakarta
May 31, 2016 Internal Sharring Session : Awareness Jakarta
on New Accounting Standard
on Financial Instrument /

PT Bank QNB Indonesia Tbk 211


Passion for Excellence at Its Best
Annual Report 2016

Name Position Date Type Program Place

September 15, 2016 Internal Impairment (IFRS 9)


Professionalism with Integrity Jakarta
September 28, 2016 External for Leaders
Refreshment of Risk Management Jakarta
September 29, 2016 External Certificate for BoD
Executive Coaching for BoD Jakarta

Windiartono Director March 16, 2016 Internal Leaders Talk Jakarta


Tabingin April 21, 2016 External Compliance Sertifications Jakarta
May 31, 2016 Internal Sharring Session : Awareness Jakarta
on New Accounting Standard
on Financial Instrument /
Impairment (IFRS 9)
July 30, 2016 External QNB Values Festival Jakarta
September 28, 2016 External Refreshment of Risk Management Jakarta
Certifications for BoD
September 29, 2016 External Executive Coaching for BoD Jakarta
October 13, 2016 External Indonesia Banking Human Jakarta
Capital Conference

Novi Mayasari Director January 21, 2016 External Effective Public Speaking & Jakarta
Media Handling-BoD
February 29, 2016 External Seminar – Bank Competitive Jakarta
Strategies in the Middle of
Turbulence (LPPI)
March 16, 2016 Internal Leaders Talk Jakarta
April 21-22, 2016 External Preparation for Risk Management Jakarta
Certifications, Level-5
May 14-21, 2016 External Basic Trade Finance Jakarta
May 19, 2016 External Refreshment on Risk Management Jakarta
Certifications, Level-5
May 26, 2016 External 2016 Indonesian Mercer Pension Jakarta
Action (IMPACT) Workshop -
Mengupas Peraturan Baru yang
Mempengaruhi Strategi HR
May 30, 2016 Internal Leaders Talk Jakarta
May 31, 2016 Internal Sharring Session : Awareness Jakarta
on New Accounting Standard
on Financial Instrument /
June 1, 2016 External Impairment (IFRS 9) Jakarta
Implementation of the Specific
Time Employment and Oursourcing
July 30, 2016 External QNB Values Festival Jakarta
September 8, 2016 External Debtors Information System (SID) Jakarta
Reporting Workshop in order of
SID Quality Control in 2016
15 September, 2016 Internal Professionalism with Integrity Jakarta
for Leaders
September 22, 2016 External Investigative Inteview Jakarta
September 29, 2016 External Executive Coaching for BOD Jakarta
October 13, 2016 External Indonesia Banking Human Jakarta
Capital Conference
November 8, 2016 External 3rd Indonesia Industrial Relations Surabaya
Conference

212 PT Bank QNB Indonesia Tbk


Performance
2016
Name Position Date Type Program Place

R. Andi Kartiko Director Januari 21, 2016 External Preparation for Risk Management Jakarta
Utomo* Certifications, Level-4
February 10, 2016 External Managing Team Jakarta
March 16, 2016 External Leaders Talk Jakarta
April 21-22, 2016 External Preparation for Risk Management Jakarta
Certifications, Level-5
May 19, 2016 External Refreshment on Risk Jakarta

Management
Management Certifications,

Report
Level-5
July 30, 2016 External QNB Values Festival Jakarta
September 15, 2016 Internal Professionalism with Integrity Jakarta
for Leaders
September 22, 2016 External Executive Coaching for BOD Jakarta
October 20, 2016 External The 1st Manager - Leader Summit Jakarta

Junita Director Januari 7, 2016 External Media Handling Training Jakarta


Wangsadinata** February 11, 2016 External Syariah Executive Program Jakarta
February 23, 2016 External Leadership Series with Dr.Boen Jakarta

Company
Profile
Certification
April 28, 2016 External Refreshment Risk Management Jakarta
July 21, 2016 External Comba Clinic Jakarta
September 8, 2016 External Personal Branding & Effective Jakarta
Communication Skills
September 17, 2016 External Team Building - Commercial Jakarta
Banking Jakarta
November 8, 2016 External Training IRB & RAROC Jakarta

Management Discussion
November 23, 2016 External Indonesia Palm Oil Conference Jakarta

and Analysis
*) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated April 13, 2016 which shall
be effective upon obtaining approval from the Financial Services Authority (OJK) on fit and proper test.
**) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated December 19, 2016 which
shall be effective on February 16, 2017 and upon obtaining approval from the Financial Services Authority
(OJK) on fit and proper test.

Governance
Evaluation of the Board of Policy concerning the
Corporate
the implementation of the Bank’s
Directors Performance Long-Term Plan, the Bank’s Business Succession of the Board of
Plan and Budget, as well as the
resolutions of GMS.
Directors
The performance evaluation of the
Board of Directors is conducted The Board of Directors succession
through self-assessment which The assessment of the Board of
is determined by GMS. In selecting
is then reviewed by the Board of Directors is also supported by
and appointing new Director,
the recommendations from the
Social Responsibility

Commissioners. In general, the basic GMS also takes account of the


foundation of the Board of Directors’ Remuneration and Nomination
recommendation on candidate
Corporate

assessment is the performance of the Committee. The recommendations


members proposed by the
Board of Directors in implementing serve as the second opinion related
Remuneration and Nomination
the vision and mission of the Bank to the assessment criteria on
Committees in accordance with
in the current year as well as the remuneration for members of the
the Articles of Association
implementation of GCG. Moreover, Board of Directors, both individually
and provisions set forth by the
the Board of Commissioners and collectively. The Board of
shareholders. In addition, the
monitors the Board of Directors Commissioners accounts for its
Bank has also currently developed
regarding the achievement of assessment result as a consideration
internal talent & succession
targets set by the Bank, especially in the GMS which will then be
management program.
decided by all shareholders.

PT Bank QNB Indonesia Tbk 213


Passion for Excellence at Its Best
Annual Report 2016

Policy and Procedure Board of Directors Remuneration shareholders of the Bank to


of Board of Directors Procedure determine the 2016 salary or
Board of Directors Remuneration honorarium and other allowances
Remuneration System procedure consists of several for each member of the Board of
phases which include formulation, Directors. The determination of
Board of Directors Remuneration
analysis, proposal, and salary or honorarium and other
Policy
establishment. allowances for each member of the
In accordance with the Bank’s
Board of Directors by considering
Articles of Association, salary or
The formulation of remuneration the recommendation from
honorarium and other allowances
policy and proposal is carried Remuneration and Nomination
for the Board Directors are
out by the Remuneration and Committee of the Bank.
established by the GMS.
Nomination Committee by
gathering information about The Board of Directors’
In general, the Bank determines
remuneration standard for the remuneration package comprised
remuneration package by referring
position and the similar industry in of:
to the Bank’s internal policies,
the market and taking into account 1. Gross remuneration (salary,
prevailing laws and regulations,
the Bank’s performance as well as allowances, bonus/tantiem
industry comparison, and with
the assessment results of the Board and other facilities in non-
taking into account the Bank’s
of Directors and inflation growth natura form); and
performance in current year. The
rate. 2. Other facilities (health
amount of remuneration for the
insurance and others).
Board of Directors’ members is set
In the Annual GMS held on
based on their performance.
February 16, 2016 approved The Board of Directors’
the granting authority to Qatar remuneration structure and
National Bank, as the majority amount in 2016 are as follows:

Amount Received in a Year

Position Type of Remuneration


Number of People Million of Rupiah

Board of Directors Remuneration (Gross salary, 6* 29,944


bonuses, routine allowances,
and other facilities in the form of
non-in kind)

Other Facilities in the form of in 6* 93


kind (housing, transportation,
health insurance, and others)
a. may be owned
b. may not be owned

Total 6* 30,037

*) 2 Directors resigned in February 17 and 28 consecutively

Total Remuneration per Person in 1 (one) year*) Total Board of Directors

Above Rp2 billion 5

Above Rp1 billion–Rp2 billion 1

Above Rp500 million–Rp1 billion -

Rp500 million and below -

*) received in cash

214 PT Bank QNB Indonesia Tbk


Performance
Meetings of the Board of Urgent circumstances 11. President Director presides

2016
Directors established by the President over the Board of Directors
Director or a majority of Meeting. In case the President
In accordance with Bank’s Articles members of Board of Directors. Director was not present or
of Association and other prevailing 6. Meeting call in advance is not not able to attend the Board
regulations, meetings of the Board required if all members of the of Directors meeting, which
of Directors are held regularly with Board of Directors are present does not have to be proven to
the provision and procedure as and/or represented in the the third party, therefore the

Management
follows: Board of Directors meeting or if Deputy President Director

Report
1. Board of Directors meeting the Board of Directors meeting shall preside over the Board
is to be held at least once has been scheduled based on of Directors meeting. In case
a month, unless deemed the decision of the previous the Deputy President Director
necessary by one of the Board of Directors Meeting were not present or not able to
members of the Board of which attended or represented attend the Board of Directors
Directors, or through written by majority of members of the Meeting, that does not have
request from one or more of Board of Directors. to be proven to the third party,
the members of the Board of 7. The Board of Directors therefore one of the members
meeting’ call shall contain the of the Board of Directors, that

Company
Commissioners, or through

Profile
written request from one agenda, date, time and venue were present and nominated in
or more of the shareholders of the meeting the Meeting, shall preside over
representing 1/10 (one tenth) 8. At the scheduled Board of the Board of Directors meeting.
of the total shares issued by Directors meeting, the meeting 12. A member of the Board of
the Bank with valid voting material should be distributed Directors that unable to
right. to the participants of the attend the Board of Directors

Management Discussion
2. The Board of Directors must meeting no later than five (5) meeting, may nominate other
prepare the next year BoC days before the meeting. member of Board of Directors

and Analysis
meeting schedule before the 9. In the event there’s an to represent him in the Board
end of the fiscal year. unscheduled Board of Directors of Directors meeting based on
3. The Board of Directors sets meeting, the material of the proxy. However, he/she must
strategic policies and decisions meeting should be distributed inform the Corporate Secretary
through the mechanism of to the participants before the prior to the Board of Directors
Board of Directors meeting. meeting is held, at the latest. meeting.
4. The call of Board of Directors 10. The Board of Directors meeting 13. The Board of Directors Meeting
meeting is carried out is convened in the office of the is valid and authorized to
Bank or office where the Bank make binding decision if more
Governance
by members of the BoD

Corporate
authorized to represent the conducts its main business than 1/2 (one half) of the
Bank’s Board of Directors. or in the capital of province total members of the Board of
5. The call for the meeting where the Bank conducts Directors were present in the
of Board of Directors shall its main business or in the Meeting.
be delivered in written or province of Stock Exchange 14. The attendance of Board of
submitted directly with domicile where Bank shares Directors members in the
proper receipt or by way of is listed, as long as within meeting must be disclosed in
Social Responsibility

Registered mail or courier, the territory of Republic of the Bank’s Annual Report.
Corporate

telex or facsimile or any Indonesia. 15. Decisions of the Board of


other communication tools. In the event that all members Directors meeting should
The invitation should be of the Board of Directors be based on deliberation to
delivered to members of Board present and/or represented, reach agreement. If decision
of Directors no less than 5 the Board of Directors meeting could not be reached through
(five) calendar days before the may be held anywhere within deliberation, decision will be
Board of Directors meeting the territory of Republic of
or in a shorter period of time Indonesia and has the right
in urgency no later than one to make valid and binding
(1) calendar day in advance. decisions

PT Bank QNB Indonesia Tbk 215


Passion for Excellence at Its Best
Annual Report 2016

made through voting based on 21. In the event of a member of the 26. Board of Directors meeting
supporting votes of more than Board of Directors did not sign may also be conducted
1/2 (one half) of the total valid the results of the meeting, the through teleconference, video
votes from Board of Directors respective Board of Directors conference or other electronic
collected in the Meeting. member shall specify the tools where all Board of
16. If the opposing and supporting reasons in writing in a separate Directors meeting participant
votes were the same, the letter attached to the minutes can see and/or hear each
Chairman of the Board of of meetings. other and participate in the
Directors Meeting shall decide. 22. Dissenting opinions in the Board of Directors Meeting.
17. Every member of the Board Board of Directors meeting is Such meeting should be
of Directors present in the required to be stated clearly organized according to the
meeting has the right to 1 in the minutes of the meeting, prevailing regulations and the
(one) vote and additional 1 along with the reason of the minutes of meeting should
(one) vote for other member of dissenting opinions be prepared and circulated
Board of Directors represented 23. All decisions set out in the to all Board of Directors
by him/her. Board of Directors meeting, members who attended the
18. Any member of the Board which was decided in meeting for signing. Decisions
of Directors, who has, either accordance with the applicable made in this procedure have
directly or indirectly, conflict provisions of the Bank, binding similar authority as decision
of interest in a transaction, and become the responsibility legitimately made in the Board
contract, or proposed of the Board of Directors. of Directors Meeting
contract, shall declare the 24. All the decisions that have
nature of the interest in the been established in the Board In 2016, the Board of Directors have
Board of Directors Meeting of Directors meeting, which held 19 (nineteen) meetings with
and shall not have the right decided in accordance with the the agendas, including:
to participate in voting applicable Bank’s provisions, 1. Discussion on 2016-2018
concerning matters related to binding and being the Business Plan of the Bank.
the transaction or contract, responsibility of the Board of 2. 2016 Rating Agency.
unless declared otherwise by Directors. 3. Strategic Map Update.
the Board of Directors meeting. 25. The Board of Directors can 4. Discussion on Organizational
19. Voting concerning a particular also make valid and binding Changes.
person or staff shall be carried decisions without organizing 5. Business and Financial
out with closed ballots without Board of Directors Meeting, Performance Update and
signature. Voting for other provided that all members Review
matters shall be carried out of the Board of Directors 6. Bankwide Performance Update
verbally, unless decided have been notified in writing and Review
otherwise by the Chairman concerning related proposals, 7. Positioning and Brand
of the meeting without any and all the members of the Perception Update
objection from other present Board of Directors have given 8. Credit Approval Process
members. their approval concerning 9. Plans of General Meeting of
20. Proceeds of the Board of the written proposal and Shareholders Implementation
Directors meeting is required signed the approval. Decisions 10. Foreclosed Assets and Assets
to be summarized into minutes made in this procedure have Transfer
of the meeting, to be signed similar authority as decision 11. Compensation
by all members of Board of legitimately made in the Board 12. Operational Update
Directors present and well of Directors meeting 13. Update on Assets Quality
documented. 14. Office Plan Strategy

216 PT Bank QNB Indonesia Tbk


Performance
15. Revision of 2016 Bank’s 22. Update on peer banks Frequency of Meetings of Board of

2016
Business Plan performance Directors and Attendance Record
16. Segregation Duties of BoD 23. Proposed new initiatives & In 2016, the Board of Directors have
17. Follow up audit findings projects conducted 19 (nineteen) meetings.
18. Follow up FSA/OJK findings 24. Escalation and Declaration The following table shows the
and recommendations System attendance frequency of each
19. Update on new regulator 25. Record Management Director in the meetings.
regulations Improvement Project

Management
20. Bank’s rating 26. Follow up to Improve Bank’s

Report
21. Risk Based Bank Rating Result Performance

Board of Directors Meetings and Attendance Level

Name Position Physical Attendance % Attendance

Company
Profile
Andrew McGregor Duff* President Director 3 16%

Azhar bin Abdul Wahab** Acting President Director 19 100%

Lloyd William Rolston Director 19 100%

Rusli*** 3 16%

Management Discussion
Windiartono Tabingin Independent Director 19 100%

and Analysis
Novi Mayasari Director 18 95%

R. Andi Kartiko Utomo**** Invitee 13 68%

Junita Wangsadinata***** NIL NIL NIL

*) Effectively resigned as the Bank’s President Director as of February 28, 2016.


**) Appointed as the Bank’s Acting President Director based on the Circular Resolution of BoD of the Bank No.
005/SK-Dir/I/2016 dated January 22, 2016 and the appointment was effective on February 28, 2016.
***) Effectively resigned as the Bank’s Director as of February 16, 2016.
Governance
Corporate
****) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated April 13, 2016 which
shall be effective upon obtaining approval from the Financial Services Authority (OJK) on fit and proper test.
*****) Appointed as a Director of the Bank based on resolution of the Bank’s EGM dated December 19, 2016
which shall be effective on February 16, 2017 and upon obtaining approval from the Financial Services
Authority (OJK) on fit and proper test.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 217


Passion for Excellence at Its Best
Annual Report 2016

Commitees Under
the Board of Directors
The Board of Directors is assisted 5. New Products and Activities Structure, Composition, and
by 9 (nine) Committees which Commitee Meeting Attendance of Asset and
have task to provide advice and 6. Information Technology Liability Committee
recommendations to the Board Committee The selection of members of
of Directors, to support the 7. Human Resources Committee ALCO Committee have taken into
effectiveness of the implementation 8. Fraud Oversight Committee consideration of competences,
of duties and responsibilities of the 9. Special Asset Management independency, discretion, and code
Board of Directors. Committee of conduct, as well as respective
duties and responsibilities
Members of these Committees are Asset and Liability implementation in accordance with
appointed by the Board of Directors Committee applicable regulations.
in accordance with the size and
complexity of the Bank’s business Asset and Liability Committee As of December 31, 2016, the ALCO
as well as prevailing regulations. (ALCO) was established by Board Committee have conducted 10
As of December 31, 2016, the of Directors to assist the Board (ten) meetings. The following table
committees under the Bank’s Board of Directors in managing assets shows the attendance frequency of
of Directors are: and liabilities in integrated each member of ALCO Committee
1. Asset & Liability Committee manner, establish balance sheet in the meetings.
(ALCO) structure and capital, and provide
2. Credit Committee recommendations to the Board
3. Risk Management Committee of Directors to determine policies
4. Procurement Committee established in ALCO meetings.

Meeting
Position Name Attendance % Attendance
(10 meetings)

Chairman and Member Azhar bin Abdul Wahab 8 80%


(Acting President Director)

Alternate Chairman and Member Lloyd William Rolston 9 90%


(Risk Director)

Secretary and Member Tomi Parisianto Wibowo 2 20%


(Head of Finance & Accounting)

Member Agus Meliala 2 20%


(Head of Wholesale Banking)*

Member R. Andi Kartiko Utomo 6 60%


(Head of E-Banking & Financial Inclusion)

Member Novy Angela Andow 9 90%


(Head of Treasury)

Member Rundi Perkasa 9 90%


(Market & Liquidity Risk Head)

* Officially resigned since June 30, 2016

218 PT Bank QNB Indonesia Tbk


Performance
Duties and Responsibilities of 2. Develop, monitor, review and Credit Committee

2016
Asset and Liability Committee manage the Bank’s Assets
According to the Decree of & Liabilities Strategies, and Credit Committee was established
Directors No. 032/SK-Dir/VI/2016 policies relating to interest rate by Board of Directors to assist the
regarding the Establishment risk, currency risk and liquidity Board of Directors in formulating
of Asset & Liability Committee risk. credit policies and provide decision
(ALCO) of PT Bank QNB Indonesia 3. Determine transfer pricing with respect to credit proposal
Tbk, the duties and responsibilities for the best reflection of the in accordance with the limit

Management
of ALCO Committee, including: different business units. authority.

Report
1. Monitor current assets
including, among others: Duties Implementation of Asset Structure, Composition, and
a. Liquidity reserves and Liability Committee Meeting Attendance of Credit
sufficiency in Bank In 2016, ALCO Committee Committee
Indonesia conducted meetings which cover The selection of members of
b. The ability to raise funds agenda, including: Credit Committee have taken into
from interbank money 1. Monitored the Company’s consideration of competences,
market current assets independency, discretion, and code
c. The Bank’s funding 2. Monitored, reviewed, and

Company
of conduct, as well as respective

Profile
structure managed the Bank’s Assets duties and responsibilities
d. The maturity of assets & Liabilities strategies, and implementation in accordance with
and liabilities policies for 2016 applicable regulations.
e. The interest rates and
market trends As of December 31, 2016, the
f. Adequacy of funding Credit Committee have conducted

Management Discussion
in the future and 100 (one hundred) meetings.
macroeconomic The following table shows the

and Analysis
conditions attendance frequency of each
member of Credit Committee in the
meetings.

Meeting
Position Name Attendance % Attendance
(100 meetings)

Chairman and Member Azhar Abdul Wahab 97 97

Governance
Corporate
(Acting President Director)

Alternate Chairman and Member Lloyd William Rolston 96 96


(Risk Director)

Member Ervin Gumilar 21 21


(Head of SME Credit Review)

Member and Secretary Wendriani Lukito 91 91


Social Responsibility

(Head of Commercial Credit)


Corporate

PT Bank QNB Indonesia Tbk 219


Passion for Excellence at Its Best
Annual Report 2016

Duties and Responsibilities of 6. Evaluate/assess the concerning risk management


Credit Committee performance of business unit including the formulation of
According to the Decree and credit review unit. policies, enhancements of policy
of Directors No. 040/SK- implementation, evaluation of
Direksi/X/2016 regarding the Duties Implementation of Credit risk profile condition and progress,
Establishment of Credit Committee Committee and other recommendations for
of PT Bank QNB Indonesia Tbk, the In 2016, Credit Committee has improvements.
duties and responsibilities of Credit fulfilled its duties with the
Committee, including: following details: Structure, Composition, and
1. Provide approval or rejection 1. Review and approved credit Meeting Attendance of Risk
on credit proposal in proposals in accordance to the Management Committee
accordance with the limits limit set. The selection of members of
of authority/type of credit 2. Evaluated the performance Risk Management Committee
established by the Board of of the working units that have taken into consideration
Directors and reviewing credit responsible on credit proposals of competences, independency,
applications that exceed and credit review. discretion, and code of conduct,
established limits. as well as respective duties and
2. To coordinate with ALCO Risk Management responsibilities implementation
Committee in the aspect of Committee in accordance with applicable
credit financing. regulations.
3. Monitoring the Risk Management Committee was
implementation of the credit established by Decree of Directors As of December 31, 2016, the
policy. No. 022/SK-Direksi/V/2016 Risk Management Committee
4. Acting as an advisor for related regarding the Establishment of have conducted 5 (five) meetings.
party credit matters. Risk Management Committee The following table shows the
5. Develop lending policies of PT Bank QNB Indonesia Tbk attendance frequency of each
and submit to the Policy Sub to provide recommendations member of Risk Management
Committee to be approved. to the Board of Directors Committee in the meetings.

Meeting
Position Name Attendance % Attendance
(5 meetings)

Chairman and Member Lloyd William Rolston 5/5 100%


(Risk Director)

Alternate Chairman and Member Azhar bin Abdul Wahab 4/5 80%
(Acting President Director)

Secretary and Member Caroline Halim 5/5 100%

Non-Voting Member Windiartono Tabingin 3/5 60%

Member Novi Mayasari1 4/4 100%

Member R. Andi Kartiko Utomo1 2/4 50%

Member Rasmoro P. Aji 5/5 100%

Member Cut Tashana Azia2 2/2 100%

Member Monica Riesanty3 2/2 100%

Member Wendriani Lukito4 3/4 75%

1)
Appointed as member on February 2016 3)
Temporary member since August 2016
2)
Joined the Bank on August 2016 4)
Reinstated as temporary member on August 2016

220 PT Bank QNB Indonesia Tbk


Performance
Duties and Responsibilities of Risk 9. Determine rules and/or Procurement Committee

2016
Management Committee business decisions that deviate
According to the Decree from normal procedures Procurement Committee was
of Directors No. 022/SK- (irregularities). established by Board of Directors
Direksi/V/2016 regarding 10. Determine other matters with last amendement by the Board
the Establishment of Risk related to the Bank’s risk of Directors Decree No. 031/SK-
Management Committee of PT management activities. Dir/VI/2016 on the Establishment
Bank QNB Indonesia Tbk, the of PT Bank QNB Indonesia Tbk’s

Management
duties and responsibilities of In addition, under the Risk Procurement Committee to

Report
Risk Management Committee, Management Committee, there is provide inputs to the Board of
including: Sub Committee Policy which has Directors on the goods and services
1. Establish risk management functions and responsibilities to procurement policies and provide
frameworks and governance. conducts review and delivers the approval for goods and services
2. Set the risk management policies and procedures related procurement.
direction, strategies and to the Bank’s activities and
programs. operations. Structure, Composition,
3. Perform evaluation on risk and Meeting Attendance of
profiles and capital adequacy Duties Implementation of Risk

Company
Procurement Committee

Profile
analysis. Management Committee
4. Establish policies and enhance In 2016, Risk Management The selection of members of
risk management processes Committee has conducted meetings Procurement Committee have
regularly. which cover agenda, including: taken into consideration of
5. Establish risk measurement 1. Risk Based Bank Rating review competences, independency,
methodologies. 2. Risk Appetite Statement discretion, and code of conduct,

Management Discussion
6. Monitoring loan & portfolio review as well as respective duties and
diversification (business 3. Top Risk review responsibilities implementation

and Analysis
segment/industry sector/ 4. Fraud Strategy in accordance with applicable
debtor) and determine credit 5. Industry Sector Limit & USD regulations.
risk indicator profile as well Loan Portfolio Review
as credit risk measurement 6. Market & Liquidity Risk Limit In 2016, the meetings of
methodology. review Procurement Committee was
7. Establish contingency plan. 7. Summary of OJK and Internal conducted circularly. The following
8. Establish the adequacy of Audit Findings table shows composition of
provision. 8. Risk Dashboard membership of Procurement
9. Peer Bank Analysis
Governance
Committee.

Corporate
10. Penetration Test Analysis

Committee Position Name Position

Chairman and Member Azhar bin Abdul Wahab President Director


Social Responsibility

Alternate Chairman and Member Novi Mayasari Human Resources Director


Corporate

Secretary and Member Denny Soemardhono Head of General Service

Member R. Andi Kartiko Utomo E-Banking & Financial Inclusion Director

Member Tomi Parisianto Wibowo Head of Finance & Accounting

Member Tota Loembantobing Head of Operations

Member Lina Head of Corporate Secretary

Member Slamet Riyadi Head of IT & Digital Banking

PT Bank QNB Indonesia Tbk 221


Passion for Excellence at Its Best
Annual Report 2016

Duties and Responsibilities of 6. Procurement Committee may Directors’ Decree No. 30/SK-Dir/
Procurement Committee prepare an Estimates Price VI/2016 on the Establishment
The duties and responsibilities of Reference (Owner’s Estimate) of New Products and Activities
Procurement Committee, including: on third parties product and Committee of PT Bank QNB
1. Evaluate and approve the services. Indonesia Tbk to provide
proposed Capital Expenditurel/ 7. Procurement Committee may recommendations to the Board
Operational Expenditure either prepare the Vendor List of the of Directors regarding the
budgeted or unbudgeted in Bank. development of new product and
the Bank’s Business Plan, 8. Ensuring that the procurement services as well as evaluation and
in accordance with the plans is in line with the enhancement of existing products,
predetermined limit. strategic objectives of the services and activities of the Bank.
2. Formulate guidelines and Bank.
policies for procurement of 9. Conduct other duties as Structure, Composition, and
goods/services. deemed necessary by the Meeting Attendance of New
3. Establish priority and Board of Directors. Products and Activities Committee
allocation of budget for The selection of members of New
procurements of goods/ Duties Implementation of Products and Activities Committee
services in accordance with Procurement Committee have taken into consideration
the decision of the Board of In 2016, Procurement Committee of competences, independency,
Directors. has approved the procurement discretion, and code of conduct,
4. Ensuring that the procurement made by the Bank and reviewed as well as respective duties and
of goods and services is the realization of total purchased responsibilities implementation
done in accordance with the against budget. in accordance with applicable
principles of procurement, regulations.
namely: efficient, effective, Products and New
transparent, fair, and Activitiy Committee In 2016, the meeting of
accountable. Procurement Committee was
5. Ensure that the procurement New Products and Activities conducted circularly. The following
of goods and services carried Committee was established table shows composition of
out in accordance with ethics by Board of Directors with last membership of Procurement
in procurement. amendement by the Board of Committee.

Committee Position Name

Chairman and Member Azhar bin Abdul Wahab (Acting President Director)

Alternate Chairman and Member Lloyd William Rolston (Risk Director)

Secretary and Member Joyce Puspa Chandrayani (Head of Product Development)

Member R. Andi Kartiko Utomo (E—Banking & Financial Inclusion Director)

Member Tomi Parisianto Wibowo (Head of Finance & Accounting)

Member Tota Loembantobing (Head of Operations)

Member Rasmoro P Aji (Head of Network & Distribution)

222 PT Bank QNB Indonesia Tbk


Performance
Duties and Responsibilities of New form. These products cover Structure, Composition, and

2016
Products and Activities Committee all products owned by the Meeting Attendance of Information
The duties and responsibilities bank (Lending, Liability, Trade Technology Committee
of New Products and Activities Finance, Treasury, Investment, The selection of members of
Committee, including: E-banking, Services, etc). Information Technology Committee
1. Supervise the process of new 2. All head of business (Lending, have taken into consideration
products, services as well as Liability, Trade Finance, of competences, independency,
activities development. Treasury, Investment, discretion, and code of conduct,

Management
2. Supervise the Bank’s activities Ebanking, Services, etc) should as well as respective duties and

Report
related to the implementation send all of their products to responsibilities implementation
of new products, services and Head of Product Development in accordance with applicable
activities. to be documented. While regulations.
3. Evaluate and approve new as softcopy, should be put
products, services or activities at sharepoint so it could be As of December 31 2016, the
proposed by the working unit. accessed by all respective Information Technology Committee
4. Estab/ish and define the plan employee. have conducted 2 (two) meetings.
to issue new products, services 3. Every new product should be The following table shows the
and activities in line with the equipped with Risk, Legal and attendance frequency of each

Company
Profile
Bank’s strategy and business Compliance analysis before it member of Information Technology
plan. is brought to the committtee. Committee in the meetings.
5. To evaluate the benefits
and risk to the Bank on Information Technology
the products, services and Committee
activities launched by the

Management Discussion
Bank. Information Technology Committee

and Analysis
was established by Board of
Duties Implementation of New Directors with last amendment
Products and Activities Committee by Policy and Regulation No.
During 2016, New Products and 2/04/002.00/II/2014 to assist the
Activities Committee has agreed to Board of Directors by providing
the following decisions: directives and recommendations
1. All the Bank’s products should on IT strategies, development, and
be documented in written implementation.

Governance
Corporate
Meeting
Position Name Attendance % Attendance
(2 meetings)

Chairman and also member Azhar bin Abdul Wahab (Acting President Director) 2 100%

Member (Alternate Chairman) Slamet Riyadi 1 50%


Social Responsibility

Member (Secretary) Darwinsyah 2 100%


Corporate

Member Lloyd William Rolston (Risk Director) 2 100%

Member Tota Loembatobing 2 100%

Member Tomi Parisianto Wibowo 2 100%

Member R. Andi Kartiko Kusumo 1 50%

Member Rasmoro Pramono Aji 1 50%

PT Bank QNB Indonesia Tbk 223


Passion for Excellence at Its Best
Annual Report 2016

Duties and Responsibilities 1. Monitored the performance Structure, Composition, and


of Information Technology and improvement of the Meeting Attendance of Human
Committee information technology. Resources Committee
Duties and Responsibilities 2. Ensured that information The selection of members of
of Information Technology technology plan is consistent/ Human Resources Committee
Committee, including: in line with the Bank’s have taken into consideration
1. Establish the strategic strategic objective. of competences, independency,
framework as a reference 3. Ensured that implementation discretion, and code of conduct,
in managing technology of information technology as well as respective duties and
information resources. projects are in accordance with responsibilities implementation
2. Monitor the performance the information technology in accordance with applicable
and improvement of the plan and approve the “Project regulations.
information technology. Charter”.
3. Ensure that information 4. Establish the priorities and As of December 31, 2016, the
technology plan is consistent/ allocation of information Human Resources Committee have
in line with the Bank’s technology budget. conducted 8 (eight) meetings.
strategic objective. The following table shows the
4. Ensure that implementation Human Resources attendance frequency of each
of information technology Committee member of Human Resources
projects are in accordance with Committee in the meetings.
the information technology Human Resources Committee was
plan and approve the “Project established by Board of Directors
Charter”. with last amendement by Policy
5. Establish the priorities and and Regulation No. 2/04/002.00/
allocation of information II/2014 to assist the Board of
technology budget. Directors to improve effectiveness,
efficiency, objectivity, and
Duties Implementation of transparency of decision-making
Information Technology relating to HR matters and to
Committee provide assurance for stakeholders
In 2016, Information Technology that all HR-related decisions are
Committee has conducted meetings in compliance to Good Corporate
which cover agenda, including: Governance principles.

Meeting
Position Name Attendance % Attendance
(8 meetings)

Chairman Azhar bin Abdul Wahab (Acting President Director) 8 100%

Secretary and Member Novi Mayasari (Human Resources Director) 8 100%

Member Lloyd William Rolston (Risk Director) 8 100%

Member Windiartono Tabingin (Compliance Director) 8 100%

224 PT Bank QNB Indonesia Tbk


Performance
Duties and Responsibilities of 9. Review and ensure that Fraud Oversight

2016
Human Resources Committee fair assessment has been Committee
Duties and responsibilities of conducted in line with the
Human Resources Committee, prevailing regulations. Fraud Oversight Committee was
including: 10. Receive complaints from established by Board of Directors
1. Establish Human Resources Human Resources and resolve with Compliance Policy and
strategic plans. Human Resources related Procedure No. 1.301 dated June
2. Establish the suitability issues. 5, 2012 to assist the Board of

Management
between the Human Resources Directors in the improvement of

Report
projects and Human Resources Duties Implementation of Human effectiveness and efficiency of
strategic plans. Resources Committee fraud prevention and handling. The
3. Establish the suitability In 2016, Human Resources Fraud Oversight Committee holds
between the implementation Committee has carried out meeting at least two times a year
of Human resources projects activities as follows: and occasionally when necessary.
and project charter. 1. Established the suitability
4. Establish the suitability between the Human Resources Structure and Composition of Fraud
between the training needs projects and Human Resources Oversight Committee
and the Bank’s business needs. strategic plans.

Company
The selection of members of Fraud

Profile
5. Improve the effective steps 2. Reviewed the performance Oversight Committee have taken
used to minimize Human assessment in accordance with into consideration of competences,
Resources risk. the policy. independency, discretion, and code
6. Monitor the performance 3. Established the suitability of conduct, as well as respective
of Human Resources and between training plans and duties and responsibilities
its development through budget spent. implementation in accordance

Management Discussion
the implementation of 4. Established adjustment on with applicable regulations. The
information-based system. the change required by the

and Analysis
following table shows composition
7. Resolve various problems organization. of membership of Fraud Oversight
occurred in the Human 5. Implemented attempts to Committee.
Resources aspects. resolve Human Resources
8. Approve the development plan issues.
for the key staff and potential
key staff at second level and
below.

Governance
Corporate
Committee Position Name Position

Chairman Azhar bin Abdul Wahab Acting President Director

Member Lloyd William Rolston Risk Director

Member Windiartono Tabingin Compliance Director


Social Responsibility
Corporate

Member Novi Mayasari Human Resources Director

Member Cut Tashana Azia Chief Auditor

PT Bank QNB Indonesia Tbk 225


Passion for Excellence at Its Best
Annual Report 2016

Duties and Responsibilities of 5. Determine the actions to be Duties Implementation of Fraud


Member of Fraud Oversight taken including legal action Oversight Committee
Committee 6. Decide the sanctions for In 2016, Fraud Oversight
The duties and responsibilities perpetrators of Fraud Committee has fulfilled its duties,
of Fraud Oversight Committee, 7. To prevent the conflict of including approved the content
including: interest, Directors, and/or of fraud report and provided
1. Provide supervision and other related parties which supervision and guidance on risk
guidance on fraud risk may affected the decision management of fraud to the related
management program making on investigation, divisions. There were no internal
2. Manage and coordinate the the conclusion and sanction fraud cases occured in the Bank.
actions and responses on the against fraud case occured
fraud that occurred in Bank in a work unit, should not
3. Review lessons learned and be involved in the Fraud
next action plans Oversight Committee.
4. Provide approval on the
content of fraud report for
external purpose, if necessary

226 PT Bank QNB Indonesia Tbk


Performance
Special Asset

2016
Management Committee
Special Asset Management Structure and Composition of Fraud duties and responsibilities
Committee was established by Oversight Committee implementation in accordance
the Board of Directors based on The selection of members of with applicable regulations. The
the Decree of Directors No. 041/ Special Asset Management following table shows composition
SK-Direksi/X/2016 dated October Committee have taken into of Special Asset Management

Management
18, 2016 to assist the Board of consideration of competences, Committee.

Report
Directors in terms of Special Asset independency, discretion, and code
Management. The Special Asset of conduct, as well as respective
Management Committee holds
meeting at least once a week and
occasionally when necessary.

Meeting Attendance
Committee Position Name % Attendance

Company
(25 meetings)

Profile
Chairman Azhar bin Abdul Wahab 24 96%
(Act. President Director)

Member (Alternate Chairman) Lloyd Rolston 24 96%


(Risk Director)

Management Discussion
Member Ervin Gumilar 24 96%
(Head of SME Credit Review

and Analysis
Member Wendriani Lukito 24 96%
(Head of Commercial Credit)

Member (Secretary) Arisman 23 92%


(Special Asset Management Head)

Duties and Responsibilities - To ensure that credit - To review and provide


of Member of Special Asset restructuring & recovery approvals on the proposal

Governance
Corporate
Management Committee held by the Bank is in of NPL management, both
The duties and responsibilities accordance with the from Wholesale Banking
of Special Asset Management prevailing regulations. and Retail Banking.
Committee, including: - To monitor Bank’s - To monitor the
1. Credit Restructuring & restructured credit implementation of NPL
Recovery portfolio. management.
- To review and provide - To ensure that NPL
recommendations on 2. Non Performing Loans (NPL) settlement performed
Social Responsibility

the Bank’s procedure on Management by Special Asset


Corporate

Credit Restructuring. - To review and provide Management unit is based


- To monitor the recommendations on on Bank’s interest.
implementation of the the Bank’s policy on NPL
Bank’s procedure on Management.
Credit Restructuring. - To review and provide
- To review and provide approvals on the strategy
approval on the proposed of NPL Management,
credit restructuring & established by Special
recovery. Management unit.

PT Bank QNB Indonesia Tbk 227


Passion for Excellence at Its Best
Annual Report 2016

3. Foreclosed Assets - To receive regular report Duties Implementation of Special


- To review and provide on net and status of Asset Management Committee
recommendations on Bank’s Foreclosed Assets In 2016, Special Asset Management
the Bank’s procedure on from Special Asset Committee has carried out the
Foreclosed Assets. Management Unit. following activities as follows:
- To monitor the - To monitor the - Reviewed and approved the
implementation of Bank’s implementation of credit restructuring proposal
procedure on Foreclosed Bank’s Foreclosed Asset according to the limit set.
Assets. settlement. - Reviewed and approved the
- To review and provide - To ensure that Foreclosed credit restructuring proposal
approvals on the strategy Assets settlement by means of voluntary
of Foreclosed Assets performed by Special Foreclosed Assets of six NPL
settlement, established Asset Management unit is debtors.
by Special Asset based on Bank’s interest. - Reviewed and approved the
Management Unit. proposal of SAM on loans
- To provide approvals on 4. To Evaluate/Assess the settlement by means of
the proposal of Foreclosed Performance of Special Asset litigation of two NPL debtors.
Assets settlement, Management.
proposed by Special Asset
Management unit, by
taking into account the
prevailing regulations
and Bank’s Articles of
Association.

228 PT Bank QNB Indonesia Tbk


Compliance Function

Performance
Compliance Function in QNB technology, globalization, and 2. Managing Compliance Risks

2016
Indonesia refers to the Regulation integration of financial market. faced by the Bank;
of Bank Indonesia No. 13/2/ Generally, the implementation 3. Ensuring that the policies,
PBI/2011. It is carried out by of duties of Compliance Division regulations, systems and
Compliance Division which is under encompasses a series of ex-ante procedures, as well as the
the supervision of Compliance (preventive) actions or steps to Bank’s business activities are
Director. In performing its duties, ensure that the policy, regulation, in line with the provisions of
Compliance Division cooperates system, procedure, and business Regulators and the prevailing

Management
with other organizational units as activity conducted by the Bank laws and legislations; and

Report
an independent partner, both in are in line with the rules and 4. Ensuring that the Bank
the process of policy planning and regulations of Regulators and the is in compliance with the
evaluation of compliance towards prevailing law and legislation. commitments made by the
operational activities. Bank to Bank Indonesia,
In particular, the Compliance Financial Service Authorities
Compliance Division has a Division has the following function: (FSA/OJK) and/or other
significant role in strengthening 1. Establishing and implementing regulatory authorities.
the Bank’s structure towards each Compliance Culture in all
risk exposure that may occur in line levels of organization and the

Company
Profile
with the advance of information Bank’s business activity;

Organizational Structure of Compliance Function

Management Discussion
President Director
(CEO)

and Analysis
Compliance
Director

Governance
Corporate
Head of Compliance
& Procedure
Social Responsibility

Compliance Review &


Corporate

Compliance Advisory Head Compliance Procedures Head AML Head


Information Services head

PT Bank QNB Indonesia Tbk 229


Passion for Excellence at Its Best
Annual Report 2016

Profile of the Head of of Compliance. Earned her Bachelor - Professionalism with Integrity
Compliance Function Degree in Law from Airlangga for Leaders
University, Surabaya, in 1986. - Group Coaching Managing
The Head of Compliance Division is Previously, she held the position Team
directly responsible to the Director of Compliance & Legal Group Head - Liquidity Coverage Ratio (LCR)
of Compliance. The Compliance at PT. Bank ICB Bumiputera Tbk - Compliance Certification
Division leads the divisions of and Recovery Litigation Group - QNB Values Refreshment Dir
compliance, Anti Money Laudering, Head at PT Bank CIMB Niaga Tbk. Compliance
and procedures, and assists the As Head of Compliance, she had
Director of Compliance in the a certification on Compliance and Qualification and
implementation of his duties and she is also a Certified Assessor by Certification of
National Board of Professional
responsibilities.
Certification (BNSP).
Compliance Function
As of December 31, 2016, the 1. Meets the independency
position of the Head of Compliance In 2016, she actively attended
requirement.
and Procedure Division is held several competence development
2. Understands and masters the
by Rr. Utami Tjipto. Citizen of programs, among others:
regulations of regulators and
Indonesia, 54 years old. She was - English for Law
the applicable laws.
appointed based on the Decree of - MQ Connector
3. Do not conduct other duties
the Board of Directors No. 571/ - Direct Sales Management
outside the Compliance
SK-DIR/ VIII/2012 dated August - Group Coaching Managing
Function.
28, 2012, which lastly amended Team: Coaching Skill
4. Possess high commitment to
with the Decree of the Board - Compliance Workshop
implement and improve the
of Directors No. 122/SK-DIR/ - Leaders Talk
Compliance Culture.
VI/2014 dated June 24, 2014 and - Credit Proposal
responsible directly to the Director - Credit Proposal Improvement
Workshop

230 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
5. Possess knowledge abilities of: 1. Taking steps to support the 4. Reviewing and/or
interpersonal skill, compliance establishment of Compliance recommending update and
with the regulations of each Culture in all activities of the improvement on policies,
filed, banking products and Bank and within all levels of provisions, systems, or
services; computer skill in the organization. procedures of the Bank so as to
related field, technical skill 2. Identifying, measuring, be in line with the regulations
in the related field, analysis monitoring, and controlling the of Bank Indonesia, Financial
skill in the related field, Compliance Risk by referring Services Authority, and

Governance
communication skill. to the regulations of Bank other prevailing rules and

Corporate
6. Has character and skill Indonesia and/or Financial regulations.
of integrity, excellent Service Authority regarding 5. Ensuring that the policies,
performance, leadership, the Implementation of Risk provisions, systems and
decision-making, planning, Management in Commercial procedures, as well as the
and problem solving. Banks. activities of the Bank are in
3. Assessing and evaluating the line with the regulations of
Compliance effectiveness, adequacy, and Bank Indonesia, Financial
Social Responsibility

Function Duties and compatibility of the policies, Services Authority, and


Corporate

regulations, systems, or other prevailing rules and


Responsibilities procedures of the Bank to be in regulations.
line with the prevailing laws 6. Conducting other duties
In implementing its function, the
and regulations. related to the Compliance
Compliance Division conducts its
Function.
duties and responsibilites, which
are, among others:

PT Bank QNB Indonesia Tbk 231


Passion for Excellence at Its Best
Annual Report 2016

In conducting its duties and • Makes efforts to ensure • Conducts other duties
responsibilities, Compliance the bank’s compliance to related to the compliance
Division has four subdivisions with the commitment to Bank function.
functions as follows: Indonesia, or Financial
1. Compliance Function: Services Authorities, 2. Anti-Money Laundering (AML)
• Develops Bank’s and any other relevant and Combating of Terrorism
compliance program regulators. Financing (CFT) Function:
as one of an effort • Ensures that the new • Composes strategies,
to encourage the provisions and regulations steps, and/or plans to
establishment of have been disseminated to implement the AML/CFT
Compliance Culture in the the related units, through programs.
entire Bank’s business coordination meetings • Ensures that the AML/
activities and in all related such as Governance Risk CFT Program are able to
working units. and Compliance (GRC) be implemented based on
• Measures, monitors, and meetings, email blasts, or the prevailing regulations,
provides reviews and periodic and continuous as well as provides
suggestion regarding training dissemination. reviews and suggestions
the Compliance Risk • Ensures that the policies, for the problems faced
of the implementation regulations, systems and by the related working
of new products and procedures, as well as the units and internal control
activities by referring to Bank’s business activities working unit in the
the regulations of Bank are in line with the process of AML/CFT
Indonesia, Financial provisions of Regulators implementation.
Services Authorities, and the prevailing laws
and any other relevant and legislations.
regulators.

232 PT Bank QNB Indonesia Tbk


Performance
• Assesses and evaluates 4. Compliance Review and • Conducts implementation

2016
the effectiveness Information Services Function: evaluation of Good
development of the AML • Together with Internal Corporate Governance
systems related to the Audit and Internal Control (GCG) principles in line
information technology in perform combined with related divisions.
order to improve the data assurance in order to • Conducts other duties
updating program, single ensure operational given by the Director of
Customer Information transaction in working Compliance and other

Management
File (CIF) and Risk Based units are comply with members of the Board of

Report
Approach classification of existing policies and Directors.
customers. procedures
• Ensures that the systems • In line with Complliance Update on the
and submissions of report & AML Sub Division Achievement of
to the third parties (Bank conduct socialization
Indonesia, Financial regarding external
Compliance Strategy Map
Services Authority, regulations and internal
In order to improve the Bank’s
Indonesian Financial policy.
Compliance Function, the Bank
Transaction Reports and • Conduct coordination,

Company
Profile
realizes the implementation of
Analysis Center (PPATK), communication and
Compliance Culture in every level
Corruption Eradication propose action plan/
of organization and Bank’s business
Commission (KPK), Tax recommendation that
activity, manages the Compliance
Office, Correspondent must be conducted by
Risk encountered by the Bank;
Bank, and National related unit in order to
ensures that policy, provision,
Narcotics Agency (BNN)) support Bank’s business
system, and procedure as well as

Management Discussion
are in timely manner and activity
business activities conducted by
in line with the prevailing • Monitor and remind all

and Analysis
the Bank is in accordance with
rules and regulations. related units in fulfilling
Bank Indonesia, FSA/OJK and
their commitments
applicable regulations, and ensure
3. Policies and Procedures to regulators (Bank
the Bank’s compliance towards the
Function: Indonesia, Financial
commitment made by the Bank to
• Standardizes policies and Services Authority,
Bank Indonesia, Financial Services
procedures and other regulatory
Authority and/or other supervisory
• Re-checks the conformity institutions).
authorities.
between internal policy • Ensure that every Bank’s
and procedure with the employee could easily
Governance
Corporate
To support the success
applied regulations. and quickly obtain
implementation of tasks and
• Reviews existing policies the required relevant
responsibilities of the Compliance
and procedures and its regulations through QNB
Director, the Bank has prepared
conformity with external Indonesia portal.
Compliance Strategy Map
regulations, periodically.
up to 2018. In terms of the
• Ensure the Bank’s policies In addition, Compliance
implementation of such Strategy
and procedures are always Division also has other duties
Map, in 2016 the Bank has
Social Responsibility

up to date. as follows:
performed the following things:
Corporate

• Composes reports to
1. Supporting the Financial
related parties, such
Target Achievement Prudently
as PPATK (Indonesian
a. To be a Bank which takes
Financial Transaction
into account the banking
Reports and Analysis
prudent principle by
Center), Tax Office, KPK
increasing the Compliance
(Corruption Eradication
Culture in each work unit,
Commission), and other
among others, by:
institutions;

PT Bank QNB Indonesia Tbk 233


Passion for Excellence at Its Best
Annual Report 2016

1) Assessing and b. Supporting the rapid 1) The Bank implements


ensuring that the business development by Compliance
Compliance Checklist paying attention to the Monitoring
of the new products Bank’s prudent principles System (CMS)
and activities has 1) Providing a review and Compliance
been fulfilled in or recommendation Assessment
accordance with the on Bank’s activity Procedure in order
rules. related to the to identify, measure,
2) Assessing and business, credit, monitor, and control
ensuring that the and operational the compliance risk
Compliance Checklist processes. as well as composing
of the opening/ 2) Published a an implementation
relocation/closing compliance checklist procedure for the
of office network either credit or new branch offices. Such
is in accordance products or activities. procedure will enable
with the prevailing 3) Establishing a the Bank to analyze
regulations. reminder system the compliance of
3) Estabilishing a to ensure that the the branch offices
good relationship/ reports are submitted based on their self-
communication in a timely manner assessment data
between the to the regulators 2) Together with
shareholders and in accordance with Internal Audit and
management, as well the prevailing Internal Control
as employees and regulations. ensures the branch
customers, through a 4) Coordinate with compliance to
public expose. related divisions such internal and external
4) Resolving the as Legal Division, regulations.
negative information Corporate Secretary 3) Determining the
related to the public/ Division, and General branches with high
customer complaints Services Division risk potentials based
timely in accordance in reviewing the on the findings
with the prevailing legal documents of Internal Audit,
regulations. periodically, Internal Control, and
5) Monitoring penalties such as licensing Financial Services
by regulator (Bank documents (of the Authority, as well
Indonesia, Financial Branch Offices) and as monitoring the
Services Authority, agreements that implementation of
Indonesian Financial involved the Bank the action plan that
Transaction Reports and other vendors, has been determined.
and Analysis Center) consultants, or b. An adequate Management
regarding mistakes agents. of the Information and
in reporting and Reporting Systems
conduct improvement 2. Improving the Cooperation 1) The Bank monitors
to minimize potential with Other Divisions the quality of CIF
fault risk by making a. A good Business Process data periodically by
coordination meeting and Customer Database auditing the branches
with related working using sampling
units. method, coordinating
with the Operations
and IC Division to

234 PT Bank QNB Indonesia Tbk


Performance
evaluate the filling of 2) Composing a Compliance News,

2016
customer’s data form database which is AML News and
and the input of data related to the internal Procedure News,
in the system, and regulations and as well as AML-
comparing the data provisions from the AFT trainings,
with the supporting regulators (Financial are continuously
documents given Services Authority, conducted in addition
by the customers Bank Indonesia, to the periodic GRC

Management
(Quality Checking). Indonesian Financial meeting with the

Report
2) Developing the Anti Transaction Reports related work unit.
Money Laundering and Analysis Center); 2) Required each
system so as to documenting working unit either
comply with the all compliance in Head Office or
provisions of assessment results branches to conduct
the regulators related to the morning briefing
(Indonesian Financial business activities; regarding internal
Transaction Reports and documenting policies as stated
and Analysis Center, the checklist of new in Director Memo

Company
Profile
Bank Indonesia, and activities, loans, and regarding Compliance
Financial Services other compliance on Regulation.
Authority). checklist so as to 3) Performing
3) Developing the facilitate the working compliance
intranet system unit in searching certifications to
to facilitate the for the required all employees of

Management Discussion
employees in regulations. Compliance Division
finding internal and from time to time.

and Analysis
external regulations 3. Establishing the Effectiveness 4) Evaluating internal
from Financial of Internal Process policies and
Services Authority, a. Reliable, strong, and guidelines
Bank Indonesia, disciplined working unit • Conducting
Indonesian Financial 1) Strengthening the evaluation and
Transaction Reports risk management completing the
and Analysis Center, culture of compliance management
and Tax Institution continues to be done policy of the
c. Supporting the by increasing the Bank’s regulation
Governance
Corporate
Effectiveness of the effectiveness of the adn procedures,
Strategic Decision- implementation in accordance
Making of the compliance with the
1) Organizing the culture. Along with prevailing laws
Governance Risk & changes in the and legislations.
Compliance (GRC) structure of bank This evaluation
forum periodically organizations with encompasses the
Social Responsibility

with other related the concept of “Single types of internal


Corporate

working units to Captian” the Area rules, hierarchy


discuss the new Manager and/or the of internal
regulations issued Branch Manager has rules, as well
by the Financial been appointed as as mechanism
Services Authority compliance officers and procedure
and Bank Indonesia, at the branch. of composition/
so that the Bank may Furthermore, a amendment and
adjust and implement dissemination in the repeal of internal
the new rules form of email blast rules. In addition,
accordingly. of new regulations, the Bank also

PT Bank QNB Indonesia Tbk 235


Passion for Excellence at Its Best
Annual Report 2016

prepares the 4. Strengthening the c. Compliance Review sub


procedure of Organization Capacity division shall ensure the
distribution and a. Establishing a leader that policies and procedures,
dissemination of is able to manage and as well as the bank’s
internal rules. direct the team effectively business activities
• Conducting in: has complied to the
evaluation on 1) Establishing the Regulator’s policies and
the policy of culture of sharing other laws.
internal control in each division, d. Proposing a plan
system with the particularly in the to encourage and/
related divisions. branch offices, over or preserving the
• Conducting the operational Compliance Culture,
evaluation on the activities in the including the plan for
implementation branch in accordance the dissemination of
of GCG principles with the applicable provisions:
with the related regulations. 1) Providing
divisions. 2) Issuing Certificate information of the
• Conducting to the Branch new regulations
review and Managers who has to the Board of
evaluation on accomplished Branch Commissioners,
the policy and Accreditation. Board of Directors,
procedure of b. Employees who are able related Divisions
Anti-Money to detect disobedience to and/or branches,
Laundering the regulations and/or either directly or in
and Prevention transcation or business cascading manner,
of Terrorism or other suspicious from the head
Financing. operational activities of division to all
• Reviewing the 1) Providing e-learning personnel of the
improvement of and e-library division.
loans compliance facilities for the 2) Conducting
checklist. employees so as the dissemination of
• Reviewing and operational activities the hierarchy and
evaluating the are conducted in line procedure of the
General Policy with the applicable internal rules or new
on Loans and rules. regulations.
formulating 2) Following-up the 3) Conducting
Loans findings of Internal dissemination of the
Implementation Control/Internal policy of internal
Guidelines for Audit/Regulators control system.
each business immediately and 4) Conducting
segment. ensuring the dissemination of
• Reviewing and operational activities loans compliance
evaluating the are conducted in line checklist.
accounting with the applicable 5) Continuing the
policy and rules. dissemination of the
procedure. 3) Issuing Compliance policy and procedure
Certificate for of AML and CFT
the employees Programs.
who passed the
Compliance test

236 PT Bank QNB Indonesia Tbk


Performance
6) Conducting b. Direct training (face- 8. Transferred the

2016
dissemination of GCG to-face) regarding the implementation of
and Coded of Conduct compliance, business Whistleblowing System to the
of the Bank. implementation, and Anti Fraud Unit under Audit
7) Ensuring the policy and procedure and renamed the email address
compliance self- c. Socialization of into Ayo Lapor!
assessment in new regulations or 9. Adding new features to the
every change of refreshment of existing AML system, so that the

Management
regulations. regulations overall AML System bank in

Report
d. External training such 2016 has over 10 features.
Compliance Function as risk management 10. In terms of policy and
Implementation in 2016 certification and procedure, the Bank carried out
refreshment for the simplification and codification
In 2016, the Bank carried out the existing certificate holder of codification of several
theme “Competency Improvement 2. Encouraged the Bank’s operational policies,
to Support Compliance Culture implementation of which originally scattered
Implementation” which focused Governance, Risk, and to several policies and
Compliance (GRC) meeting procedures, and became Bank’s

Company
on the attempt to improve the

Profile
competency of leaders and regularly. General Operation Policy.
business participants in particular. 3. Promoted the implementation 11. Conduct and provide a review
The Bank believes that the ‘first of Compliance Campaign of the implementation plan of
line of defence’ is very essential to further strengthen the new products and activities
to the fulfillment of compliance. awareness of compliance to ensure compliance with
Therefore, the competency of culture in the Bank. the Bank on the regulation

Management Discussion
people to comprehend the entire Compliance Campaign: 100% in the form of a checklist and
Complied! was socialized every compliance is self-assessment.

and Analysis
internal and external regulations
shall be improved in order to first working day in the week 12. Compliance Review ensures
elevate the overall compliance via e-mail blasts and stickers. the work units comply with
towards prevailing regulations. The 4. Supported the improvement the regulations and provisions
attempt to improve the competency of reporting system of several by visiting several branch
includes increasing skill, improving reports delivered to Regulators to review and ensure the
knowledge, and developing the (regulatory reporting) by compliance of such branch
attitude. establishing a team (task or work units. In addition,
force). Compliance Monitoring System
5. Supported the Bank’s business has also been provided in every
Governance
Corporate
In general, the activities carried
out by the Bank to improve the to comply with the prevailing branch as a guidance for Head
compliance function, among regulations especially in of Branch, Operational System
others, as follows: terms of Digital Banking Manager, Supervisor, Teller,
1. Improved the skill and development. and Customer Services.
knowledge through training 6. Reviewed and updated the
which includes: internal provisions, mainly
a. E-Learning, on the focused on credit policies such
Social Responsibility

application of the Anti- as loan restructuring policy.


Corporate

Money Laundering (AML) 7. Promoted the implementation


and Combating the of QNB Values to further
Financing of Terrorism strengthen the Bank’s integrity
(CFT) value which eventually
improve the compliance
culture.

PT Bank QNB Indonesia Tbk 237


Passion for Excellence at Its Best
Annual Report 2016

Training and Competency Development of Compliance Function

No. Program Type of Program Location

1. Anti Pencucian Uang & Pencegahan Pendanaan Terorisme Sharing Session Head Office Training Room 3rd floor
(APU PPT) Bidang Kredit
2. Common Reporting Standard (CRS) Training Hotel Grand Kemang
3. Compliance Certification Training Head Office Training Room 3rd floor
4. Compliance Workshop Sharing Session SCBD
5. Credit Proposal Training Head Office Training Room 3rd floor
6. Credit Proposal Improvement Workshop Training Hotel Atlet Century
7. Direct Sales Management Training Hotel Santika Premiere Slipi
8. Effective Presentation Skill Training Perbanas
9. English For Law Training Bali
10. Group Coaching Managing Other : Supervisory Training Head Office Training Room 3rd floor
11. Group Coaching Managing Team Sharing Session SCBD
12. Group Coaching Managing Team : Coaching Skill Training Hotel Santika Premiere Slipi
13. Identifikasi Transaksi Keuangan Mencurigakan (TKM) Training Bali
14. LBU : New Data Kualitatif Form & New SOP Sharing Session SCBD
15. Leaders Talk Sharing Session SCBD
16. Learning Forum Training Head Office Training Room 3rd floor
17. Learning Forum Sesi 1 : Grow Yourself in Changing Business Sharing Session Head Office Training Room 3rd floor
18. Learning Forum Sesi 2 : Drive Colloboration to Change Training Head Office Training Room 3rd floor
19. Learning Forum Sesi 3 : Overcome Resistant to Change Training Eco Park Ancol
20. Legal Forum Training Hotel Santika Premiere Slipi
21. Liquidity Coverage Ratio (LCR) Training Head Office Training Room 3rd floor
22. Managing Others Sharing Session Head Office Training Room 3rd floor
23. Managing Self Sharing Session SCBD
24. Microsoft Excel 2013 Training Hotel Atlet Century
25. MQ Connector Training Head Office Training Room 3rd floor
26. Pengisian LBU Form 11 Berdasarkan Data Kualitatif Sharing Session Head Office Training Room 3rd floor
27. Peran Bank Dalam Mencegah Kejahatan Perbankan Melalui Training Hotel Atlet Century
Pengawasan Internal Terpadu
28. Profesional Image & Grooming Head Office Sharing Session SCBD
29. Professionalism with Integrity Training Head Office Training Room 3rd floor
30. QNB Values Festival Training Hotel Athlet Century
31. QNB Values Refreshment Dir Compliance Training Griya Perbanas, Jl. Karet Kuninga, Jkt
32. Ramadhan Gathering Sharing Session Head Office Training Room 3rd floor
33. Refreshement Sertifikasi Manajemen Risiko Training Head Office Training Room 3rd floor
34. Sanity Checking Training Head Office Training Room 3rd floor
35. Sharring Session : Awareness on New Accounting Standard Training Griya Perbanas, Jl. Karet Kuninga, Jkt
on Financial Instrument/Impairment (IFRS 9)
36. Workshop Audit Kredit Critical Point Dalam Perkreditan Sharing Session SCBD

Activities Related to the Application of Anti-Money Laundering and Combating


the Financing of Terrorism (AML and CFT)

In line with the regulator’s passion of Anti-Money Laundering (AML) undertaken by the Bank is to set up
to protect the banking industry and Combating the Financing of Sub Division of AML-CFT as part
from the criminal activity, Terrorism (CFT). of the Compliance Division under
particularly related to prevention the supervision of the Director
of money laundering or preventing To support the implementation of Compliance, with the scope of
the terrorist financing, Bank of Anti-Money Laundering and duties, among other, to ensure the
Indonesia has issued a Standard Combating the Financing of following things:
Guidelines for the Implementation Terrorism, the steps that have been

238 PT Bank QNB Indonesia Tbk


Performance
1. Policies and procedures Indicators of Compliance 2. The Bank also continued

2016
are in accordance with the to make improvement to
development of AML and Based on the bank’s compliance the reporting system for
CFT Program to date by using risk profile report in the period some reporting to Bank
the strategy of Risk Based of third quarter in 2016, the Indonesia by doing the
Approach. compliance risk profile ranked (2) following things:
2. Maintain the Bank’s Low to Moderate, with the Inherent - Send reporting
compliance towards all Risk ranked (2) Low to Moderate, reminder periodically,

Management
commitment made by the Bank and the Quality of Compliance Risk on the obligation to

Report
to the regulators (Indonesian Management ranked (2) Fair. report to the FSA/
Financial Transaction Reports OJK and BI to the
and Analysis Centre/PPATK To mitigate the compliance risk related work unit.
and Financial Services in 2016, the Compliance Unit - Identified the cause
Authority) regarding the strived to the ensure compliance of reporting mistake.
implementation of AML-CFT. throughout the entire work - Held coordinating
3. Coordinate with the HR units in accordance with the meeting with the PIC
Division to provide training provisions. For 2016, the tagline of reporting
of AML-CFT regularly and - To minimize the

Company
that served as the guidelines

Profile
continuously both through was Competency Improvement recurrence of
training and electronic media to Support Compliance Culture reporting mistake,
(e-mail blast, AML News). Implementation, and the Bank has actively identified the
4. Development of a AML system performed the following things: attempt to improve
for the implementation of a. Compliance Function: reporting, and
AML/PPT, where in 2016, the 1. The Bank has performed prepared reporting

Management Discussion
unit has implemented AML identification, implementation
work on the development of measurement, monitoring guidance and ensured

and Analysis
three new features on in-house and control of compliance that the reporting
AML System, namely: risk, namely by system applied by the
- Features Risk Profiling implementing Compliance Bank has referred to
Alert Monitoring System the guidelines issued
- Notification Feature (CMS) and Compliance by the regulator.
Negative List, and Assessment Procedure, as - Reviewed the
- Features Reminder well as Report Submission reporting reminder
Review Date Time Policy; in which regulate system periodically
At the present time, in-house to update the change
Governance
all procedures, the

Corporate
AML System bank has over 10 Compliance Division of PIC, regulation,
features. could perform analysis on and reporting format,
5. Develop a reporting system compliance of the branch to minimize the
related to FATCA Reporting based on the data created potential of making
that serves as a special by the branch (self- mistake in submitting
reporting system for US assessment) and approved the report format.
taxpayers to the FSA/OJK via by the Branch Manager
Social Responsibility

SiPINA system. and Area Manager


Corporate

PT Bank QNB Indonesia Tbk 239


Passion for Excellence at Its Best
Annual Report 2016

3. Strengthening the 5. Reviewed on the plan 8. Performed monitoring


Culture of Compliance of new product and on bank’s commitment
Risk management activity, credit proposal towards regulator based
which continued to be and checklist of the on the incoming letter
done by increasing the planning of opening, from Financial Services
effectiveness of the relocation, and closing Authority (FSA/OJK),
implementation of the of branch/sub branch Bank Indonesia (BI)
compliance culture. office to ensure the Bank’s and/or other supervisor
Along with changes compliance towards authority (Corruption
in the organizational regulation in the form Eradication Commission,
structure of the Bank with of compliance checklist Tax and National
the concept of “Single (self-assessment). Narcotics Board).
Captain”, thus the Area 6. Assigned each AM/BM 9. Socialized new
Manager and/or the and/or work unit to do regulations issued by
Branch Manager has been morning briefing and/ Bank Indonesia and/
appointed as Compliance or periodic meeting/ or Financial Services
Officer in the Branch, in coaching and report on Authority (through GRC
addition to continuously its implementation to meeting and e-mail
conduct socialization, the Internal Control. The blast) and held training
such as via e-mail blasts purpose of the morning periodically.
of new regulations briefing and/or periodic 10. Implemented other
contained in Compliance meeting/coaching is to compliance function
News, AML News and improve compliance with activity, such as (but
Procedure News, training regulations. not limited to) Director
of AML & CFT, GRC 7. Compliance Unit has also of Compliance Report,
(Governance Risk & developed Compliance Outsorcing Report,
Compliance) meeting with Campaign as a reminder Related Party Report, GCG
related work units. in the form of e-mail blast, Report to FSA/OJK (semi-
4. Prepared the Compliance banner, sticker, and held annual).
& AML Annual Work Plan compliance quiz which
and Policies & Procedure related to the Bank’s
Annual Work Plan to provision and/or internal
ensure that the policy, regulation, with the aim
system and procedure as of improving compliance
well as business activity culture.
carried out by the bank
is in accordance with
the provision of Bank
Indonesia, Financial
Services Authority, and
applicable regulations.

240 PT Bank QNB Indonesia Tbk


Internal Audit

Performance
Bank has established the Internal The head of Internal Audit Internal Audit team consists

2016
Audit Division as an independent, report directly to the President of 12 employees. All members
objective assurance and consulting Director. The Head of Internal are experienced professionals
activity designed to add value and Audit Unit shall be appointed with proper independency and
improve the Bank’s operations. and dismissed by the President other requirements, as regulated
It helps the Bank accomplish its Director with the approval of the in the prevailing regulations.
objectives by bringing a systematic Board of Commissioners, and Internal Audit division is directly
discipline approach to evaluate whose appointment is reported to responsible to the President

Management
and improve the effectiveness of Financial Services Authority. Director and it divided into several

Report
risk management, control and specialists such as Operation
goveranance processes. & Treasury audit, Head Office
Functions audit, Credit audit,
IT audit, and Anti-Fraud &
Investigation.

Internal Audit Structure and Position

Company
Profile
Audit Committee President Director

Management Discussion
Chief Auditor

and Analysis
Branch & Non Credit Head Office & IT Credit Audit Anti Fraud &
Audit Head Audit Head Head Investigation Head

Governance
Head of Internal Audit
Corporate
The Internal Audit Division is led Senior Operational Risk Officer ICAAP and Independent review
by Cut Tashana Azia. Citizen of and Head of Operational Risk at Scope by Leinad Aganis, Sharia
Indonesia, 42 years old. She was Standard Chartered Bank (2008- Audit (Financing & Funding)
appointed as the Chief Auditor 2011), Internal Audit Head of training held by Karim Consulting,
since August 1, 2016 based on Deutsche Bank (2006-2008) several Regional AML and Terrorist
Social Responsibility

Decree of Board of Directors No. positions at Bank ABN AMRO with Financing Conference, Level IV
668/SK-HMRS-ES/VIII/2016 dated the latest position as Internal Audit Risk Management Certification
Corporate

August 1, 2016. Earned Associate Manager (1995-2006). from Risk Management


Degree of Business Management Certification Body (BSMR), New
from San Diego Mesa College, Throughout her career, she Audit Planning methodology
United States in 1994. Previously participated in several competence training from Deutsche Bank
served as Wholesale, Risk & development programs in Singapore, Audit Report Writing
Syariah Audit Head, and Head terms of audit, among others, at Deutsche Bank Singapore
Office Audit Head at Bank CIMB Certified Internal Auditor (CIA), presented by PEF Associates Inc,
Niaga (2011-2016) ; Wholesale Understanding to Implement USA, etc.

PT Bank QNB Indonesia Tbk 241


Passion for Excellence at Its Best
Annual Report 2016

Internal Audit To improve the competence of 6. To compose examination


Qualification and resources and objectivity of audit reports and submit them to the
results, Audit Division enrolls President Director and Board
Certification its auditors in training program, of Commissioners along with
pertaining to external and internal the carbon copies directed to
1. Having a professional integrity
ones, seminar/workshop while Compliance Director.
and behavior, independent,
preparing these auditors to join 7. To provide consultation
honest, and objective in
internal auditor sustainable service for internal parties in
implementing the duties.
training program. Currently, Audit order to gain added value and
2. Having knowledge and
Division has experienced and improvement on controlling,
experiences on audit system,
competent auditors in the area risk management and good
management principles,
such as Bank operational, treasury, corporate governance quality.
auditee’s activites, and other
credit, and IT Operations Core 8. To perform necessary
knowedge relevant to their
Banking. Several auditors have the investigation audit.
scope of works.
International Certifications such 9. To monitor audit follow-up
Having comprehensive
as CFSA, CISA, COBIT 5 and Audit and report it to the President
knowledge regarding the rules
Certification (national). Director and Board of
and regulations in the banking
Commissioners.
industry and capital market, as
well as other related rules and Duties and 10. To immediately report all audit
Responsibilities of findings that are estimated
regulations.
to hinder business activities
3. Having the skills to interact Internal Audit of the Bank to the President
and communicate, either
Director and Board of
in speaking or writing, 1. To compose and implement
Commissioners.
effectively. Annual Audit Plan and
11. To prepare Implementation
4. Keeping the confidentiality consultation. Annual Audit
Report and Audit Result
of information and/or plan is approved by President
Principles to be submitted to
company data related to Director and is reported to
Bank Indonesia.
the implementation of Board of Commissioners.
12. To submit Annual Budget Plan
Audit Division’s duties and 2. To report the realization
for the following year and
responsibilities, unless obliged of Annual Audit Plan and
report its realization for every
based on the prevailing Consultation for every
semester to the President
regulations or court’s semester to the President
Director.
decisions. Director and Board of
13. To compose written policy
5. Understanding the Good Commissioners.
and procedures as duty
Corporate Governance 3. To review and assess the
implementation guidelines for
principles and Risk efficiency and effectiveness
Audit division.
Management. rate in finance, accounting,
14. To compose a program that
6. Improving knowledge, operations, human resources,
is aimed to evaluate audit
skills and professionalism marketing, information
quality.
continuously. techonology and other
15. To implement continuous
7. Keeping no concurrent activities.
education in line with the
duties and positions neither 4. To examine and evaluate the
Auditor’s competency.
conducting operational implementation of internal
16. To cooperate with Audit
activities at PT Bank QNB audit and risk management
Committee. Any periodical
Indonesia Tbk except the system in accordance with the
reporting will be described in
operational activities of Audit policy of the Bank
audit policy documents.
Division. 5. To provide objective
suggestions and information
on all activities assessed in all
management levels.

242 PT Bank QNB Indonesia Tbk


Performance
17. To comply with the Bank’s 18. To contribute in company Internal Audit Activities

2016
policy & procedures and risk management process,
to utilize the best practice including Anti-Money Several Audit projects as per Audit
standard and guidelines by Laundring (AML) and Anti- Plan 2016 have been conducted
professional institutions, such Terrorist Financing (AFT), such as: 8 audits related to Branch
as Institute of Internal Auditor Information Techology and Operations, 6 audits related to Head
(IIA), Information System information security, as well Office and IT, and 3 special audits.
Audit and Control Association as other risk management

Management
(ISACA), Committee of function to ensure proper Audit Findings

Report
Sponsoring organizations of risk identification and
the Treadway Commission management. In 2016, Internal Audit Division
(COSO) etc. as references. did not report any audit finding
that have significant impact to the
Bank’s financial and operational
performances.

Company
Profile
Auditor Total Audit Findings Done (%) In Progress (%)

Internal 116 78% 22%

External (FSA/OJK) 308 80% 20%

Management Discussion
Incoming Whistleblowing Report Fraud Prevention • Fraud Identification

and Analysis
In 2016, there was no Fraud prevention is the Fraud identification is a part
whistleblowing report submitted. responsibility of the Bank’s of risk management process to
management to raise awareness identify and analyze the fraud
Anti-Fraud Strategy and take actions before the risk potential in all activities.
occurrence of fraud. The actions The identification must be
Bank QNB Indonesia has are described in several strategies, recorded and informed to the
formulated the anti-fraud strategy namely: investigator, especially for the
in compliance with FSA/OJK • Anti-Fraud Awareness high risk fraud activity.
Regulation No. 55/POJK.03/2016 To increase the awareness on • Know Your Employee

Governance
Corporate
dated December 7, 2016 concerning fraud prevention importance, Know Your Employee is the
the Implementation of Corporate the Bank implements a good control in Human Resources
Governance for Commercial Banks, leadership supported by aspect to prevent fraud. This
as well as Bank Indonesia Circular high anti-fraud awareness policy is implemented through
Letter No. 13/28/DPNP Dated thus all employees are also effective recruitment system
December 9, 2011 on Anti-Fraud aware to contribute in fraud and procedure, selection
Strategy Implementation for prevention. This prevention system with risk consideration
developed through preparation in employees’ placement, and
Social Responsibility

Commercial Bank.
and dissemination of Anti- knowing employee’s character,
Corporate

This guideline is mandatory for Fraud Statement, employee personalization, lifestyle, and
all work unit in PT Bank QNB awareness program, and working hour.
Indonesia with the aim to monitor customer awareness program.
and set the anti-fraud strategy to
prevent, detect, investigate, and
follow up the fraud.

PT Bank QNB Indonesia Tbk 243


Passion for Excellence at Its Best
Annual Report 2016

Fraud Detection • Surveillance System the context of Internal Audit


Fraud detection aim to identify Surveillance system is a test cannot do the investigation, then
and find the fraud through several or investigation conducted Internal Audit must appeal to
strategies, namely: by independent party or the related Director or Division Head
• Whistleblower Mechanism and Bank’s internal without the to conduct the investigation. The
Policy awareness of the auditee. investigation findings must be
This strategy focused on Surveillance is conducted reported on timely manner through
the whistleblowing report through actions such as prevailing mechanism to Fraud
disclosure. Thus, the security camera placement, Oversight Committee, Compliance
whistleblowing system in control access to rooms, & Procedures Division, related
the Bank is clear, easy to or computer activities Director, and Financial Services
understand, secure, and and communication data Authority.
effectively implemented to investigation. This aim
encourage the employees to to monitor and test the Monitoring, Evaluation and Follow-
monitor and report the fraud. effectiveness of anti-fraud up
• Impromptu Audit policy. Monitoring, evaluation and follow
Impromptu audit conducted up aim to monitor the fraud follow
by the head of each work Investigation, Reporting and up actions in accordance with the
unit or by Internal Control Sanction Bank’s internal regulations and
Unit to specific business Fraud Investigation aim to identify in compliance with the prevailing
unit with high risk of fraud. needed actions to save the Bank legislations. To support the whole
This impromptu audit aims from potential loss caused by fraud. evaluation process, fraud profiling
to increase the employees’ Lead by competent Internal Audit is important to identify the
awareness in implementing member appointed by Anti-Fraud weakness and the cause of occurred
their duties responsibly. Task Force, fraud investigation fraud, thus Internal Audit can
aim to collect evidence related to review the fraud effect and prepare
the fraud and establish actions the needed prevention towards the
to prevent loss potentials. In fraud reoccurrence in the future.

Internal Fraud

The following table lists details of internal fraud which occurred in 2016:

Number of Cases Involving

Board of Commissioners
Auditor Permanent Employee Contract Employee
& Board of Directors

2016 2015 2016 2015 2016 2015

Total internal fraud cases - - - - - -


Settled - - - - - -
Under internal process - - - - - -
Pending - - - - - -
Followed up by law suit - - - - - -

In 2016, there was no internal fraud act by management, permanent or non-permanent employees that has a
loss impact greater than IDR100 millions as per regulatory requirements i.e. BI Circular Letter regarding Good
Corporate Governance implementation in Commercial Bank.

244 PT Bank QNB Indonesia Tbk


External Audit

Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Appointment of External confidentiality, technical standards Audit Implementation
Auditor as well as professional competence
and care. During audit process by public
The Bank appointed Public accountant firm, the Bank always
Accountant’s Firm Purwantono, The appointment of Public improve the communication and
Suherman & Surja (a member of Accountant’s Firm Purwantono, coordination with the external
Ernst & Young Global Limited) Sungkoro & Surja (a member of auditor. Finance and Accounting
(which then changed its name to Ernst & Young Global Limited) to Division responsible to do the

Governance
audit Bank’s financial statements

Corporate
Purwantono, Sungkoro & Surja coordination and communication
(a member of Ernst & Young for 2016 was according to the with external auditor, which
Global Limited)) to audit Bank’s recommendation from Audit done by coordination meetings,
financial statements for 2016 in Committee of the Bank. The close monitoring and intensive
accordance with the resolution recommendation submitted to communication. With this
of the Annual GMS on February Board of Commissioners who arrangement, it is expected that
16, 2016. The appointment was later propose to Annual GMS. comprehensive, fast and optimal
Annual GMS held on February 16, audit result can be achieved.
Social Responsibility

made in accordance with Bank


Indonesia, Financial Services 2016 approved the appointment
Corporate

Authority, and other relevant and provide authority to the In addition, the audit
regulations. The appointment Board of Directors to determine implementation of Bank’s financial
was made after verification that the honorarium and other statement, the Public Accountant’s
the External Auditor complies requirements. Firm Purwantono, Sungkoro &
with the principles of professional Surja (a member of Ernst & Young
ethics, which include professional Global Limited) is carried out as
responsibility, integrity, objectivy, follows:

PT Bank QNB Indonesia Tbk 245


Passion for Excellence at Its Best
Annual Report 2016

1. Conduct the investigation on 2. Communicate the audit findings Year 2016 is the second year
all material accounts, based to the Bank’s management and assignment from Bank to Public
on applicable Professional Financial Services Authority Accountant Firm Purwantono,
Public Accountant Standards 3. Maintain independence during Sungkoro & Surja (a member of
and ensure its compliance the implementation of its duty. Ernst & Young Global Limited)
with applicable Indonesia with scope of work limited review,
Accounting Standards. interim audit and year end audit.
Public Accountant Firm and
Public Accountants which provide
financial audit services to the Bank
could be seen in the following table:

Financial Year Public Accountant Firm Accountant’s Name

2016 Purwantono, Sungkoro & Surja (a member of Ernst & Young Global) Daniel Setiadi Handaja
2015 Purwantono, Sungkoro & Surja (a member of Ernst & Young Global) Peter Surja, CPA
2014 Purwantono, Suherman & Surja (a member of Ernst & Young Global) Peter Surja, CPA
2013 Purwantono, Suherman & Surja (a member of Ernst & Young Global) Peter Surja, CPA
2012 Siddharta & Widjaja (a member of KPMG) Liana Lim, SE., CPA
2011 Siddharta & Widjaja (a member of KPMG) Liana Lim, SE., CPA
2010 Aryanto, Amir Jusuf, Mawar & Saptoto Ferdinand Agung

Public Accountant’s Firm Relationship Between Bank, Audit Fee


Purwantono, Sungkoro & Surja (a Public Accountants, and Financial
member of Ernst & Young Global Services Authority Audit fee paid by the Bank for
Limited) is in the opinion that During the audit implementation financial year 2016 amounted to
the financial statement of the in 2016, the Bank has exercised IDR1.34 billion including VAT and
Bank which ended on December transparent communication and other related taxes. The fee has also
31, 2016 have been presented in provided complete information and included out of pocket expenses.
an unqualified opinion and free data to the external auditor for the
from material misstatement based audit purposes. Communication Other Services
on accounting principles that and cooperation with the external
generally accepted in Indonesia. auditors was conducted on the In addition to financial audit
latest accounting policy issues, services, Public Accountant Firm
including tax development, in order Purwantono, Sungkoro & Surja
to present a fair financial report. (Ernst & Young) did not provide
The Board of Directors have taken other services to the Bank.
into account the Management
Letter from the Independent
Auditor for further follow-up.

246 PT Bank QNB Indonesia Tbk


Corporate Secretary

Performance
Legal Basis of the ensuring the availability of The establishment of Corporate

2016
Appointment , Structure, material information in timely and Secretary is pursuant to the
Position of Corporate accurate manner for related parties. Financial Services Authority (OJK)
Secretary Regulation No. 35/ POJK.04/2014
Corporate Secretary is responsible dated December 8, 2014 on
To elevate its services to for the information disclosure Corporate Secretary of Issuers or
shareholders, the Bank as public including information avaibility Public Companies.
company has appointed Corporate on the website, reporting

Management
Secretary which functions as a submission to the FSA/OJK Qualification and Certification of

Report
liaison officer between the Bank - capital market supervisory Corporate Secretary
and investors, capital market directorate, implementations 1. Have legal competence.
participants, regulators and and documentations of the 2. Possess adequates knowledge
analysts as well as the general GMS, meetings of Board of and understanding in legal,
public. The Corporate Secretary has Commissioners and Board of finance, and corporate
a vital role in creating a good and Directors, monitoring and ensuring governance.
effective communication between the Bank’s compliance with 3. Understand the Bank’s
the Bank and shareholders as prevailing laws and regulations of business activities.
capital market. 4. Have a good communication

Company
well as other stakeholders while

Profile
skill.
5. Domicile in Indonesia.

Corporate Secretary Organizational Structure

Management Discussion
and Analysis
President Director

Compliance Director Directors

Governance
Corporate
Head of Corporate Secretary

Corporate Action & Stakeholder


Liason Officer Secretary/ Personal Assistant
Mgt. Officer
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 247


Passion for Excellence at Its Best
Annual Report 2016

Appointment and Profile Duties and 4. Act as a liaison officer between


of Corporate Secretary Responsibilities of the Bank, shareholders,
Financial Services Authority
Corporate Secretary (OJK) and other stakeholders
The Corporate Secretary is
appointed and reports to Duties and Responsibilities of
Compliance Director. Change of the Corporate Secretary refers to Duties Implementation of
Corporate Secretary of the Bank the Financial Services Authority Corporate Secretary
has been reported to Financial (FSA/OJK) Regulation No. 35/
Services Authority (OJK) on POJK.04/2014 dated December The duties implementation
June 29, 2015 based on Decree of 8, 2014 on Corporate Secretary regarding Corporate Secretary
Board of Directors No. 417/SK-HR- of Issuers or Public Companie as functions throughout 2016 are
Service/VI/2015 dated June 25, follows: summarized in the following:
2015 regarding Establishment of 1. Follow the developments of the 1. Submitted regular and
Lina as Head of Corporate Secretary Capital Market, particularly incidental reports to FSA/OJK
of the Bank. the prevailing regulations in and Indonesia Stock Exchange
the field of Capital Market. (IDX), including information
Lina 2. Provide inputs to the Board disclosure report as well as
Head of Corporate Secretary of Commissoners and Board response to inquiries from
Citizen of Indonesia, 39 years old. of Directors to comply with Financial Services Authority
Domiciled in Jakarta, Indonesia. capital market laws and (OJK) and IDX.
Lina was appointed as the Head regulations. 2. Submitted reports related
of Corporate Secretary since 3. Assist the Board of Directors of Shareholders, Board of
June 25, 2015 based on Decree of and Board of Commissioners Commissioners and Board
Board of Directors No. 417/SK-HR- in the implementation of of Directors to Financial
Service/VI/2015 dated June 25, corporate governance which Services Authority (OJK), the
2015. Earned her Bachelor Degree include: Indonesian Central Securities
in Economy from Tarumanegara • Information disclosure Depository and the Deposit
University, Indonesia in 1998. to public including Insurance Agency (LPS).
availabiity of information 3. Provided the Board of Directors
Previously, she held the position on website of the Bank with information on capital
of Corporate Services Head PT • Submission of reports market regulation and
Bank UOB Indonesia, Corporate to Financial Services provision on which the Bank
Secretary PT Bank Victoria Authority (OJK) and other shall comply as well as provide
International Tbk and was an capital market regulators inputs to the Board of Directors
Auditor at Public Accountant accurately and in a timely on responses and comments
Firm Hans Tuanakota & Mustofa manner from the investors.
(Member of Deloitte Touche • Holding and 4. Attended the Board of
Tohmatsu). documentation of General Directors and Board of
Meeting of Shareholders, Commissioners’ Meetings
In 2016, she actively attended • Holding and and compose the Minutes of
several competence development documentation of the Meeting.
programs, among others, Managing Board of Commissioners 5. Composed special list for the
Team, Leaders Talk, Project and Board of Directors Board of Directors and Board
Management, Risk Management Meetings of Commissioners related to
Sertification Refreshment, • Implementation of share ownership as well as
Professionalism with Integrity for orientation program for business relationship which
Leaders, QNB Values Festival and new member of the Board may cause conflict of interest
other trainings. of Directors and/or the with the Bank.
Commissioners

248 PT Bank QNB Indonesia Tbk


Performance
6. Conducted Annual Public 8. Maintain Bank’s documents Development of Corporate

2016
Expose in compliance with related to licensing, including Secretary Competence
IDX Regulation No. I-E dated Company license, the
July 19, 2004 regarding the Articles of Association and In order to keep abreast of the
Obligation of Information the approval letter from the latest developments regarding the
Disclosure, the Bank has relevant institutions, the data implementation of the functions
conducted annual public of Shareholders, the data of the and duties of the Corporate
expose in December 19, 2016 Board of Commissioners and Secretary, the Bank facilitates the

Management
at Bank’s Head Office. Board of Directors. staff of the Corporate Secretary

Report
7. Conducted GMS in compliance 9. Maintaned good to participate in various forms
with the Financial Services communication and of training. During 2016, the
Authority (OJK) Regulation relationship between the Bank Corporate Secretary participate in:
No. 32/POJK.04/2014 dated and capital market regulators,
December 8, 2014 regarding investors and public.
Planning and Conducting of 10. Together with other work
GMS for Public Companies, the units strived to enhance
Banks held AGM in February the implementation of good
16, 2016 dan EGM in April corporate governance of the

Company
Profile
13, 2016 and in December 19, Bank.
2016.

Date Training & Seminar Location Organizer

Management Discussion
March 3, 2016 Managing Team Jakarta PT Bank QNB Indonesia Tbk
March 16, 2016 Leaders Talk Jakarta PT Bank QNB Indonesia Tbk

and Analysis
April 7, 2016 Group Coaching Managing Team: Coaching Jakarta PT Bank QNB Indonesia Tbk
Skill
April 28, 2016 Project Management Jakarta PT Bank QNB Indonesia Tbk
May 10, 2016 Industrial Relationship Jakarta PT Bank QNB Indonesia Tbk
May 20, 2016 Learning Forum Session 2: Drive Collaboration Jakarta PT Bank QNB Indonesia Tbk
to Change
May 30, 2016 Leaders Talk Jakarta PT Bank QNB Indonesia Tbk
June 16, 2016 Ramadhan Gathering Jakarta PT Bank QNB Indonesia Tbk
July 28, 2016 Risk Management Certification Refreshment Jakarta LSPP
July 30, 2016 QNB Values Festival Jakarta PT Bank QNB Indonesia Tbk
September 15, 2016 Professionalism with Integrity for Leaders Jakarta PT Bank QNB Indonesia Tbk

Governance
Corporate
September 6, 2016 Global Sovereign Conference Singapore Fitch Solution
October 13, 2016 Group Coaching Managing Team Jakarta PT Bank QNB Indonesia Tbk
November 15, 2016 Workshop of Information Disclosure for Issuer Jakarta Financial Services Authority/
or Public Company OJK
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 249


Passion for Excellence at Its Best
Annual Report 2016

Risk Management

The Board of Commissioners


The foundation of risk management in Bank delegates authority to Board
QNB Indonesia is set based on the philosophy of Directors to implement Risk
Management framework. To
that the Bank recognizes the importance of support the implementation
effective Risk Management for its business of effective Risk Management,
and financial success as well as corporate Board of Directors formed various
committees, including the Risk
reputation. Hence, the development of the Management Committee (RMC).
Bank’s business plan is based on the view point
that proper balance between risks and benefits Risk Management Process
need to be maintained in order to achieve
The Bank has implemented the
sustainable long term growth for shareholders. principle of the Three Lines of
Defense Approach in monitoring,
controlling, and managing risks.
In support of the Bank’s business Risk Management
plan, reliable risk management is Governance First Line of Defence
not only essential, but also needs Business Units serve as the first
to be implemented effectively. A robust governance structure line of defence and are responsible
Risk Management implementation is essential to ensure the for identifying, evaluating,
is conducted via the guidelines effectiveness and consistency of controlling, and mitigating the
of Bank Indonesia Regulation Risk Management Framework risks in business. The Senior
concerning the Implementation of implementation of the framework Management and the Risk
Risk Management for Commercial of the Enterprise Wide Risk Management Committee play an
Banks No. 5/8/PBI/2003 dated Management. important role in ensuring the
May 19, 2003 as amended with overall business units functions
PBI No. 11/25/PBI/2009 and Bank The Board of Commissioners effectively functions as the “First
Indonesia Circular Letter No. and the Board of Directors of the Line of Defence” to develop a risk
13/23/DPNP dated October 25, Bank, in accordance with their and control environment as part of
2011 concerning the Amendment responsibilities, continuously routine operational activities.
to Circular Letter No. 5/21/DPNP oversees, monitors and manages
regarding the Implementation of the risks faced by the Bank Second Line of Defence
Risk Management for Commercial as well as developing a Risk An independent Risk Management
Banks. Management culture at all levels Division and Compliance Division
of the organization to ensure that act as key units in constructing
Effective implementation of risk all working units understand the second line of defence as an
management needs to be supported strategy, the level of risks taken, independent monitoring function.
by an integrated Risk Management and the Bank’s Risk Management Generally, the second line of
Framework (RMF) which covers framework. In implementation, defence is responsible for setting
Risk Management Governance, the Board of Commissioners is the limits, guidance and directions
Risk Management Process and Risk assisted by the Risk Oversight through development of policies,
Management Tools. The RMF is in Committee (ROC) which is one of review and approval of risk limits,
line with the Bank’s vision, mission the committees of the Board of as well as ensuring compliance
and business strategy. Commissioners with responsibility with all regulations of Bank
to review all risk areas and analyse Indonesia and other authorities.
other areas related to risk, its
mitigating controls and as well as
potential losses.

250 PT Bank QNB Indonesia Tbk


Performance
Third Line of Defence The RAS elaborates the level and The purpose of the Risk Appetite

2016
Internal Audit serves as the characteristics of risks taken by the Statement is to support the Bank
third line of defence by providing Bank in order to realize its mission in implementing its strategy and
assurance and independent for its stakeholders. The Board of fulfill the expectations of the
consultation activities. It is also Directors and senior management shareholders. RAS does not aim
designed to provide added value are responsible to define RAS while to prevent risk-taking, but rather
and improve the Bank’s operations ensuring that Risk Management to ensure that the process of risk
as well as to assist the Bank in framework has included detailed taking is:

Management
achieving its objectives. policies pertaining to limitations 1. In line with the objectives;

Report
for the organization towards 2. Comprehended at the
Risk Management Tools the Bank’s activities, which are appropriate level in the
consistent with RAS and the organization; and
Risk Management Tools in form capability of the Bank. 3. Implementation of optimum
of guideline for the application risk return basis within the
of RMF are stated in a Risk Group Risk Appetite limits.
Appetite Statement (RAS) as
well as policies and procedures.

Company
Profile
Risk Appetite Approach

Credit Medium Based on Business Plans and Risk and Reward Criteria
Market Very Low Very low tolerance for Treasury losses
Liquidity Nil No tolerance for liquidity shortfalls

Management Discussion
Operational Low Low tolerance for operational risk losses
Legal Very Low Low tolerance for legal risk

and Analysis
Reputation Nil Ensure that the highest ethical and performance standards are
followed by all staff all the time
Strategic Medium Willingness to commit capital to strategic initiatives
Compliance Nil Zero tolerance for regulatory breaches

Bank QNB Indonesia sets the risk In accordance with the The execution of ICAAP in Bank
limits by taking into account the implementation of Pillar II of QNB Indonesia is based on the
capability of the Bank’s capital Basel II in Indonesia, the Bank has belief that the calculation of

Governance
to absorb risk exposures, manage developed a method to implement capital adequacy is able to absorb

Corporate
previous losses, improve the skills the Internal Capital Adequacy potential losses from material
of its human resources and comply Assessment Process (ICAAP). The risks. Thus, the determination
with the prevailing rules and purpose of this process is to ensure of capital adequacy through the
regulations. The procedures and capital adequacy is appropriate to use of ICAAP method, aside from
determination of risk limits include the Bank’s risk profile, outside of performing an assessment on the 3
accountability and clear levels of the risks included in Pillar I. (three) major risks included in Pillar
authority, adequate documentation I (Credit Risk, Market Risk and
Social Responsibility

of procedures and limit Operational Risk), also includes 7


Corporate

determination according to the (seven) other risks, namely Credit


Bank’s growth and development. Concentration Risk, Interest Rate
Risk in the Banking Book, Liquidity
Risk, Compliance Risk, Strategic
Risk, Legal Risk and Reputation
Risk.

PT Bank QNB Indonesia Tbk 251


Passion for Excellence at Its Best
Annual Report 2016

Risk Management Focus The Bank continuously monitors Market Risk


in 2016 developments which may affect Market Risk Management aims
the Bank’s credit portfolio. to identify, control, and manage
In 2016, Risk Management focused Thus, precautions can be taken the market risk exposures within
on: properly and quickly in the event acceptable parameters, as well as
1. Review and improvement of of decreased credit quality. The maximise the risk return basis.
Credit Processes to support review on exposure for large
future loan growth and more debtors, as well as stress tests on Market risk is managed through
sound credit risk management. the foreign currency portfolio and comprehensive policies and
2. Resolution of NPL and AYDA the changes of interest has also work procedures which include
(foreclosed assets). been carried out. The processes are structural restrictions or limits
3. Improvement of human conducted periodically to anticipate or guidelines that are designed to
resources capability via on the the possibility of the depreciation control exposures in accordance
job training and formal courses in the quality of all credit portfolios with the Bank’s risk appetite.
as well as employee ethical as a result of changes in economic These limits or guidelines
standard through several conditions. The Bank also include notional, DV01, and Net
ethical programs. determines guidelines for Client Interest Income (NII) Sensitivity.
4. Implementation of Basel III Acceptance Criteria, Economy Market risk limits are allocated
Liquidity Coverage Ratio (LCR) Sectors, and other limits to avoid on a bank-wide basis and are
and preparation of Net Stable risk concentration on certain monitored and reported by the
Funding Ratio (NSFR) for 2018. sectors. Risk Management Division on
5. Improvement of Contingency daily basis. Management Action
Funding Plan (CFP) policy After implementation, the Bank Triggers (MAT) help to prompt the
including Liquidity Business continues to review and improve management when the risk level
Continuity Management the process and method of credit increases and enable continuous
(BCM). risk management, including reviews.
6. Strengthen control of carrying out refinement of main
information security through credit policies and program product The Risk Management Division is
penetration test of Bank’s structure. responsible for the identification,
critical system. measurement, supervision,
Economic growth slowdown in and control of Bank QNB
2016 has impacted, directly and Indonesia’s market risk based
Risks Profile and indirectly, to decrease in debtor’s on the framework approved by
Mitigation Measures income. Due to this, the Bank has Asset and Liability Committee
experience increase in credit risk, (ALCO). The Committee serves
Credit Risk most notably NPL. However, this is as the highest forum of senior
Credit Risk is managed through the mitigated by increase in provision management to determine the
establishment of a series of policies sufficiency and on the other side policies and decisions related to
and processes encompassing credit increase in AYDA (foreclosed the management of market and
acceptance criteria, origination assets). To support the mitigation, liquidity risk. In addition, the Risk
and credit approval, pricing, Special Asset Management (SAM) Management Committee (RMC)
monitoring, management of unit has been reorganized to reviews and approves the decisions
nonperforming loans and portfolio increase the independency as well of ALCO, which are expressed in
management. Every credit is as efficiency in managing NPLs and the form of policies or procedures.
approved by an authorised credit AYDA.
authority. Authorised personnel are
appointed based on their personal
and professional qualifications as
well as experience and competence.

252 PT Bank QNB Indonesia Tbk


Performance
Bank QNB Indonesia faces two Liquidity Risk scenarios in case of crisis. Liquidity

2016
categories of market risks, which Asset and Liability Committee Cash Flow Projection report has
are: (ALCO) acts as the highest been enhanced in order to better
a. Exchange Rate Risk forum of senior management reflect the actual condition. The
The Exchange Rate Risk to monitor the Bank’s liquidity development of this report involves
appears in the balance conditions. ALCO is responsible all related units, hence the report
sheet, commitments and for determining the policies and can be used to manage day-to-day
contingencies (off-balance strategies related to the Bank’s liquidity.

Management
sheet), in both the assets and assets and liabilities to be in

Report
liabilities, arising from foreign line with the risk management Operational Risk
currency transactions. The principles of prudence and the In managing Operational Risk,
Bank measures the exchange prevailing regulations. The limit the Bank determines the most
rate risk to observe the impacts framework and other assumptions appropriate mitigation approach
of exchange rate changes used to measure risks have been and strategy in order to optimally
on the Bank’s earnings and approved by the Risk Management balance Operational Risk
capital. To manage and Committee (RMC) and reported exposure, effectiveness of control
mitigate the exchange rate periodically in ALCO. mechanisms, and the level of risk
risk, a more conservative acceptable to the Bank. This is

Company
Profile
limit of net foreign exchange Bank manages liquidity risk daily conducted through comprehensive
position is determined in through analysis on the difference and consistent implementation of
addition to the 20% limit of of liquidity maturity and liquidity the Operational Risk Management
capital set by the regulators. ratios. A liquidity gap analysis is Framework and via adjustment
used to provide insights related to to the specific risks of all existing
b. Interest Rate Risk the differences in cash inflows and business processes.

Management Discussion
The Interest Rate Risk is the outflows each day. It is managed
potential loss that occurs as centrally by the Treasury Unit The implementation of Operational

and Analysis
the result of the movement of which has direct access to and Risk Management framework is
market interest rate opposite authorisation for interbank, large comprehensively conducted to
to the Bank’s transactions customer (institutional) and other ensure that operational risk control
or positions that contain market professionals in the effort is balanced. All business lines and
interest rate risk. In managing of assisting lending and funding supporting functions must identify
interest rate risk, the Bank activities. factors which cause operational
has developed the DV01 risks over product activities,
approach and NII Sensitivity To complement the framework, process, services, organization, and
approaches to be in line both market risk and liquidity risk information systems. Furthermore,
Governance
Corporate
with the International Best are well measured and controlled all business lines and supporting
Practice. The Bank manages in normal as well as abnormal functions must acknowledge,
its interest rate risk by utilising (stress) scenarios. Aside from measure, analyze, monitor, and
the NII Sensitivity approach improving the performance of report operational risks through the
and Repricing Gap analysis work scheme of liquidity risk documentation of all operational
for overall bank portfolio and management, the Bank developed risk incidents periodically and in a
DV01 in the level of Bonds Contingency Funding Plans which timely manner.
Social Responsibility

portfolio. function as guidelines for funding


Corporate

PT Bank QNB Indonesia Tbk 253


Passion for Excellence at Its Best
Annual Report 2016

Risk Management Division is also In addition, the reputation risk of Bank did not significantly affect
responsible for providing detailed the Bank also improved in 2016 the Bank’s capital and performance.
descriptions of Operational Risk to due to the changes in institution In addition, Bank QNB Indonesia
Risk Committees at both the Board and products and services, the also utilizes external law firms
of Commissioner and the Board of improvement in Company’s to provide legal advice on
Director levels. In addition, each name or rebranding, as well as various agreements including
working unit head has to support the relocation of the main and credit agreements and collateral
the operational risk monitoring operational offices. The frequency arrangements.
process in order to provide an of negative publicity against the
effective working performance. Bank was minimal and did not Evaluation on
impact materially. In addition, the Risk Management
Development and improvement Bank’s reputation is also supported
process of Business Continuity by the strong reputation of the
Effectiveness
Management (BCM) is a critical parent company which has sound
An evaluation on the effectiveness
for business resilience. In order to ratings from reputable Credit
of Risk Management Framework
achieve this, the Bank continuously Rating companies.
(RMF), especially on the
improves and conducts periodic
implementation of the Three Lines
test for BCM activities, including Legal and Compliance Risk
of Defence, is essential to keep
fire drill, alternate site test, Legal Risk occurs as the result of
the RMF in line with the Bank’s
disaster recovery test for critical inadequate juridical aspects, which
vision, mission, and strategy.
applications, and others. among others caused by lawsuit
Evaluation and reviews of the
and the absence of supporting
RMF are conducted both internally
Strategic and Reputation Risk laws and regulations, whereas
and externally. Risk Oversight
The management of Strategic Compliance Risk arises as the result
Committee, as the highest risk
Risk covers each risk caused by of the failure in complying with
committee, and Audit Committee
the formulation and inadequate the Laws and regulations applied
serve as the internal reviews which
implementation of strategies; in Republic of Indonesia as well
responsible in the review of policies
whereas the management of as Bank’s internal regulations.
and implementation of RMF.
Reputation Risk involves managing Legal and Compliance risks are
matters that are related to the managed by the Legal Division
The Committees also provide input
trust between the Bank and its and Compliance Division; and
and recommendations to the Board
customers and society. important findings regarding
of Commissioners as part of the
the two risks are reported to the
oversight functions. Internal audit,
In 2016, the Strategic Risk was Board of Commissioners and Board
on a regular basis, reviews and
Moderate. The Bank continues to of Directors through the Risk
audits the implementation of risk
review its strategic plans to be in Oversight Committee and Risk
management based on the principle
line with the Bank’s vision and Management Committee.
of risk-based auditing, with the aim
mission, as well as the dynamic
not only to ensure internal control,
development of the economy. During 2016, Legal Risk was
but also to continuously improve
considered low. Legal decisions
risk management. Externally, the
that have been received by the
evaluation of risk management is
performed by the external auditor
and regulator.

254 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

255
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

Table 1.a. Quantitative Disclosure on the Capital Structure of Public Bank


(In million Rp)

December 31, 2016 December 31, 2015


Capital Component
Bank Consolidated Bank Consolidated

Capital ComPONENT
I A Core Capital 3,185,137 - 2,086,745 -
1. Paid-up Capital 2,189,287 - 2,189,287 -
2. Additional Capital Reserves 1,209,131 - (56,872) -
3. Innovative Capital - - - -
4. Factors Reducing Core Capital (213,281) - (45,670) -
5. Non-Controlling Interests - - - -

B Supplementary Capital 136,167 - 1,138,543 -


1. Upper Tier 2 136,167 - 1,138,543 -
2. Lower Tier 2 Maximum 50% of - - - -
Core Capital
3. Factors Reducing Supplementary - - - -
Capital

C Factors Reducing Core Capital and - - - -


Supplementary Capital
Securitisation Exposure - - - -

D Additional Supplementary Capital - - - -


that Satisfies

E Additional Supplementary Capital - - - -


Allocated to Anticipate Market Risks

II Total Core Capital and Supplementary 3,321,304 - 3,225,288 -


Capital (A+B-C)

III Total Core Capital, Supplementary Capital, and 3,321,304 - 3,225,288 -


Additional Supplementary Capital Allocated to
Anticipate Market Risk (A+B-C+E)

IV Risk Weighted Assets (RWA) for Credit Risks 19,002,657 - 19,203,194 -

V Risk Weighted Assets (RWA) for Operational 1,171,272 - 719,834 -


Risks

VI Risk Weighted Assets (RWA) for Market 8,179 - 8,534 -


Risks

A Standardized Approach
B Internal Model

VIII Ratio of Minimum Capital Allocations for 16.46% - 16.18% -


Credit Risks, Operational Risks and Market
Risks [III : (IV+V+VI)]

256 PT Bank QNB Indonesia Tbk


Performance
Table 1.b. Quantitative Disclosure on the Capital Structure of Foreign Bank

2016
(In million Rp)

Capital Component December 31, 2016 December 31, 2015

I Capital Component
A Operational Funds
1. Operational Funds - -
2. Paid-up Capital 2,189,286 2,189,287

Management
Report
B Reserves
1. General Reserves 5,395 4,395
2. Appropriated Reserves -
Income (Loss) Calculated from the 270,515 115,469
Previous Years (100%)
Income (Loss) Calculated for the (650,333) 156,045
Current Year (50%)

C Capital Paid in Advance 1,700,510 964,950


Securitisation Exposure

Company
Profile
D Other comprehensive income: losses 32 -
from equity investment for
available for sale category (100%)

E Other comprehensive income: Gain - -


from equity investment for
available for sale category (45%)

F Revaluation of Fixed Assets (45%) - -

Management Discussion
G Differences between allowance for (81,937) (308,212)

and Analysis
losses and impairment losses of
productive assets

H Allowance for Losses of Non- (10,481) -


Productive Assets

I Differences on Adjustment of Fair - -


Value of Financial Instruments in
the Trading Book

J General Reserves of Productive Assets 136,168 173,593


(max. 1.25% from RWA)

Governance
K

Corporate
Capital Reduction Factors (237,851) (70,239)
Securitisation Exposure

II Foreign Bank Capital 3,321,304 3,225,288


(Total of a Up To J - K)

III Risk Weighted Assets (Rwa) 19,002,657 19,203,194


for Credit Risks

IV Risk Weighted Assets (Rwa) for 1,171,272 719,834


Social Responsibility

Operational Risks
Corporate

V Risk Weighted Assets (Rwa) for


8,179 8,534
Market Risks
A Standardized Approach - -
B Internal Model - -
VI Ratio Of Minimum Capital Allocations for 16.46% 16.18%
Credit Risks,
Operational Risk and Market Risks
[Ii : (Iii + Iv + V)]

PT Bank QNB Indonesia Tbk 257


Passion for Excellence at Its Best
Annual Report 2016

Table 2.1.a Disclosure of Net Claims per Region - Bank Unconsolidated

(In million Rp)

December 31, 2016

Net Claims per Region


No Portfolio Category
Jakarta Sumatera East Region Java Total

1. Claims against Government 4,437,051 - - - 4,437,051


2. Claims against Public Sector - - - - -
Entities
3. Claims against Multilateral - - - - -
Development
4. Claims against Banks 66,792 14,023 - - 80,815
5. Collateralized Housing Loans 4,381 3,567 2,169 9,773 19,889
6. Collateralized Commercial Property 1,247,210 716 9,098 514,143 1,771,167
Loans
7. Loans to Employees/Pensioners - - - - -
8. Claims agaist MSMEs and Retail 767,604 163,068 63,706 99,818 1,094,197
Portfolio
9. Claims against Corporations 10,287,335 1,431,174 1,158,728 1,972,321 14,849,558
10. Mature Claims -
11. Other Assets 1,087,615 73,589 28,999 263,958 1,454,161

Total 17,897,988 1,686,138 1,262,700 2,860,013 23,706,838

Table 2.2.a. Disclosure of Net Claims by Remaining Contract Time - Bank Unconsolidated

December 31, 2016


No Portfolio Category
Net Claims by Remaining Contract Time

≤ 1 year > 1 - 3 years > 3.5 years > 5 years Non-Contractual Total

1. Claims against Government 4,437,051 - - - - 4,437,051


2. Claims against Public Sector - - - - - -
Entities
3. Claims against Multilateral - - - - - -
Development Banks and
International Institutions
4. Claims against Banks 80,815 - - - - 80,815
5. Collateralized Housing Loans 1,318 3,581 14,346 644 - 19,889
6. Collateralized Commercial 244,814 191,711 353,633 981,008 - 1,771,167
Property Loans
7. Loans to Employees/ - - - - - -
Pensioners
8. Claims agaist MSMEs and 98,665 222,595 242,075 530,861 - 1,094,197
Retail Portfolio
9. Claims against Corporations 2,735,305 720,834 953,588 10,439,831 - 14,849,558
10. Mature Claims - -
11. Other Assets 1,215,330 96,793 71,430 70,608 - 1,454,161

Total 8,813,298 1,235,514 1,635,073 12,022,952 - 23,706,838

258 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Net Claims per Region

Jakarta Sumatera East Region Java Total

4,408,820 - - - 4,408,820

Management
231 - - - 231

Report
- - - - -

72,605 6,559 - 24,995 104,159


13,845 8,124 3,372 8,986 34,327
1,420,430 1,310 - 530,903 1,952,642

- - - - -
673,042 124,212 210,982 162,549 1,170,785

Company
Profile
12,446,225 1,463,079 1,252,163 2,582,331 17,743,798
- - - - -
229,783 50,857 22,145 40,102 342,887

19,264,981 1,654,141 1,488,663 3,349,866 25,757,649

Management Discussion
and Analysis
December 31, 2015

Net Claims by Remaining Contract Time

≤ 1 year > 1-3 years > 3.5 years > 5 years Non-Contractual Total

4,408,820 - - - - 4,408,820
69 - 69 93 - 231

Governance
- - - - - -

104,159 - - - - 104,159 Corporate

2,564 8,590 9,907 13,266 - 34,327


220,715 360,886 215,300 1,155,741 - 1,952,642

- - - - - -
Social Responsibility

406,750 340,202 200,153 223,680 - 1,170,785


Corporate

8,035,210 1,558,270 3,968,785 4,181,533 - 17,743,798


- - - - - -
282,201 175 1,381 59,130 - 342,887

13,460,488 2,268,123 4,395,595 5,633,443 - 25,757,649

PT Bank QNB Indonesia Tbk 259


Passion for Excellence at Its Best
Annual Report 2016

Table 2.3.a. Disclosure of Net Claims based on Economic Sector - Bank Unconsolidated
(In million Rp)
Claims against
Multilateral
Claims against
Claims against Development Claims against Collateralized
No Economic sector Public Sector
Government Banks and Banks Housing Loans
Entity
International
Institutions

Report Date Position in 2015


1. Agriculture, Menial Labor and - - - - -
Forestry
2. Fisheries - - - - -
3. Mining and Extractive Industries - - - - -
4. Processing Industry - - - - -
5. Power, Gas and Water - - - - -
6. Construction - - - - 4,111
7. Large Scale Trading and Retailing - - - - 22
8. Claims agaist MSMEs and Retail - - - - -
Portfolio
9. Transportation, Warehousing and - - - - 6,743
Communications
10. Financial Intermediaries 4,437,051 - - 80,815 -
11. Real Estate, Leasing, and Corporate - - - - 114
Services
12. Government Administration, - - - - -
Defence and Mandatory Social
Security
13. Education - - - - -
14. Health and Social Activities - - - - -
15. Social, Cultural, Entertainment, and - - - - -
Other Personal Services
16. Hospitality - - - - -
17. International Organisations - - - - -
and Other Extra International
Organisations
18. Indeterminate Activities - - - - -
19. Non Business Field - - - - -
20. Miscellanous - - - - 8,899

Total 4,437,051 - - 80,815 19,889

Table 2.4.a. Disclosure of Claims and Reserves by Region - Bank Unconsolidated


(In million Rp)
December 31, 2016
No Region
Portofolio Activity
Jakarta Sumatera East Region Java Total

1. Claims 12,876,122 1,579,362 1,247,199 2,585,230 18,287,913


2. Impaired Claims
a. Outstanding 677,802 8,287 49,340 54,974 790,403
b. Mature 444,489 11,114 4,157 3,579 463,339
3. Reserves for Impairments (CKPN) - 614,665 5,754 22,569 24,612 667,600
Unconsolidated
4. Reserves for Impairments (CKPN) - 57,894 2,633 721 7,877 69,125
Consolidated
5. Written-off Claims 152,050 - - - 152,050

260 PT Bank QNB Indonesia Tbk


Performance
2016
Collateralized Claims against
Loans to Employees/ Claims against
Commercial Property MSMEs Mature Claims Other Assets
Pensioners Corporations
Loans and Retail Portfolio

Management
Report
- - 7,801 608,912 - -

- - 2,095 128,529 - -
37,132 - 5,059 670,525 - -
57,783 - 124,566 3,621,962 - -
- - - 623,941 - -
554,723 - 44,288 1,024,645 - -
168,670 - 263,556 2,525,837 - -
344,795 - 13,921 812,959 - -

Company
Profile
- - 34,910 1,073,728 - -

- - 843 137,340 - -
607,530 - 47,064 3,079,684 - -

- - - - - -

Management Discussion
- - 2,875 - - -

and Analysis
- - 931 70,302 - -
- - 23,489 448,927 - -

- - - - - -
- - - - - -

- - - - - -
- - - - - -
534 - 522,799 22,265 - 1,454,161

Governance
Corporate
1,771,167 - 1,094,197 14,849,558 - 1,454,161

December 31, 2015

Net Claims per Region

Jakarta Sumatera East Region Java Total


Social Responsibility

14,282,034 1,796,725 1,466,517 3,284,768 20,830,044


Corporate

1,172,178 8,458 165,693 294,246 1,640,575


535,750 29,835 3,391 10,548 579,524
27,112 4,457 293 824 32,686

5,932 906 608 1,608 9,054

49 - - - 49

PT Bank QNB Indonesia Tbk 261


Passion for Excellence at Its Best
Annual Report 2016

Table 2.5.a. Disclosure of Claims and Reserves by Economic Sector - Bank Unconsolidated

(In million Rp)

Impaired Claims Reserves for Reserves for


Impairments Impairments Written-off
No Economic Sector Claims
(CKPN) - (CKPN) - Claims
Outstanding Mature Unconsolidated Consolidated

Report Date Position in


2015

1. Agriculture, Menial Labor and 618,050 4,309 1,423 3,906 27 -


Forestry

2. Fisheries 130,067 - - - 1 -

3. Mining and Quarrying 670,806 - - - 106 -

4. Processing Industry 3,959,680 268,660 107,898 145,824 1,695 -

5. Electricity, Gas, and Water 618,938 - - - 247 -

6. Construction 1,915,477 71,643 257,960 297,674 175 -

7. Wholesale and Retail Trade 2,992,351 96,677 79,319 56,220 12,756 -

8. Hotels and Restaurants 1,237,617 125,761 - 79,180 213 -

9. Transportation, Warehousing 1,133,383 71,925 2,000 24,804 2,943 -


and Communications

10. Financial Intermediaries 187,066 49,520 - 49,520 26 -

11. Real Estate, Leasing, and 3,702,522 3,414 1,517 663 1,982 -
Corporate Services

12. Government Administration, - - - - - -


Defence, and Compulsory
Social Security

13. Education 3,187 - 1,676 - 318 -

14. Health and Social Activities 70,821 - - - 2 -

15. Social, Cultural, 480,431 38,871 - 9,809 2,818 -


Entertainment, and Other
Personal Services

16. Private Households - - - - - -


Employment

17. International Organisations - - - - - -


and Other Extra International
Organisations

18. Indeterminate Activities - - - - - -

19. Not classifiable by economic - - - - - -


activity

20. Miscellaneous 567,516 59,623 11,546 - 45,816 -

Total 18,287,913 790,403 463,339 667,600 69,125 -

262 PT Bank QNB Indonesia Tbk


Performance
Table 2.6.a. Disclosure of Changes in Impairment Reserves - Bank Unconsolidated

2016
(In million Rp)

No December 31, 2016 December 31, 2015


Portfolio Category
CKPN Individual CKPN Collective CKPN Individual CKPN Collective

1. Opening Impairment Reserves 32,686 9,054 4,168 8,179

Management
Balance

Report
2. Allocation (Recovery) of 786,963 83,880 28,518 21,538
Impairment Reserves in the
Current Period - Net

a. Allocation of Impairment Reserves 787,383 84,049 28,528 21,983


in Current Period

b. Recovery of Impairment Reserves in - - (10) (445)


Current Period

3. Impairment Reserves used to (152,050) (23,808) - (20,663)

Company
Cover Write-Offs in Current

Profile
Period

4. Other Allocation (Recovery) in (420) - - -


Current Period

Closing Impairment Reserves Balance 667,599 69,126 32,686 9,054

Management Discussion
and Analysis
Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 263


Passion for Excellence at Its Best
Annual Report 2016

Table 3.1.a. Diclosure of Net Claims based on Portfolio Category and Rating - Bank
Unconsolidated
(In million Rp)

December 31, 2016

Rating
Agencies Long-Term Rating

Standard and
Poor’s

Fitch Rating

Moody’s
No Portfolio Category
PT Fitch
Ratings AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB-
Indonesia

PT ICRA
Indonesia

PT
Pemeringkat
Efek Indonesia

1. Claims against Government - - - - -

2. Claims against Public Sector - - - - -


Entities

3. Claims against Multilateral - - - - -


Development Banks and
International Institutions

4. Claims against Banks 21,891 49,664 9,260 - -

5. Collateralized Housing Loans - - - - -

6. Collateralized Commercial - - - - -
Property Loans

7. Loans to Employees/ - - - - -
Pensioners

8. Claims against MSMEs and - - - - -


Retail Portfolio

9. Claims against Corporations - - - - -

10. Mature Claims - - - - -

11. Other Assets - - - - -

Total 21,891 49,664 9,260 - -

264 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2016

Net Claims

Management
Short Term Rating

Report
B+ s.d B- Less than B- A-1 A-2 A-3 Less than A-3 Unrated Total

Company
Profile
Management Discussion
- - - - - - 4,437,051 4,437,051

and Analysis
- - - - - - - -

- - - - - - - -

- - - - - - - 80,815

- - - - - - 19,889 19,889

- - - - - - 1,771,167 1,771,167

Governance
Corporate
- - - - - - - -

- - - - - - 1,094,197 1,094,197

- - - - - - 14,849,558 14,849,558

- - - - - - - -

- - - - - - 1,454,161 1,454,161
Social Responsibility
Corporate

- - - - - - 23,626,023 23,706,838

PT Bank QNB Indonesia Tbk 265


Passion for Excellence at Its Best
Annual Report 2016

(In million Rp)

December 31, 2015

Rating
Agencies Long-Term Rating

Standard and
Poor’s

Fitch Rating

Moody’s
No Portfolio Category
PT Fitch
Ratings AAA AA+ s.d AA- A+ s.d A- BBB+ s.d BBB- BB+ s.d BB-
Indonesia

PT ICRA
Indonesia

PT
Pemeringkat
Efek Indonesia

1. Claims against Government - - - - -

2. Claims against Public Sector 231 - - - -


Entities

3. Claims against Multilateral - - - - -


Development Banks and
International Institutions

4. Claims against Banks 172 43,847 54,211 498 -

5. Collateralized Housing Loans - - - - -

6. Collateralized Commercial - - - - -
Property Loans

7. Loans to Employees/ - - - - -
Pensioners

8. Claims against MSMEs and - - - - -


Retail Portfolio

9. Claims against Corporations - - - - -

10. Mature Claims - - - - -

11. Other Assets - - - - -

Total 403 43,847 54,211 498 -

266 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Net Claims

Short Term Rating

Management
Report
B+ s.d B- Less than B- A-1 A-2 A-3 Less than A-3 Unrated Total

Company
Profile
- - - - - - 4,408,820 4,408,820

- - - - - - - 231

Management Discussion
- - - - - - - -

and Analysis
- - - - - - 5,431 104,159

- - - - - - 34,327 34,327

- - - - - - 1,952,642 1,952,642

- - - - - - - -

- - - - - - 1,170,785 1,170,785

Governance
Corporate
- - - - - - 17,743,798 17,743,798

- - - - - - - -

- - - - - - 342,887 342,887

- - - - - - 25,658,690 25,757,649
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 267


Passion for Excellence at Its Best
Annual Report 2016

Table 3.2.a. Disclosure of Counterparty Credit Risk: Derivative Transactions


(In million Rp)

December 31, 2016

No Portfolio Activity Notional Amount


Derivative Derivative Net Claims Net Claims
MRK
> 1 year - Claims Obligations Before MR Before MR
≤ 1 year > 5 year
≤ 5 year

Bank Unconsolidated
1. Interest Rate - - - - - - - -
2. Foreign Exchange 4,645,467 - - 550 12,890 550 - 550
3. Others - - - - - - - -

Total 4,645,467 - - 550 12,890 550 - 550

Table 3.2.b.1 Disclosure of Counterparty Credit Risk: Repo Transactions - Bank Unconsolidated
(In million Rp)

December 31, 2016


No Portfolio Activity
Fair Repo Repo RWA
Net Claims
SSB Value Obligations Before MR

Bank Unconsolidated
1. Claims against Government - - - -
2. Claims against Public Sector Entities - - - -
3. Claims against Multilateral Development Banks and - - - -
International Institutions
4. Claims against Bank - - - -
5. Claims agaist MSMEs and Retail Portfolio - - - -
6. Claims against Corporations - - - -

Total - - - -

Table 3.2.c.1. Disclosure of Counterparty Credit Risk: Repo Transactions - Bank Unconsolidated
(In million Rp)

December 31, 2016


No Portfolio Activity
Net Claims RWA After
Net Claims MRK Scores
After MRK MRK

Bank Unconsolidated
1. Claims against Government 471,350 - 471,350 -
2. Claims against Public Sector Entities - - - -
3. Claims against Multilateral Development Banks and - - - -
International Institutions
4. Claims against Bank - - - -
5. Claims agaist MSMEs and Retail Portfolio - - - -
6. Claims against Corporations - - - -

Total 471,350 - 471,350 -

268 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Notional Amount
Derivative Derivative Net Claims Net Claims
MRK
> 1 year - Claims Obligations Before MR Before MR
≤ 1 year > 5 year
≤ 5 year

Management
Report
- - - - - - - -
543,353 - - 2,921 661 2,890 - 2,890
- - - - - - - -

543,353 - - 2,921 661 2,890 - 2,890

Company
Profile
December 31, 2015

Fair Repo Repo RWA


Net Claims
SSB Value Obligations Before MR

- - - -

Management Discussion
- - - -
- - - -

and Analysis
- - - -
- - - -
- - - -

- - - -

Governance
December 31, 2015 Corporate

Net Claims RWA After


Net Claims MRK Scores
After MRK MRK

269,117 - 269,117 -
Social Responsibility

- - - -
- - - -
Corporate

- - - -
- - - -
- - - -

269,117 - 269,117 -

PT Bank QNB Indonesia Tbk 269


Passion for Excellence at Its Best
Annual Report 2016

Table 4.1.a. Disclosure of Net Claims by Risk Weighting after Calculating Effect of Credit Risk
Mitigation - Bank Unconsolidated
(In million Rp)
December 31, 2016

No Portfolio Category Net Claims after Calculating Effect of Credit Risk Mitigation

0% 20% 35% 40% 45% 50% 75% 100% 150% Others

A Balance Sheet Exposure


1. Claims against Government 4,437,051 - - - - - - - - -
2. Claims against Public Sector Entities - - - - - - - - - -
3. Claims against Multilateral - - - - - - - - - -
Development Banks and
International Institutions
4. Claims against Banks - 80,815 - - - - - - - -
5. Collateralized Housing Loans - - - 19,889 - - - - - -
6. Collateralized Commercial Property - - - - - - - 1,771,167 - -
Loans
7. Loans to Employees/Pensioners - - - - - - - - - -
8. Claims against MSMEs and Retail - - - - - - 1,094,197 - - -
Portfolio
9. Claims against Corporations - - - - - - - 14,849,558 - -
10. Mature Claims - - - - - - - - - -
11. Other Assets 1,454,161 - - - - - - - - -
Total Balance Sheet Exposure 5,891,212 80,815 - 19,889 - - 1,094,197 16,620,725 - -

B Commitment/Contingency
Exposure in Administrative
Account Transactions
1. Claims against Government - - - - - - - - - -
2. Claims against Public Sectors - - - - - - - - - -
Entities
3. Claims against Multilateral - - - - - - - - - -
Development Banks and
International Institutions
4. Claims against Banks - - - - - - - - - -
5. Collateralized Housing Loans 203 - - - - - - - - -
6. Collateralized Commercial Property 134,813 - - - - - - - - -
Loans
7. Loans to Employees/Pensioners - - - - - - - - - -
8. Claims against MSMEs and Retail 209,547 - - - - 1,062 - - - -
Portfolio
9. Claims against Corporations 1,206,473 37,015 - - - 14,569 - - - -
10. Mature Claims - - - - - - - - - -
Total Exposure of TRA 1,551,036 37,015 - - - 15,631 - - - -
C Counterparty Credit Risk
1. Claims against Government - - - - - - - - - -
2. Claims against Public Sectors - - - - - - - - - -
Entities
3. Claims against Multilateral - - - - - - - - - -
Development Banks and
International Institutions
4. Claims against Banks 550 - - - - - - - - -
5. Claims against MSMEs and Retail - - - - - - - - - -
Portfolio
6. Claims against Corporations - - - - - - - - - -
Total Exposure of Counterparty 550 - - - - - - - - -
Credit Risk

270 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Net Claims after Calculating Effect of Credit Risk Mitigation


Capital Capital
RWA RWA
Charge Charge
0% 20% 35% 40% 45% 50% 75% 100% 150% Others

Management
Report
4,408,820 - - - - - - - - - - -
- - 231 - - - - - - - - 46 4
- - - - - - - - - - - - -

16,163 1,666 - 104,159 - - - - - - - - 20,831 1,666


7,947 961 - - 34,327 - - - - - - - 12,014 961
1,767,267 156,211 - - - - - - - 1,952,642 - - 1,952,642 156,211

Company
Profile
- - - - - - - - - - - - - -
804,140 70,247 - - - - - - 1,170,785 - - - 878,089 70,247

14,478,912 1,283,322 - - - - - - - 17,743,798 - - 16,041,531 1,283,322


- - - - - - - - - - - - - -
1,912,592 23,797 342,887 - - - - - - - - - 297,457 23,797
18,987,021 1,536,204 4,751,707 104,390 34,327 - - - 1,170,785 19,696,440 - - 19,202,610 1,536,209

Management Discussion
and Analysis
- - - - - - - - - - - - - -
- - - - - - - - - - - - - -

- - - - - - - - - - - - - -

- - - - - - - - - - - - - -
- - 721 - - - - - - - - - - -
- - 112,550 - - - - - - - - - - -

Governance
Corporate
- - - - - - - - - - - - - -
398 - 298,941 - - - - - - - - - - -

14,688 - 2,596,237 - - - - - - - - - - -
- - - - - - - - - - - - - -
15,086 - 3,008,449 - - - - - - - - - - -

- - - - - - - - - - - - - -
Social Responsibility

- - - - - - - - - - - - - -
Corporate

- - - - - - - - - - - - - -

550 44 2,921 - - - - - - - - - 584 47


- - - - - - - - - - - - - -

- - - - - - - - - - - - - -
550 44 2,921 - - - - - - - - - 584 47

PT Bank QNB Indonesia Tbk 271


Passion for Excellence at Its Best
Annual Report 2016

Table 4.2.a. Disclosure of Net Claims and Credit Risk Mitigation Techniques
Bank Unconsolidated
(In million Rp)
December 31, 2016

Portion Secured by
No Portfolio Category Portion
Net Claims
Credit Unsecured
Collateral Guarantee Others
Insurance

A Balance Sheet Exposure


1. Claims against Government 4,437,051 - - - 4,437,051
2. Claims against Public Sector Entities - - - - -
3. Claims against Multilateral - - - - - -
Development Banks and
International Institutions
4. Claims against Banks 80,815 - - - 80,815
5. Collateralized Housing Loans 19,889 22 - - - 19,867
6. Collateralized Commercial Property 1,771,167 3,900 - - - 1,767,267
Loans
7. Loans to Employees/Pensioners - - - - - -
8. Claims against MSMEs and Retail 1,094,197 22,011 - - - 1,072,186
Portfolio
9. Claims against Corporations 14,849,558 370,646 - - - 14,478,912
10. Mature Claims - - - - - -
11. Other Assets 1,454,161 - - - - 1,454,161
Total Balance Sheet Exposure 23,706,838 396,579 - - - 23,310,259

B Commitment/Contingency
Exposure in Administrative
Account Transactions
1. Claims against Government - - - - - -
2. Claims against Public Sectors - - - - - -
Entities
3. Claims against Multilateral - - - - - -
Development Banks and
International Institutions
4. Claims against Banks - - - - - -
5. Collateralized Housing Loans 203 - - - - 203
6. Collateralized Commercial Property 134,813 - - - - 134,813
Loans
7. Loans to Employees/Pensioners - - - - - -
8. Claims against MSMEs and Retail 210,609 - - - - 210,609
Portfolio
9. Claims against Corporations 1,258,058 - - - - 1,258,058
10. Mature Claims - - - - - -
Total Exposure of TRA 1,603,683 - - - - 1,603,683

C Counterparty Credit Risk


1. Claims against Government 471,350 - - - - 471,350
2. Claims against Public Sectors - - - - - -
Entities
3. Claims against Multilateral - - - - - -
Development Banks and
International Institutions
4. Claims against Banks - - - - - -
5. Claims against MSMEs and Retail - - - - - -
Portfolio
6. Claims against Corporations - - - - - -
Total Exposure of Counterparty 471,350 - - - - 471,350
Credit Risk

Total (A+B+C) 25,781,871 396,579 - - - 25,385,292

272 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Portion Secured by
Portion
Net Claims
Credit Unsecured
Collateral Guarantee Others
Insurance

Management
Report
4,408,820 - - - - 4,408,820
231 - - - - 231
- - - - - -

104,159 - - - - 104,159
34,327 - - - - 34,327
1,952,642 - - - - 1,952,642

Company
- -

Profile
- - - -
1,170,785 - - - - 1,170,785

17,743,798 1,702,267 - - - 16,041,531


- - - - - -
342,887 - - - - 342,887
25,757,649 1,702,267 - - - 24,055,382

Management Discussion
and Analysis
- - - - - -
- - - - - -

- - - - - -

- - - - - -
721 - - - - 721
112,550 - - - - 112,550

Governance
Corporate
- - - - - -
298,941 - - - - 298,941

2,596,237 - - - - 2,596,237
- - - - - -
3,008,449 - - - - 3,008,449
Social Responsibility

- - - - - -
Corporate

- - - - - -

- - - - - -

2,921 - - - - 2,921
- - - - - -

- - - - - -
2,921 - - - - 2,921

28,769,019 1,702,267 - - - 27,066,752

PT Bank QNB Indonesia Tbk 273


Passion for Excellence at Its Best
Annual Report 2016

Table 6.1.1. Disclosure of Assets on Bank Balance Sheet Exposure - Bank Unconsolidated
(In million Rp)

December 31, 2016 December 31, 2015

No Portfolio Category RWA Before RWA After RWA Before RWA After
Net Claims Net Claims
MRK MRK MRK MRK

1. Claims against Government 4,437,051 - - 4,408,820 - -

2. Claims against Public Sector Entities - - - 231 46 46

3. Claims against Multilateral - - - - - -


Development Banks and
International Institutions

4. Claims against Banks 80,815 16,163 16,163 104,159 129,132 129,132

5. Collateralized Housing Loans 19,889 7,956 7,947 34,327 11,648 11,648

6. Collateralized Commercial Property Loans 1,771,167 1,771,167 1,767,267 1,952,642 695,798 695,798

7. Loans to Employees/Pensioners - - - - - -

8. Claims against MSMEs and Retail Portfolio 1,094,197 820,648 804,140 1,170,785 878,089 878,089

9. Claims against Corporations 14,849,558 14,849,558 14,478,912 17,743,798 17,743,498 16,041,531

10. Mature Claims - - - - - -

11. Other Assets 1,454,161 - 1,912,592 342,887 - 297,457

Total 23,706,838 17,465,492 18,987,021 25,757,649 20,607,121 19,202,611

274 PT Bank QNB Indonesia Tbk


Performance
Table 6.1.2. Disclosure of Exposure to Commitment/Contingency from Adminstrative Account

2016
Transactions - Bank Unconsolidated
(In million Rp)

December 31, 2016 December 31, 2015

No Portfolio Category RWA Before RWA After RWA Before RWA After
Net Claims Net Claims
MRK MRK MRK MRK

Management
Report
1. Claims against Government - - - - - -

2. Claims against Public Sector Entities - - - - - -

3. Claims against Multilateral - - - - - -


Development Banks and
International Institutions

4. Claims against Banks - - - - - -

5. Collateralized Housing Loans - - - - - -

Company
6. Collateralized Commercial Property Loans - - - - - -

Profile
7. Loans to Employees/Pensioners - - - - - -

8. Claims against MSMEs and Retail Portfolio 531 398 398 - - -

9. Claims against Corporations 14,688 14,688 14,688 - - -

10. Mature Claims - - - - - -

Management Discussion
Total 15,219 15,086 15,086 - - -

and Analysis
Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 275


Passion for Excellence at Its Best
Annual Report 2016

Table 6.1.3. Disclosure of Exposure Arising from Counterparty Credit Risk - Bank Unconsolidated
(In million Rp)

December 31, 2016 December 31, 2015

No Portfolio Category RWA Before RWA After RWA Before RWA After
Net Claims Net Claims
MRK MRK MRK MRK

1. Claims against Government - - - - - -

2. Publik Claims against Public - - - - - -


Sector Entities

3. Claims against Multilateral - - - - - -


Development Banks and
International Institutions

4. Claims against Bank - - - 2,921 584 584

5. Claims against MSMEs and - - - - - -


Retail Portfolio

6. Collateralized Housing Loans 550 550 550 - - -

7. Eksposur tertimbang dari Credit Valuation - - - - - -


Adjustment (CVA)

Total 550 550 550 2,921 584 584

Table 6.1.4. Disclosure of Exposure to Settlement Risk - Bank Unconsolidated


(In million Rp)

No December 31, 2016 December 31, 2015

Portfolio Category RWA Before RWA After RWA Before RWA After
Net Claims Net Claims
MRK MRK MRK MRK

1. Delivery versus payment - - - - - -

a. Capital Charge 8% (5-15 days) - - - - - -

b. Capital Charge 50% (16- 30 days) - - - - - -

c. Capital Charge 75% (31-45 days) - - - - - -

d. Capital Charge 100% (more than 45 days) - - - - - -

2. Non-delivery versus - - - - - -
payment

Total - - - - - -

276 PT Bank QNB Indonesia Tbk


Performance
Table 6.1.5. Disclosure of Securitisation Exposure

2016
(In million Rp)

December 31, 2016 December 31, 2015

No Portfolio Category RWA Before RWA After RWA Before RWA After
Net Claims Net Claims
MRK MRK MRK MRK

1. Supporting Credit Facilities that Meet the - - - - - -


Requirements

Management
2. Supporting Credit Facilities that do not - - - - - -

Report
Meet Requirements
3. Liquidity Facilities that Meet the - - - - - -
Requirements
4. Liquidity Facilities that do not Meet the - - - - - -
Requirements
5. Purchase of Asset-backed that Meet the - - - - - -
Requirements
6. Purchase of Asset-backed that do not Meet - - - - - -
the Requirements

Company
7. Securitisation exposure not covered - - - - - -

Profile
by Bank Indonesia regulations on the
application of prudent principles to asset
securitisation by commercial banks

Total - - - - - -

Table 6.1.7. Disclosure of Total Credit Risks

Management Discussion
and Analysis
(In million Rp)

December 31, 2016 December 31, 2015

Total rwa credit risks 19,002,657 19,203,194


Total capital reduction factors (237,851) (70,238)

Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 277


Passion for Excellence at Its Best
Annual Report 2016

Table 7.1. Disclosure of Market Risk using Standardized Method - Bank Unconsolidated
(In million Rp)

December 31, 2016

Bank Consolidation
No Risk Type

Capital Charge RWA Capital Charge RWA

1. Interest Rate Risks


a. Specific Risks - - - -
b. General Risks - - - -
2. Exchange Rate Risks 654 8,179 - -
3. Equity Risks *) - - - -
4. Commodity Risks *) - - - -
5. Option Risks - - - -

Total - - - -

*) For Bank which has subsidiaries with risk exposure

Table 7.2.a. Disclosure of Market Risk using Internal Model (Value at Risk/VaR) -
Bank Unconsolidated
(In million Rp)

December 31, 2016


No Risk Type

Var at End
Average VaR Maximum VaR Minimum VaR
Period
1. Interest Rate Risks - - - -
2. Exchange Rate Risks - - - -
3. Option Risks - - - -

Total - - - -

Table 8.1.a. Disclosure of Quantitative Operational Risk - Bank Unconsolidated


(In million Rp)

December 31, 2016

No Risk Type
Gross Income
(Average of the Capital Charge RWA
Last 3 Years)
1. Base Indicator Approach 768,312 115,247 1,171,272

Total 768,312 115,247 1,171,272

278 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Bank Consolidation

Capital Charge RWA Capital Charge RWA

Management
Report
- - - -
- - - -
682 8,534 - -
- - - -
- - - -
- - - -

- - - -

Company
Profile
Management Discussion
December 31, 2015

and Analysis
Var at End
Average VaR Maximum VaR Minimum VaR
Period
- - - -
- - - -
- - - -

- - - -

Governance
Corporate

December 31, 2015

Gross Income
(Average of the Capital Charge RWA
Social Responsibility

Last 3 Years)
Corporate

383,911 57,587 719,834

383,911 57,587 719,834

PT Bank QNB Indonesia Tbk 279


Passion for Excellence at Its Best
Annual Report 2016

Table 9.1.a. Disclosure of Rupiah Maturities Profile - Bank Unconsolidated


(In million Rp)

December 31, 2016

No Post Maturity

Balance
> 6 - 12
≤ 1 month > 1 - 3 months > 3 - 6 months > 12 months
months

I BALANCE SHEET
A. Assets
1. Cash 46,344 46,344 - - - -
2. Placements with Bank Indonesia 1,508,850 1,508,850 - - - -
3. Placements with Other Banks 341 341 - - - -
4. Securities 571,862 - 247,507 - - 324,355
5. Loans 11,246,375 1,147,135 1,153,981 746,134 1,595,025 6,604,100
6. Other Receivables 471,900 471,900 - - - -
7. Others 359,781 359,781 - - - -
Total assets 14,205,453 3,534,351 1,401,488 746,134 1,595,025 6,928,455

B. Liabilities
1. Third-Party Funds 15,093,446 7,824,858 5,354,329 1,328,453 585,806 -
2. Funds from Bank Indonesia - - - - - -
3. Funds from Other Banks 385,528 64,508 3,500 2,000 315,520 -
4. Securities Issued - - - - - -
5. Fund Borrowings - - - - - -
6. Other Liabilities 12,890 12,890 - - - -
7. Miscellanous 216 216 - - - -
Total Liabilities 15,492,080 7,902,472 5,357,829 1,330,453 901,326 -
Difference Between Assets and (1,286,627) (4,368,121) (3,956,341) (584,319) 693,699 6,928,455
Liabilities on Balance Sheets

II ADMINISTRATIVE ACCOUNT
A. Administrative Account Claims
1. Commitments -
2. Contingencies -
Total Administrative Account Claims - - - - - -

B. Administrative Account Liabilities


1. Commitments 1,068,913 65,952 202,646 131,077 240,947 428,291
2. Contingencies 12,010 - - 3,801 278 7,931

Total Administrative Account 1,080,923 65,952 202,646 134,878 241,225 436,222


Liabilities

Difference Between Administrative (1,080,923) (65,952) (202,646) (134,878) (241,225) (436,222)


Account Claims and Liabilities

Difference (IA-IB)+(IIA-IIB) (2,367,550) (4,434,073) (4,158,987) (719,197) 452,474 6,492,233

Cumulative Difference - (4,434,073) (8,593,060) (9,312,257) (8,859,783) (2,367,550)

280 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Maturity
Balance
≤ 1 month > 1 - 3 months > 3 - 6 months > 6 - 12 months > 12 months

Management
Report
5,194 5,194 - - - -
2,143,568 2,143,568 - - - -
38,501 38,501 - - - -
- - - - - -
7,314,325 629,772 331,122 655,074 981,271 4,717,086
- - - - - -

Company
Profile
74,946 74,946 - - - -
9,576,534 2,891,981 331,122 655,074 981,271 4,717,086

5,900,355 4,744,949 1,064,321 90,110 - 976


- - - - - -
2,798,355 1,792,050 454,905 551,400 - -

Management Discussion
- - - - - -
964,950 - - - - 964,950

and Analysis
- - - - - -
257,169 257,169 - - - -
9,920,830 6,794,168 1,519,226 641,510 - 965,926
(344,296) (3,902,188) (1,188,104) 13,564 981,271 3,751,160

543,201 541,064 2,137 - - -

Governance
- - - - - -

Corporate
543,201 541,064 2,137 - - -

1,931,135 1,926,494 2,132 2,510 - -


3,308 - - 3,308 - -

1,934,444 1,926,494 2,132 5,818 - -


Social Responsibility

(1,391,243) (1,385,430) 5 (5,818) - -


Corporate

(1,735,538) (5,287,618) (1,188,099) 7,746 981,271 3,751,160

- (5,287,618) (6,475,716) (6,467,970) (5,486,698) (1,735,538)

PT Bank QNB Indonesia Tbk 281


Passion for Excellence at Its Best
Annual Report 2016

Table 9.2.a. Disclosure of Foreign Exchange Maturities Profile - Bank Unconsolidated


(In million Rp)

December 31, 2016

No Post Maturity

Balance
> 6 - 12
≤ 1 month > 1 - 3 months > 3 - 6 months > 12 months
months

I BALANCE SHEET
A. Assets
1. Cash 4,917 4,917 - - - -
2. Placements with Bank Indonesia 2,356,340 2,356,340 - - - -
3. Placements with Other Banks 80,474 80,474 - - - -
4. Securities - - - - - -
5. Loans 7,041,539 741,898 336,816 1,261,511 3,061,137 1,640,177
6. Other Receivables 22,193 22,193 - - - -
7. Others - - - - - -
Total assets 9,505,463 3,205,822 336,816 1,261,511 3,061,137 1,640,177

B. Liabilities
1. Third-Party Funds 4,251,515 3,861,131 389,661 723 - -
2. Funds from Bank Indonesia - - - - - -
3. Funds from Other Banks 592,790 - 592,790 - - -
4. Securities Issued - - - - - -
5. Fund Borrowings - - - - - -
6. Other Liabilities 22,193 22,193 - - - -
7. Miscellanous 1,951 1,951 - - - -
Total Liabilities 4,868,449 3,885,275 982,451 723 - -
Difference Between Assets and 4,637,013 (679,453) (645,635) 1,260,788 3,061,137 1,640,177
Liabilities on Balance Sheets

II ADMINISTRATIVE ACCOUNT
A. Administrative Account Claims
1. Commitments 131,315 131,315 - - - -
2. Contingencies - - - - - -
Total Administrative Account Claims 131,315 131,315 - - - -

B. Administrative Account Liabilities


1. Commitments 5,156,365 4,676,182 13,662 331,278 47,687 87,557
2. Contingencies 3,622 3,622 - - - -

Total Administrative Account 5,159,988 4,679,804 13,662 331,278 47,687 87,557


Liabilities

Difference Between Administrative (5,028,673) (4,548,489) (13,662) (331,278) (47,687) (87,557)


Account Claims and Liabilities

Difference (IA-IB)+(IIA-IIB) (391,659) (5,227,942) (659,297) 929,510 3,013,451 1,552,620

Cumulative Difference - (5,227,942) (5,887,239) (4,957,730) (1,944,279) (391,659)

282 PT Bank QNB Indonesia Tbk


Performance
2016
December 31, 2015

Maturity
Balance
≤ 1 month > 1 - 3 months > 3 - 6 months > 6 - 12 months > 12 months

Management
Report
377 377 - - - -
155,500 155,500 - - - -
2,793 2,793 - - - -
- - - - - -
530,600 45,685 24,020 47,521 71,184 342,190
- - - - - -

Company
Profile
5,437 5,437 - - - -
694,707 209,792 24,020 47,521 71,184 342,190

428,027 344,211 77,209 6,537 - 71


- - - - - -
203,000 130,000 33,000 40,000 - -

Management Discussion
- - - - - -
70,000 - - - - 70,000

and Analysis
- - - - - -
18,656 18,656 - - - -
719,683 492,867 110,209 46,537 - 70,071
(24,976) (283,075) (86,188) 984 71,184 272,119

39,405 39,250 155 - - -

Governance
- - - - - -

Corporate
39,405 39,250 155 - - -

140,090 139,753 155 182 - -


240 - - 240 - -

140,330 139,753 155 422 - -


Social Responsibility

(100,924) (100,503) - (422) - -


Corporate

(125,901) (383,578) (86,188) 562 71,184 272,119

- (383,578) (469,765) (469,203) (398,019) (125,901)

PT Bank QNB Indonesia Tbk 283


Passion for Excellence at Its Best
Annual Report 2016

Internal Control System

The Bank has


implemented an internal
control system through
the separation of function,
implementation of four
eyes principles, Know
Your Employee program,
inherent monitoring in
related units, as well
as rotation system and
implementation of block
leave.

Internal Control System 3. Examining the activation of Evaluation on Internal


implementation dormant account, balanced Control System
Sundry Account, and over
draft balance in a centralized
Effectiveness
In managing and controlling the
financial and operational risks manner and in the scope of
Based on the activities
to be in line with the applicable daily basis.
implemented by Internal Division,
regulations, the Internal Division 4. Conducting examination
the Bank performs evaluation and
conducts several activities, such as: on the payment of deposit
uses the results as guidelines to
1. Visiting branch offices interest tax, clearing accounts,
improve performance efficiency
by utilizing the Checklist and savings to State Treasury
and effectiveness of the Bank and
Branch Visit which includes Office
its branch offices. Implementation
cash count, monitoring on 5. The result of the examination
results are studied by the Bank in
the implementation of dual will be stated in the form of
order to perform organized and
custody, examining the findings recapitulation and
systematic improvement and to
security system, etc. may also be used as review
provide the best solutions for any
2. Inspecting the Bank’s material for branch offices
problems encountered.
compliance with the that need to improve its
implementation of operation performance regarding the
transaction in the branch operational transactions.
offices that are included
in the scope of operational
Checklist End of Day, including
conducting examination on
account opening transaction
and foreign exchange
transaction on a daily basis.

284 PT Bank QNB Indonesia Tbk


Legal Disputes and
Administrative Sanctions

Performance
Throughout 2016, the Bank, the or any potential cases, both in which have a material effect on the

2016
Board of Directors and Board of criminal, civil, taxation, arbitration, Bank’s business continuity along
Commissioners were not facing industrial relations, state with its assets. Below are the legal
any lawsuit or legal case in the administrative agencies in the face cases faced by the Bank in 2016:
courts and/or arbitration agencies of bankruptcy of Indonesian courts,

Description
Legal Disputes

Management
Civil Criminal

Report
Completed (Has Legal Standing) 4 -
In the Process of Settlement/Ongoing 7 2

Total 11 2

Material Cases Involving legally binding decision. As for the There also was no material

Company
Serving Directors and criminal case in which the Bank as administrative sanctions from

Profile
the complainant, the whole cases Financial Services Authority that
Commissioners were still under investigation and affected the business continuity
police investigation. The whole of the Bank, nor was there
During 2016, no serving Directors
cases did not have a significant any administrative sanctions
or Commissioners of the Bank were
impact on the Bank and the Bank’s imposed on members of the
involved in legal problems, whether
operations. Board of Directors or the Board of
civil or criminal.

Management Discussion
Commissioners.

and Analysis
Legal Disputes Administrative Sanctions Impact to the Bank
During 2016, the Bank encountered
In 2016, there was no The civil legal cases in which the
legal cases as much as 11 (eleven)
administrative sanctions were Bank was involved during the
civil cases and two (2) criminal
imposed by any parties in reporting period did not have an
cases. Of all civil cases, four (4)
connection with the handling of insignificant impact as necessary
cases has obtained a decision that
legal cases by the Bank. mitigation measures have been
is legally binding for the Bank and
taken.
seven (7) cases have not received a
Governance
Corporate
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 285


Passion for Excellence at Its Best
Annual Report 2016

Code of Conducts
and Corporate Culture
The Bank affirms its commitment 3. Creating a code of conduct Conduct
to build a business based on online attestation system to 1. Teamwork
ethicss. Every objective is achieved ensure every employee has 2. Relationship Based on Trust
not solely based on our work but read and understood the code 3. Protection of Bank’s and
also pararel with our commitment of ethics; Customers’ Assets and
to perform respectful behavior, 4. Creating an online Interests
honesty and integrity. The code of declaration system (such 4. Supplier Relationship
ethics provides a reference point as gift acceptancce, sibling 5. Social Responsibility
so that each employees will have relationship, etc) and online 6. Adherence to the Law
required confidence to take firm escalation system as part of 7. Adherence to All Policies and
correct decision. Code of ethics will whistle blower activity, and; Procedures of PT Bank QNB
also provide guidance whenever 5. Enforcing any breaches of Indonesia Tbk
employees stumble upon decision, discipline and violation of 8. Disclosure of Confidential
including requirement to do ethics through disciplinary Information
escalation and discussion among committee or any other means 9. Our Word is Our Bond
respective parties to ensure that that have been set through 10. Restriction on Working
all stakeholders taking the right certain regulations. Elsewhere
actions and proper behavior. 11. Dealing with the Media
Universality of Code of 12. Avoidance of Inducement
As commitment to implement code Conduct 13. Avoidance of Conflict of
of ethics, every employee recieved Interest
an easy access to code of ethics The code of conduct applies 14. Proper Management of Staff
through employee intranet portal. universally, which means that all Account
In addition, the Bank are also values encompassed in the Code of 15. Personal Indebtedness
conducting the following programs Conduct are applied to all personnel 16. Personal Transactions
to ensure its application in the of PT Bank QNB Indonesia 17. Attention to Personal Matters
Bank operations area; Tbk, including the Board of 18. Personal Development
1. Conducting a review of the Commissioners, Board of Directors, 19. Integrity in Inter-personal
exisiting code of ethics on a and all Management levels. Relationships
regular basis; 20. Personal Conduct
2. Creating a refreshment 21. Personal Appearance
programs throughout career
Code of Conducts Core 22. Dealing with QNB Shares
ladder and in all of the Bank Values 23. Intellectual Property
operational areas to ensure a
good understanding of Code of All employees of the Bank are Security
Ethics. This year, the Bank has responsible to uphold the Code 1. Safety & Security
lunched its Professionalism of Conduct in their day-to-day 2. Continuation of Business in
With Integrity (PWI) program activities; strongly embedded Times of Troubles
which is a mandatory program business ethics are expected to
to all employees. The objective maintain favourable environment Compliance
of this program is to ensure for individuals and for the Bank. 1. Whistleblowing
similar perception in code of The elements of Bank’s Code of 2. Politics
ethics application. Conduct are: 3. Fraud, Money Laundering, &
Terrorist Financing

286 PT Bank QNB Indonesia Tbk


Performance
Code of Conducts Corporate Culture • Responsible Citizenship

2016
Socialization and We shall respects with dignity
Core values which shape the Bank’s and be concerned for the
Enforcement well-being of people and
corporate culture are especially
essential in that it functions as environment in which we
To support the comprehensive
most important foundation and operates
implementation of Code of
at the same time, guidelines • Professionalism with Integrity
Conduct, the Bank actively
for employees’ behaviour and We shall continuously develop
conducts dissemination and

Management
conduct in their relationship our competencies and behavior
publication. In addition, the Bank

Report
with customers, fellow employee to reliably deliver what is
also conducts observation and
members, the management, and expected from us. We shall be
evaluation on the implementation
other external parties. According honest, fair, and accountable.
of the Code of Conduct, as well as
revision if deemed necessary. The to the Decree of Directors No. 074/
SK-Direksi/VI/2015 dated June 1, QNB Indonesia values are
revision is conducted as a form of
2015, the core values which are applied in an attractive range of
compliance with the regulations
also the Bank corporate cultures programs. As an example, this
and legislations applicable in
currently known as QNB Values year the Bank has implemented
Indonesia.
Learning Forum program which is

Company
includes the following:

Profile
• Passion for Excellence an implementation of a corporate
Among the socialization and
We strive to go the extra- culture that emphasizes the
enforcement of Code of Conduct
mile to achieve the highest obligation of all employees
is the dissemination of Code of
professional standards. to continously develop their
Conduct on regular basis to all
• Innovative competence and knowledge. As the
employees through the distribution
We shall be adaptive to change summit of QNB Indonesia value
of Code of Conduct book which is to

Management Discussion
and value creative thinking to application program, at the end of
be signed by all employees.
continuously attain superior 2016 QNB Values Festival were held

and Analysis
benefits. throughout Bank QNB Indonesia
The principles defined in the Code
• Synergistic Team working area.
of Conduct are continuously and
sustainably applied in the daily We shall effectively harness
attitude, practice, commitment, our strength to achieve our
and formal policies to support the common goals with pride.
corporate culture that promotes
highest moral and integrity
standards when carrying out the

Governance
Corporate
operational duties.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 287


Passion for Excellence at Its Best
Annual Report 2016

Tax Compliance

Throughout 2016, the Bank had adhered to all regulations and fulfilled tax obligations in accordance with the
prevailing laws and regulations. The Bank continues to abide by the regulation, in which the Bank does not
receive any warning frequently nor significant penalties related to taxation as of December 31, 2016.

Anti-Gratification Initiative

Bank established the anti- • Accept hospitality that is • Provide and/or accept bribe
gratification initiative as considered beyond luxurious or or gratification in any kind.
means of supporting the best excessive from the third party. Gratification is usually
Implementation of good corporate • Accept payment, reward or informal. The purpose of
governance. This Initiative aims hospitality from the third gratification is to secure or
to avoid any possible conflict of party that you know or suspect make any routine or necessary
Interest that may affect judgment of having ulterior motives for transaction run smoothly (for
in a decision-making process. us to reciprocate their or other instance, transaction with
Therefore every individual shall parties’ actions with business government officials). Bribery
not: profit. is usually a form of payment
• Demand or accept payment, • Offer or accept reward from as reward for any assistance or
commission or reward in any or to government officials gains.
form, that can be construed in or people’s representatives,
any ways related to the status or politicians or political
and work characteristic of a parties, without preliminary
person. approval from your manager or
• Grant, promise or offer Compliance Division.
payment, reward or hospitality • Pose a threat or retaliate
in hopes of receiving business against other employees for
profits, or to appreciate their refusal to commit bribery
business profits granted. or anything that may have
• Grant or accept reward caused concerns regarding this
or hospitality in every policy.
commercial negotiation or • Get involved in any activities
tender process, if this action that may violate the policy.
can be construed as a way to
affect the outcome.

288 PT Bank QNB Indonesia Tbk


Whistleblowing System

Performance
General Provision of

2016
The whistleblowing system in the Bank is Whistleblowing System
currently known as Ayo Lapor Program to 1. The ones classified as
Whistleblowers are internal
make it more familiar to the employees, thus and external parties. The
encouraging them to actively participate in internal parties include
reporting any violations that occur within the employees (permanent, in
probation, contract, and
Bank. The program is managed by the Internal

Management
outsources), Management
Audit Division under the Anti Fraud and

Report
(including the Board of
Investigation Unit. Ayo Lapor Program aims to Directors), and the Board
of Commissioners. External
create a harmonious and conducive condition parties may report the
as well as implement the practices of good violation by including the
corporate governance. correct and valid proof (in the
form of recordings, photos,
etc.) as the evidence of
disobedience conducted by the

Company
Profile
The Bank realizes that in the 1. The Regulation of Bank
Violator.
effort of conducting a sound Indonesia No. 8/4/PBI/2006
2. The ones classified as
and good governance practice, dated January 30, 2006,
violators are the parties that
particularly in implementing the amended with the Regulation
are suspected and deserved
principles of transparency and of Bank Indonesia No.
to be suspected to conduct
fairness, a mechanism is needed 8/114/2006 dated October 5,
violations or to act against
to manage and follow-up any acts 2006, on the Implementation

Management Discussion
the law, to conduct unethical/
that violate the rules and values of Good Corporate Governance
immoral actions, or other

and Analysis
of the Company. This mechanism for Commercial Banks.
actions that may harm the
shall prioritize the principle of 2. Code of Conduct of the
Bank either financially or non-
high confidentiality so that the Employees of PT Bank QNB
financially.
anonymity of the whistleblower Indonesia Tbk.
3. Fraud or violations are actions
is fully guaranteed. With the 3. Regulation and Compliance
conducted deliberately and
encouragement for the employees Policy No. 1.301.00 dated June
consciously with the intention
to report the violations that they 5, 2012, on the Anti-Fraud
of generating benefit for
find, the Bank is able to detect and Strategies and Guidelines.
personal and/or other related
minimize both the financial and
parties. The act of fraud
Governance
Whistleblowing
Corporate
non-financial losses early.
violates the regulations as well
Objectives and Policy as internal and external values
Whistleblowing System and culture so as to result in
Legal Reference Scope of Whistleblowing System loss for the Bank, financially
This system applies universally and and non-financially.
The legal reference of the Bank’s fairly to all individuals of the Bank
whistleblowing system refers to: and on all levels of employment,
Social Responsibility

including the Board of Directors,


Board of Commissioners, and
Corporate

Committees under the Board


of Commissioners, as well as
external parties that may provide
information related to the violation
acts.

PT Bank QNB Indonesia Tbk 289


Passion for Excellence at Its Best
Annual Report 2016

Each individual is Keeping the


willing to create confidentiality
a comfortable of the events
and healthy work Maintaining within the Bank
atmosphere so that problems
the Company's or rumors will not
reputation arise

Creating Minimizing
a conductive work the employee's
atmosphere disappoinment

Conducting
Bank is able to improvement
anticipate and Bank can avoid
follow-up the and early control
any work climate
problems before that is less
greater loss can conductive within
occure the Company

Whistleblowing Whistleblower Protection shall also be submitted to Head of


Mechanism Audit Committee along with the
The Bank guarantees the work plan to handle the complaints.
As of one the supporting elements confidentiality of whistleblowers If the reported one is a member of
in the Bank’s anti-fraud strategy, in case of the whistleblower does the FOC, the report receiver shall
whistleblowing mechanism not gain any benefit from the not submit the report to member of
enables reports of breach to be reports or the matters reported. The FOC who is involved. Any follow
lodged directly to Fraud Oversight Bank shall not dismiss, delegate, up action taken by FOC related
Committee which include President delay, threaten, disturb, or treat to the internal improvements are
Director himself. the whistleblower unfairly in any submitted to the related Division
kind of form in accordance with the Head.
In the reporting process, the Employment Rules and Regulations
whistleblower has to maintain or Employment Contract. Incoming Whistleblowing
the truth and accuracy of the Report
information that has been conveyed Complaint Handling
as well as provide adequate In 2016, there was no
information for the continuation of The reporting system is handled by whistleblowing report submitted.
investigation. The information that Fraud Oversight Committee (FOC), The case has been investigated and
has to be conveyed is the violator’s which consists of the President, necessary actions have been taken
identity, the chronology, and the Risk Director, Legal and Compliance as part of the Bank’s corrective
violation acts. The whistleblower Director and Director of Operations. actions.
could submit his/her report to the The reports must be submitted to
Ayo Lapor Program via ayolapor@ FOC and in case of audit matters
qnb.co.id. included in the report, the report

290 PT Bank QNB Indonesia Tbk


Information Disclosure &
Access to Bank’s Information

Performance
In order to facilitate its facilities on information press release, website, and other

2016
communication and access delivery facilities. In addition, the medium. The press releases, in
by all stakeholders including Bank also endeavors to enhance particular, are also published
to the latest information on its information technology to in both nation-wide print and
financial, non-financial and other maintain and improve reliability electronic media. Here below are
corporate reports related to the its in providing information in the recap of information disclosure
transparency and accountability, integrated, timely, and accurate conducted by the Bank in 2016:
the Bank also consistently updates manner through public expose,

Management
Report
Description Total

Public Expose 1

Mass media review 60

Advertising billboard and outdoor media 6

Company
Profile
Mass media promotion -

GMS 3

Press Release 9

Customer Gathering Event 126

Management Discussion
and Analysis
Public Expose the scope of the Bank’s group as submitted to the Financial
a whole. As such, analysis on Authority Service on quarterly
In compliance with Indonesia Stock impact of press release to the Bank basis.
Exchange Regulation No. I-E dated is reviewed based on the press
July 19, 2004 concerning Obligation releases which only published In addition, public can also contact
to Disclose Information, in 2016 the about the Bank. the Bank through:
Bank has conducted annual public • Contact Center at (+62 21) 300
expose on December 19, 2016 in its With reference to the regular 55 300

Governance
and intensive media monitoring • Corporate Communication

Corporate
head office. In the public expose,
the Bank disclosed its Financial¬ activities, the Bank concluded via email at
Performance in 2016 and the Bank’s that there was no press releases corporatecommunication@
focus and strategy. that adversely affect the Bank qnb.co.id
in terms of financial and non-
Press Release financial performance throughout
2016. News media that published
the latest development on the
Social Responsibility

The press releases stated in this


Annual Report is only related Bank’s activities under the Bank’s
Corporate

to PT Bank QNB Indonesia and permission and acknowledgement.


not related to companies within Report on press releases is

PT Bank QNB Indonesia Tbk 291


Passion for Excellence at Its Best
Annual Report 2016

List of Press Release Issued in 2016

No. Date Activities Press Release Title

1. February 16 GMS PT Bank QNB Indonesia Tbk has a Change in the Composition of
the Board of Directors and Board of Commissioners to Strengthen
Its Management Board

2. February 18 Opening of Solo Branch PT Bank QNB Indonesia Tbk Inaugurated Its First Branch Office
in Solo

3. April 4 QNB Group Financial QNB Group Presented Its Financial Highlights for the First Three
Highlight Q1 Months Ended in March 31, 2016. The Annual GMS of PT Bank QB
Indonesia Tbk Presented Annual Report 2014

4. April 13 Extraordinary GMS To strengthen the management board, PT Bank QNB Indonesia
Tbk announced the change in the composition of the Board of
Commissioners and Board of Directors

5. April 27 Signing Ceremony QNB Indonesia PT Bank QNB Indonesia Tbk and Commonwealth Life Collaborated
and Commonweatlh Life in the Marketing of Life and Investment Insurance

6. May 19 Signing Ceremony QNB Indonesia Prudential Indonesia and QNB Indonesia Announced New
and Prudential Life Assurance Strategic Partnership

7. June 16 QNB Group Acquired Finansbank The continuation of Finansbank (Turkey) acquisition by QNB
Turkey Group, 27,300 employees operated in 1,200 branches and 30
countries

8. July 13 QNB Group Financial Highlights Q2 QNB Group Presented Its Financial Highlights for the First Six
Months Ended in June 30, 2016

9. October 10 QNB Group Financial Highlights Q3 QNB Group Recorded Net Income of 27 Billion Dollar in the third
quarter

292 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Internal Communication

The Bank utilizes various type of Aside from these collaterals, the the communication is not only
media communications to reach Bank added Monthly Insights, from corporate side, but also for
out to the employees. Such mode a bulletin issued monthly to other respective divisions to share
of communications undertake be distributed in which it is news, help desk and HRIS (HR
different ways, such as e-mail blast, hoped for employees to gain Information System) dedicated for
newsletter, and corporate news. more updates not only within employees to enable them to access

Governance
Corporate
Employees will receive routine the Bank but also economy and their personal data.
information on current situation industries information from a
of the Bank, new product and macro perspective. In addition,
services, as reminders and others.
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 293


Passion for Excellence at Its Best
Annual Report 2016

Provision of Funds to Related Parties and


Large Fund Exposures

In 2016, the Bank provided


funds to several related parties
by referring to the stipulations
of Bank Indonesia regarding the
Legal Lending Limit. Provision
of Funds to related parties and
individual/group core debtors is as
follows:

Total
Fund Provision
Debtor Rupiah Foreign Currencies

To Related Parties 21 109.475 67.362

To Core Debtors
a. Individual 12 1.073.111 2.568.629

b. Group 36 2.634.421 2.334.363

*in million Rupiah

Provision of Funds for Political Activities

The Bank is prohibited to involve in political activities, including donation of any kind for political purposes.
Accordingly, in 2016 there were no funds provision to any political related.

294 PT Bank QNB Indonesia Tbk


Bank Strategic Plan

Performance
To overcome future challenge and 3. Fee Based Income 6. Continuous Efficiency

2016
support the realization of 2017 Development Improvement
vision and achievement, the Bank The Bank will continue to In order to achieve the vision
has established strategic plans increase the share of fee and mission, the Bank always
in pursuant to Bank Indonesia income both from the loan applies effective principle of
Regulation No. 12/21/PBI/2010 facility, as well as fee income efficiency in all lines of the
dated October 19, 2010 regarding generated from non-traditional Bank’s activities, and with
Bank Business Plan and Bank activities, among others: the support of IT and other

Management
Indonesia Circular Letter No. wealth management business facilities that will be a medium

Report
12/27/DPNP dated October 25, income, foreign exchange for the implementation of such
2010 on Bank Business Plan. transactions, as well as efficiency.
advisory services and trade
Short Term Strategic Plan finance transactions. Medium and Long Term
in 2017 4. Improvement of Low Cost Plans
Funding
Several key strategic plan In addition to the liquidity For next 3-5 years, the Bank will:
established by the Bank for the management strategy through 1. Optimalise resources of the
the funding of corporate sector

Company
next one year consists of: Bank to increase its business

Profile
1. Assets Growth and priority banking, the Bank performance.
The strategic plans in order will also seek to raise low-cost 2. Enhance its products and
to increase the bank’s assets, Third Party Fund through services to compete in the
include: the development of CASA improvement program market.
finance sector that focuses and cash management 3. Optimalise and develop
on corporate and commercial business development, as well business and operating model

Management Discussion
segment, while the as the fund raising through in order to meet customer
prepaid products and e-money.

and Analysis
development of assets in terms expectation and achieve
of anorganic is through the 5. Improvement of Net Interest service excellence.
acquisition and/or merger with Income 4. Accelerate the growth of
another healthy and strong As a short-term effort to the bank through strategic
financial institution. achieve a positive financial alliances as well as organic and
2. Liquidity Management performance, the Bank will inorganic growth.
In terms of liquidity implement financing based 5. Capital increase to support
management to support the on customer base and loan Bank’s business development
financial sector and in order oriented to distribution chain. and as the preparation of long-

Governance
Corporate
to maintain an ideal LDR term business framework.
level, the Bank will focus on
fund raising strategy in the
corporate and retail segment
particularly in the sub-
segment of affluent customer
(priority banking).
Social Responsibility
Corporate

PT Bank QNB Indonesia Tbk 295


Passion for Excellence at Its Best
Annual Report 2016

Transparency of Bank Financial and


Non Financial Performances
Pursuant to Financial Services • Annual Financial Statements Annual General Meeting of
Authority Regulation No. 6/ that have been audited by Shareholders
POJK.03/2015 dated 31 March a Public Accountant and During the Annual GMS, the Bank
2015 concerning Transparency Public Accounting Firm that through the Board of Directors
and Publication Report of the is registered at Financial presents a number of significant
Banks, Financial Services Services Authority. The annual documents including Annual
Authority Regulation No. 8/ Financial Statements cover Report and Annual Financial
POJK.04/2015 dated 25 June 2015 a period of 1 (one) financial Statements to the shareholders.
regarding website of Issuers or year with comparison to the
Public Companies, Indonesia previous financial year Public Expose
Stock Exchange regulation No. • Statement of responsibilities The Bank also organizes a public
I-E regarding the Responsibility of the Board of Commissioners expose as one of the medium for
on Information Submission, and Board of Directors the Bank to disclose its financial
attachment of the Decision of regarding the accuracy of the and operation performance,
the Board of Directors of IDX No. annual report. The statements achievement, challenges, etc
Kep-306/BEJ/07-2004 dated July are set forth in the statement to investors, analyst, fund
19, 2004, the Bank has prepared letter, which signed by all managers, stock exchange member
and present financial reports members of the Board of representatives, as well mass
in the framework of financial Commissioners and Board of media.
transparency periodically, which Directors.
comprise of Annual Report, In the meantime, non-financial
Quarterly Published Financial Quarterly Published Financial reports including the provision of
Report, Monthly Published Reports clear information regarding the
Financial Report, Annual GMS and The Bank releases Quarterly Bank’s products and services can be
Public Expose. Published Financial Reports in obtained easily by customers, such
accordance with the prevailing as in leaflets and brochures, in all of
Annual Report, which among regulations. The Published the branch offices of the Bank.
others covers: Financial Reports are signed by
• Financial Highlights including 2 (two) members of the Board of The Bank also provides
stock performance, reports of Directors. information on the financial and
the Board of Commissioners, non-financial reports on the Bank’s
and Board of Directors, Monthly Published Financial website which can be accessed by
company profile, management Report all stakeholders.
analysis and discussion The Bank prepares and submits
on business and financial monthly financial report in
performance, corporate the Commercial Bank Monthly
governance, and corporate Report format in accordance
social responsibility with prevailing regulations. The
report also published in the Bank’s
website.

296 PT Bank QNB Indonesia Tbk


Conflict of Interests Transactions

Performance
The policy governing transaction In the event that there were In 2016, the Bank has no conflict of

2016
with affiliated parties, related a transaction with conflict of interest transaction.
parties and transaction containing interest, the related member of
conflict of interest was stated in the Board of Directors and Board
Board of Commissioners Charter, of Commissioner must abstain
Board of Directors Charter and Code from approval process on such
of Ethic, and other Bank’s internal transaction.
procedures and policies.

Management
Report
Name & Position
Name & Position of Transaction Value
with Conflict of Type of Transaction Remarks
Decision Maker (Rp)
Interest

NIL

Shares Option

Company
Profile
During 2016, the Bank did not have any program of stock options for Board of Directors, Board of Commissioners,
or employees.

Management Discussion
and Analysis
Shares and Bond Buy Back
During 2016, there was no Bank’s activity to buy back either stocks or bonds.

Governance
Corporate
Investor Relation
Corporate Communication division to internal and external parties to update the performance and
Social Responsibility

together with Corporate Secretary including shareholders, potential current condition of the Bank such
division and other related divisions investors, rating agencies, as quarterly performance report,
Corporate

are responsible to provide accurate, regulators, etc. The Bank also customer gathering, public expose,
reliable and timely information conducts periodical activities etc.

PT Bank QNB Indonesia Tbk 297


Passion for Excellence at Its Best
Annual Report 2016

ili e
ib rat
ty
ns po
s po or
C
Re
al
ci
So

298 PT Bank QNB Indonesia Tbk


2016 Management Company Management Discussion Corporate Corporate
Performance Report Profile and Analysis Governance Social Responsibility

299
PT Bank QNB Indonesia Tbk
Passion for Excellence at Its Best
Annual Report 2016

300 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
We believe that the
ideal sustainable
growth could only
be achieved by Governance
Corporate

contributing to
the society and
running business
Social Responsibility

based on the
Corporate

concept of triple
bottom line (people,
profit, planet).

PT Bank QNB Indonesia Tbk 301


Passion for Excellence at Its Best
Annual Report 2016

Basis of
CSR Implementation

The Bank’s definition The Bank believes that innovative 3. Republic of Indonesia Law No.
business endeavors, promotion of 40 of 2007 on Limited Liability
of Corporate Social good corporate governance and Company.
Responsibility (CSR) business ethics to all stakeholders, 4. Financial Services
encompasses obligation and development of strong Authority Regulation No. 1/
workforce are essential for enabling POJK.07/2013 on Consumer
to preserve environment, sustainable development that will Protection in Financial
to respect human rights, result in scalable impacts in the Services Sector.
to provide a comfortable society welfare.
In addition, the Bank’s CSR policy
working conditions
Legal Basis and activity are also in accordance
and to maintain good to ISO 26000 which contains
working relations In implementing its CSR obligation, guidelines for social responsibility
the Bank refers to several legal practices in the aspect of
with the employees, to accountability, transparency,
basis as follows:
prioritize health and 1. Republic of Indonesia Law ethical behavior, respect to
safety in the workplace, No. 8 of 1999 on Consumer stakeholders’ interest, compliance
Protection. with law, respect for international
also contribute in behavioral norms, and respect for
2. Republic of Indonesia Law No.
local economic and 13 of 2003 on Labor. human rights.
community development.

302 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
General Framework On the implementing stage, Scope
the Bank sets objectives and
In carrying out social responsibility measurable targets, and drafts The scope of the Bank’s CSR
the Bank follows the general plans and programs aiming to implementation is categorized into
framework of “plan, do, check and realize such objectives and targets. four pillars: (1) Environmental
improve” which underlies such The stage is necessary to realize Management and Preservation;
well-known initiatives as those an effective CSR program both in (2) Social and Community
of the International Organization terms of implementation or the Development; (3) Labor,

Governance
target of such program.

Corporate
for Standardization (ISO) in the Occupational Health, and Safety;
areas of quality and environmental (4) Product and Consumer. Despite
management systems. Last, evaluation on the CSR the uneven implementation of
program is made to collect findings CSR programs in all pillars, the
In terms of planning, the Bank set which later used as the basis to Bank continues to increase its
a continuous planning process improve related CSR program or as commitment to expand the scope of
based on the actual needs of the consideration for the improvement CSR programs.
community. This is served as the of other CSR programs.
Social Responsibility

basis for the Bank’s policy and


Corporate

approaches to the community in


terms of social responsibility, the
factors related to it, as well as its
accompanying impacts on society.

PT Bank QNB Indonesia Tbk 303


Passion for Excellence at Its Best
Annual Report 2016

Environmental Responsibility

The Bank’s Policy • Efficient Use of Electricity • Improved Productivity


on Environmental The Bank consistently strives The Bank constantly
to instill and nurture energy- strives to implement a time
Management and saving culture both in head management strategy, among
Preservation office and branch offices. In others, by encouraging
the first place, every employe employee to set schedule
The Bank’s commitment to is required to use the lights for specific times and keep
environmental responsibility when and where necessary distractions to minimum when
is implemented among others and turn off lighting when not working on tasks. In addition,
by having a document storage using or after finished working. the Bank also supports the
management which in line with Employees are also expected employees to take regular
the environmental best practices to set the temperature above breaks whenever necessary
in bank and is stipulated in 200 Celsius and refrain from and finish working on time in
the Circular Letter No. 2/10- using especially during 9 am to order to keep them on top of
GNSV/003.03/IX/2016 on 8 pm on weekdays as much as their game.
Document Storage Provision possible.
and No. 2/06/011-ITDB/IX/2016 • Resource Conservation
on Data Center and Server • Paper Efficiency To the impact of its operations
Environmental Standard. In terms The Bank promotes paper on the environment, the
of energy efficiency, the Bank has saving by reducing office paper Bank continues to promote
3D Program, which stands for waste, advocating paper reuse efficient use of water. Using
Commitment to Time, Efficiency, & recycle, and going paperless water efficiently not only
and Services in accordance with in full measure. Internally, the securing freshwater resources
the approval memo of the Board of employees are continuously but also lower greenhouse
Directors No. 017/MI-SQ/II/2013. encouraged to cut down gas emissions as public water
internal document by utilizing systems require a lot of energy
Environmental digital document archiving to purify and distribute water.
Management and such as PDF to convert
Preservation Activities document or compressing
documents to save data
In 2016, the activities included storage.
reducing energy use, cutting
emissions from office and branches,
and making a positive contribution
to the environment through its own
actions and instilling the efficiency
culture within the organization.

The tangible manifestation of the


Bank’s commitment to efforts of
the energy conservation are the
following activities:

304 PT Bank QNB Indonesia Tbk


Occupational Health, Safety,
and Employment

Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
The Bank’s Policy on The Bank promotes a diverse Equality
Occupational Health, employees background to reflect
Safety, and Employment gender equality and equal The Bank commited to provide
employment opportunities. equal job opportunities and
To ensure the employees safety and A highly skillful and diverse career development regardless
provision of health benefits, the team helps the Bank to create of gender, sexual orientation,
Bank has the following policies: innovations and better compete in age, marital status, race,
- Circular Letter No. 3/10/002/ a rapidly changing environment. ethnicity, religion or belief. This
IX/2014 on Testing and However, the Bank has no specific commitment consistently listed
Governance
Corporate
Maintenance of Small Fire provision which differentiates in the company regulation or any
Extinguisher. gender in terms of career other provisions that regulate
- Circular Letter No. 3/10/003/ opportunity and also in terms recruitment process and career
XII/2014 on Testing and of health facilities provision. development. Recruitment and
Maintenance of Diesel Engine Moreover, the Bank also focuses career development is completely
Power Plant. on employees’ health and safety determined by the competence and
- Circular Letter No. 2/10- through various programs to employee achievement. In addition
raise employees’ awareness of
Social Responsibility

GNSV/002.03/IX/2016 on to open working opportunities,


Building Security Policy. occupational health and safety. the Bank also provides an
Corporate

- Circular Letter No. opportunity for students and


3/04/007/X/2015 on Employee fresh graduated to gain experience
Health Benefit. through an internship program,

PT Bank QNB Indonesia Tbk 305


Passion for Excellence at Its Best
Annual Report 2016

ensures equality in all aspects the employees will not only be able - Holidays and Leave
of employment opportunities to enhance their competencies but In addition to the provisions
for everyone regardless of their also stay on the right track of their on break times during work
gender, race, religion, physical career development. days, annual leave and long
condition, or national origin. leave every 3 years, the Bank
Recruitment is based on the People are definitely at the heart also compensates employees
selection process, the evaluation of the Bank’s business process and with paid leave for various
of the probationary period, and an that it remains strongly committed purposes, such as to perform
orientation. Likewise, the Bank to building meritocracy in which a pilgrimage or other religious
provides its employees with equal everyone has the opportunity to obligation, and maternity and
opportunities for training and succeed. The gender equality in menstrual leave for female
development programs which are QNB Indonesia as of December employees.
based on their talents or strengths 2016 is shown in the following
(strength based) of each employee. table. Occupational Health and
By doing so, the Bank expects that Safety

Gender The whole process of the work


done in QNB Indonesia conducted
Position
Female Male with the precautionary principle,
the Bank also emphasizes the
Division Head 13 11 safety and comfort of employees
Others 445 439 as one of the main concerns.
One of the example is done by
Jumlah 458 450
doing prevention and health
care quality improvement. In
this area for example, the Bank
Industrial Relations workers and their families, consider the welfare of employees
and; the protection for through the facilities of health
The Bank always seeks to comply employees against acts of protection provided in the form of
with all labor rules and regulations anti-union discrimination and health insurance for employees
to minimize the occurrence of interference. The mechanism and their dependents. Certain
human rights and industrial and details of the labor union employees were also given the
relations violations. establishment is stipulated opportunity to perform routine
in the Bank’s Collective Labor health examination held every
Agreement (CLA). year. As a support, the Bank also
- Freedom of Association provides free open clinic facilities
Pursuant to the employment - Working Hours at headquarters periodically once
mandate in Act No.21 of To avoid over-exploitation a month. In day-to-day operational
2000 and Act No. 13 of 2003 of employees, the Bank has activities, the ocupational
of Ministry of Manpower set limits on regular working health and safety practices are
and Transmigration Decree hours. If an employee works particularly focused on more on the
regarding the Labor Union, the beyond the time specified, implementation of basic guidance
Bank guarantees employees’ overtime will be paid in and work procedures for employees
rights to establish and accordance with the law. to mitigate the risk of workplace
become members of unions; accidents and to protect the
unions’ rights to function employees’ health conditions.
in order to protect, defend
and improve the welfare of

306 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
For the Bank, proper handling Similarly, the Bank equips their In terms of safety and comfort

and Analysis
of occupational safety is work units with adequate facilities the Bank regularly conducts
demonstrated through emergency to promote physical and mental training related to safety, formed
drill called BCM (Business soundness which include medicine a special task force to monitor
Continuity Management) which and first aid equipment as well as safety, and improving the working
aims to prepare employees for prayer room. To ensure workplace convenience by providing a special
the possibly occurring accidents cleanliness and hygiene the Bank breastfeeding room facilities for
such as fire and earthquake. The also sets out regular removal women employees. This year, there
simulation is held in both Head of waste and rubbish as well were no workplace accidents in all
Office and the majority of Branch maintain the supplies of sanitary operational areas of the Bank.

Governance
Corporate
Offices on regular basis. In addition, conveniences.
the Bank also provides appropriate
fire-fighting/prevention facilities In conclusion, the Bank believes
such as the fire extinguisher and that the attempts to protect
sprinkle (smoke detection device). employees from work-related
hazards, the achievement of a high
standard of safety and health, and
Social Responsibility

a conducive work environment will


ultimately have a positive influence
Corporate

on improving productivity.

PT Bank QNB Indonesia Tbk 307


Passion for Excellence at Its Best
Annual Report 2016

Social and Community


Development

The Bank’s Policy on Social and Community


Social and Community Development Activities
Development
The Bank covers a wide scope in In 2016, the Bank’s social activities
In terms of social and community terms of social and community highlights on philantrophy,
development, the Bank’s development. Activities organized financial inclusion education, and
approach is particularly focused by the Bank on this aspect improving health quality in general
on empowering and delivering among others, include financial community. Details of those
benefit for communities in general contributions, collaboration on activities could be found as follows:
and underprivileged community significant events and programs, as
in particular. The Bank works well as cooperation with financial
with external partners such institutions in order to promote
as regulators, social-oriented financial literacy. In addition,
foundations, and educational the Bank also participated in the
institutions to make a real program of Financial Services
difference to national challenges: Authority to encourage economic
health and financial literacy participation and social inclusion,
awareness. encourage competition and market
efficiency in the field of financial
services, and contribute to the
welfare of society.

308 PT Bank QNB Indonesia Tbk


Performance
2016
Management
Report
Company
Profile
Management Discussion
and Analysis
Date Activity Description Expense

January 23, 2016 Christmas celebration in Santo Yusup Sharing and donating to 50 orphans Rp15,000,000
Orphanage in Sindanglaya, Cianjur

May 2, 2016 QNB Donor Darah (blood donation) which held Carried out the annual activity of blood Rp5,000,000
at Head Office donation which donated to Indonesian Red
Cross, DKI Jakarta

June 22, 2016 QNB Indonesia Peduli: Sobat Berbagi which Break-fasting together with 50 orphans from Rp38,900,000
held at Head Office As Syafiiyah Foundation and 25 volunteers

Governance
Corporate
from QNB Indonesia

June 29, 2016 Break-fasting with 1,000 congregation of Provided food and drinks for break-fasting Rp20,000,000
Sunda Kelapa Grand Mosque with 1,000 congregation of Sunda Kelapa
Grand Mosque

August 21, 2016 Sehat Bersama QNB Indonesia which held at Organized morning exercise with more than Rp6,000,000
Jl. Jend. Sudirman, Makassar 300 participants at Car Free Day

October 1, 2016 QNB Indonesia Peduli: Garut Provided donation in the form of cash and Rp32,005,000
Social Responsibility

supplies of daily necessities for the victims of


Corporate

flood disasters

October 19, 2016 Athirah University Fair at Athirah Islamic Provided Financial Inclusion exposure to the Rp10,240,000
School, Makassar 300 students of junior and senior high school

November 5 & 12, 2016 Cherish 2016 at Depok, West java Provided free medical check-up for mothers Rp15,000,000
and children in collaboration with the Faculty
of Medicine, University of Indonesia

December 4, 2016 Kindergarten and Primary Colouring Collaborating with Faber Castle and Bali TV Rp16,000,000
Competition QNB Indonesia Bali branch to conduct children drawing competition for
kindergarten and elementary students.

PT Bank QNB Indonesia Tbk 309


Passion for Excellence at Its Best
Annual Report 2016

Product and Consumer


Responsibility

The Bank’s Policy on • Bank Indonesia Regulation customer protection and services.
Product and Consumer No. 7/6/PBI/2005 on Banking The provision of maximum
Products Information protection for the customer’s
Responsibility Transparency and Utilization interests is the key in establishing
of Customers’ Personal Data. customer trust in the banking
In terms of compliance, the Bank
• Bank Indonesia Circular Letter system in general.
has complied with rules and
No. 15/1/DPNP on Prime
regulation on consumer protection
Lending Rate Information As a financial institution, QNB
and complaint handling as follows:
Transparency. Indonesia is committed to
• Republic of Indonesia Law
• Republic of Indonesia Law maintain the trust and customer
No. 7 of 1992 on Banking, as
No. 8 of 1999 on Consumer confidentiality provisions as
amended by Law No. 10 of
Protection and latest financial referred to in the following:
1998.
Services Authority Regulation 1. Act No. 7 of 1992 concerning
• Republic of Indonesia Law
No. 1/POJK.07/2013 on Banking.
No. 8 of 1999 on Consumer
Consumer Protection in 2. Law of the Republic of
Protection.
Financial Services Sector. Indonesia No. 10 of 1998 on
• Financial Services
the Amendment of Act No. 7 of
Authority Regulation No. 1/
POJK.07/2013 on Consumer Customer Protection 1992.
3. Bank Indonesia Regulation No.
Protection in Financial
The banking industry is an 2/19/PBI/2000 on Terms and
Services Sector.
industry of trust, in regard to its Procedures for Giving Orders
• Bank Indonesia Regulation No.
role as an institution which collect or Written Permission for
7/7/PBI/2005 on Customer
and distribute funds. To that end, Opening Bank Secrecy.
Complaint Handling, as
amended by BI Regulation No. QNB Indonesia strives to maintain
10/10/PBI/2008. customer trust by applying the
principle of prudent and prioritizing

310 PT Bank QNB Indonesia Tbk


Performance
In addition, the Bank has set QNB Indonesia Contact (two) business days. In the case

2016
several policies concerning Center of the complaint handling and
customer complaint management: settlement requires more than 2
1. Circular Letter No. The Bank’s commitment to product (two) working days, QNB Indonesia
3/02/003/X/2014 on and consumer responsibility suggests the customer to file a
Implementation of Handling is particularly reflected in the written complaint.
and Settlement of Customer establishment of Contact Center
Complaint. service in 2013. First introduced in For a written complaint, the

Management
2. Circular Letter No. January 2013 in response to core complaint is handled and resolved

Report
3/02/031/X/2014 on Contact banking system migration process, within a maximum period of
Center Service. it initially serves as hotline to 20 (twenty) days after the
handle customer complaints and to complaint is received and shall
The customer confidentiality policy reply to information inquiries. be accompanied by complete
of the bank is in accordance with supporting documents. In case the
Article 1 paragraph 28 of Law of As a growing Bank, QNB Indonesia complaint handling could not be
the Republic of Indonesia No. 10 is very open to all suggestions, completed within a period of 20
of 1998 on the Amendment of Act criticism, and complaints which (twenty) days, then the complaint
No. 7 of 1992 on Banking that Bank resolution could be extended to a

Company
serve as valuable feedback in

Profile
Secrecy is everything connected improving the quality of service. maximum of 20 (twenty) working
with information on customer To that end, the Bank provides days which will be informed by
retention and savings. Information several communication channels so QNB Indonesia.
about customers other than that customers could easily submit
Depositors, is not the information complaints If customers are not satisfied with
that shall be kept confidential by - 24 Hours Contact Center the results of the settlement,

Management Discussion
the bank. Service at (+62 21) 300 55 300 customers could submit their
complaints either through Bank

and Analysis
- E-mail to contact.center@qnb.
However, the obligation to co.id Indonesia (BI) on complaints
maintain customer confidentiality - Face-to-face meeting with related to payment services or
does not apply to [Article 2 (4) PBI frontliner staffs of QNB through the Financial Services
02.19.2000]: Indonesia Authority (FSA/OJK) or through
1. Tax purposes; other alternative solutions.
2. Bank settlement accounts that Complaints received by the Bank
have been submitted to the
Customer’s Complaints through communication media
Receivables Agency and State Follow Up will be followed up to get the
Auction/State Receivables best solution for customers while
Governance
Corporate
Affairs Committee; In order to follow up on customer the advice given will be used
3. The interests of justice in complaints, all complaints are to improve customer services.
criminal cases; forwarded and coordinated with QNB Indonesia is committed to
4. The interests of justice in a related work units and branches continue developing and perfecting
civil case between the Bank to provide solutions according to the handling of complaints and
and customer; predefined SLA. Every customer suggestions received so as to
5. The exchange of information has the right to file complaints provide the best service for all
Social Responsibility

between Banks; orally and in writing. Complaints stakeholders and provide optimum
may be submitted by the customer
Corporate

6. Demand. approval or added value.


authorization of Depositors and/or customer representative
made in writing; with the supporting documents
7. Requests from legitimate heirs required for complaints settlement.
of Depositors who have died. If the customer filed a complaint
verbally, customer complaint is
handled and resolved within 2

PT Bank QNB Indonesia Tbk 311


Passion for Excellence at Its Best
Annual Report 2016

Customer Complaint Flowchart

Contact Center Team Leader Contact Contact Center Related


Agent Center Sub Division Working Units

Start 1 2 3

Receive Customer Receive Customer Receive Customer


Receive Customer complaint that cannot complaint report via Help complaing report via
Complaint by Phone be resolved by the Desk from the Contact Help Desk Call Center
Contact Center Center Team Leader Sub Division

Forward the Customer


Print the document and
Check the completeness complaint to the working
Verify Customer’s data validity of Customer
of Customer data unit related to the
complaint support
Customer complaint

Monitoring Input 3
No need Customer complaint Check the Validity of
Match? N
to continue to the Help Desk Customer complaint
application
4

Y
2 Provide
respond/answer upon
Receive answer from Customer complaint
Check wether the related working unit
Customer complaint
could be solved directly
Input the information
of Customer complaint
5
Input Customer settlement to the Help
request/complaint to Desk application
Immediately
N the Contact Center
finished?
Allocation System
Input the resolve result
and Help Desk
to the Help Desk
application Send the respond/answer
of Customer complaint
Y
to Contact Center -
Customer Experience
Sub Division
Provide well explanation Archive the Customer
Inform Contact Center
and answer upon Reporting Form in order
Team Leader
Customer complaint
4

End 1 End

Contact the Customer


to resolve the Customer
complaint:
1. Oral, for oral
complaint, and 2.
Written, for written
complaint

End

312 PT Bank QNB Indonesia Tbk


Performance
Complaints Settlement So it could support the level of Financial Literacy

2016
Rate customer satisfaction and loyalty Program
which will certainly have an impact
As of December 2016, the number on business development. The Bank strongly believes that
of the incoming call to the Contact by improving the ability and
Center of QNB Indonesia amounted Customer Services understanding of general public
to 32,643. Among the calls, there Improvement Program and its customers in banking
were 229 incoming calls regarding and finance, it will allow them to

Management
customer complaints, while the In order to improve the customer make smarter financial choices.

Report
other calls related to customer services, QNB Indonesia will To support the financial literacy
needs regarding information of improve the quality of both the program in 2016, the Bank
products and services of QNB frontliners in the branches and in participated in Athirah University
Indonesia and could be handled the Contact Center through the Fair and provided financial
entirely in accordance with the provision of product knowledge as inclusion exposure to the students
Service Level established by the well as solutions in the banking of junior and senior high school.
Bank. handling. In addition, the Bank
also planned network services

Company
Referring to the total complaints, expansion such as the opening

Profile
QNB Indonesia will continue of a branch office, branch office
to improve management and relocation to a better location, and
customer complaints by doing: addition of off-site ATM network.
- Repair and monitoring process Development of office and service
on the settlement of customer network of QNB Indonesia is
complaints expected to reach out to the

Management Discussion
- Acceleration time of community in various cities in

and Analysis
completion of customer Indonesia.
complaints.

Data of Incoming Call to Contact Center as of December 2016

Category Total Calls in 2016

Incoming Call 32.643

Governance
Corporate
Answered Call 22.081

Banking Information 12.628

Complaints 229

Others 9.224

Unanswered Call 985


Social Responsibility

Missed Call 279


Corporate

Call Ended in IVR 9.298

Note:
• Unanswered Call: Agents’ phone line fully occupied and cannot received incoming call
• Missed Call: Phone only rings for a moment

PT Bank QNB Indonesia Tbk 313


Passion for Excellence at Its Best
Annual Report 2016

Responsibility Statement of
Annual Report 2016
We, the undersigned, hereby declare that all information in the Annual Report 2016 of PT Bank QNB Indonesia Tbk
has been presented in its entirety, and assume full responsibility for the accuracy of the contents of the
Company’s Annual Report.

This statement is hereby made in all truthfulness.

The undersigned

Ali Ahmed Z A Al-Kuwari


President Commissioner

Grant Eric Lowen Suroto Moehadji


Commissioner Independent Commissioner

Muhammad Anas Malla Djoko Sarwono


Independent Commissioner Independent Commissioner

314 PT Bank QNB Indonesia Tbk


Azhar bin Abdul Wahab
Acting President Director

Lloyd William Rolston Windiartono Tabingin


Risk Director Compliance Director

Novi Mayasari
Human Resources Director

PT Bank QNB Indonesia Tbk 315


Passion for Excellence at Its Best
Annual Report 2016

Profile of Executive Management

Bambang Wijayanto - Head of Legal Denny Soedharmo - Head of General Glenn Ranti - Head of Corporate
An Indonesian citizen, he was Services Communication
appointed as the Head of Legal Citizen of Indonesia. He was Citizen of Indonesia. He was
Division on November 21, 2014. He appointed as the Head of General appointed as the Head of Corporate
obtained his bachelor’s degree in Services Division on May 12, 2014. Communication since March 4,
Law from Satya Wacana Christian Earned his bachelor’s degree in 2013. Earned his bachelor’s degree
University, Salatiga, in 1996 Architecture from Tarumanagara in Hospitality Industry from
and master’s degree in Law from University in 1998 and master’s International Hotel School, United
University of Indonesia in 2014. degree in Management from Trisakti Kingdom in 1995. Previously, he
Previously, he held the position of University in 2010. Previously, he held the position of Marketing
Legal Policy, Advisory & Special held the position of GM Facility & Communication Head at PT Bank
Transaction Head at PT Bank UOB General Services at BAT/Bentoel QNB Indonesia Tbk since January
Indonesia and Legal Policy and Group; Head of Facility Management 2, 2012; VP – Regular Savings &
Procedure Support Department Head – Corporate Real Estate at Bank Segmentation Group Head at PT
at PT Bank International Indonesia Ekonomi (member of HSBC Group); CIMB Niaga Tbk.
Tbk (BII). Head of Property and Facility
Management Services at Bank ABN Haryanti Kodiat – Head of Strategic
Caroline Halim - Head of Risk Amro/RBS; and Project Manager Planning & Change Management
Management - HR & General Affairs at Astra Office
Citizen of Indonesia. She was International. Citizen of Indonesia. She was
appointed as the Head of Risk appointed as the Head of Strategic
Management Division on February Ervin Gumilar - Head of SME Credit Planning & Change Management
20, 2012. Earned her bachelor’s Review since September 1, 2016. Earned
degree in Accounting from University Citizen of Indonesia. He was her bachelor’s degree in Business
of Indonesia in 1986. Previously, appointed as the Head of SME Credit Administration from San Diego State
she held the position of VP Risk Review on July 1, 2015. Earned his University in 1990. Previously, she
Management Group Head at PT Bank bachelor’s degree in Finance from served as Deputy Operations Head
ICB Bumiputera Tbk and VP Credit California State University Fresno in of PT Bank QNB Indonesia Tbk since
Risk & Analytic Management Group 1992. Previously, he held the position joining in 2015. Prior to joining PT
Head at PT Bank CIMB Niaga Tbk. of Head of Commercial Credit Support Bank QNB Indonesia Tbk, she held
at PT Bank QNB Indonesia Tbk since several positions at Deutsche Bank
Cut Tashana Azia – Chief Auditor May 2, 2012. Previously, he worked AG – Jakarta with last position as VP
Profile of Cut Tashana Azia could be at PT Bank Lippo and PT Bank CIMB Compliance Officer in 2014.
found in the Chief Auditor section of Niaga Tbk with the last position as
this Annual Report. Commercial Credit Review Group
Head at PT Bank CIMB Niaga Tbk.

316 PT Bank QNB Indonesia Tbk


Hermia Kusumadewi – Acting Head Joyce Puspa Chandrayani – Head of Novy Angela Andow - Head of
of Client Services QNB First (concurrently serves as Treasury
Citizen of Indonesia. She was Act. Head of Product Development) Citizen of Indonesia. She was
appointed as the Acting Head of Citizen of Indonesia. She was appointed as the Head of Treasury
Client Services since May 2, 2016. appointed as the Head of QNB Division on September 22, 2014.
Earned her bachelor’s degree from First Division on August 11, 2014. Earned her bachelor’s degree in
Finance and Banking College Since May 2, 2016, assigned to Management from Atmajaya Catholic
(STEKPI) in 1996. Previously, she concurrently serve as Head of University in 1994. Previously, she
served as Client Relationship head Product Development at PT Bank held the position of Treasury Sales
since November 1, 2016, Wholesale QNB Indonesia. Earned her bachelor’s Head since February 3, 2014; Director
Banking Customer Service Region degree in Management from Widya of Corporate Risk Solution at Royal
Head since joining PT Bank QNB Karya Catholic University Malang Bank of Scotland Indonesia; Team
Indonesia Tbk in 2012. Prior to in 1986. Previously, she held the Leader at ABN AMRO Bank; and
joining PT Bank QNB Indonesia position of Regional Head for Treasury Sales at American Express
Tbk, she served as Facility Support Consumer Banking at Standard Bank.
& Administration Team Head at Chartered Bank; Regional Head of
Bank UOB Indonesia; Business Priority Banking, Consumer Banking Rahma Diana - Head of HRBP &
Development – Bancassurance - Head of ETB New Business, Usage Organization Development
at Avrist Insurance; Marketing & & Acquisition Manager; and CC Citizen of Indonesia. She was
Sales Support at The Royal Bank of Product & CCPL Portfolio Manager at appointed as the Head of HRBP
Scotland; Acquisition & Alternate Standard Chartered Bank. & Organization Development
Channel Credit Card at ABN AMRO; Division on May 2, 2016. Earned her
and Customer Service Officer at Bank Lina - Head of Corporate Secretary bachelor’s degree in Psychology from
Bali. Profile of Lina could be found in the Padjadjaran University, Bandung
Head of Corporate Secretary section in 1999. Previously, she served
Joseph Puradi Wirakotan - Head of of this Annual Report. as Human Resources Business
Retail Banking Credit Review Partner Head since joining PT Bank
Citizen of Indonesia. He was Monica Riesanty Wahyudi- Head QNB Indonesia Tbk in 2015. In
appointed as the Head of Retail of E-Banking Sales & Business addition, she has also served as HR
Banking Credit Review Division Development Generalist ICG & GF Citibank; HRBP,
on February 1, 2013. Earned his Citizen of Indonesia. She was Recruitment & Training at Royal
bachelor’s degree in Applied Science appointed as the Head of E-Banking Bank of Scotland; HR Resourcing at
from Swinburne University of Sales & Business Development Barclays Bank Plc; HR Relationship
Technology in 1991. Previously, he Division on May 2, 2016. Previously Manager GTO & Support at Standard
held the position of SVP Customer serves as Head of Client Services Chartered Bank; HR & General Affair
Relationship Management System since June 1, 2012. Earned her Department Head at PT Degremenont
at HSBC; Group Head of Consumer bachelor’s degree in Industrial Indonesia; and several positions at PT
Risk at PT Bank ICB Bumiputera Tbk; Engineering from Trisakti University, Phillip Morris Indonesia.
Deputy Head of Card Center Division Jakarta in 1992. Previously, she held
at PT Bank Internasional Indonesia the position of Commercial Banking
Tbk (BII); and AVP Consumer Middle Office Division Head at PT
Banking at ABN AMRO Bank. He Bank UOB Indonesia; Commercial
graduated from the management Banking Business Development at
trainee of Citibank in 1994. the Royal Bank of Scotland; and
Branch Manager at ABN AMRO Bank
NV.

PT Bank QNB Indonesia Tbk 317


Passion for Excellence at Its Best
Annual Report 2016

Rasmoro Pramono Aji - Head of Steven Stevanus – Rewards Manager Thomas Hartono Tulus – Head of
Network & Distribution Citizen of Indonesia. He was Financial Inclusion
Citizen of Indonesia. He was appointed as the Rewards Manager Citizen of Indonesia. He was
appointed as the Head of Network since May 1, 2016. Earned his appointed as the Head of Financial
and Distribution Division on June 24, bachelor’s degree in Informatics Inclusion Division since May 2, 2016.
2013. Earned his bachelor’s degree from Bina Nusantara University Earned his bachelor’s degree from
from Bogor Institute of Agriculture in 2006. Prior to joining PT Bank Parahyangan Catholic University
in 1989. He is also a graduate of the QNB Indonesia Tbk, he served as in 1994 and master’s degree in
Officer Development Bank (ODP) Rewards & Incentive Manager at PT International Management from
from Bank Bali in 1991. Previously, Bank CIMB Niaga Tbk; Research & Gadjah Mada University in 1998.
he held the position of the Head of Consultant at PT Spire Indonesia; Previously, he held the position Head
Customer Acquisition Team-Privilege and Management Trainee at PT Lion of Transaction Services since Jul 1,
Banking at UOB Indonesia; Head Super Indo. 2015, Strategic Planning Head since
of Integration Retail Indonesia at joining PT Bank QNB Indonesia Tbk
Royal Bank of Scotland; Head of Sylvina Savitri - Head of Learning & in 2012. He also has had the position
Islamic Bank Royal Bank of Scotland Development of Strategic Planning, Product
Indonesia; and Head of National Citizen of Indonesia. She was Development, and Marketing in Bank
Sales, Consumer Finance, and Head appointed as the Head of Learning UOB Indonesia, ABN AMRO Bank
of Distribution - Van Gogh Preferred & Development Division on May 2, NV, Bank Danamon Indonesia, and
Banking at ABN AMRO Indonesia. 2016. Earned her bachelor’s degree Lippobank.
in Psychology from Padjadjaran
Rr. Utami Tjipto - Head of Compliance University, Bandung in 1998 and Titis Satryo Utomo - Head of
& Procedure master’s degree in Psychology – Alternate Channel
Profile of Rr. Utami Tjipto could be Human Resources Management Citizen of Indonesia. He was
found in the Head of Compliance from University of Indonesia, Jakarta appointed as the Head of Alternate
& Procedure Profile section of this in 2004. Previously, she served as Channel Division on January 10,
Annual Report. Learning & Development Head at 2014. Earned his bachelor’s degree in
PT Bank QNB Indonesia Tbk since Industrial Engineering from Bandung
Slamet Riyadi - Head of IT & Digital joining in 2015; several positions Institute of Technology in 1996.
Banking at Experd HR Consulting Firm Previously, he held the position of
Citizen of Indonesia. He was with the last position as Program Vice President 2 (VP 2) of Business
appointed as the Head of IT Digital Director & Lead Facilitator, Training Development & Acquisition for
Banking Division since October & Organizational Development Retail Unsecure Business at PT Bank
5, 2015. Earned his bachelor’s in 2014, Training & Development UOB Indonesia (2012-2013); Vice
degree in Economy from Pasundan Officer at PT Perkin Elmer Batam; President (VP) for Consumer Finance
University, Bandung in 1995, and Recruitment Officer at PT Newmont Acquisition at Bank ANZ Indonesia
master’s degree in Economy from Nusa Tenggara. (2009-2012); AVP for Consumer
Padjajaran University, Bandung in Finance Acquisition at Bank ABN
2002. Previously, he held the position Amro Indonesia (2005-2008); and
of Head of E-Financial Services at Personal Lending Product Manager at
PT Bank QNB Indonesia Tbk since Citibank N.A (2004-2005).
July 1, 2015; Business Development
Head at PT Bank QNB Indonesia Tbk,
Assistant Vice President Product
& Solution Management as well as
several other posts at PT Bank BNI
(Persero) Tbk.

318 PT Bank QNB Indonesia Tbk


Tomi Parisianto Wibowo - Head of Wendriani Ika Lukito - Head of
Finance & Accounting Commercial Credit
Citizen of Indonesia. He was Citizen of Indonesia. She was
appointed as the Head of Finance appointed as the Head of Commercial
and Accounting Division on June 3, Credit since July 1, 2015. Earned
2013. Earned his bachelor’s degree her bachelor’s degree in Finance
in Accounting from University of from California State University of
Indonesia in 1997 and is certified as a Fullerton, United States in 2005.
public accountant from the Indonesian Previously, she held the position of
Institute of Accountants in 2002 and Area Manager Commercial Banking
certified as Indonesian Chartered at PT Bank QNB Indonesia Tbk since
Accountant in 2014. Previously, he March 4, 2013; Relationship Manager
held the position of Vice President of for Large Commercial Division and
Financial Control Group Head at PT Business Manager for Commercial
Bank ICB Bumiputera Tbk, Jakarta. Banking Division at PT Bank UOB
He also had led several financial audit Buana.
engagements at Financial Assurance
Division at PricewaterhouseCoopers
(PwC), Jakarta and Ernst & Young (EY),
Jakarta.

Tota Melanie Loembantobing – Head


of Operations
Citizen of Indonesia. She was
appointed as the Head of Operations
since March 1, 2016. Earned her
bachelor’s degree in Educational
Psychology from Institut Keguruan
dan Ilmu Pendidikan, Jakarta in
1990, and master degree in Finance
from University of the District of
Columbia, Washington, D.C. in 1994.
Previously, she served as Chief
Auditor of PT Bank QNB Indonesia
Tbk since March 26, 2014. Prior
to joining the Bank, she served as
Regional Operations Head of PT Bank
CIMB Niaga Tbk (2013-2014); Area
Operations and Services Manager of
Citibank, N.A. (2012-2013); Branch
Services Region Head of Citibank
(2011-2012); Consumer Services
Group Head of AIG (American
Insurance Group - formerly PT
Chartis Insurance Indonesia) (2004-
2011); and Business Manager of
PT Anugerah Tevica. Developed
her career in Citibank (1996-2003)
with last assignment as Customer
Relationship Manager.

PT Bank QNB Indonesia Tbk 319


Passion for Excellence at Its Best
Annual Report 2016

Capital Market Supporting Profession and


Institutions

Biro Administrasi Efek Notaris Bursa Efek Indonesia


PT Adimitra Jasa Korpora Notaris Fathiah Helmi, S.H PT Bursa Efek Indonesia
Plaza Property 2nd Floor Graha Irama Lt. 6 Indonesia Stock Exchange Building
Jl. Perintis Kemerdekaan Jl. HR. Rasuna Said Blok X-1 Kav. 1&2 1st Tower,
Kompleks Pertokoan Pulomas Blok Kuningan, Jakarta Selatan 12950 Jl. Jend. Sudirman Kav. 52-53 - Jakarta
VIII No. 1 Tel: (+62 21) 529 073 04-6 12190
Jakarta Timur 13210 Fax.: (+62 21) 526 113 6 Tel: (+62 21) 515 051 5
Tel: (+62 21) 478 815 15 Fax: (+62 21) 515 415 3
Fax: (+62 21) 470 969 7 Services provided: Email: listing@idx.co.id
Kenotariatan Website: www.idx.co.id
Services provided: Term of Assignment:
Biro Administrasi Efek 2016 Services provided:
Term of Assignment: Fee: Pencatatan saham
1. November 2015 – October 2016 Rp46.650.000 Term of Assignment:
2. November 2016 – October 2017 2016
Fee: Lembaga Pemeringkat Fee:
1. Rp24.006.000 PT Pemeringkat Efek Indonesia Rp247.500.000
2. Rp30.006.000 Panin Tower, Senayan City 17th Floor
Jl.Asia Afrika Lot.19, Jakarta 10270 KSEI
Kantor Akuntan Publik Tel: (+62 21) 727 823 80 PT Kustodian Sentral Efek Indonesia
Purwantono, Sungkoro & Surja, a Fax: (+62-21) 727 823 70 Indonesia Stock Exchange Building
member Firm of Ernst & Young Global 1st Tower Lantai 5
Limited Services provided: Jl. Jend. Sudirman Kav. 52-53,
Indonesia Stock Exchange Building - Jakarta 12190 Indonesia
Tower 2, 7th Floor Term of Assignment: Tel: (+62 21) 515 285 5
Jl. Jenderal Sudirman Kav. 52-53 - Fax: (+62 21) 529 911 99
Jakarta 12190 Indonesia Fee: Toll Free : 080 018 657 34
Tel: (+62 21) 528 950 00 - Email : helpdesk@ksei.co.id
Fax: (+62 21) 528 941 00 Website : www.ksei.co.id

Services provided: Services provided:


Akuntan Publik Jasa Kustodian Sentral
Term of Assignment: Term of Assignment:
2016 2016
Fee: Fee:
Rp1,342,000,000 Rp11.000.000

320 PT Bank QNB Indonesia Tbk


Branch Office Addresses

JAKARTA Bank QNB Indonesia Bank QNB Indonesia


KCP Permata Hijau KCP Sunter
Bank QNB Indonesia The Belleza Shopping Arcade Jl. Danau Sunter Utara
KC SCBD Apart. Belleza Arteri Permata Hijau Blok G7 Kav. 1 No. 7
QNB Tower Lantai Dasar, 18 Parc SCBD, Jl. Letnan Jenderal Soepono No.34, Sunter Podomoro
Jl. Jenderal Sudirman Kav 52 - 53 Blok Sa-06, Kebayoran lama Jakarta 14350
Jakarta 12190 Jakarta 12240 Tel: (+62 21) 653 030 66
Tel: (+62 21) 515 505 8 Tel: (+62 21) 299 160 22 Fax: (+62 21) 653 031 10
Fax: (+62 21) 515 538 8 Fax: (+62 21) 299 161 60
Bank QNB Indonesia
Bank QNB Indonesia Bank QNB Indonesia KC Tanah Abang
KCP Central Park KCP Pluit Jl. KH. Fachrudin 36
Komplek Central Park Ruko Garden Ruko Sentra Bisnis Pluit Blok BB No. 2
Shopping Arcade Jl. Pluit Sakti Raya No. 28 Blok A.12 Tn. Abang Bukit
Blok Beaufort 8 No.8 EJ Jakarta 14450 Jakarta 10250
Jl. Tanjung Duren Raya Kav. 5-9 Tel: (+62 21) 668 172 2 Tel: (+62 21) 398 317 08
Jakarta 11470 Fax: (+62 21) 668 122 6 Fax: (+62 21) 344 046 8
Tel: (+62 21) 292 064 00
Fax: (+62 21) 292 064 01 Bank QNB Indonesia Bank QNB Indonesia
KCP Pondok Indah KCP Kelapa Gading
Bank QNB Indonesia Jl. Sultan Iskandar Muda no. 28L Jl. Boulevard Blok LB-3 No. 22
KCP Green Garden Jakarta 12240 Jakarta 14240
Rukan Golden Green No.7 Tel: (+62 21) 728 953 77 Tel: (+62 21) 453 303 3
Jl. Kedoya Raya, Kedoya Utara Fax: (+62 21) 723 803 6 Fax: (+62 21) 453 305 5
Jakarta 11520
Tel: (+62 21) 581 913 3 Bank QNB Indonesia Bank QNB Indonesia
Fax: (+62 21) 582 912 6 KCP Puri Indah KC Kebayoran
Jl. Puri Indah Raya Blok I No. 19 Jl. Panglima Polim No. 9 - 10
Bank QNB Indonesia Jakarta 11610 Jakarta 12160
KCP Kapuk Tel: (+62 21) 583 546 66 Tel: (+62 21) 727 973 23
Komplek Duta Harapan Indah Fax: (+62 21) 583 576 66 Fax: (+62 21) 723 411 1
Jl. Kapuk Muara Blok A/6 No. 7
Jakarta 14460 Bank QNB Indonesia Bank QNB Indonesia
Tel: (+62 21) 668 342 9 KCP Mega Kuningan KCP Pulo Gadung
Fax: (+62 21) 662 696 1 Gedung Kantor Taman A9 Pulo Gadung Trade Center
Blok A9/B9 unit A1 Jl Raya Bekasi KM 21, Ruko A2/20
Bank QNB Indonesia Kawasan Mega Kuningan Kawasan Industri Pulo Gadung
KCP Menara Jamsostek Jakarta 12950 Jakarta 13920
Gedung Menara Jamsostek Tel: (+62 21) 576 108 8 Tel: (+62 21) 468 002 22
Lantai Dasar, Menara Selatan Fax: (+62 21) 576 107 7 Fax: (+62 21) 468 003 00
Jl. Jend Gatot Subroto Kav. 38
Jakarta 12710 Bank QNB Indonesia Bank QNB Indonesia Cabang Taman
Tel: (+62 21) 252 548 0 KCP Mangga Dua Palem
Fax: (+62 21) 252 547 0 Mangga Dua Blok E IV No. 4 Ruko Taman Palem Lestari
Jakarta 14430 Jl. Kamal Raya Outer Ringroad,
Tel: (+62 21) 600 987 0 Blok A5 No.58
Fax: (+62 21) 600 987 1 Cengkareng, Jakarta 11730
Tel: (+62 21) 556 200 3
Fax: (+62 21) 556 200 4

PT Bank QNB Indonesia Tbk 321


Passion for Excellence at Its Best
Annual Report 2016

Bank QNB Indonesia Bank QNB Indonesia SOLO


KC Gajah Mada KCP Jababeka Cikarang
Mediterania Gajah Mada Tower Alpha Komplek Ruko Capitol Business Park Bank QNB Indonesia
No. TUD16 Lt. UG Jl. Gajah Mada Blok 2A, KC Solo
No. 174 Jakarta 11130 Jl. Niaga Raya, Desa Pasir Sari, Jl. Slamet Riyadi No. 312 Surakarta,
Tel: (+62 21) 630 215 1 Kecamatan Cikarang Selatan, Jawa Tengah 57141
Fax: (+62 21) 630 215 2 Kabupaten Bekasi, Jawa Barat 17530 Tel: (+62 21)
Tel: (+62 21) 898 358 90 Fax: (+62 21)
Bank QNB Indonesia Fax: (+62 21) 898 358 95
KCP Roxy
Komp. Ruko Roxy Mas
Jl. KH. Hasyim Ashari
Blok E1 No.6 Kel. Cideng SURABAYA
Jakarta Pusat 10150 BANDUNG
Tel: (+62 21) 638 595 55 Bank QNB Indonesia
Fax: (+62 21) 638 522 55 Bank QNB Indonesia KC Surabaya Darmo
KC Bandung Dago Jl. Raya Darmo No. 108
Jl. Ir. H. Juanda No. 11 (Dago) Surabaya 60264
Bandung 40116 Tel: (+62 31) 568 753 0
Tel: (+62 22) 842 810 91 Fax: (+62 31) 567 809 0
TANGERANG Fax: (+62 22) 422 286 0
Bank QNB Indonesia
Bank QNB Indonesia Bank QNB Indonesia KCP Surabaya Kembang Jepun
KCP Alam Sutera KCP Bandung BKR Jl. Kembang Jepun No. 88
Perumahan Alam Sutera Jl. BKR No. 100 Surabaya 60161
Komp. Pertokoan Sutera Niaga I Bandung 40254 Tel: (+62 31) 354 268 83
No. 35, Jl. Raya Serpong Tel: (+62 22) 522 586 8 Fax: (+62 31) 354 263 1
Tangerang 15310 Fax: (+62 22) 522 288 3
Tel: (+62 21) 539 933 2 Bank QNB Indonesia
Fax: (+62 021) 539 933 8 KCP Surabaya Ngagel
Kom. Pertokoan RMI D1-D2
Jl. Ngagel Jaya Selatan
SEMARANG
Surabaya 60238
Tel: (+62 31) 501 324 2
DEPOK Bank QNB Indonesia
Fax: (+62 31) 501 324 5
KC Semarang Gajah Mada
Bank QNB Indonesia Jl. Gajah Mada No.101 B
KCP Depok Semarang 50134
Jl. Margonda Raya No.197 A Tel: (+62 24) 865 690 99
Depok 16423 Fax: (+62 24) 865 690 88
Tel: (+62 21) 772 189 99
PASURUAN
Fax: (+62 21) 772 189 89 Bank QNB Indonesia
KCP Semarang MT. Haryono Bank QNB Indonesia
Jl. MT. Haryono No. 729 KCP Pasuruan
Semarang 50242 Ruko Grand Parimas Blok A-6
Tel: (+62 24) 844 899 9
BEKASI Fax: (+62 24) 844 399 9
Jl. Panglima Sudirman
Pasuruan – 67115
Bank QNB Indonesia Tel: (+62 343) 564 577 7
KCP Bekasi Fax: (+62 343) 564 566 6
Kalimalang Commercial Centre
Jl. Ahmad Yani Blok A2 No. 1
Bekasi 17144
Tel: (+62 21) 889 655 61
Fax: (+62 21) 889 655 62

322 PT Bank QNB Indonesia Tbk


PEMATANG SIANTAR Bank QNB Indonesia PALEMBANG
KCP Medan Asia
Bank QNB Indonesia Jl. Asia No. 97P Bank QNB Indonesia
KC Pematang Siantar Medan 20212 KC Palembang
Jl. Sutomo No. 5L Tel: (+62 61) 735 111 8 Jl. Jenderal Sudirman No. 589-592
Pematang Siantar 21117 Fax: (+62 61) 735 295 7 Kel. 20 Ilir III, Kec. Ilir Timur 1
Tel: (+62 622) 296 66 Palembang 30128
Fax: (+62 622) 246 91 Bank QNB Indonesia Tel: (+62 711) 318 853
KCP Medan Petisah Fax: (+62 711) 318 854
Jl. Rotan No. 65
Medan 20112
Tel: (+62 61) 453 761 6
BATAM Fax: (+62 61) 452 350 1
PEKANBARU
Bank QNB Indonesia Bank QNB Indonesia
KC Batam KCP Medan Bogor Bank QNB Indonesia
Komplek Jodoh Square Jl. Bogor No. 55 KCP Pekanbaru Riau
Blok A No. 2 - 3 Medan 20212 Jl. Riau No. 149 G
Jl. Raja Ali Haji Sei Jodoh Tel: (+62 61) 452 336 2 Pekanbaru 28282
Batam 29453 Fax: (+62 61) 453 611 6 Tel: (+62 761) 444 68
Tel: (+62 778) 456 126 Fax: (+62 761) 444 70
Fax: (+62 778) 424 281 Bank QNB Indonesia
KCP Krakatau Bank QNB Indonesia
Jl. Gunung Krakatau No. 88C KC Pekanbaru Sudirman
Medan 20239 Jl. Jend. Sudirman No. 303 & 305
Tel: (+62 61) 664 103 1 Pekanbaru 28112
MAKASSAR Tel: (+62 761) 333 08
Fax: (+62 61) 664 103 2
Fax: (+62 761) 333 98
Bank QNB Indonesia
Bank QNB Indonesia
KC Makassar Bank QNB Indonesia
KCP Medan Centre Point
Jl. Veteran No. 402 KCP Pekanbaru Nangka
Komp. Ruko Centre Point Blok G No.
Makassar 90124 Jl. Tuanku Tambusai No. 305
19,
Tel: (+62 411) 853 422 Pekanbaru 28155
Kel. Gang Buntu, Kec. Medan Timur
Fax: (+62 411) 856 292 Tel: (+62 761) 429 91
Kota Medan, Sumatera 20231
Tel: (+62 61) 805 108 78 Fax: (+62 761) 429 89
Fax: (+62 61) 805 104 89

MEDAN
DENPASAR
Bank QNB Indonesia
BALIKPAPAN
KC Medan Pemuda
Bank QNB Indonesia
Jl. Pemuda no. 5
Bank QNB Indonesia KC Renon
Medan 20151
KC Balikpapan Jl. Raya Puputan Renon No. 58A
Tel: (+62 61) 415 292 9
Jl. Jend. Sudirman No. 353 Denpasar 80234
Fax: (+62 61) 415 565 6
Balikpapan 76114 Tel: (+62 361) 233 777
Tel: (+62 542) 882 095 5 Fax: (+62 361) 239 779
Bank QNB Indonesia
Fax: (+62 542) 882 095 6
KCP Medan Sutomo
Jl. Sutomo No. 128
Medan 20213
Tel: (+62 61) 736 250 0
Fax: (+62 61) 734 323 3

PT Bank QNB Indonesia Tbk 323


Passion for Excellence at Its Best
Annual Report 2016

Reference of OJK Circular Letter


No. 30/SEOJK.04/2016

Subject & Explanation Page

I. Highlights of Key Financial Information

1. Highlights of Key Financial Information contains financial information 10 - 13


in comparative form over a period of 3 (three) fiscal years or since the
commencement of business if the Issuer or Listed Company has been running its
business activities for less than 3 (three) years, at least contains:
a. Operating sales/revenue;
b. Gross profit (loss);
c. Profit (loss)
d. Net profit attributable to owners of the parent and non-controlling interest;
e. Net comprehensive profit;
f. Net comprehensive profit attributable to owners of the parent and non-
controlling interest;
g. Profit (loss) per share;
h. Total assets;
i. Total liabilities;
j. Total equity;
k. Profit (loss) ratio to total assets;
l. Profit (loss) ratio to equity;
m. Profit (loss) ratio to revenue;
n. Current ratio;
o. Liabilities ratio to equity;
p. Liabilities ratio to total assets; and
q. Other relevant financial ratio and information about the Issuer or Listed
Company or its industry.

II. Shares Information

Shares information (if any) shall include at least:


1. Shares published for every quarter (if any) presented in the comparison of latest 2 14
(two) fiscal years (if any), at least include:
a. Number of issued shares;
b. Market capitalization based on the price on the Stock Exchange where shares
are listed;
c. Highest, lowest, and closing price based on the price on the Stock Exchange
where shares are listed; and
d. Transaction volume on the Stock Exchange where shares are listed.

nformation in the letter a is disclosed by the Issuer which is a Listed Company


whose shares are listed or not listed on the Stock Exchange.
Information in the letter b, letter c, and letter d are only disclosed if the Issuer is a
Listed Company and its shares are listed on the Stock Exchange.

2. In case of corporate actions, such as stock split, reverse stock, shares dividend, 17
bonus shares, and reduction in nominal share prices, the share information
referred in point 2 shall be added explanations which included at least:

324 PT Bank QNB Indonesia Tbk


Subject & Explanation Page

a. The execution date of corporate action;


b. Ratio of stock split, reverse stock, share dividend, bonus share, and reduction
in share price;
c. Shares volume issued before and after corporate actions; and
d. Shares price before and after corporate actions.

In case of suspended stock trading, and/or delisting in the fiscal year, the Issuer or
Listed Company explains the reason for such suspension and/or delisting.

In case of stock suspension and/or delisting as referred to point 3 still continue


until the end of Annual Report period, the Issuer or Listed Company shall explain
the actions of the company to resolve such stock suspension and/or delisting.

III. Board of Directors’ Report

Board of Directors’ Report shall include at least:


1. A brief description of the Issuer’s or Listed Company’s performance, at least 46 - 49
include:
a. Strategy and strategic policy of Issuer or Listed Company;
b. Comparison between achievement of results and targets; and
c. Challenges faced by the Issuer or Listed Company.

2. An overview of business prospects. 49

3. Implementation of Good Corporate Governance by the Issuer or Listed Company; 48


and

4. Changes in the composition of the Board of Directors’ members and the reason of 48 - 49
such changes (if any).

IV. Board of Commissioners’ Report

Board of Commissioner’s Report shall include at least:


1. Assessment on the performance of the Board of Directors in managing the 39
company;

2. Supervision of strategy implementation of Issuer or Listed Company. 39 - 40

3. View on the prospects of the Issuer or Listed Company as established by the Board 41
of Directors.
4. View on the implementation of Issuer’s or Listed Company’s governance. 40
5. Changes in the composition of the Board of Commissioners’s members and the 40 - 41
reason of such changes (if any); and
6. Frequency and means of providing advice to the members of the Board of 40
Directors.

PT Bank QNB Indonesia Tbk 325


Passion for Excellence at Its Best
Annual Report 2016

Subject & Explanation Page

V. Company Profile

Profile of Issuer or Listed Company shall include at least:


1. Name of the Issuer or Listed Company including if there is a change of name, the 60
reason for the change, and the effective date of the name change in the fiscal year.

2. Access to the Issuer or Listed Company including branch office or representative 60


office which allows the public to obtain information about the Issuer or Listed
Company, including:
a. Address;
b. Phone number;
c. Facsimile number;
d. E-mail address; and
e. Website address;

3. Brief history of Issuer or Listed Company. 64 - 65

4. Vision and mission of the Issuer or Listed Company. 66

5. The business activities according to the latest articles of association, business 69 - 76


activities carried on in the fiscal year, and type of products and/or services
provided.

6. Organizational structure of Issuer or Listed Company in the form of a chart, giving 80 - 81


the names and titles and at least up to the one level below the Board of Directors.

7. Profile of the Board of Directors, at least includes: 50 - 54


a. Name and position in accordance with the duties and responsibilities;
b. Latest picture;
c. Age;
d. Citizenship;
e. Educational history;
f. Work experience, includes information as follows:
1) legal basis of appointment of Board of Directors’ members in the Issuer or
Listed Company;
2) concurrent position, both as members of the Board of Directors, members
of the Board of Commissioners, and/or members of the committee as well
as other position (if any); and
3) work experience as well as the working period both inside or outside the
Issuer or Listed Company;
g. Training attended by the Board of Directors’ members to improve the
competence in the fiscal year (if any), and
h. Affiliate relationships with another member of the Board of Directors, Board
of Commissioners’ members, and ultimate shareholders (if any) including the
name of affiliated parties;

326 PT Bank QNB Indonesia Tbk


Subject & Explanation Page

8. Profile of the Board of Commissioners, at least includes: 42 - 44


a. Name;
b. Latest picture;
c. Age;
d. Citizenship;
e. Educational history;
f. Work experience, includes information as follows:
1) legal basis of appointment of Board of Commissioners’ members
excluding the Independent Commissioner in the Issuer or Listed
Company;
2) legal basis of appointment of Board of Commissioners’ members as
Independent Commissioner in the Issuer or Listed Company;
3) concurrent position, both as members of the Board of Commissioners,
members of the Board of Directors, and/or members of the committee as
well as other position (if any); and
4) work experience as well as the working period both inside or outside the
Issuer or Listed Company;
g. Training attended by the Board of Commissioners’ members to improve the
competence in the fiscal year (if any), and
h. Affiliate relationships with another member of the Board of Commissioners
and ultimate shareholders (if any) including the name of affiliated parties;
and
i. Independence statement of Independent Commissioner in the event of the
Independent Commissioner has served more than 2 (two) periods (if any);

9. In case of a change in the composition of the Board of Directors and/or the Board N/A
of Commissioners that occurred after the fiscal year ends until the deadline for
submission of the Annual Report, then the structure sets out in the Annual Report
is the recent and previous composition of the Board of Directors’s members and/or
Board of Commissioners’ members.

10. The number of employees and a description of the distribution of educational level 97 - 108
and age of employees during the fiscal year.

11. The names of shareholders and percentage of ownership at the end of the fiscal 15 - 16
year, which consists of:
a. Shareholders owning 5% (five percent) or more shares of the Issuer or Listed
Company;
b. Member of Board of Directors and Board of Commissioners who hold shares of
the Issuer or Listed Company; and
c. Public shareholders, a group of shareholders who each own less than 5% (five
percent) of the shares of Issuer or Listed Company;

12. The number of shareholders and the percentage of ownership as of the end of 16
fiscal year based on the classification:
a. Local institution ownership;
b. Foreign institution ownership;
c. Local individual ownership; and
d. Foreign individual ownership;

PT Bank QNB Indonesia Tbk 327


Passion for Excellence at Its Best
Annual Report 2016

Subject & Explanation Page

13. Information on the major and controlling shareholder of the Issuer or Listed 15
Company, either directly or indirectly, to the individual owners, presented in the
form of schemes or charts.

14. Name of subsidiaries entities, associates, joint venture company in which the N/A
Issuer or Listed Company has joint controlled entities, along with shareholding
percentage, line of bussiness and status of such Issuer or Listed Company (if any).
For subsidiary entities, please add information about the address.

15. Chronology of share listing, number of shares, nominal value, and the offering 17
pricefrom the beginning of listing until the end of fiscal year and name of stock
exchange where the Issuer’s or Listed Company’s share is listed (if any).

16. Chronology of other Securities listing other than Securities referred in point 15, N/A
which at least includes the name of Securities, year of issuance, maturity date,
offering value, and Securities rating (if any).

17. Name and address of capital market institutions and/or supporting professions. 320

18. In the event of capital market supporting professions that provide periodic service 320
to the Issuer or Listed Company, the information about the service provided, fee,
and assignment period shall be disclosed; and

19. Award and certification received by the Issuer or Listed Company, both on a 30 - 31
national and international scale during the recent fiscal year (if any), which
contains:
a. Name of award and/or certification;
b. Agency or institution that provides the award; and
c. The validity period of award and/or certification (if any).

VI. Management Discussion and Analysis

Management discussion and analysis contains the analysis and discussion of financial
statements and other important information with an emphasis on material changes
that occurred during the fiscal year, which at least contain:
1. Operational review per business segment in accordance with the type of industry 89 - 93
of the Issuer or Listed Company, contains at least:
a. Production,which includes the process, capacity, and development;
b. Revenue/sales; and
c. Profitability.

2. Comprehensive financial performance analysis which includes a comparison 109 - 119


between the last 2 (two) fiscal year, explanation about the cause of changes and
the impact, among others concerning:
a. Current assets, non-current assets, and total assets;
b. Short-term liabilities, long-term liabilities, and total liabilities;
c. Equity;

328 PT Bank QNB Indonesia Tbk


Subject & Explanation Page

d. Revenue/sales, expense, profit/loss, other comprehensive income, and total of


comprehensive income/loss; and
e. Cash flow.

3. Ability to pay debt by presenting relevant ratio calculation. 120

4. Issuer’s or Listed Company’s collectability by presenting relevant ratio calculation. 120

5. Capital structure and management policy on such capital structure with the basis 120 - 121
for determining such policy.

6. Discussion on material ties for the investment of capital goods with description 121
includes at least:
a. The purpose of the ties;
b. Source of funds expected to fulfill the said ties;
c. Currency of denomination; and
d. Steps taken by the Issuer or Listed Company to protect the risk against the
position of related foreign currency.

7. Discussion on capital goods investment realized in the last fiscal year, at least 121
includes:
a. Type of capital goods investment;
b. Objective of capital goods investment; and
c. The investment value of capital goods

8. Significant information and fact subsequent to the accountant’s report date (if 121
any).

9. Business prospects of the Issuer of Listed Company in connection with the 129
condition of industry, economy in general, and the international market supported
by quantitative data from a reliable data source.

10. Comparison between target/projection in the beginning of fiscal year and the 121
achieved result (realization), which includes:
a. Revenue/sales;
b. Income (loss);
c. Capital structure; or
d. Other matters that considered important for the Issuer or Listed Company.

11. Issuer’s or Listed Company’s target/projection in 1 (one) year, which includes: 121
a. Revenue/sales;
b. Income (loss);
c. Capital structure;
d. Dividend policy; or
e. Other matters that considered important for the Issuer or Listed Company.

PT Bank QNB Indonesia Tbk 329


Passion for Excellence at Its Best
Annual Report 2016

Subject & Explanation Page

12. Marketing aspect for the product and service of Issuer or Listed Company, such as: 126 - 128
marketing strategy and market share.

13. Description of the dividend for 2 (two) last fiscal years (if any), which at least 121
includes:
a. Dividend policy;
b. Date of cash dividend payment and/or date of non-cash dividend distribution;
c. Amount of dividend per share (cash/non-cash); and
d. Amount of paid dividend per year.

14. Actual use of proceeds from the Public Offering, provided that: 121
a. In the event that during fiscal year, the Issuer has the obligation to report
realization of the use of proceeds, thus the cumulative use of the proceeds
from the Public Offering shall be disclosed until the last fiscal year; and
b. In the event of any changes the in use of proceeds as stipulated in the
Regulation of Financial Services Authority on Report on Realization of the
Use of Proceeds from Public Offerings, Issuers shall explain such changes.

15. Significant information (if any) about investation, expansion, divestment, 122
business merger/takeover, acquisition, debt/equity restructuring, affiliated
transaction, and transaction that contains conflict of interest occurred in fiscal
year, among others includes:
a. Date, value, and transaction object;
b. Name of the parties conducting transaction;
c. Nature of affiliation (if any);
d. Description about transaction fairness; and
e. Relevant regulation compliance

16. Changes in regulation which have a significant impact on the Issuer and Listed 123 - 124
Company and the impact on financial statements (if any); and

17. Changes in the accounting policy, reason and its impact on financial statements 124 - 125
(if any).

VII. Corporate Governance

Governance of Issuer or Listed Company shall contain at least a brief description


about:
1. The Board of Directors, among others includes: 201 - 217
a. The duties and responsibilities of each member of the Board of Directors;
b. Statement that the Board of Directors has the Board of Directors’ guidelines
or charter;
c. Procedure, basis of stipulation, structure, and the amount of remuneration
for each member of the Board of Directors, as well as the relation between
remuneration and the Issuer’s or Listed Company’s performance;
d. Policy and the implementation of the Board of Directors meeting frequency,
including meeting with Board of Commissioners, and attendance of the Board
of Directors in such meeting;
e. Information on previous GMS resolution, which includes:
1) GMS resolution realized in the fiscal year; and
2) the reason in the event of a resolution that has not been realized;

330 PT Bank QNB Indonesia Tbk


Subject & Explanation Page

f. Information on the GMS resolution in the fiscal year, which includes: 154 - 157
1) GMS resolution realized in the fiscal year; and
2) the reason in the event of a resolution that has not been realized; and
g. The assessment on the performance of committee which supports the 158 - 164
implementation of the Board of Directors’ duties;

2. The Board of Commissioners, among others includes: 165 - 183


a. The duties and responsibilities of each member of the Board of
Commissioners;
b. Statement that the Board of Commissioners has the Board of Commissioners’
guidelines or charter;
c. Procedure, basis of stipulation, structure, and the amount of remuneration for
each member of the Board of Commissioners;
d. Policy and the implementation of the Board of Commissioners meeting
frequency, including meeting with Board of Directors, and level of attendance
of the members of the Board of Commissioners in such meeting;
e. Issuer’s or Listed Company’s policy on the assessment of the performance
of the Board of Directors’ and Board of Commissioners’ members and its
implementation, which includes at least:
1) procedure of performance assessment;
2) the criteria used; and
3) the party carrying out the assessment;
f. The assessment on the performance of committee which supports the
implementation of the Board of Commissioners’ duties; and
g. In the event that the Board of Commissioners does not establish a
Nomination and Remuneration Committee, shall publish information at least
about:
1) The reason why such committee is not established; and
2) Procedure of nomination and remuneration carried out in the fiscal year;

3. Sharia Supervisory Board, for Issuer or Listed Company which carries out business N/A
activity based on sharia principle as stated in the article of association, which
includes at least:
a. Name;
b. Duties and responsibilities of the Sharia Supervisory Board; and
c. Frequency and means of providing advice and suggestion as well as the
supervision on the fulfillment of Sharia Principle in the Capital Market for the
Issuer of Listed Company;

4. Audit Committee, among others includes: 184 - 191


a. Name and position in the committee;
b. Age
c. Citizenship;
d. Educational history;
e. Work experience, which includes information:
1) basis of appointment as the member of the committee;
2) concurrent position, both as the member of the Board of Commissioners,
member of the Board of Directors, and/or member of committee as well as
other position (if any); and
3) work experience and working period both inside and outside the Issuer or
Listed Company;

PT Bank QNB Indonesia Tbk 331


Passion for Excellence at Its Best
Annual Report 2016

Subject & Explanation Page

f. Working period and term of service of the member of Audit Committee;


g. Independence statement of the Audit Committee;
h. Policy and implementation of Audit Committee meeting frequency and level
of attendance of the member of Audit Committee in such meeting;
i. Training attended in the fiscal year (if any); and
j. Implementation of Audit Committee’s activity in the fiscal year in accordance
with the Audit Committee guideline or charter;

5. Other commitees that the Issuer or Listed Company have in order to support the 191 - 200
function and duties of the Board of Directors and/or Board of Commissioners, such
as Nomination and Remuneration Commitee, which includes:
a. Name and position in the committee;
b. Age;
c. Citizenship;
d. Educational history;
e. Work experience, which includes information:
1) basis of appointment as the member of the committee;
2) concurrent position, both as the member of the Board of Commissioners,
member of the Board of Directors, and/or member of committee as well as
other position (if any); and
3) work experience and working period both inside and outside the Issuer or
Listed Company;
f. Working period and term of service of the member of committee;
g. Description of duties and responsibilities;
h. Statement of the committee’s guidelines or charter;
i. Independency statement of the committee;
j. Policy and implementation of committee meeting frequency and level of
attendance of the member of committee in such meeting;
k. Training attended in the fiscal year (if any); and
l. Brief description of the implementation of committee’s activity in the fiscal
year;

6. Corporate Secretary, among others includes; 247 - 249


a. Name;
b. Domicile;
c. Work experience, which includes information:
1) basis of appointment as the Corporate Secretary;
2) work experience and working period both inside and outside the Issuer or
Listed Company;
d. Educational history;
e. Training attended in the fiscal year (if any); and
f. Brief description of the duties implementation of Corporate Secretary in the
fiscal year;

7. Internal Audit Unit, among others includes: 241 - 244


a. Name of head of Internal Audit Unit;
b. Work experience, which includes information:
1) Basis of appointment as the head of Internal Audit Unit; and
2) Work experience and working period both inside and outside the Issuer or
Listed Company;

332 PT Bank QNB Indonesia Tbk


Subject & Explanation Page

c. Qualification and certification as internal auditor (if any);


d. Training attended in the fiscal year;
e. Structure and position of the Internal Audit Unit;
f. Description of duties and responsibilities;
g. Statement of Internal Audit Unit’s guidelines or charter; and
h. Brief description about the duties implementation of Internal Audit Unit in
the fiscal year;

8. Description about internal control system implemented by the Issuer or Listed 284
Company, at least includes:
a. Financial and operational control, as well as compliance towards other
regulations; and
b. Review on the effectiveness of internal control system;

9. Risk management system implemented by the Issuer or Listed Company, at least 250 - 283
includes:
a. General description about the Issuer’s or Listed Company’s risk management
system;
b. Type of risk and its management; and
c. Review on the effectiveness of Issuer’s or Listed Company’s risk management;

10. Important case encountered by Issuer or Listed Company, subsidiary entities, 285
member of Board of Directors and Board of Commissioners, among others
includes:
a. Subject of the case/claim;
b. Status of settlement of case/claim; and
c. Potential impacts on the condition of the Issuer or Listed Company;

11. Information about administrative sanctions imposed on the Issuer or Listed 285
Company, member of the Board of Commissioners and Board of Directors, by the
Capital Market authority and others in the last fiscal year (if any);

12. Information about Issuer’s or Listed Company’s code of conduct which includes: 286 - 287
a. Principles of the code of conduct;
b. Form of dissemination of code of conduct and its enforcement attempt; and
c. Statement that the code of conduct is applicable to the members of the Board
of Directors, Board of Commissioners, and employees of the Issuer or Listed
Company;

13. Information on corporate culture or corporate values (if any); 286 - 287

14. Description of share ownership program by employee and/or management that 121
implemented by the Issuer or Listed Company (if any), among others includes:
a. Number of shares and/or share options;
b. Exercise period;
c. Requirement of eligible employee and/or management; and
d. Exercise price

PT Bank QNB Indonesia Tbk 333


Passion for Excellence at Its Best
Annual Report 2016

Subject & Explanation Page

15. Description of whistleblowing system in the Issuer and Listed Company (if any), 289
among others includes:
a. Mechanism of whistleblowing system;
b. Protection for the whistleblower;
c. Complaint handling;
d. Party that manages the complaint; and
e. Result of complaint handling, at least includes:
1) Number of incoming and processed complaints in the fiscal year; and
2) Complaint follow-up;

16. Implementation Corporate Governance Guidelines for the Issuer or Listed N/A
Company which issues Equity-type Shares, which includes:
a. Statement regarding the recommendations that have been implemented; and/
or
b. Explanation of recommendations that have not been implemented, as well as
the reason and implementation alternatives (if any);

VIII. Social and Environmental Responsibility of Issuer or Listed Company

1. Information of social and environmental responsibility of Issuer or Listed


Company including policy, kind of program, and cost incurred, among others
covering the aspects of:
a. Environmental, among others: 304
1) use of environmentally friendly material and energy that could be
recycled;
2) issuer’s or Listed Company’s waste treatment system;
3) complaint mechanism of environmental issue; and
4) certificate on environmental;
b. Practice of employment, occupational health and safety, among others: 305 - 307
1) equality of gender and work opportunity;
2) facility and work safety;
3) employee turnover rate;
4) occupational accident rate
5) training;
6) remuneration;
7) complaint mechanism of employment issue;
c. Community and social development, among others: 308 - 309
1) local worker recruitment;
2) community empowerment around the Issuer or Listed Company, among
others, through the use of raw material produced by the community or
educational training;
3) social facility repairement;
4) other donations; and
5) socialization of the policy and procedure of anti-corruption in the Issuer
or Listed Company, and training of anti-corruption (if any);

334 PT Bank QNB Indonesia Tbk


Subject & Explanation Page

d. Product and/or service responsibility, among others: 310 - 313


1) customer’s health and safety;
2) product and/or service information;
3) facility, total, and customer complaint handling.

2. In the event that Issuer or Listed Company presents information of social and N/A
environmental responsibility as stated in point 1) in separated report such as in
the form of corporate social responsibility report or sustainability report, Issuer or
Listed Company is excluded to disclose information on social and environmental
responsibility in the Annual Report; and

3. Such report referred in point 2) is submitted to the Financial Services Authority in N/A
conjunction with submission of Annual Report.

IX. Audited Financial Statements

1. The annual financial statements contained in the Annual Report shall compiled 337
in accordance with Financial Accounting Standard in Indonesia and has been
audited by Accountant. Such financial statements shall contained statement
about financial statements accountability as set out in Capital Market regulation
which governing the Board of Directors’ responsibility upon the financial
statements or the legislation in the Capital Market sector which governing the
periodic report of Securities Company in terms of the aforementioned is Securities
Company; and

X. Statements of the Members of Board of Directors and Board of Commissioners on


Responsibility for the Annual Report

1. Statement of the members of Board of Commissioners on the responsibility for 314 - 315
the Annual Report is prepared in accordance with the format of the Statement of
the Members of Board of Directors and Board of Commissioners on Responsibility
for the Annual Report as stated in the Appendix which is an integral part of this
Circular Letter of Financial Services Authority.

PT Bank QNB Indonesia Tbk 335


Passion for Excellence at Its Best
Annual Report 2016

336 PT Bank QNB Indonesia Tbk


PT Bank QNB Indonesia Tbk

Laporan keuangan
tanggal 31 Desember 2016
dan untuk tahun yang berakhir pada tanggal tersebut
beserta laporan auditor independen/
Financial statements
as of December 31, 2016 and
for the year then ended
with independent auditors’ report
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN KEUANGAN FINANCIAL STATEMENTS
TANGGAL 31 DESEMBER 2016 AS OF DECEMBER 31, 2016
DAN UNTUK TAHUN YANG BERAKHIR PADA AND FOR THE YEAR THEN ENDED
TANGGAL TERSEBUT WITH INDEPENDENT AUDITORS’ REPORT
BESERTA LAPORAN AUDITOR INDEPENDEN

Daftar Isi Table of Contents

Halaman/
Page

Laporan Auditor Independen Independent Auditors’ Report

Laporan Posisi Keuangan ………………………………. 1-2 .………………………. Statement of Financial Position

Laporan Laba-Rugi dan Penghasilan Statement of Profit or Loss and


Komprehensif Lain …………………………………. 3-4 ............................ Other Comprehensive Income

Laporan Perubahan Ekuitas ………………. …………… 5 ..………………………Statement of Changes in Equity

Laporan Arus Kas………………………………………… 6-7 ….…………………………… Statement of Cash Flows

Catatan atas Laporan Keuangan.................................. 8-117 ……………………..Notes to the Financial Statements

************************
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN POSISI KEUANGAN STATEMENT OF FINANCIAL POSITION
Tanggal 31 Desember 2016 As of December 31, 2016
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

Catatan/ 31 Desember/ 31 Desember/


Notes December 31, 2016 December 31, 2015
ASET ASSETS
Kas 2d,2f,5,34,38 51.260 45.432 Cash

2d,2f,2g,6,34, Current accounts with


Giro pada Bank Indonesia 35,38 1.635.116 1.710.947 Bank Indonesia

Giro pada bank-bank lain 2d,2e,2f,2g Current accounts with other banks
Pihak berelasi 2o,7,34,35, 193 172 Related party
Pihak ketiga 36,38 80.622 30.974 Third parties

Penempatan pada Bank Indonesia 2d,2f,2h,2o,8, Placements with Bank Indonesia


dan bank lain 34,35,38 2.230.074 2.111.813 and other bank

2d,2f,2i,9,
Tagihan derivatif 34,35 550 2.921 Derivatives receivable

Tagihan akseptasi 2d,2f,2o,2q,10, Acceptances receivable


Pihak berelasi 34,35,38 - 24.995 Related party
Pihak ketiga 22.193 36.826 Third parties

Efek-efek yang dibeli 2f,2h,2o,11, Securities purchased under


dengan janji dijual kembali 34,35 471.350 269.117 agreement to resell

Kredit yang diberikan Loans


Pihak berelasi 1.895 3.434 Related parties
Pihak ketiga 18.286.019 20.826.610 Third parties

Sub-total 18.287.914 20.830.044 Sub-total


2d,2e,2f,2h,
Dikurangi: cadangan kerugian 2o,12,34,35, Less: allowance for
penurunan nilai 36,38 (736.726) (41.740) impairment losses

Neto 17.551.188 20.788.304 Net


2f,2j,2o,13,
Efek-efek 34,35,36,38 571.862 325.444 Securities

Beban dibayar dimuka 14 188.969 108.443 Prepayments

Aset pajak tangguhan, neto 2k,21 172.105 - Deferred tax assets, net

Aset tetap Fixed assets


setelah dikurangi akumulasi net of accumulated
penyusutan masing-masing depreciation of Rp157,162 and
sebesar Rp157.162 dan Rp126,483, as of
Rp126.483 pada tanggal December 31, 2016 and 2015,
31 Desember 2016 dan 2015 2l,2o,15 144.762 110.577 respectively

Aset tak berwujud Intangible assets


setelah dikurangi akumulasi net of accumulated
amortisasi masing-masing amortization of Rp37,013 and
sebesar Rp37.013 dan Rp30,294 as of
Rp30.294 pada tanggal December 31, 2016 and 2015,
31 Desember 2016 dan 2015 2m,2o,16 41.176 45.670 respectively

Agunan yang diambil alih 2n,2o 17 1.019.382 - Foreclosed Assets


2d,2f,2m,2o,
Aset lain-lain, neto 34,38 191.900 146.014 Other assets, net

TOTAL ASET 24.372.702 25.757.649 TOTAL ASSETS

Catatan atas laporan keuangan terlampir merupakan bagian The accompanying notes to the financial statements form an integral
yang tidak terpisahkan dari laporan keuangan secara part of these financial statements.
keseluruhan.

1
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN POSISI KEUANGAN (lanjutan) STATEMENT OF FINANCIAL POSITION (continued)
Tanggal 31 Desember 2016 As of December 31, 2016
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

Catatan/ 31 Desember/ 31 Desember/


Notes December 31, 2016 December 31, 2015
LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY

LIABILITAS LIABILITIES
Liabilitas segera 2d,18,38 240.658 337.357 Liabilities payable on demand

Simpanan dari nasabah 2d,2e,2f,2p, Deposits from customers


Pihak berelasi 19,34,36,38 64.415 1.040.738 Related party
Pihak ketiga 19.280.547 17.468.270 Third parties

Simpanan dari bank-bank lain 2d,2e,2f,2p, Deposits from other banks


Pihak berelasi 20,34,36,38 404.797 2.688.691 Related parties
Pihak ketiga 258.001 490.420 Third parties

Liabilitas akseptasi 2d,2e,2f,2q, Acceptances payable


Pihak berelasi 10,34,36,38 - 24.995 Related party
Pihak ketiga 22.193 36.826 Third parties

Liabilitas derivatif 2d,2f,2i,9,34 12.890 661 Derivatives payable

Utang pajak penghasilan 2k,21 - 2.401 Income tax payable

Obligation for post-employment


Liabilitas imbalan pasca-kerja 2r,22 97.407 80.619 benefits

Liabilitas pajak tangguhan, neto 2k,21 - 42.324 Deferred tax liabilities, net

Beban masih harus dibayar


dan liabilitas lain-lain 2d,2f,2k,34,38 198.345 155.213 Accruals and other liabilities

Surat berharga yang diterbitkan 2t,23 315.520 - Marketable securities issued

Pinjaman Subordinasi 2d,2e,2s,24, - 964.950 Subordinated loan


36,38
TOTAL LIABILITAS 20.894.773 23.333.465 TOTAL LIABILITIES

EKUITAS EQUITY
Modal saham - nilai nominal Rp250 Share capital - par value of Rp250
(Rupiah penuh) per saham (full amount) per share
Modal dasar - 32.000.000.000 Authorized - 32,000,000,000
(Nilai penuh) saham (full amount) shares
Modal ditempatkan dan disetor Issued and fully paid -
penuh - 8.757.145.997 8,757,145,997 (full amount)
(nilai penuh) saham 1b,2u,25 2.189.287 2.189.287 shares

Tambahan modal disetor setelah Additional paid-in capital net of


dikurangi biaya emisi saham 2u,26 (24.570) (24.570) share issuance costs
Dana setoran modal 24,26 1.700.509 - Disclosed reserve
Kerugian komprehensif lain (12.875) (16.444) Other comprehensive loss

Saldo laba (defisit): Retained earnings (deficit):


Telah ditentukan penggunaannya 5.396 4.396 Appropriated
Belum ditentukan penggunaannya (379.818) 271.515 Unappropriated

EKUITAS 3.477.929 2.424.184 EQUITY

TOTAL LIABILITAS DAN EKUITAS 24.372.702 25.757.649 TOTAL LIABILITIES AND EQUITY

Catatan atas laporan keuangan terlampir merupakan bagian The accompanying notes to the financial statements form an integral
yang tidak terpisahkan dari laporan keuangan secara part of these financial statements.
keseluruhan.

2
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN LABA RUGI DAN PENGHASILAN STATEMENT OF PROFIT OR LOSS AND OTHER
KOMPREHENSIF LAIN COMPREHENSIVE INCOME
Untuk Tahun yang Berakhir pada For the Year ended December 31, 2016
Tanggal 31 Desember 2016 (Expressed in millions of Rupiah,
(Disajikan dalam jutaan Rupiah, unless otherwise stated)
kecuali dinyatakan lain)

Tahun yang Berakhir pada tanggal


31 Desember/Year ended December 31
Catatan/
Notes 2016 2015
PENDAPATAN DAN BEBAN OPERATING INCOME AND
OPERASIONAL EXPENSE
Pendapatan bunga 2e,2x,28,36 2.048.592 2.040.582 Interest income
2e,2x,28,
Beban bunga 36,39 (1.532.175) (1.351.331) Interest expense
PENDAPATAN BUNGA - NETO 516.417 689.251 NET INTEREST INCOME

PENDAPATAN OPERASIONAL
LAINNYA OTHER OPERATING INCOME
Provisi dan komisi - neto 2y,29 123.490 194.258 Fees and commission - net
Keuntungan transaksi mata Gain on foreign exchange
uang asing - neto 2z 72.097 13.434 transactions - net
Lain-lain 4.075 4.826 Others
Total pendapatan
operasional lainnya 199.662 212.518 Total other operating income

BEBAN OPERASIONAL LAINNYA OTHER OPERATING EXPENSES


Beban karyawan 2e,2r,31,36 (397.332) (375.743) Personnel expenses
General and administrative
Beban umum dan administrasi 2l,2m,32 (243.962) (225.106) expenses
Penyisihan kerugian penurunan Provision for impairment
nilai aset keuangan dan losses on financial and
non keuangan 2o,30 (929.519) (87.472) non financial assets
Lain-lain (7.877) (8.175) Others
Total beban operasional lainnya (1.578.690) (696.496) Total other operating expenses
(RUGI) LABA OPERASIONAL (LOSS) INCOME FROM
(862.611) 205.273 OPERATIONS

(BEBAN) PENDAPATAN NON- NON-OPERATING (EXPENSES)


OPERASIONAL - NETO (3.339) 3.662 INCOME - NET

(RUGI) LABA SEBELUM BEBAN PAJAK (LOSS) INCOME BEFORE INCOME


PENGHASILAN (865.950) 208.935 TAX EXPENSE

Manfaat (Beban) pajak penghasilan 2k,21 215.617 (52.889) Income tax benefit (expense)
(RUGI) LABA TAHUN BERJALAN (650.333) 156.046 (LOSS) INCOME FOR THE YEAR

Catatan atas laporan keuangan terlampir merupakan bagian The accompanying notes to the financial statements form an integral
yang tidak terpisahkan dari laporan keuangan secara part of these financial statements.
keseluruhan.

3
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN LABA RUGI DAN PENGHASILAN STATEMENT OF PROFIT OR LOSS AND OTHER
KOMPREHENSIF LAIN (lanjutan) COMPREHENSIVE INCOME (continued)
Untuk Tahun yang Berakhir pada For the Year ended December 31, 2016
Tanggal 31 Desember 2016 (Expressed in millions of Rupiah,
(Disajikan dalam jutaan Rupiah, unless otherwise stated)
kecuali dinyatakan lain)

Tahun yang Berakhir pada tanggal


31 Desember/Year ended December 31
Catatan/
Notes 2016 2015
PENGHASILAN OTHER COMPREHENSIVE
KOMPREHENSIF LAIN INCOME
Pos-pos yang akan diklasifikasikan Item that will be classified to
ke laba rugi: profit or loss:
Perubahan nilai wajar efek-efek Fair value changes of
yang tersedia untuk dijual 2j,13 43 77 available for sales securities
Pajak penghasilan terkait (11) (19) Related income tax

32 58
Pos-pos yang tidak akan Item that will not be
diklasifikasikan ke laba rugi: classified to profit or loss:
Keuntungan aktuarial Actuarial gain
atas program manfaat pasti 22 4.716 4.078 on defined benefit plan
Pajak penghasilan terkait (1.179) (1.019) Related income tax
3.537 3.059
Keuntungan komprehensif, Other comprehensive
lain setelah pajak 3.569 3.117 gain, net of tax
Total (kerugian) penghasilan Total comprehensive
komprehensif tahun berjalan (646.764) 159.163 (loss) income for the year

(RUGI) LABA PER SAHAM - DASAR (LOSS) EARNING PER SHARE


BASIC
(dalam Rupiah penuh) 2v, 33 (74,26) 17,82 (in full amount)

Catatan atas laporan keuangan terlampir merupakan bagian The accompanying notes to the financial statements form an integral
yang tidak terpisahkan dari laporan keuangan secara part of these financial statements.
keseluruhan.

4
The original financial statements included herein are in Indonesian language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN PERUBAHAN EKUITAS STATEMENT OF CHANGES IN EQUITY
Untuk tahun yang Berakhir pada Tanggal 31 Desember 2016 For the year Ended December 31, 2016
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain) (Expressed in millions of Rupiah, unless otherwise stated)

Penghasilan (kerugian) komprehensive lain/


Other Comprehensive Income
Laba (rugi) yang
belum direalisasi
atas efek-efek (Kerugian)
Tambahan dalam keuntungan
modal disetor kelompok tersedia aktuarial
setelah dikurangi Dana setoran modal/ untuk dijual - atas program
biaya emisi Disclosed reserved setelah manfaat Saldo laba (Defisit)/
saham/ pajak tangguhan pasti/ Retained Earnings (Deficit)
Additional Konversi pinjaman Unrealized gain Actuarial
Modal paid-in capital subordinasi/ (loss) on Available losses on Telah ditentukan Belum ditentukan
Catatan/ saham/ net of share Subordinated Tambahan modal/ - for-Sale Securities defined penggunaannya/ penggunaannya/ Total Ekuitas/
Notes Share capital issuance costs loan convertion Capital injection - net of defferred tax benefit plan Appropriated Unappropriated Total Equity
Saldo, 1 Januari 2015 2.189.287 (24.570 ) - - (58 ) (19.503 ) 4.396 115.469 2.265.021 Balance as of January 1, 2015

Laba tahun berjalan 2015 - - - - - - - 156.046 156.046 Income for the year 2015

Keuntungan aktuarial - neto


setelah Pajak - - - - - 3.059 - - 3.059 Actuarial gain - net of tax

Laba yang belum direalisasi atas


efek - efek dalam kelompok Unrealized loss on available-for-
tersedia untuk dijual - setelah sale securities -
pajak tangguhan - - - - 58 - - - 58 net of deffered tax
Total penghasilan komprehensif Total comprehensive income
untuk Tahun berjalan 2015 - - - - 58 3.059 - 156.046 159.163 to December 31, 2015
Saldo 31 Desember 2015 2.189.287 (24.570 ) - - - (16.444 ) 4.396 271.515 2.424.184 Balance as of December 31, 2015

Rugi tahun berjalan 2016 - - - - - - - (650.333 ) (650.333) Loss for the year 2016

Keuntungan aktuarial - neto


setelah Pajak - - - - - 3.537 - - 3.537 Actuarial gain - net of tax

Laba yang belum direalisasi atas


efek - efek dalam kelompok Unrealized gain on available-for-
yang tersedia untuk dijual sale securities - net of
setelah pajak tangguhan 2k, 13 - - - - 32 - - - 32 deffered tax

Pembentukan cadangan umum Appropriation for general


dan wajib - - - - - - 1.000 (1.000 ) - and legal reserve

Dana setoran modal 24,26 - - 948.709 751.800 - - - - 1.700.509 Disclosed reserved


Saldo 31 Desember 2016 2.189.287 (24.570 ) 948.709 751.800 32 (12.907 ) 5.396 (379.818 ) 3.477.929 Balance as of December 31, 2016

Catatan atas laporan keuangan terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan secara keseluruhan. The accompanying notes to the financial statements form an integral part of these financial statements.

5
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN ARUS KAS STATEMENT OF CASH FLOWS
Untuk Tahun yang Berakhir pada Tanggal For the Year ended December 31, 2016
31 Desember 2016 (Expressed in millions of Rupiah,
(Disajikan dalam jutaan Rupiah, unless otherwise stated)
kecuali dinyatakan lain)

Tahun yang Berakhir pada tanggal


31 Desember/Year ended December 31
Catatan/
Notes 2016 2015

ARUS KAS DARI AKTIVITAS CASH FLOWS FROM OPERATING


OPERASI ACTIVITIES
Penerimaan bunga 1.981.760 1.962.530 Receipts from interest income
Pembayaran bunga (1.511.365) (1.352.619) Payments for interest expense
Penerimaan provisi dan komisi 2y,29 124.925 196.278 Receipts from fees and commission
Pembayaran provisi dan komisi 2y,29 (1.435) (2.020) Payments for fees and commission
Pembayaran beban karyawan (329.374) (292.892) Payments for personnel expenses
Pembayaran imbalan pasca kerja 22 (5.170) (3.661) Payment for post employee benefit
Pembayaran beban lainnya - neto (63.159) (434.659) Payments for other expenses - net
Pembayaran pajak penghasilan (2.401) (36.635) Payments for income tax

(Kenaikan) penurunan (Increase) decrease in operating


dalam aset operasi: assets:
Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali (202.233) (794) agreement to resell
Tagihan akseptasi 39.628 (1.077) Aceptances receivable
Kredit yang diberikan 1.385.188 (5.749.537) Loans
Beban dibayar dimuka (80.526) (51.330) Prepayments
Aset lain-lain (17.351) (13) Other assets

Kenaikan (penurunan) Increase (decrease) in operating


dalam liabilitas operasi: liabilities:
Liabilitas segera (96.698) 84.571 Liabilities payable on demand
Simpanan dari nasabah 834.140 2.347.497 Deposits from customers
Simpanan dari bank-bank lain (2.516.313) 1.315.781 Deposits from other banks
Liabilitas akseptasi (39.628) 1.077 Acceptances payable
Beban masih harus dibayar dan
liabilitas lain-lain (62.253) 14.000 Accruals and other liabilities
Arus kas neto digunakan untuk Net cash flows used in
dari aktivitas operasi (562.265) (2.003.503) operating activities

ARUS KAS DARI AKTIVITAS CASH FLOWS FROM INVESTING


INVESTASI ACTIVITIES
Penerimaan atas efek-efek yang telah
jatuh tempo 231 232.411 Proceeds of matured securities
Penempatan pada efek-efek (246.648) (325.213) Placements in securities
Hasil penjualan aset tetap 15 1.158 115 Proceeds from sale of fixed assets
Perolehan aset tetap 15 (69.677) (25.673) Acquisition of fixed assets
Perolehan aset tak berwujud 16 (3.731) (10.791) Acquisition of intangible assets

Arus kas neto digunakan untuk Net cash flows used in


aktivitasi investasi (318.667) (129.151) investing activities

Catatan atas laporan keuangan terlampir merupakan bagian The accompanying notes to the financial statements form an integral
yang tidak terpisahkan dari laporan keuangan secara part of these financial statements.
keseluruhan.

6
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


LAPORAN ARUS KAS (lanjutan) STATEMENT OF CASH FLOWS (continued)
Untuk Tahun yang Berakhir pada Tanggal For the Year ended December 31, 2016
31 Desember 2016 (Expressed in millions of Rupiah,
(Disajikan dalam jutaan Rupiah, unless otherwise stated)
kecuali dinyatakan lain)

Tahun yang Berakhir pada tanggal


31 Desember/Year ended December 31
Catatan/
Notes 2016 2015

ARUS KAS DARI AKTIVITAS CASH FLOW FROM FINANCING


PENDANAAN ACTIVITIES
Dana Setoran Modal 751.800 - Disclosed Reserve
Penerimaan dari surat berharga Proceeds from marketable
yang diterbitkan 300.622 - securities issued
Penerimaan dari penerbitan Proceeds from issuance of
Pinjaman Subordinasi - 964.950 Subordinated Loan
Arus kas bersih diperoleh dari aktivitas Net cash flows provided by
pendanaan 1.052.422 964.950 financing activities
NET INCREASE (DECREASE)
KENAIKAN (PENURUNAN) NETO IN CASH AND
KAS DAN SETARA KAS 171.490 (1.167.704) CASH EQUIVALENTS

PENGARUH FLUKTUASI KURS EFFECT OF FOREIGN EXCHANGE


VALUTA ASING PADA KAS DAN RATE FLUCTUATION ON CASH
SETARA KAS (73.563) 221.113 AND CASH EQUIVALENTS

KAS DAN SETARA KAS, CASH AND CASH EQUIVALENTS,


AWAL TAHUN 3.899.338 4.845.929 AT BEGINNING OF YEAR

KAS DAN SETARA KAS, CASH AND CASH EQUIVALENTS,


AKHIR TAHUN 3.997.265 3.899.338 AT END OF YEAR

Kas dan setara kas terdiri dari: Cash and cash equivalents consist of:
Kas 2b,5 51.260 45.432 Cash
Current accounts with
Giro pada Bank Indonesia 2b,6 1.635.116 1.710.947 Bank Indonesia
Giro pada bank-bank lain 2b,7 80.815 31.146 Current accounts with other banks
Penempatan pada Bank Indonesia Placements with Bank Indonesia
dan bank-bank lain - jatuh tempo and other banks - maturing
dalam 3 bulan sejak tanggal within 3 months since the
perolehan 2b,8 2.230.074 2.111.813 acquisition date
3.997.265 3.899.338

Catatan atas laporan keuangan terlampir merupakan bagian The accompanying notes to the financial statements form an integral
yang tidak terpisahkan dari laporan keuangan secara part of these financial statements.
keseluruhan.

7
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM 1. GENERAL
a. Pendirian dan Informasi Umum a. Establishment and General Information

PT Bank QNB Indonesia Tbk (“Bank”) didirikan PT Bank QNB Indonesia Tbk (“the Bank”) was
pada tanggal 1 April 1913 dengan nama N.V established on April 1, 1913 under the name of
Chunghwa Shangyeh Maatschappij (The N.V Chunghwa Shangyeh Maatschappij (The
Chinese Trading Company Limited) Chinese Trading Company Limited) based on
berdasarkan Akta No. 53 tanggal 28 April 1913 the Notarial Deed No. 53 dated April 28,.1913
yang dibuat di hadapan Notaris Leonard of Notary Leonard Hendrik-Willem Van Sandick
Hendrik-Willem Van Sandick dan telah disetujui and was approved based on Besluit
berdasarkan Besluit Gouverneur Generaal Gouverneur Generaal Hindia Belanda No. 58
Hindia Belanda No. 58 tanggal 16 Juli 1913 dan dated July 16, 1913 and was published in the
diumumkan dalam Extra Bijvougsel der Extra Bijvougsel der Javasche Courant No. 78
Javasche Courant No. 78 Tanggal dated September 30, 1913.
30 September 1913.
Berdasarkan Surat Keputusan Menteri Based on Decree of the Minister of Finance
Keuangan No. 191547/U.M.II tanggal No. 191547/U.M.II dated October 28, 1958, the
28 Oktober 1958, Bank memulai kegiatan Bank started its operation as a commercial
operasionalnya sebagai bank umum. bank.
Nama Bank diubah menjadi PT Bank Kesawan The Bank’s name was changed into PT Bank
berdasarkan Akta Perubahan Anggaran Dasar Kesawan based on the Deed of Articles of
No..60 tanggal 10 Maret 1965 yang dibuat di Association Amendment No. 60 dated
hadapan Ong Kiem Lian, SH, notaris di Jakarta. March 10, .1965 of Ong Kiem Lian, SH, notary
Akta ini telah disahkan oleh Menteri Kehakiman public in Jakarta. This deed was approved by
Republik Indonesia (sekarang Menteri Hukum the Minister of Justice of the Republic of
dan Hak Asasi Manusia) dalam Surat Indonesia (currently the Minister of Laws and
Keputusan No. J.A.5/68/15 tanggal 3 Juli 1965 Human Rights) in his Decree No..J.A.5/68/15
dan telah diumumkan dalam Berita Negara dated July 3, 1965 and was published in to the
Republik Indonesia No. 95 tanggal State Gazette of the Republic of Indonesia
26 Nopember 1965, Tambahan No. 95. No. 95 dated November 26,.1965, Addition
No. 95.
Perubahan status Bank dari perseroan tertutup The change of the Bank’s status from a private
menjadi perseroan terbuka adalah berdasarkan company to a public company was effected by
Akta Pernyataan Keputusan Rapat Umum the Deed of Extraordinary Shareholders’
Pemegang Saham Luar Biasa No. 22 tanggal General Meeting No. 22 dated July 25,.2001 of
25.Juli 2001 yang dibuat di hadapan Fathiah Fathiah Helmi, SH, notary public in Jakarta.
Helmi, SH, notaris di Jakarta. Akta ini telah This deed was approved by the Minister of
memperoleh persetujuan dari Menteri Justice of the Republic of Indonesia dated
Kehakiman Republik Indonesia tanggal December 27, 2001 in his Decree No. C-
27.Desember 2001 dengan Surat Keputusan 20973.HT.01.04.TH.2001 and was published in
No. C-20973.HT.01.04.TH.2001 serta to the State Gazette of the Republic of
diumumkan dalam Berita Negara Republik Indonesia No..75 dated September 17,.2002,
Indonesia No. 75 tanggal 17 September 2002, Addition No. 11113.
Tambahan No. 11113.
Dengan akuisisi saham Bank oleh Qatar Subsequently, following the acquisition of the
National Bank SAQ pada tanggal Bank’s shares by Qatar National Bank SAQ on
26 Januari 2011, nama Bank diubah menjadi January 26,.2011, the Bank’s name was
PT Bank QNB Kesawan Tbk berdasarkan Akta changed into PT Bank QNB Kesawan Tbk
Pernyataan Keputusan Rapat Umum based on the Deed of Extraordinary
Pemegang Saham Luar Biasa No. 23 tanggal Shareholders’ General Meeting No. 23 dated
16 September 2011 yang dibuat di hadapan September 16, 2011 of Fathiah Helmi, SH,
Fathiah Helmi, SH, notaris di Jakarta. Akta ini notary public in Jakarta. This deed was
telah memperoleh persetujuan dari Menteri approved by the Minister
Hukum dan Hak Asasi Manusia Republik of Laws and Human Rights of the
Indonesia berdasarkan Surat Keputusan Republic of Indonesia in his Decree

8
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)


a. Pendirian dan Informasi Umum (lanjutan) a. Establishment and General Information
(continued)

No. AHU-51180.AH.01.02 Tahun 2011 tanggal No. AHU-51180.AH.01.02 Year 2011 dated
21 Oktober 2011 dan telah diumumkan dalam October 21, 2011 and was announced in Berita
Berita Negara Republik Indonesia No. 93 Negara Republik Indonesia No. 93 dated
tanggal 20 November 2012, Tambahan November 20, 2012, Addition No. 72137.
No. 72137.

Selanjutnya nama bank berubah menjadi Subsequently, the bank’s name was changed
PT Bank QNB Indonesia Tbk. berdasarkan Akta into PT Bank QNB Indonesia Tbk. based on The
Pernyataan Keputusan Rapat Umum deed of Minutes of Annual Shareholders’
Pemegang Saham Tahunan No. 35 tanggal General Meeting No. 35 dated July 23, 2014.
23 Juli 2014. Akta ini telah mendapat This deed was approved by the Minister
persetujuan Menteri Hukum dan Hak Asasi of Laws and Human Rights of the
Manusia Republik Indonesia dengan Republic of Indonesia with the Deed No. AHU-
keputusannya No. AHU-0613640.20.2014 0613640.20.2014 dated July 24, 2014.
tanggal 24 Juli 2014.

Anggaran Dasar Bank telah mengalami The Bank’s Articles of Association has been
beberapa kali perubahan. Perubahan terakhir amended several times. The latest amendment
dengan Akta Pernyataan Keputusan Rapat was effected by Notarial Deed of Minutes of
Umum Pemegang Saham Tahunan No. 37 Annual Shareholders’ General Meeting No. 37
tanggal 27 Februari 2015 dibuat dihadapan dated February 27, 2015 of Fathiah Helmi, SH,
Fathiah Helmi, SH, notaris di Jakarta. Akta ini notary public in Jakarta. This deed was
telah memperoleh persetujuan dari Menteri approved by the Minister of Laws and Human
Hukum & Hak Asasi Manusia No. AHU- Rights of the Republic of Indonesia in his
0004611.AH.01.02.2015 tanggal 24 Maret 2015 Decree No. AHU-0004611.AH.01.02.2015
dan penerimaan Perubahan Anggaran Dasar dated March 24, 2015 and The change of
Perseroan telah diterima dan dicatat dalam Articles of Association Amendment company
Database Sisminbakum Kementrian Hukum was received and recorded into Database
dan Hak Asasi Manusia Republik Indonesia No. Sisminbakum of The Minister of Laws and
AHU-AH.01.03-0018662 tanggal 24 Maret Human Rights of the Republic of Indonesia
2015. Susunan Direksi dan Komisaris terakhir 8No. AHU-AH.01.03-0018662 dated March 24,
dimuat dalam Akta Berita Acara Rapat Umum 2015. The latest composition of the Board of
Pemegang Saham Luar Biasa No. 43 tanggal Directors and Commissioners is stated in deed
19 Desember 2016 yang dibuat dihadapan of Minutes of Annual Shareholders’ General
Fathiah Helmi, SH. Notaris di Jakarta. Meeting No. 43 dated December 19, 2016 of
Fathiah Helmi, SH, notary public in Jakarta.

Sesuai dengan pasal 3 Anggaran Dasar Bank, According to article 3 of the Bank’s Articles of
ruang lingkup kegiatan Bank adalah Association, the scope of activities of the Bank
menjalankan kegiatan umum perbankan. is to engage in general banking business.

9
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)


a. Pendirian dan Informasi Umum (lanjutan) a. Establishment and General Information
(continued)

Bank memperoleh persetujuan sebagai The Bank was granted a license to act as a
Pedagang Valuta Asing berdasarkan Surat Foreign Exchange Bank based on the Decree
Keputusan Direksi Bank Indonesia of the Director of Bank Indonesia
No. 28/366/UD/DIR tanggal 4 Desember 1995. No..28/366/UD/DIR dated.December 4, 1995.

Bank memperoleh persetujuan menjadi Bank The Bank was granted a license to conduct
Devisa berdasarkan Surat Keputusan Direksi foreign exchange activities based on the
Bank Indonesia No. 28/150/KEP/DIR tanggal Decree of the Director of Bank Indonesia
22 Februari 1996. No..28/150/KEP/DIR dated.February 22, 1996.

Bank memperoleh persetujuan menjadi Bank The Bank was granted a license as a National
Persepsi Kas Negara berdasarkan Surat Cash Perception Bank based on the Decree of
Keputusan Menteri Keuangan Republik the Minister of Finance of the Republic of
Indonesia No..S-452/MK.03/1996 tanggal Indonesia No. S-452/MK.03/1996 dated August
16 Agustus 1996. 16, 1996.

Kantor Pusat Bank berlokasi di Jalan Jendral The Bank’s head office is located at Jalan
Sudirman Kavling 52-53, Jakarta. Pada Jendral Sudirman Kavling 52-53, Jakarta. As of
31 Desember 2016, Bank mempunyai 1 kantor December 31, 2016, the Bank has 1 non-
pusat non-operasional, 15 kantor cabang, 33 operational head office, 15 branch offices,
kantor cabang pembantu dan 72 ATM di 33 sub-branch offices and 72 ATMs throughout
seluruh Indonesia. Pada 31 Desember 2015, Indonesia. As of December 31, 2015, the Bank
Bank mempunyai 1 kantor pusat non- has 1 non-operational head office, 15 branch
operasional, 15 kantor cabang, 34 cabang offices, 34 sub-branch offices and 62 ATMs
pembantu dan 62 ATM di seluruh Indonesia throughout Indonesia (unaudited).
(tidak diaudit).

Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, the Bank
Bank memiliki masing-masing 908 dan had 908 and 944 employees, respectively
944 karyawan (tidak diaudit). (unaudited).

Bank, melalui pemegang saham mayoritasnya, The Bank, through its majority shareholder,
Qatar National Bank SAQ, merupakan bagian Qatar National Bank SAQ, is ultimately part of
dari Qatar National Bank Group. Qatar National the Qatar National Bank Group. The Qatar
Bank Group memiliki anak perusahaan dan National Bank Group has subsidiaries and
afiliasi di seluruh dunia. affiliates throughout the world.

b. Penawaran Umum Saham Bank b. Public Offering of the Bank's Shares

Pada tanggal 31 Oktober 2002, Bank On October 31, 2002, the Bank obtained the
memperoleh Pernyataan Efektif dari Ketua Effective Notification from the Chairman of the
Badan Pengawas Pasar Modal (Bapepam) Capital Market Supervisory Agency (Bapepam)
berdasarkan Surat Keputusan No. S2369/PM/ through its Decree No. S-2369/PM/2002 in
2002 dalam rangka penawaran umum atas relation to the public offering of its 78,800,000
78.800.000 lembar saham Bank dengan nilai shares with par value and at the offering price
nominal dan harga penawaran sebesar Rp250 of Rp250 (in full amount) per share. The Bank’s
(dalam Rupiah penuh) per saham. Saham Bank shares were traded in Jakarta Stock Exchange
tersebut diperdagangkan di Bursa Efek Jakarta starting.November 21, 2002. (On November 30,
mulai tanggal 21 Nopember 2002. (Pada 2007, Jakarta Stock Exchange and Surabaya
tanggal 30 Nopember 2007, Bursa Efek Jakarta Stock Exchange have merged becoming
dan Bursa Efek Surabaya telah bergabung Indonesia Stock Exchange).
menjadi Bursa Efek Indonesia).

10
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)

b. Penawaran Umum Saham Bank (lanjutan) b. Public Offering of the Bank's Shares
(continued)

Dalam penawaran umum saham ini dikeluarkan These new shares were furnished by Warrants
pula Waran Seri I (waran) yang diberikan Series I (warrant), which were granted to the
secara cuma-cuma kepada pemegang saham new shareholders as a compliment. Each
baru. Setiap pemegang 2 saham baru Bank holder of 2 Bank’s new shares received
memperoleh 3 waran, sehingga jumlah waran 3 warrants; accordingly, the total number of
yang diterbitkan adalah sebanyak 118.200.000 warrants issued was 118,200,000 warrants.
lembar. Setiap 1 waran memberikan hak Each warrant entitled the holder to buy 1 Bank’s
kepada pemegang waran untuk membeli new share at the exercise price. The execution
1 saham baru Bank pada harga period was from.May 21, 2003 to November 18,
pelaksanaannya. Jangka waktu pelaksanaan 2005. Up to the last exercise date on November
waran yang diterbitkan adalah sejak tanggal 18, 2005, the number of exercised warrants
21.Mei 2003 sampai dengan tanggal was 101,219,000 warrants at exercise price of
18.Nopember 2005. Sampai dengan tanggal Rp250 (in full amount) or totaling Rp25,305.
pelaksanaan terakhir yaitu tanggal 18
Nopember 2005, waran yang telah
dilaksanakan adalah sebanyak 101.219.000
waran pada harga pelaksanaan Rp250 (dalam
Rupiah penuh) atau seluruhnya sebesar
Rp25.305.

Pada tanggal 15 Juni 2009, Bank memperoleh On June 15, 2009, the Bank obtained the
Pernyataan Efektif dari Ketua Badan Pengawas Effective Notification from the Chairman of the
Pasar Modal dan Lembaga Keuangan Capital Market Supervisory Agency and
(Bapepam-LK) berdasarkan Surat Keputusan Financial Institutions (Bapepam-LK) through its
No..S-5209/BL/2009 dalam rangka Penawaran Decree No. S-5209/BL/2009 in relation to the
Umum Terbatas I (PUT I) dengan menerbitkan First Limited Public Offering (PUT I) by
Hak Memesan Efek Terlebih Dahulu (HMETD) conducting the Rights Issue (HMETD)
sejumlah 125.304.750 saham dengan nilai amounting to 125,304,750 shares with par
nominal Rp250 (dalam Rupiah penuh) per value of Rp250 (in full amount) per share at an
saham yang ditawarkan dengan harga Rp320 offering price of Rp320 (in full amount) per
(dalam Rupiah penuh) per saham. share.

Setelah PUT I, modal ditempatkan dan disetor After the PUT I, the Bank’s issued and fully paid
Bank meningkat menjadi 626.523.750 lembar capital increased to 626,523,750 shares or
saham atau senilai Rp156.631. Rp156,631.

Pada tanggal 27 Desember 2010, Bank On December 27, 2010, the Bank obtained the
memperoleh Pernyataan Efektif dari Ketua Effective Notification from the Chairman of
Bapepam-LK berdasarkan Surat Keputusan Bapepam-LK through its Decree
No. S-11585/BL/2010 dalam rangka No. S-11585/BL/2010 in relation to the Second
Penawaran Umum Terbatas II (PUT II) dengan Limited Public Offering (PUT II) by conducting
menerbitkan Hak Memesan Efek Terlebih the Rights Issue (HMETD) amounting to
Dahulu (HMETD) sejumlah 2.935.263.768 2,935,263,768 shares with par value and at the
saham dengan nilai nominal dan harga offering price of Rp250 (in full amount) per
penawaran sebesar Rp250 (dalam Rupiah share.
penuh) per saham.

Setelah PUT II, modal ditempatkan dan disetor After the PUT II, the Bank’s issued and fully
Bank meningkat menjadi 3.561.787.518 lembar paid capital increased to 3,561,787,518 shares
saham atau senilai Rp890.447. or Rp890,447.

11
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)

b. Penawaran Umum Saham Bank (lanjutan) b. Public Offering of the Bank's Shares
(continued)

Pada tanggal 27 Mei 2013, Bank memperoleh On May 27, 2013, the Bank obtained the
Pernyataan Efektif dari Otoritas Jasa Keuangan Effective Notification from Financial Service
(“OJK”) berdasarkan Surat Keputusan Authority (“OJK”) through its Decree
No. S-141/D.04/2013 dalam rangka Penawaran No. S-141/D.04/2013 in relation to the Third
Umum Terbatas III (PUT III) dengan Limited Public Offering (PUT III) by conducting
menerbitkan Hak Memesan Efek Terlebih the Rights Issue (HMETD) amounting to
Dahulu (HMETD) sejumlah 2.596.543.000 2,596,543,000 shares with par value and at the
saham dengan nilai nominal dan harga offering price of Rp250 (in full amount) per
penawaran sebesar Rp250 (dalam Rupiah share.
penuh) per saham.

Setelah PUT III, modal ditempatkan dan disetor After the PUT III, the Bank’s issued and fully
Bank meningkat menjadi 6.158.330.518 lembar paid capital increased to 6,158,330,518 shares
saham atau senilai Rp1.539.583. or Rp1,539,583.

Pada tanggal 2 Juni 2014, Bank memperoleh On June 2, 2014, the Bank obtained the
Pernyataan Efektif dari Otoritas Jasa Keuangan Effective Notification from Financial Service
(“OJK”) berdasarkan Surat Keputusan Authority (“OJK”) through its Decree
No. S-253/D.04/2014 dalam rangka Penawaran No. S-253/D.04/2014 in relation to the fourth
Umum Terbatas IV (PUT IV) dengan Limited Public Offering (PUT IV) by conducting
menerbitkan Hak Memesan Efek Terlebih the Rights Issue (HMETD) amounting to
Dahulu (HMETD) sejumlah 2.598.815.479 2,598,815,479 shares with par value and at the
saham dengan nilai nominal dan harga offering price of Rp250 (in full amount) per
penawaran sebesar Rp250 (dalam Rupiah share.
penuh) per saham.

Setelah PUT IV, modal ditempatkan dan disetor After the PUT IV, the Bank’s issued and fully
Bank meningkat menjadi 8.757.145.997 lembar paid capital increased to 8,757,145,997 shares
saham atau senilai Rp2.189.287. or Rp2,189,287.

c. Dewan Komisaris dan Direksi c. Boards of Commissioners and Directors

31 Desember/December 31, 2016


Dewan Komisaris Board of Commissioners
Komisaris Utama Ali Ahmed Z A Al Kuwari President Commissioner
Komisaris Independen Suroto Moehadji Independent Commissioner
Komisaris Independen Muhammad Anas Malla Independent Commissioner
Komisaris Independen Djoko Sarwono Independent Commissioner
Komisaris Grant Eric Lowen Commissioner
Komisaris Andrew McGregor Duff*) Commissioner
Direksi Board of Directors
Direktur Azhar bin Abdul Wahab Director
Direktur Lloyd Roslton Director
Direktur Windiartono Tabingin Director
Direktur Novi Mayasari Director
Direktur R.Andi Kartiko Utomo*) Director
Direktur Junita Wangsadinata**) Director
*) Efektif setelah mendapat persetujuan OJK atas Uji Kemampuan dan Kepatuhan *) Effective after the issuance of OJK approval of Fit and Proper Test
**) Efektif pada 16 Februari 2017 dan setelah mendapat persetujuan OJK **) Effective on February 16, 2017 and after the issuance of OJK
atas Uji Kemampuan dan Kepatuhan approval of Fit and Proper Test

12
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)

c. Dewan Komisaris dan Direksi (lanjutan) c. Boards of Commissioners and Directors


(continued)

31 Desember/December 31, 2015


Dewan Komisaris Board of Commissioners
Komisaris Utama Ali Ahmed Z A Al Kuwari President Commissioner
Komisaris Independen Suroto Moehadji Independent Commissioner
Komisaris Independen Nasrul Husin*) Independent Commissioner
Komisaris Independen Muhammad Anas Malla Independent Commissioner
Komisaris Independen Djoko Sarwono**) Independent Commissioner
Komisaris Grant Eric Lowen Commissioner
Komisaris M. Chidambaram Commissioner
Direksi Board of Directors
Direktur Utama Andrew McGregor Duff President Director
Direktur Azhar bin Abdul Wahab Director
Direktur Windiartono Tabingin Director
Direktur Rusli Director
Direktur Hery Syafril***) Director
Direktur Lloyd Rolston Director
Direktur Novi Mayasari****) Director

*) Habis masa jabatan sesuai dengan RUPS pada tanggal 27 Februari 2015 *) Expiration of employment period based on Shareholder’s General Meeting on February 27, 2015
**) Efektif sejak keluarnya persetujuan OJK atas Uji Kemampuan dan Kepatuhan **) Effective after the issuance of OJK approval of Fit and Proper Test No. SR-216/D.08/2015 on
No. SR-216/D.08/2015 tanggal 11 November 2015 November 11, 2015
***) Efektif mengundurkan diri pada tanggal 9 Oktober 2015 ***) Effective resigned on October 9, 2015
****) Efektif sejak keluarnya persetujuan OJK atas Uji Kemampuan dan Kepatuhan ****) Effective after the issuance of OJK approval of Fit and Proper Test No. SR-182/D.03/2015 on
No. SR-182/D.03/2015 tanggal 2 Oktober 2015 October 2, 2015

d. Komite-Komite Bank d. The Bank’s Committees

Susunan Komite-komite Bank pada tanggal The composition of the Bank’s Committees as
31 Desember 2016 dan 2015 adalah sebagai of December 31, 2016 and 2015 are as follows:
berikut:
31 Desember/December 31, 2016
Komite Audit Audit Committee
Ketua Djoko Sarwono Chairman
Anggota Irzal Zaini Member
Anggota Tjeptjep Hasmitha Member

Komite Pemantau Risiko Risk Oversight Committee


Ketua Muhammad Anas Malla Chairman
Anggota Irzal Zaini Member
Anggota Ani Hadi Setyowati Member

Komite Remunerasi dan Nominasi Nomination and Remuneration Committee


Ketua Suroto Moehadji Chairman
Anggota Grant Eric Lowen Member
Anggota Steven Stevanus Member

31 Desember/December 31, 2015


Komite Audit Audit Committee
Ketua Muhammad Anas Malla Chairman
Anggota Irzal Zaini Member
Anggota Wayan Suryadarma Member

13
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

1. UMUM (lanjutan) 1. GENERAL (continued)

d. Komite-Komite Bank (lanjutan) d. The Bank’s Committes (continued)

Komite Pemantau Risiko Risk Oversight Committee


Ketua Suroto Moehadji Chairman
Anggota Irzal Zaini Member
Anggota Ani Hadi Setyowati Member
Anggota M. Chidambaram Member

Komite Remunerasi dan Nominasi Nomination and Remuneration Committee


Ketua Muhammad Anas Malla Chairman
Anggota Grant Eric Lowen Member
Anggota Steven Stevanus Member

e. Sekretaris Perusahaan e. Corporate Secretary

Sekretaris Perusahaan pada The Corporate Secretary as


tanggal 31 Desember 2016 dan 31 Desember of December 31, 2016 and December 31, 2015
2015 adalah Lina. was Lina.

f. Kepala Satuan Kerja Audit Internal (SKAI) f. Head of Internal Audit

Kepala SKAI Bank pada tanggal The Bank’s Head of Internal Audit as of
31 Desember 2016 dan 2015 masing-masing December 31, 2016 and 2015 was Cut
adalah Cut Tashana Azia dan Tota Melanie L Tashana Azia and Tota Melanie L Tobing,
Tobing. respectively.

g. Laporan Keuangan Bank g. The Bank’s Financial Statements

Manajemen Bank bertanggung jawab atas The Management of the Bank is responsible for
penyusunan laporan keuangan ini, yang the preparation of these financial statements,
diselesaikan dan disetujui untuk diterbitkan which were completed and authorized for issue
pada tanggal 30 Januari 2017. on January 30, 2017.

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING POLICIES

Kebijakan-kebijakan akuntansi yang penting, yang The significant accounting policies, applied in the
diterapkan dalam penyusunan laporan keuangan preparation of the Bank’s financial statements as of
Bank pada tanggal dan tahun berakhir 31 Desember and for the year ended.December 31, 2016, were
2016, adalah sebagai berikut: as follows:

a. Pernyataan Kepatuhan a. Statement of Compliance

Laporan keuangan Bank disusun dan disajikan The Bank’s financial statements were prepared
sesuai dengan Standar Akuntansi Keuangan and presented in accordance with Indonesian
(“SAK”) di Indonesia yang mencakup Financial Accounting Standards (FAS)
Pernyataan dan Interpretasi yang dikeluarkan including statements and interpretation issued
oleh Dewan Standar Akuntansi Keuangan by the Financial Accounting Standards Board of
Ikatan Akuntan Indonesia (DSAK-IAI). the Indonesian Institute of Accountants (DSAK-
IAI).

14
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

a. Pernyataan Kepatuhan (lanjutan) a. Statement of Compliance (continued)

Laporan keuangan juga disusun dan disajikan The financial statements have also been
sesuai dengan peraturan Badan Pengawas prepared and presented in accordance with
Pasar Modal dan Lembaga Keuangan Capital Market and Financial Institutions
(“BAPEPAM-LK”, yang fungsinya dialihkan Supervisory Agency (“BAPEPAM-LK”, which
kepada Otoritas Jasa Keuangan (“OJK”) sejak function has been transferred to Financial
tanggal 1 Januari 2013) No. VIII.G.7 yang Service Authority (“OJK”) starting January 1,
merupakan Lampiran Keputusan Ketua 2013) rule No. VIII.G.7, Appendix of the Decree
BAPEPAM-LK No. KEP-347/BL/2012 tanggal of the Chairman of the BAPEPAM-LK No. KEP-
25 Juni 2012 tentang “Penyajian dan 347/BL/2012 dated June 25, 2012 regarding
Pengungkapan Laporan Keuangan Emiten atau “Financial Statements Presentation and
Perusahaan Publik”. Disclosure of the Issuer or Public Company”.

b. Dasar Penyusunan Laporan Keuangan b. Basis for Preparation of Financial


Statements
Laporan keuangan disusun dan disajikan The financial statements were prepared and
sesuai dengan Pernyataan Standar Akuntansi presented in accordance with the Statement of
Keuangan (“PSAK”) No. 1 (Revisi 2013), Financial Accounting Standards (“SFAS”) No. 1
“Penyajian Laporan Keuangan” yang mengatur (Revised 2013), “Presentation of Financial
penyajian laporan keuangan, yaitu antara lain, Statements”, which regulates presentation of
tujuan pelaporan, komponen laporan financial statements as to, among others, the
keuangan, penyajian secara wajar, materialitas objective, components of financial statements,
dan agregasi, saling hapus, perbedaan antara fair presentation, materiality and aggregation,
aset lancar dan tidak lancar dan liabilitas jangka offsetting, distinction between current and non-
pendek dan panjang, informasi komparatif, current assets and short-term and long-term
konsistensi penyajian dan memperkenalkan liabilities, comparative information and
pengungkapan baru, antara lain, sumber consistency and introduces new disclosures
estimasi ketidakpastian dan pertimbangan, such as, among others, key estimates and
pengelolaan permodalan, pendapatan judgments, capital management, other
komprehensif lainnya, penyimpangan dari comprehensive income, departures from
standar akuntansi keuangan dan pernyataan accounting standards and statement of
kepatuhan. Pos-pos dalam Penghasilan compliance. The items under Other
komprehensif lainnya disajikan terpisah antara Comprehensive Income (OCI) should be
akun-akun yang akan direklasifikasikan ke laba presented separately between items to be
rugi dan akun-akun yang tidak akan reclassified to profit or loss and items not to be
direklasifikasikan ke laba rugi. reclassified to profit or loss.

Laporan keuangan ini disajikan dalam Rupiah, Figures in these financial statements are
yang merupakan mata uang fungsional Bank. presented in Rupiah, which is the Bank’s
Kecuali dinyatakan secara khusus, informasi functional currency. Except as otherwise
keuangan yang disajikan telah dibulatkan indicated, financial information presented in
menjadi jutaan Rupiah. Rupiah has been rounded to the nearest
million.
Laporan keuangan disusun dan disajikan The measurement basis used is the historical
berdasarkan nilai historis, kecuali beberapa cost, except for certain accounts which are
akun tertentu disusun berdasarkan pengukuran measured on the bases describe in the related
lain sebagaimana diuraikan dalam kebijakan accounting policies. The financial statements,
akuntansi masing-masing akun tersebut. Dasar except for the statement of cash flows, are
penyusunan laporan keuangan adalah dasar prepared and presented under the accrual
akrual, kecuali laporan arus kas. basis of accounting.

15
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

b. Dasar Penyusunan Laporan Keuangan b. Basis for Preparation of Financial


(lanjutan) Statements (continued)

Laporan arus kas menyajikan perubahan dalam The statement of cash flows present the
kas dan setara kas dari aktivitas operasi, changes in cash and cash equivalents from
investasi dan pendanaan. Laporan arus kas operating, investing, and financing activities.
disusun dengan metode langsung. Untuk tujuan The statement of cash flows are prepared using
laporan arus kas, kas dan setara kas meliputi the direct method. For the purpose of the
kas, giro pada Bank Indonesia, giro pada bank- statement of cash flows, cash and cash
bank lain, penempatan pada Bank Indonesia equivalents consist of cash, current accounts
dan bank-bank lain dan Sertifikat Bank with Bank Indonesia, current accounts with other
Indonesia yang jatuh tempo dalam waktu tiga banks, placements with Bank Indonesia and
bulan sejak tanggal perolehan, sepanjang tidak other banks and Certificates of Bank Indonesia
digunakan sebagai jaminan atas pinjaman yang that mature within three months from the date of
diterima serta tidak dibatasi penggunaannya. acquisition, as long as they are not being
pledged as collateral for borrowings nor
restricted.

c. Penggunaan pertimbangan, estimasi dan c. Use of judgments, estimates and


asumsi assumptions
Penyusunan laporan keuangan sesuai dengan The preparation of financial statements in
Standar Akuntansi Keuangan di Indonesia conformity with Indonesian Financial
mengharuskan manajemen untuk membuat Accounting Standards requires management to
pertimbangan, estimasi dan asumsi yang make judgments, estimates and assumptions
mempengaruhi penerapan kebijakan akuntansi that affect the application of accounting policies
dan jumlah aset, liabilitas, pendapatan dan and the reported amounts of assets, liabilities,
beban yang dilaporkan. income and expenses.
Walaupun estimasi ini dibuat berdasarkan Although these estimates are based on
pengetahuan terbaik manajemen atas kejadian management’s best knowledge of current
dan kegiatan saat ini, hasil aktual dapat events and activities, actual results may differ
berbeda dari estimasi tersebut. from those estimates.

Estimasi dan asumsi yang digunakan ditelaah Estimates and underlying assumptions are
secara berkesinambungan. Revisi atas estimasi reviewed on an ongoing basis. Revisions to
akuntansi diakui pada periode dimana estimasi accounting estimates are recognized in the
tersebut direvisi dan periode-periode yang akan periods in which the estimate is revised and in
datang yang dipengaruhi oleh revisi estimasi any future periods affected.
tersebut.
Informasi mengenai hal-hal penting yang terkait Information about significant areas of
dengan ketidakpastian estimasi dan estimation uncertainty and critical judgments in
pertimbangan-pertimbangan penting dalam applying accounting policies that have
penerapan kebijakan akuntansi yang memiliki significant effect on the amount recognized in
dampak yang signifikan terhadap jumlah yang the financial statements are described in
diakui dalam laporan keuangan dijelaskan di Note 4.
Catatan 4.

d. Penjabaran Transaksi dan Saldo dalam d. Foreign Currency Transactions and


Valuta Asing Balances Translation

Transaksi-transaksi dalam valuta asing Transactions in foreign currencies are


dijabarkan ke dalam Rupiah dengan translated into Rupiah at the exchange rates
menggunakan kurs pada tanggal transaksi. prevailing at the transaction date.

16
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
d. Penjabaran Transaksi dan Saldo dalam d. Foreign Currency Transactions and
Valuta Asing (lanjutan) Balances Translation (continued)
Saldo akhir tahun aset moneter dan liabilitas Year-end balances of monetary assets and
moneter dalam valuta asing dijabarkan ke liabilities denominated in foreign currencies are
dalam Rupiah dengan kurs laporan (penutupan) translated into Rupiah using reporting (closing)
yang ditetapkan oleh Bank Indonesia, yaitu kurs rate determined by Bank Of Indonesia, which is
tengah yang merupakan rata-rata kurs beli dan middle rate from the average of bid and ask rate
kurs jual berdasarkan Reuters pada pukul 16.00 based on Reuters at 16.00 WIB (Western
WIB setiap hari. Indonesia local time) everyday.

Laba atau rugi kurs valuta asing atas aset dan The foreign currency gain or loss on monetary
liabilitas moneter merupakan selisih antara items is the difference between amortized cost
biaya perolehan diamortisasi dalam Rupiah in Rupiah at the beginning of the year, adjusted
pada awal tahun, disesuaikan dengan suku for effective interest and payments during the
bunga efektif dan pembayaran selama tahun year and the amortized cost in foreign currency
berjalan dan biaya perolehan diamortisasi translated into Rupiah at the exchange rate at
dalam valuta asing yang dijabarkan ke dalam the end of the year.
Rupiah dengan menggunakan kurs pada akhir
tahun.

Aset dan liabilitas non moneter dalam valuta Non-monetary assets and liabilities
asing yang diukur berdasarkan biaya historis denominated in foreign currency that are
dijabarkan dengan menggunakan kurs pada measured based on historical cost are
tanggal transaksi. translated using the exchange rate at the date
of the transaction.
Keuntungan atau kerugian selisih kurs yang The exchange gains or losses arising from
timbul dari transaksi dalam valuta asing dan transactions in foreign currencies and from the
dari penjabaran aset dan liabilitas moneter translation of foreign currencies monetary
dalam valuta asing diakui pada laba rugi tahun assets and liabilities are recognized in profit or
berjalan. loss for the year.
Kurs valuta asing utama yang digunakan pada The major rates of foreign exchange used as of
tanggal 31 Desember 2016 dan 2015 adalah December 31, 2016 and 2015 are as follows (in
sebagai berikut (dalam Rupiah penuh): full amount):
Valuta asing 2016 2015 Foreign currencies

Euro Eropa 14.175,77 15.056,67 European Euro


Dolar Amerika Serikat 13.472,50 13.785,00 United States Dollar
Dolar Australia 9.723,11 10.083,73 Australian Dollar
Dolar Singapura 9.311,93 9.758,95 Singapore Dollar
Dolar Hong Kong 1.737,34 1.778,70 Hong Kong Dollar
Yen Jepang 115,07 114,52 Japanese Yen
Poundsterling Inggris 16.555,01 20.439,02 Great Britain Poundsterling
Riyal Qatar 3.701,24 3.787,09 Qatari Riyal
Franc Swiss 13.208,98 13.919,33 Swiss Franc
Dolar Selandia Baru 9.362,72 9.444,80 New Zealand Dollar
Baht Thailand 376,12 381,97 Thailand Baht

e. Transaksi dengan Pihak-pihak Berelasi e. Transactions with Related Parties


Dalam laporan keuangan ini, istilah pihak-pihak In these financial statements, the term related
berelasi digunakan sesuai dengan PSAK No. 7 party is used as defined in SFAS No. 7 (2010
(Revisi 2010), “Pengungkapan Pihak-pihak Revision), “Related Party Disclosures”.
Berelasi”.
Pihak berelasi adalah orang atau entitas yang A related party is a person or entity that is
terkait dengan entitas yang menyiapkan related to the entity that is preparing its financial
laporan keuangannya (dalam PSAK No. 7 statements (referred to SFAS No. 7 (2010
(Revisi 2010) dirujuk sebagai “entitas pelapor”). Revision) as the “reporting entity”).

17
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
e. Transaksi dengan Pihak-pihak Berelasi e. Transactions with Related Parties
(lanjutan) (continued)
a) Orang atau anggota keluarga dekatnya a) A person or a close member of that
mempunyai relasi dengan entitas pelapor person’s family is related to a reporting
jika orang tersebut: entity if that person
i. memiliki pengendalian atau i. has control or joint control over the
pengendalian bersama atas entitas reporting entity;
pelapor;
ii. memiliki pengaruh signifikan atas ii. has significant influence over the
entitas pelapor; atau reporting entity; or
iii. merupakan personil manajemen iii. is a member of the key management
kunci entitas pelapor atau entitas personnel of the reporting entity or of a
induk dari entitas pelapor. parent of the reporting entity.
b) Suatu entitas berelasi dengan entitas b) An entity is related to a reporting entity if any
pelapor jika memenuhi salah satu hal of the following conditions applies :
berikut:
i. Entitas dan entitas pelapor adalah i. The entity and the reporting entity are
anggota dari kelompok usaha yang members of the same group (which
sama (artinya entitas induk, entitas means that each parent, subsidiary and
anak, dan entitas anak berikutnya saling fellow subsidiary is related to the
berelasi dengan entitas lainnya). others).

ii. Satu entitas adalah entitas asosiasi ii. One entity is an associate or joint
atau ventura bersama dari entitas lain venture of the other entity (or an
(atau entitas asosiasi atau ventura associate or joint venture of a member
bersama yang merupakan anggota of a group of which the other entity is a
suatu kelompok usaha, yang mana member).
entitas lain tersebut adalah
anggotanya).

iii. Kedua entitas tersebut adalah ventura iii. Both entities are joint ventures of the
bersama dari pihak ketiga yang sama. same third party.
iv. Satu entitas adalah ventura bersama iv. One entity is a joint venture of a third
dari entitas ketiga dan entitas yang lain entity and the other entity is an
adalah entitas asosiasi dari entitas associate of the third entity.
ketiga.
v. Entitas tersebut adalah suatu program v. The entity is a post-employment benefit
imbalan pasca-kerja untuk imbalan plan for the benefit of employees of
kerja dari salah satu entitas pelapor either the reporting entity or an entity
atau entitas yang terkait dengan entitas related to the reporting entity. If the
pelapor. Jika entitas pelapor adalah reporting entity is itself such a plan, the
program tersebut, maka entitas-entitas sponsoring employers are also related
yang menyelenggarakan sponsor juga to the reporting entity.
berelasi dengan entitas pelapor.

vi. Entitas yang dikendalikan atau vi. The entity is controlled, or jointly
dikendalikan bersama oleh orang yang controlled by a person identified in (a).
diidentifikasi dalam huruf (a).
vii. Orang yang diidentifikasi dalam huruf vii. A person identified in (a) (i) has
(a) (i) memiliki pengaruh signifikan atas significant influence over the entity or is
entitas atau merupakan personil a member of the key management
manajemen kunci entitas (atau entitas personnel of the entity (or of a parent of
induk dari entitas). the entity).

18
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

e. Transaksi dengan Pihak-pihak Berelasi e. Transactions with Related Parties


(lanjutan) (continued)

b) Suatu entitas berelasi dengan entitas b) An entity is related to a reporting entity if any
pelapor jika memenuhi salah satu hal of the following conditions applies:
berikut: (lanjutan) (continued)

Transaksi dan saldo dengan pihak-pihak Transactions and balances of accounts with
berelasi, baik yang dilaksanakan dengan related parties, whether or not transacted at
ataupun tidak dilaksanakan dengan normal terms and conditions similar to those
persyaratan dan kondisi normal yang sama with non-related parties, are disclosed in the
untuk pihak-pihak yang tidak berelasi, notes to the financial statements.
diungkapkan dalam catatan atas laporan
keuangan.

f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities

Aset keuangan Bank terutama terdiri dari kas, The Bank’s financial assets mainly consist of
giro pada Bank Indonesia, giro pada bank-bank cash, current accounts with Bank Indonesia,
lain, penempatan pada Bank Indonesia dan current accounts with other banks, placements
bank-bank lain, tagihan derivatif, tagihan with Bank Indonesia and other banks,
akseptasi, efek-efek yang dibeli dengan janji derivatives receivable, acceptances
dijual kembali, kredit yang diberikan, efek-efek receivables, securities purchased under
dan aset lain-lain. agreement to resell, loans, securities and other
assets.

Liabilitas keuangan Bank terutama terdiri dari The Bank’s financial liabilities mainly consist of
simpanan dari nasabah, simpanan dari bank- deposits from customers, deposits from other
bank lain, liabilitas akseptasi, liabilitas derivatif, banks, acceptances payables, derivatives
pinjaman subordinasi, beban masih harus payable, subordinated loan, accruals and other
dibayar, dan liabilitas lain-lain. liabilities.

(i) Klasifikasi (i) Classification


Bank mengelompokkan aset keuangannya The Bank classifies its financial assets in the
dalam kategori berikut pada saat following categories on initial recognition:
pengakuan awal:

i. Diukur pada nilai wajar melalui laba rugi, i. Fair value through profit or loss, which
yang memiliki 2 sub-klasifikasi, yaitu has 2 sub-classifications, i.e. financial
aset keuangan yang ditetapkan assets designated as such upon initial
demikian pada saat pengakuan awal recognition and financial assets
dan aset keuangan yang diklasifikasikan classified as held for trading;
dalam kelompok diperdagangkan
ii. Tersedia untuk dijual; ii. Available-for-sale;
iii. Dimiliki hingga jatuh tempo; iii. Held-to-maturity;
iv. Pinjaman yang diberikan dan piutang. iv. Loans and receivables

Liabilitas keuangan dikelompokkan ke Financial liabilities are classified into the


dalam kategori berikut pada saat following categories on initial recognition:
pengakuan awal:

i. Diukur pada nilai wajar melalui laba rugi, i. Fair value through profit or loss, which
yang memiliki 2 sub-klasifikasi, yaitu has 2 sub-classifications, i.e. those
liabilitas keuangan yang ditetapkan designated as such upon initial
demikian pada saat pengakuan awal recognition and those classified as held
dan liabilitas keuangan yang for trading;
diklasifikasikan dalam kelompok
diperdagangkan;

19
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities
(lanjutan) (continued)

(i) Klasifikasi (lanjutan) (i) Classification (continued)

ii. Liabilitas keuangan yang diukur pada ii. Financial liabilities measured at
biaya perolehan diamortisasi. amortized cost.

Kategori untuk diperdagangkan adalah Held for trading are those assets and
aset dan liabilitas keuangan yang liabilities that the Bank acquires or
diperoleh atau dimiliki Bank terutama incurs principally for the purpose of
untuk tujuan dijual atau dibeli kembali selling or repurchasing in the near term,
dalam waktu dekat, atau dimiliki or holds as part of a portfolio that is
sebagai bagian dari portofolio yang managed together for short-term profit
dikelola bersama untuk memperoleh or position taking.
laba jangka pendek atau position taking.
Kategori tersedia untuk dijual terdiri dari Available-for-sale category consists of
aset keuangan non-derivatif yang non-derivative financial assets that are
ditetapkan sebagai tersedia untuk dijual designated as available-for-sale or are
atau yang tidak dikelompokkan ke not classified in one of the other
dalam salah satu kategori aset categories of financial assets.
keuangan lainnya.

Di dalam kategori dimiliki hingga jatuh In the held-to-maturity category are non-
tempo adalah aset keuangan non- derivative financial assets with fixed or
derivatif dengan pembayaran tetap atau determinable payments and fixed
telah ditentukan dan jatuh temponya maturity that the Bank has the positive
telah ditetapkan dimana Bank intent and ability to hold to maturity, and
mempunyai intensi positif dan which are not designated at fair value
kemampuan untuk memiliki hingga through profit or loss or available-for-
jatuh tempo, dan yang tidak ditetapkan sale.
pada nilai wajar melalui laba rugi atau
tersedia untuk dijual.

Pinjaman yang diberikan dan piutang Loans and receivables are non-
adalah aset keuangan non-derivatif derivative financial assets with fixed or
dengan pembayaran tetap atau telah determinable payments that are not
ditentukan yang tidak mempunyai quoted in an active market and that the
kuotasi di pasar aktif dan Bank tidak Bank does not intend to sell immediately
berniat untuk menjualnya segera atau or in the near term.
dalam waktu dekat.

(ii) Pengakuan (ii) Recognition

Bank pada awalnya mengakui kredit yang The Bank initially recognizes loans and
diberikan serta simpanan diukur pada nilai deposits at fair value on the date of
wajar pada tanggal perolehan. origination

Pembelian dan penjualan aset keuangan Regular way purchases and sales of
yang lazim (regular) diakui pada tanggal financial assets are recognized on the trade
perdagangan dimana Bank memiliki date at which the Bank commits to
komitmen untuk membeli atau menjual purchase or sell the asset.
aset tersebut.

20
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities
(lanjutan) (continued)

(ii) Pengakuan (lanjutan) (ii) Recognition (continued)

Semua aset dan liabilitas keuangan All other financial assets and liabilities are
lainnya pada awalnya diakui pada tanggal initially recognized on the trade date at
perdagangan dimana Bank menjadi suatu which the Bank becomes a party to the
pihak dalam ketentuan kontraktual contractual provisions of the instrument.
instrumen tersebut.

Pada saat pengakuan awal, aset A financial asset or financial liability is


keuangan atau liabilitas keuangan diukur initially measured at fair value plus/less
pada nilai wajar ditambah/dikurang (except for an item not subsequently
(kecuali untuk item yang tidak diukur pada measured at fair value through profit or
nilai wajar melalui laba rugi setelah loss) transaction costs that are directly
pengakuan awal) biaya transaksi yang attributable to the acquisition of financial
dapat diatribusikan secara langsung atas asset or issue of financial liability. The
perolehan aset keuangan atau penerbitan subsequent measurement of financial
liabilitas keuangan. Pengukuran aset assets and financial liabilities depends on
keuangan dan liabilitas keuangan setelah its classification.
pengakuan awal tergantung pada
klasifikasi aset keuangan dan liabilitas
keuangan tersebut.

Biaya transaksi hanya meliputi biaya- Transaction costs include only those costs
biaya yang dapat diatribusikan secara that are directly attributable to the
langsung untuk perolehan suatu aset acquisition of a financial asset or issue of a
keuangan atau penerbitan suatu liabilitas financial liability and are incremental costs
keuangan dan merupakan biaya that would not have been incurred if the
tambahan yang tidak akan terjadi apabila financial instrument had not been acquired
instrumen keuangan tersebut tidak or issued. In the case of financial assets,
diperoleh atau diterbitkan. Untuk aset transaction costs are added to the amount
keuangan, biaya transaksi ditambahkan recognized initially, while for financial
pada jumlah yang diakui pada awal liabilities, transaction costs are deducted
pengakuan aset, sedangkan untuk from the amount of debt recognized initially.
liabilitas keuangan, biaya transaksi
dikurangkan dari jumlah utang yang diakui
pada awal pengakuan liabilitas.

Biaya transaksi tersebut diamortisasi Such transactions costs are amortized over
selama umur instrumen berdasarkan the terms of the instruments based on the
metode suku bunga efektif dan dicatat effective interest method and are recorded
sebagai bagian dari pendapatan bunga as part of interest income for transaction
untuk biaya transaksi sehubungan dengan costs related to financial assets or interest
aset keuangan atau sebagai bagian dari expenses for transaction costs related to
beban bunga untuk biaya transaksi financial liabilities.
sehubungan dengan liabilitas keuangan.

(iii) Penghentian pengakuan (iii) Derecognition

a. Aset keuangan dihentikan a. Financial assets are derecognized


pengakuannya jika: when:

- Hak kontraktual atas arus kas yang - The contractual rights to receive
berasal dari aset keuangan cash flows from the financial assets
tersebut berakhir; atau have expired; or

21
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities
(lanjutan) (continued)

(iii) Penghentian pengakuan (lanjutan) (iii) Derecognition (continued)

a. Aset keuangan dihentikan a. Financial assets are derecognized


pengakuannya jika: (lanjutan) when: (continued)

- Bank telah mentransfer hak-nya - The Bank has transferred its rights
untuk menerima arus kas yang to receive cash flows from the
berasal dari aset keuangan atau financial assets or has assumed an
menanggung kewajiban untuk obligation to pay the cash flows in
membayarkan arus kas yang full without material delay to a third
diterima tersebut secara penuh party under a ”pass through
tanpa penundaan berarti kepada arrangement”; and
pihak ketiga di bawah kesepakatan
pelepasan (pass through
arrangement); dan

- (a) Bank telah mentransfer secara - (a) the Bank has transferred
substansial seluruh risiko dan substantially all the risks and
manfaat atas aset, atau (b) Bank rewards of the asset, or (b) the
tidak mentransfer maupun tidak Bank has neither transferred nor
memiliki secara substansial retained substantially all the risks
seluruh risiko dan manfaat atas and rewards of the asset, but has
aset, namun telah mentransfer transferred control of the asset.
pengendalian atas aset.

Ketika Bank telah mentransfer hak When the Bank has transferred its
untuk menerima arus kas dari rights to receive cash flows from an
aset atau di bawah kesepakatan asset or has entered into a “pass
pelepasan (pass through arrangement), through arrangement”, and has neither
dan tidak mentransfer serta tidak transferred nor retained substantially all
memiliki secara substansial seluruh the risks and rewards of the asset nor
risiko dan manfaat atas aset atau tidak transferred control of the asset, the
mentransfer kendali atas aset, aset asset is recognized to the extent of the
diakui sebesar keterlibatan Bank yang Bank’s continuing involvement in the
berkelanjutan atas aset tersebut. asset.

Kredit yang diberikan atau aset Loans and receivables or other


keuangan lain dihapusbukukan ketika financial assets are written off when
tidak terdapat prospek yang realistis there is no realistic prospect of
mengenai pengembalian kredit dalam collection in the near future or the
waktu dekat atau hubungan normal normal relationship between the Bank
antara Bank dan debitur telah berakhir. and the borrowers has ceased to exist.
Kredit yang tidak dapat dilunasi When a loan is deemed uncollectible, it
dihapusbukukan dengan mendebit is written off against the related
cadangan kerugian penurunan nilai. allowance for impairment losses.
Penerimaan kemudian atas kredit Subsequent recoveries of loans
yang telah dihapusbukukan previously written off, are added to the
sebelumnya, jika pada periode allowance for impairment losses
berjalan dikreditkan ke dalam akun account in the statements of financial
cadangan kerugian penurunan nilai position, if recovered in the current year
atas kredit yang diberikan di laporan and are recognized in the statements of
posisi keuangan, sedangkan jika profit or loss and other comprehensive
setelah tanggal laporan posisi income as other operational income, if
keuangan dikreditkan sebagai recovered after the statements of
pendapatan operasional lainnya dalam financial position date.
laporan laba rugi dan penghasilan
komprehensif lain.

22
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities
(lanjutan) (continued)
(iii) Penghentian pengakuan (lanjutan) (iii) Derecognition (continued)

b. Liabilitas keuangan dihentikan b. Financial liabilities are derecognized


pengakuannya jika liabilitas keuangan when they are extinguished, i.e.
tersebut berakhir, yaitu ketika liabilitas liabilities stated in the contract are
yang ditetapkan dalam kontrak discharged, cancelled or has expired.
dilepaskan atau dibatalkan atau
kadaluwarsa.

Jika suatu liabilitas keuangan yang Where an existing financial liability is


ada digantikan dengan yang lain oleh replaced by another from the same
pemberi pinjaman yang sama pada lender on substantially different terms,
keadaan yang secara substansial or the terms of an existing liability are
berbeda, atau berdasarkan suatu substantially modified, such an
liabilitas yang ada yang secara exchange or modification is treated as
substansial telah diubah, seperti derecognition of the original liability
pertukaran atau modifikasi yang and the recognition of a new liability,
diperlakukan sebagai penghentian and the difference in the respective
pengakuan liabilitas awal dan carrying amounts is recognized in the
pengakuan liabilitas baru dan statements of profit or loss and other
perbedaan nilai tercatat masing- comprehensive income.
masing diakui dalam laporan laba rugi
dan penghasilan komprehensif lain.

(iv) Saling hapus (iv) Offsetting

Aset keuangan dan liabilitas keuangan Financial assets and financial liabilities are
saling hapus dan nilai netonya dilaporkan offset and the net amount is reported in the
di laporan posisi keuangan jika, dan statement of financial position if, and only if,
hanya jika, saat ini terdapat hak yang there is currently an enforceable legal rights
berkekuatan hukum untuk saling hapus to offset the recognized amounts and there
jumlah keduanya dan terdapat intensi is an intention to settle on a net basis, or to
untuk diselesaikan secara neto, atau realize the assets and settle the liabilities
untuk merealisasikan aset dan simultaneously. Enforceable right means:
menyelesaikan liabilitas secara
bersamaan. Hak yang berkekuatan
hukum berarti:
a. tidak terdapat kontinjensi di masa a. there are no contingencies in the future,
yang akan datang, dan and
b. hak yang berkekuatan hukum pada b. enforceable right to the following
kondisi-kondisi berikut ini; conditions;
i. kegiatan bisinis normal; i. deploying normal activities;
ii. kondisi kegagalan usaha; dan ii. conditions of business failures; and
iii. kondisi gagal bayar atau bangkrut iii. conditions of default or bankruptcy

Pendapatan dan beban disajikan dalam Income and expenses are presented on a
jumlah bersih hanya jika diperkenankan net basis only when permitted by
oleh standar akuntansi. accounting standards.

23
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities
(lanjutan) (continued)

(v) Pengukuran biaya perolehan (v) Amortized cost measurement


diamortisasi
Biaya perolehan diamortisasi dari aset The amortized cost of a financial asset or
keuangan atau liabilitas keuangan adalah liability is the amount at which the financial
jumlah aset atau liabilitas keuangan yang asset or liability is measured at initial
diukur pada saat pengakuan awal, recognition, minus principal repayments,
dikurangi pembayaran pokok, ditambah plus or minus the cumulative amortization
atau dikurangi dengan amortisasi using the effective interest method of any
kumulatif dengan menggunakan metode difference between the initial amount
suku bunga efektif yang dihitung dari recognized and the maturity amount, minus
selisih antara nilai awal dan nilai jatuh any reduction for impairment.
temponya, dan dikurangi cadangan
kerugian penurunan nilai.
(vi) Pengukuran nilai wajar (vi) Fair value measurement

Nilai wajar adalah harga yang akan Fair value is the price that would be
diterima untuk menjual suatu aset atau received to sell an asset or paid to transfer
harga yang akan dibayar untuk a liability in an orderly transaction
mengalihkan suatu liabilitas dalam between market participants at the
transaksi teratur antara pelaku pasar pada measurement date.
tanggal pengukuran.
Pengukuran nilai wajar mengasumsikan The fair value measurement is based on
bahwa transaksi untuk menjual aset atau the presumption that the transaction to sell
mengalihkan liabilitas terjadi: the asset or transfer the liability takes
place either:
- Di pasar utama untuk aset dan - In the principal market for the asset
liabilitas tersebut; atau or liability, or
- Jika tidak terdapat pasar utama, - In the absence of a principal market,
dipasar yang paling menguntungkan in the most advantageous market for
untuk aset atau liabilitas tersebut. the asset or liability.
Nilai wajar suatu aset atau liabilitas diukur The fair value of an asset or a liability is
menggunakan asumsi yang akan measured using the assumptions that
digunakan pelaku pasar ketika market participants would use when
menentukan harga aset dan liabilitas pricing the asset or liability, assuming that
tersebut dengan asumsi bahwa pelaku market participants act in their economic
pasar bertindak dalam kepentingan best interest.
ekonomik terbaiknya.
Pengukuran nilai wajar aset non- A fair value measurement of a non-
keuangan memperhitungkan kemampuan financial asset takes into account a
pelaku pasar untuk menghasilkan market participant's ability to generate
manfaat ekonomik dengan menggunakan economic benefits by using the asset in
aset dalam penggunaan tertinggi dan its highest and best use or by selling it to
terbaiknya atau dengan menjualnya another market participant that would use
kepada pelaku pasar lain yang akan the asset in its highest and best use.
menggunakan aset tersebut dalam
penggunaan tertinggi dan terbaiknya.
Bank menggunakan teknik penilaian yang The Bank uses valuation techniques that
sesuai dalam keadaan dan dimana data are appropriate in the circumstances and
yang memadai tersedia untuk mengukur for which sufficient data are available to
nilai wajar, memaksimalkan penggunaan measure fair value, maximizing the use of
input yang dapat diobservasi yang relevan relevant observable inputs and
dan meminimalkan penggunaan input minimizing the use of unobservable
yang tidak dapat diobservasi. inputs.

24
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

f. Aset Keuangan dan Liabilitas Keuangan f. Financial Assets and Financial Liabilities
(lanjutan) (continued)

(vi) Pengukuran nilai wajar (lanjutan) (vi) Fair value measurement (continued)

Semua aset dan liabilitas dimana nilai All assets and liabilities for which fair
wajar diukur atau diungkapkan dalam value is measured or disclosed in the
laporan keuangan dapat dikategorikan financial statements are categorized
pada level hirarki nilai wajar, berdasarkan within the fair value hierarchy, described
tingkatan input terendah yang signifikan as follows, based on the lowest level input
atas pengukuran nilai wajar secara that is significant to the fair value
keseluruhan: measurement as a whole:
- Level 1 : harga kuotasian (tanpa - Level 1 : quoted (unadjusted) market
penyesuaian) di pasar aktif prices in active market for
untuk aset atau liabilitas yang identical assets or liabilities
identik.
- Level 2 : input selain harga kuotasian - Level 2 : valuation techniques for
yang termasuk dalam level 1 which the lowest level input
yang dapat diobservasi untuk that is significant to the fair
aset dan liabilitas, baik value measurement is
secara langsung atau tidak directly or indirectly
langsung. observable.
- Level 3 : input yang tidak dapat - Level 3 : valuation techniques for
diobservasi untuk aset dan which the lowest level input
liabilitas. that is significant to the fair
value measurement is
unobservable.

Untuk aset dan liabilitas yang diakui pada For assets and liabilities that are
laporan keuangan secara berulang, Bank recognized in the financial statements on
menentukan apakah terjadi transfer a recurring basis, the Bank determines
antara level di dalam hirarki dengan cara whether transfers have occurred between
mengevaluasi kategori (berdasarkan levels in the hierarchy by re-assessing
input level terendah yang signifikan dalam categorization (based on the lowest level
pengukuran nilai wajar) setiap akhir input that is significant to the fair value
periode pelaporan. measurement as a whole) at the end of
each reporting period.

Untuk tujuan pengungkapan nilai wajar, For the purpose of fair value disclosures,
Bank telah menentukan kelas aset dan the Bank has determined classes of
liabilitas berdasarkan sifat, karakteristik, assets and liabilities on the basis of the
risiko aset dan liabilitas, dan level hirarki nature, characteristics and risks of the
nilai wajar (Catatan 34). asset or liability and the level of the fair
value hierarchy (Note 34).

g. Giro pada Bank Indonesia dan Bank-Bank g. Current Accounts with Bank Indonesia and
Lain Other Banks

Setelah pengakuan awal, giro pada Bank Subsequent to initial recognition, current
Indonesia dan giro pada bank-bank lain dicatat accounts with Bank Indonesia and other banks
pada biaya perolehan diamortisasi are carried at amortized cost using effective
menggunakan metode suku bunga efektif. interest method.

25
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
h. Penempatan pada Bank Indonesia dan h. Placements with Bank Indonesia and Other
Bank-Bank Lain, Kredit yang Diberikan dan Banks, Loans and Securities Purchased
Efek-efek yang Dibeli dengan Janji Dijual under Agreement to Resell
Kembali
Penempatan pada Bank Indonesia dan bank- Placements with Bank Indonesia and other
bank lain, kredit dan efek-efek yang dibeli banks, loans and securities purchased under
dengan janji dijual kembali pada awalnya diukur agreement to resell are initially measured at fair
pada nilai wajar ditambah biaya transaksi yang value plus incremental direct transaction costs,
dapat diatribusikan secara langsung dan and subsequently measured at their amortized
merupakan biaya tambahan untuk memperoleh cost using the effective interest method.
aset keuangan tersebut, dan setelah
pengakuan awal diukur pada biaya perolehan
diamortisasi menggunakan metode suku bunga
efektif.

Kredit dalam rangka pembiayaan bersama Syndicated loans are stated at amortized cost in
(kredit sindikasi) dinyatakan sebesar biaya accordance with the risk borned by the Bank.
perolehan diamortisasi sesuai dengan porsi
risiko yang ditanggung oleh Bank.

Bank mencatat restrukturisasi kredit The Bank accounts for troubled debt
bermasalah berdasarkan jenis restrukturisasi. restructuring in accordance with the type of
Dalam hal restrukturisasi kredit bermasalah restructuring. In troubled debt restructuring which
dilakukan hanya dengan modifikasi persyaratan involves only a modification of terms, the Bank
kredit, Bank mencatat dampak restrukturisasi accounts for the effect of the restructuring
tersebut secara prospektif dan tidak mengubah prospectively and does not change the carrying
nilai tercatat kredit yang diberikan pada tanggal value of receivables at the time of restructuring
restrukturisasi, kecuali jika jumlahnya melebihi unless the amount exceeds the present value of
nilai kini penerimaan kas masa depan yang the total future cash receipts specified in the new
ditentukan dalam persyaratan baru. Jika nilai terms. If the present value of the total future cash
kini penerimaan kas masa depan sebagaimana receipts specified in the new terms is lower than
yang ditentukan dalam persyaratan baru dari the recorded receivables balance prior to
kredit yang direstrukturisasi tersebut lebih restructuring, the Bank reduces the receivables
rendah daripada nilai tercatat kredit yang balance to the amount equal to the present value
diberikan sebelum direstrukturisasi, Bank harus of the total future cash receipts. The amount of
mengurangkan saldo kredit yang diberikan ke the reduction is recognized as individual
suatu jumlah yang sama dengan jumlah nilai allowance for impairment losses.
kini penerimaan kas masa depan. Jumlah
pengurangan tersebut diakui sebagai biaya
cadangan kerugian penurunan nilai individual.

Penerimaan kembali dari kredit yang telah Recoveries from loans written-off are recognized
dihapusbukukan diakui dalam laba rugi tahun in the current year profit or loss.
berjalan.

Bank membeli efek-efek dan secara bersamaan The Bank purchases a security and
membuat perjanjian untuk menjual kembali aset simultaneously enters into an agreement to resell
tersebut (atau aset yang secara substansial the asset (or a substantially similar asset) at a
sama) pada harga yang telah ditetapkan pada fixed price on a future date (“securities
tanggal tertentu di masa mendatang (“securities purchased under agreement to resell”).
purchased under agreement to resell”).

26
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

h. Penempatan pada Bank Indonesia dan h. Placements with Bank Indonesia and Other
Bank-Bank Lain, Kredit yang Diberikan dan Banks, Loans and Securities Purchased
Efek-efek yang Dibeli dengan Janji Dijual under Agreement to Resell (continued)
Kembali (lanjutan)
Efek-efek yang dibeli dengan janji dijual kembali The securities purchased under agreement to
disajikan sebagai tagihan sebesar harga jual resell is presented as receivables and stated at
kembali efek-efek yang disepakati dikurangi the agreed resale price less the difference
selisih antara harga beli dan harga jual kembali between the purchase price and the agreed
yang disepakati. Selisih antara harga beli dan resale price. The difference between the
harga jual kembali yang disepakati tersebut purchase price and the agreed resale price is
diamortisasi menggunakan metode suku bunga amortized using the effective interest method as
efektif sebagai pendapatan bunga selama interest income over the period commencing
jangka waktu sejak efek-efek tersebut dibeli from the acquisition date to the resale date.
hingga dijual kembali.

i. Tagihan dan Liabilitas Derivatif i. Derivatives Receivable and Payable

Tagihan dan liabilitas derivatif pada saat Derivatives receivable and payable are initially
pengakuan awal dan setelah pengakuan awal recognized and subsequently measured at fair
diakui dan diukur pada nilai wajar di laporan value in the statement of financial position, with
posisi keuangan, dengan biaya transaksi yang transaction costs taken directly to the current
terjadi diakui langsung pada laba rugi tahun year profit or loss.
berjalan.
Semua perubahan nilai wajar diakui sebagai All changes in fair value are recognized as part
bagian dari pendapatan bersih instrumen yang of net trading income in the statement of profit or
diperdagangkan pada laporan laba rugi dan loss and other comprehensive income. Gains or
penghasilan komprehensif lain. Keuntungan losses which are realized when the derivatives
atau kerugian yang direalisasi pada saat receivable and derivatives payable are
penghentian pengakuan tagihan derivatif dan derecognized, are recognized in the current year
liabilitas derivatif, diakui dalam laporan laba rugi profit or loss.
tahun berjalan.
Tagihan derivatif dan liabilitas derivatif tidak Derivatives receivable and payable are not
direklasifikasi setelah pengakuan awal. reclassified subsequent to their initial
recognition.

j. Efek-efek j. Securities

Efek-efek pada awalnya diukur pada nilai wajar Securities are initially measured at fair value plus
ditambah biaya transaksi. Setelah pengakuan transaction costs. Subsequent to initial
awal, efek-efek dicatat sesuai dengan recognition, securities are accounted for
klasifikasi masing-masing sebagai aset depending on their classification either as
keuangan yang tersedia untuk dijual atau available-for-sale or held-to-maturity.
dimiliki hingga jatuh tempo.

i. Tersedia untuk dijual i. Available-for-sale

Setelah pengakuan awal, efek-efek yang Subsequent to initial recognition, securities


diklasifikasikan dalam kelompok tersedia classified as available-for-sale are carried at
untuk dijual dinyatakan pada nilai wajarnya. their fair value.

27
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

j. Efek-efek (lanjutan) j. Securities (continued)

i. Tersedia untuk dijual (lanjutan) i. Available-for-sale (continued)


Pendapatan bunga diakui dalam laba rugi Interest income is recognized in profit or loss
dengan menggunakan metode suku bunga using the effective interest method. Foreign
efektif. Laba atau rugi selisih kurs atas exchange gains or losses on available-forsale
efek-efek yang tersedia untuk dijual diakui securities are recognized in the current year
pada laba rugi tahun berjalan. Perubahan profit or loss. Other fair value changes are
nilai wajar lainnya diakui secara langsung recognized directly in other comprehensive
dalam pendapatan komprehensif lain income until the investment is sold or
sampai investasi tersebut dijual atau impaired, whereupon the cumulative gains
mengalami penurunan nilai, dimana and losses previously recognized in other
keuntungan dan kerugian kumulatif yang comprehensive income are reclassified to
sebelumnya diakui dalam pendapatan profit or loss as a reclassification adjustment.
komprehensif lain direklasifikasi ke laba
rugi sebagai penyesuaian reklasifikasi.

ii. Dimiliki hingga jatuh tempo ii. Held-to-maturity

Efek-efek yang diklasifikasikan dimiliki Securities classified as held-to-maturity are


hingga jatuh tempo dicatat pada biaya carried at amortized cost using the effective
perolehan diamortisasi menggunakan interest method. Any sale or reclassification
metode suku bunga efektif. Bila terjadi of a more than insignificant amount of held-
penjualan atau reklasifikasi efek-efek to-maturity securities not close to their
dalam kelompok dimiliki hingga jatuh maturity would result in the reclassification of
tempo dalam jumlah yang lebih dari jumlah all held-to-maturity securities as available-for-
yang tidak signifikan yang belum sale, and prevent the Bank from classifying
mendekati tanggal jatuh tempo, maka hal securities as held-to-maturity for the current
ini akan menyebabkan reklasifikasi atas year and the following two financial years.
semua efek-efek yang dimiliki hingga jatuh
tempo ke dalam kelompok tersedia untuk
dijual, dan Bank tidak diperkenankan untuk
mengklasifikasikan efek-efek sebagai
dimiliki hingga jatuh tempo untuk tahun
berjalan dan untuk kurun waktu dua tahun
mendatang.

Sejak tanggal 1 Januari 2016, Bank Since 1 January 2016, the Bank defined the
menentukan klasifikasi investasi pada surat classification of Investment in marketable
berharga, khususnya sukuk, berdasarkan securities, specifically sukuk, based on busines
model usaha yang ditentukan berdasarkan model in accordance with SFAS No. 110 (Revised
klasifikasi sesuai PSAK No. 110 (Revisi 2015) 2015) on "Accounting for Sukuk" as follows:
tentang “Akuntansi Sukuk" sebagai berikut:

1) Surat berharga diukur pada biaya 1) At cost securities are stated at cost
perolehan disajikan sebesar biaya (including transaction costs), adjusted by
perolehan (termasuk biaya transaksi) unamortised premium and/or discount.
yang disesuaikan dengan premi Premium and discount are amortised over
dan/atau diskonto yang belum the period until maturity.
diamortisasi. Premi dan diskonto
diamortisasi selama periode hingga
jatuh tempo.

28
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

j. Efek-efek (lanjutan) j. Securities (continued)

2) Surat berharga diukur pada nilai wajar 2) At fair value securities are stated at fair
melalui laba rugi, yang dinyatakan sebesar values through profit or loss. Unrealised
nilai wajar. Keuntungan atau kerugian yang gains or losses from the increase or
belum direalisasi akibat kenaikan atau decrease in fair values are presented in
penurunan nilai wajarnya disajikan dalam current year profit or loss.
laporan laba rugi tahun yang bersangkutan.

3) Surat berharga yang diukur pada nilai wajar 3) At fair value through other comprehensive
melalui penghasilan komprehensif lainnya. income securities are measured at fair
Surat berharga disajikan sebesar nilai value. Unrealized gains or losses from the
wajar. Keuntungan atau kerugian yang increase or decrease in fair value are
belum direalisasi akibat kenaikan atau presented in other comprehensive income.
penurunan nilai wajarnya disajikan dalam Premium and discount are amortized over
penghasilan komprehensif lain. Premi dan the period until maturity.
diskonto diamortisasi selama periode
hingga jatuh tempo.

k. Pajak Penghasilan k. Income Taxes


Bank menerapkan PSAK No. 46 (Revisi 2014), The Bank applied SFAS No. 46 (Revised 2014),
“Pajak Penghasilan”, yang mengharuskan “Accounting for Income Tax”, which requires the
Perusahaan untuk memperhitungkan Company to account for the current and future
konsekuensi pajak kini dan pajak masa depan tax consequences of the future recovery
atas pemulihan di masa depan (penyelesaian) (settlement) of the carrying amount of assets
dari jumlah tercatat aset (liabilitas) yang diakui (liabilities) that are recognized in the statement
dalam laporan posisi keuangan dan transaksi- of financial position and transactions and other
transaksi serta peristiwa lain yang terjadi events of the current period.
dalam periode berjalan.

Bank menerapkan metode aset dan liabilitas The Bank adopts the asset and liability method
dalam menghitung beban pajaknya. Dengan in determining its income tax expense. Under
metode ini, aset dan liabilitas pajak tangguhan this method, deferred tax assets and liabilities
diakui pada setiap tanggal pelaporan sebesar are recognized at each reporting date for
perbedaan temporer aset dan liabilitas untuk temporary differences between the accounting
tujuan akuntansi dan tujuan pajak. Metode ini and tax base of assets and liabilities. This
juga mengharuskan pengakuan manfaat pajak method also requires the recognition of future
di masa akan datang, seperti kompensasi rugi tax benefits, such as tax loss carryforwards, to
fiskal, jika kemungkinan realisasi manfaat the extent that realization of such benefits is
tersebut di masa mendatang cukup besar probable. Currently enacted tax rates are used
(probable). Tarif pajak yang berlaku digunakan in the determination of deferred income tax.
dalam menentukan pajak penghasilan
tangguhan.

Aset dan liabilitas pajak tangguhan disajikan Deferred tax asset and liability are offset in the
saling hapus di laporan posisi keuangan statement of financial position in the same
sesuai dengan penyajian aset dan liabilitas manner the current asset and liability are
pajak kini. presented.

Koreksi atas liabilitas pajak diakui pada saat Amendments to taxation obligations are
diterimanya surat ketetapan pajak, atau recorded when an assessment is received, or if
apabila diajukan keberatan dan atau banding, objection and or appeal is applied, when the
pada saat keputusan atas keberatan atau results of the objection or appeal are
banding itu diterima. determined.

29
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

l. Aset Tetap l. Fixed Assets


Aset tetap pada awalnya diakui sebesar biaya Fixed assets are initially recognized at cost.
perolehan. Biaya perolehan mencakup harga Cost includes its purchase price and any costs
pembelian dan semua biaya yang terkait secara directly attributable to bringing the asset to the
langsung untuk membawa aset tersebut ke location and condition necessary for it to be
lokasi dan kondisi yang diinginkan agar aset capable of operating in the manner intended by
siap digunakan sesuai dengan maksud management.
manajemen.
Setelah pengukuran awal, aset tetap diukur After initial measurement, fixed assets are
dengan model biaya, yaitu dicatat pada biaya measured using the cost model, i.e carried at its
perolehan dikurangi akumulasi penyusutan dan cost less any accumulated depreciation and
akumulasi rugi penurunan nilai. accumulated impairment losses.
Biaya pengurusan hak legal atas tanah ketika Costs relating with acquisition of legal titles on
tanah diperoleh pertama kali diakui sebagai the land rights are recognized as part of
bagian biaya perolehan tanah dan tidak acquisition cost of land and not amortized,
disusutkan, kecuali terdapat bukti yang except there is evidence indicating that the
mengindikasikan bahwa perpanjangan atau extension or renewal of land rights is probable
pembaruan hak atas tanah tersebut or certainly not be obtained. While costs of
kemungkinan besar atau pasti tidak diperoleh. extension or renewal of legal titles on the land
Sedangkan biaya perpanjangan atau rights are deferred and recognized as intangible
pembaruan hak legal atas tanah diakui sebagai assets and amortized using the straight-line
aset tak berwujud dan diamortisasi method over the legal term of the land rights or
menggunakan metode garis lurus selama economic life of the land, whichever is shorter.
periode yang lebih pendek antara hak atas
tanah atau umur ekonomis tanah.

Gedung disusutkan dengan menggunakan Buildings are depreciated using straight-line


metode garis lurus berdasarkan estimasi masa method over their estimated useful lives of
manfaat selama 20 tahun. Kecuali tanah yang 20 years. Except for land which is not
tidak disusutkan, aset tetap lainnya disusutkan depreciated, other fixed assets are depreciated
menggunakan metode garis lurus selama using straight line method) over the estimated
estimasi masa manfaatnya sebagai berikut: useful lives of the assets, as follows:
Tahun/ Tarif Penyusutan/
Years Depreciation rate

Renovasi dan perbaikan gedung 3-7 66,67% - 28,57% Leasehold improvement


Perlengkapan dan perabot kantor 4-8 50,00% - 25,00% Office equipment, furniture and fixtures
Kendaraan bermotor 4-8 50,00% - 25,00% Motor vehicles
Anjungan Tunai Mandiri (ATM) 8 25,00% Automatic Teller Machines (ATMs)

Metode penyusutan, masa manfaat dan nilai Depreciation methods, useful lives and residual
residu aset tetap ditelaah pada setiap tanggal values of fixed assets are reassessed at each
pelaporan dan disesuaikan jika lebih tepat, reporting date and adjusted as appropriate, to
untuk memastikan bahwa metode penyusutan, ensure that they reflect the expected economic
masa manfaat dan nilai residu tersebut telah benefits derived from these assets.
mencerminkan manfaat ekonomi yang
diharapkan dari aset tersebut.

30
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

l. Aset Tetap (lanjutan) l. Fixed Assets (continued)


Beban perbaikan dan pemeliharaan Normal repair and maintenance expenses are
dibebankan pada laba rugi tahun berjalan; charged to profit or loss for the year; while
sedangkan renovasi dan penambahan yang renovation and improvements, which are
jumlahnya signifikan dan memperpanjang significant and prolong the useful life of assets,
masa manfaat dikapitalisasi ke aset tetap yang are capitalized to the respective assets. The
bersangkutan. Nilai tercatat serta akumulasi carrying amount and the related accumulated
penyusutan atas aset tetap yang dijual, depreciation of fixed assets which are sold are
dikeluarkan dari kelompok aset tetap yang removed from the related group of assets, and
bersangkutan, dan laba atau ruginya diakui the gain or loss is recognized as non-operating
sebagai pendapatan atau beban non- income or expense in profit or loss for the year.
operasional dalam laba rugi tahun berjalan.
m. Aset Tak Berwujud m. Intangible Assets

Aset tak berwujud (perangkat lunak dan lisensi Intangible assets (software and software
penggunaan perangkat lunak) dicatat sebesar license) are stated at cost less accumulated
biaya perolehan dikurangi akumulasi amortisasi amortization and accumulated impairment
dan akumulasi rugi penurunan nilai aset. losses. Subsequent expenditure on intangible
Pengeluaran selanjutnya yang jumlahnya assets, which is significant, is capitalized only
signifikan akan dikapitalisasi hanya jika when it increases the future economic benefits
pengeluaran tersebut menambah manfaat embodied in the specific asset to which it
ekonomis aset yang bersangkutan di masa relates. All other expenditures are expensed as
mendatang. Pengeluaran lainnya dibebankan incurred. Amortization is recognized in profit or
pada saat terjadinya. Amortisasi diakui pada loss over the estimated useful lives of 8 years
laba rugi selama estimasi masa manfaat using straight line method.
8 tahun dengan menggunakan metode garis
lurus.
Metode amortisasi, masa manfaat dan nilai Amortization method, useful lives and residual
residu ditelaah pada setiap tanggal pelaporan values are reviewed at each reporting date and
dan disesuaikan jika lebih tepat, untuk adjusted as appropriate, to ensure that they
memastikan bahwa metode penyusutan, masa reflect the expected economic benefits derived
manfaat dan nilai residu tersebut telah from these assets.
mencerminkan manfaat ekonomi yang
diharapkan dari aset tersebut.

n. Agunan yang Diambil Alih n. Foreclosed Assets


Pada saat pengakuan awal, agunan yang Foreclosed assets acquired in conjunction with
diambil alih sehubungan dengan penyelesaian settlement of loans are initially recorded at their
kredit dicatat sebesar nilai wajar setelah fair value less costs to sell but not to exceed the
dikurangi biaya untuk menjualnya tetapi tidak carrying value of loans. The Bank does not
melebihi nilai tercatat kredit yang diberikan. recognize any gains when the Bank foreclosed
Bank tidak mengakui keuntungan pada saat an asset. Subsequent to initial recognition,
pengambilalihan aset. Setelah pengakuan foreclosed assets are recorded at carrying
awal, agunan yang diambil alih dicatat sebesar amount or at fair value less costs to sell,
nilai yang lebih rendah antara nilai tercatat whichever is lower. The excess between the
dengan nilai wajar setelah dikurangi biaya untuk carrying value and fair value less costs to sell is
menjualnya. Selisih lebih antara nilai tercatat recognized as impairment losses in current
dengan nilai wajar agunan yang diambil alih year profit or loss.
setelah dikurangi biaya untuk menjualnya diakui
sebagai kerugian penurunan nilai dalam laba
rugi tahun berjalan.
Agunan yang diambil alih tidak disusutkan dan Foreclosed assets are not depreciated and
beban-beban sehubungan dengan perolehan expenses in relation with the acquisition and
dan pemeliharaan aset tersebut dibebankan maintenance of those assets are charged as
pada saat terjadinya. incurred.

31
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

n. Agunan yang Diambil Alih (lanjutan) n. Foreclosed Assets (continued)

Selisih antara nilai tercatat dan hasil penjualan The difference between the carrying value and
dari agunan yang diambil alih diakui sebagai the proceeds from the sale of foreclosed assets
laba atau rugi pada saat penjualan agunan is recognized as gain or loss at the time of sale,
yang diambil alih, dan diakui dalam laporan laba and recognized in statement of profit or loss and
rugi dan penghasilan komprehensif lain. other comprehensive income.

o. Identifikasi dan Pengukuran Kerugian o. Identification and Measurement of


Penurunan Nilai Impairment Losses

Aset keuangan Financial assets

Pada setiap tanggal pelaporan, Bank At each reporting date, the Bank assesses
mengevaluasi apakah terdapat bukti obyektif whether there is objective evidence that
bahwa aset keuangan yang tidak dicatat pada financial assets not carried at fair value through
nilai wajar melalui laba rugi telah mengalami profit or loss are impaired. Financial assets are
penurunan nilai. Aset keuangan mengalami impaired when objective evidence
penurunan nilai jika bukti obyektif menunjukkan demonstrates that a loss event has occurred
bahwa peristiwa yang merugikan telah terjadi after the initial recognition of the asset, and that
setelah pengakuan awal aset keuangan, dan the loss event has an impact on the future cash
peristiwa tersebut berdampak pada arus kas flows on the asset that can be estimated
masa datang atas aset keuangan yang dapat reliably.
diestimasi secara handal.

Bukti obyektif bahwa aset keuangan mengalami Objective evidence that financial assets are
penurunan nilai meliputi wanprestasi atau impaired can include default or delinquency by
tunggakan pembayaran oleh debitur, a borrower, restructuring of a loan or receivable
restrukturisasi kredit atau tagihan oleh Bank by the Bank on terms that the Bank would not
dengan persyaratan yang tidak mungkin otherwise consider, indications that a borrower
diberikan jika debitur tidak mengalami kesulitan or issuer will enter bankruptcy, the
keuangan, indikasi bahwa debitur atau penerbit disappearance of an active market for a
akan dinyatakan pailit, hilangnya pasar aktif dari security due to financial difficulties, or other
aset keuangan akibat kesulitan keuangan, atau observable data relating to a group of assets
data yang dapat diobservasi lainnya yang such as adverse changes in the payment status
terkait dengan kelompok aset keuangan seperti of borrowers or issuers in the group, or
memburuknya status pembayaran debitur atau economic conditions that correlate with defaults
penerbit dalam kelompok tersebut, atau kondisi in the group.
ekonomi yang berkorelasi dengan wanprestasi
atas aset dalam kelompok tersebut.

Bank menentukan bukti penurunan nilai atas The Bank considers evidence of impairment for
Aset keuangan secara individual dan kolektif. financial assets at both a specific asset and
Evaluasi penurunan nilai secara individual collective level. All individually significant
dilakukan terhadap Aset keuangan yang financial assets are assessed for specific
signifikan secara individual. impairment.

32
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

o. Identifikasi dan Pengukuran Kerugian o. Identification and Measurement of


Penurunan Nilai (lanjutan) Impairment Losses (continued)

Aset keuangan (lanjutan) Financial assets (continued)

Kredit yang diberikan yang signifikan secara Individually significant loans found not to be
individual yang tidak mengalami penurunan specifically impaired are then collectively
nilai secara individual dievaluasi secara kolektif assessed for any impairment that has been
untuk menentukan penurunan nilai yang sudah incurred but not yet identified. Loans that are
terjadi namun belum diidentifikasi. Kredit yang not individually significant are collectively
diberikan yang tidak signifikan secara individual assessed for impairment by grouping together
akan dievaluasi secara kolektif untuk such financial assets with similar risk
menentukan penurunan nilainya dengan characteristics. Loans that are individually
mengelompokkan aset keuangan tersebut assessed for impairment and for which an
berdasarkan karakteristik risiko yang serupa. impairment loss is recognized are no longer
Kredit yang diberikan yang dievaluasi secara included in a collective assessment of
individual untuk menentukan penurunan nilai, impairment.
dan dimana kerugian penurunan nilai diakui,
tidak lagi termasuk dalam evaluasi penurunan
nilai secara kolektif.

Semua penempatan, giro pada bank-bank lain All placements, current accounts with other
dan efek-efek dievaluasi penurunan nilainya banks and securities are assessed for specific
secara individual. impairment.

Dalam mengevaluasi penurunan nilai secara In assessing collective impairment, the Bank
kolektif, Bank menggunakan model statistik dari uses statistical modeling of historical trends of
tren historis atas probabilitas wanprestasi, the probability of default, timing of recoveries
waktu pemulihan kembali dan jumlah kerugian and the amount of loss incurred, adjusted for
yang terjadi, yang disesuaikan dengan management’s judgment as to whether current
pertimbangan manajemen mengenai apakah economic and credit conditions are such that
kondisi ekonomi dan kondisi kredit saat ini the actual losses are likely to be greater or less
mungkin menyebabkan kerugian aktual lebih than suggested by statistical modeling. Default
besar atau lebih kecil daripada jumlah yang rates, loss rates and the expected timing of
dihasilkan oleh model statistik. Tingkat future recoveries are regularly benchmarked
wanprestasi, tingkat kerugian dan waktu against actual outcomes to ensure that they
pemulihan yang diharapkan di masa datang remain appropriate.
secara berkala dibandingkan dengan hasil
aktual untuk memastikan bahwa estimasi yang
digunakan masih tepat.

Kerugian penurunan nilai atas aset keuangan Impairment losses on financial assets carried at
yang dicatat pada biaya perolehan diamortisasi amortized cost are measured as the difference
diukur sebesar selisih antara nilai tercatat aset between the carrying amount of the financial
keuangan dengan nilai kini estimasi arus kas assets and the present value of estimated future
masa datang yang didiskonto menggunakan cash flows discounted at the financial assets’
suku bunga efektif awal dari aset keuangan original effective interest rate. The calculation of
tersebut. Perhitungan nilai kini dari estimasi the present value of the estimated future cash
arus kas masa datang atas aset keuangan flows of a collateralized financial asset reflects
dengan agunan (collateralized financial asset) the cash flows that may result from foreclosure
mencerminkan arus kas yang dapat dihasilkan less costs to obtain and sell the collateral,
dari pengambilalihan agunan dikurangi biaya- whether or not foreclosure is probable.
biaya untuk memperoleh dan menjual agunan,
terlepas apakah pengambilalihan tersebut
berpeluang terjadi atau tidak.

33
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

o. Identifikasi dan Pengukuran Kerugian o. Identification and Measurement of


Penurunan Nilai (lanjutan) Impairment Losses (continued)

Aset keuangan (lanjutan) Financial assets (continued)

Kerugian yang terjadi diakui pada laba rugi dan Losses are recognized in profit or loss and
dicatat pada akun cadangan atas aset reflected in an allowance account against
keuangan yang dicatat pada biaya perolehan financial assets carried at amortized cost.
diamortisasi. Pendapatan bunga atas aset Interest on the impaired financial asset
keuangan yang mengalami penurunan nilai continues to be recognized using the rate of
tetap diakui atas dasar suku bunga yang interest used to discount the future cash flows
digunakan untuk mendiskonto arus kas masa for the purpose of measuring the impairment
datang dalam pengukuran kerugian penurunan loss. When a subsequent event causes the
nilai. Ketika peristiwa yang terjadi setelah amount of impairment loss to decrease, the
penurunan nilai menyebabkan jumlah kerugian impairment loss is reversed through profit or
penurunan nilai berkurang, kerugian penurunan loss.
nilai yang sebelumnya diakui harus dipulihkan
dan pemulihan tersebut diakui pada laba rugi.

Kerugian penurunan nilai atas efek-efek yang Impairment losses on available-for-sale


tersedia untuk dijual diakui dengan securities are recognized by transferring the
mengeluarkan kerugian kumulatif yang telah cumulative loss that has been recognized
diakui secara langsung dalam pendapatan directly in other comprehensive income to profit
komprehensif lain ke dalam laba rugi sebagai or loss as a reclassification adjustment.
penyesuaian reklasifikasi.

Jumlah kerugian kumulatif yang direklasifikasi The cumulative loss that is reclassified from
dari pendapatan komprehensif lain ke laba rugi other comprehensive income to profit or loss is
merupakan selisih antara biaya perolehan, the difference between the acquisition cost, net
setelah dikurangi pelunasan pokok dan of any principal repayment and amortization,
amortisasi, dengan nilai wajar kini, dikurangi and the current fair value, less any impairment
kerugian penurunan nilai aset keuangan yang loss previously recognized in profit or loss.
sebelumnya telah diakui pada laba rugi. Changes in impairment provisions attributable
Perubahan cadangan kerugian penurunan nilai to time value are reflected as a component of
yang dapat diatribusikan pada nilai waktu (time interest income.
value) tercermin sebagai komponen
pendapatan bunga.

Jika, pada periode berikutnya, nilai wajar If, in a subsequent period, the fair value of an
instrumen utang yang diklasifikasikan dalam impaired available-for-sale debt instrument
kelompok tersedia untuk dijual yang mengalami increases and the increase can be objectively
penurunan nilai meningkat dan peningkatan related to an event occurring after the
tersebut dapat secara obyektif dihubungkan impairment loss was recognized in profit or loss,
dengan peristiwa yang terjadi setelah the impairment loss is reversed, with the
pengakuan kerugian penurunan nilai pada laba amount of reversal recognized in profit or loss.
rugi, maka kerugian penurunan nilai tersebut
harus dipulihkan dan pemulihan tersebut diakui
pada laba rugi.

Jika persyaratan kredit, piutang atau efek-efek If the terms of a loan, receivable or securities
dinegosiasi ulang atau dimodifikasi karena are renegotiated or otherwise modified because
debitur atau penerbit mengalami kesulitan of financial difficulties of the borrower or issuer,
keuangan, maka penurunan nilai diukur dengan impairment is measured using the original
suku bunga efektif awal yang digunakan effective interest rate before the modification of
sebelum persyaratan diubah. terms.

34
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
o. Identifikasi dan Pengukuran Kerugian o. Identification and Measurement of
Penurunan Nilai (lanjutan) Impairment Losses (continued)
Aset non-keuangan Non-financial assets

Nilai tercatat aset non-keuangan, selain aset The carrying amount of the Bank's non-financial
pajak tangguhan, ditelaah pada setiap tanggal assets, other than deferred tax assets, are
pelaporan untuk menentukan ada tidaknya reviewed at each reporting date to determine
indikasi penurunan nilai. Jika terdapat indikasi whether there is any indication of impairment. If
adanya penurunan nilai tersebut, maka nilai any such indication exists, then the asset's
terpulihkan aset diestimasi. Kerugian recoverable amount is estimated. An
penurunan nilai diakui jika nilai tercatat suatu impairment loss is recognized if the carrying
aset melebihi estimasi nilai terpulihkannya. Nilai amount of an asset exceeds its estimated
terpulihkan suatu aset adalah nilai yang recoverable amount. The recoverable amount
terbesar antara nilai pakai aset dan nilai wajar of an asset is the greater of its value in use and
dikurangi biaya penjualan. Dalam penentuan its fair value less cost to sell. In assessing value
nilai pakai aset, estimasi arus kas masa depan in use, the estimated future cash flows are
didiskontokan menggunakan tingkat diskonto discounted to their present value using a pre-
sebelum pajak yang menggambarkan penilaian tax discount rate that reflects current market
pasar kini atas nilai waktu dari uang dan risiko assessments of the time value of money and
yang terkait dengan aset yang bersangkutan. the risks specific to the asset.
Untuk tujuan pengujian penurunan nilai, aset For the purpose of impairment testing, assets
yang tidak dapat diuji secara individual dapat that cannot be tested individually are grouped
digabungkan ke dalam kelompok aset terkecil together into the smallest group of assets that
yang menghasilkan arus kas masuk dari generates cash inflows from continuing use that
penggunaan berkesinambungan yang are largely independent of the cash inflows of
sebagian besar independen dari arus kas other assets.
masuk dari aset lainnya.
Kerugian penurunan nilai atas aset non- Impairment losses in respect of non-financial
keuangan yang diakui pada periode assets recognized in prior periods are assessed
sebelumnya ditelaah pada setiap tanggal at each reporting date for any indications that
pelaporan untuk menilai apakah terdapat the loss has decreased or no longer exists. An
indikasi bahwa rugi penurunan nilai yang telah impairment loss is reversed if there has been a
diakui sebelumnya telah menurun atau tidak change in the estimates used to determine the
ada lagi. Kerugian penurunan nilai dibalik jika recoverable amount. An impairment loss is
terdapat perubahan estimasi yang digunakan reversed only to the extent that the asset's
untuk menentukan nilai terpulihkan. Jumlah carrying amount does not exceed the carrying
kerugian penurunan nilai yang dibalik tidak amount that would have been determined, net
boleh menyebabkan nilai aset melebihi nilai of depreciation or amortization, if no impairment
tercatat neto setelah penyusutan atau loss had been recognized.
amortisasi, seandainya tidak ada kerugian
penurunan nilai yang diakui.

p. Simpanan dari Nasabah dan Bank-Bank Lain p. Deposits from Customers and Other Banks
Simpanan pada awalnya diukur pada nilai wajar Deposits are initially measured at fair value less
dikurangi biaya transaksi yang dapat directly attributable transaction costs, and
diatribusikan secara langsung untuk perolehan subsequently measured at their amortized cost
simpanan, dan setelah pengakuan awal diukur using the effective interest method.
pada biaya perolehan diamortisasi
menggunakan metode suku bunga efektif.

35
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

q. Tagihan dan Liabilitas Akseptasi q. Acceptances Receivable and Payable


Dalam kegiatan bisnis biasa, Bank memberikan In the ordinary course of business the Bank
jaminan keuangan seperti letter of credit, bank provides financial guarantees, consisting of
garansi dan akseptasi. letter of credit, bank guarantees and
acceptances.
Setelah pengakuan awal, tagihan dan utang After initial recognition, acceptance receivables
akseptasi dicatat pada biaya perolehan and payables are carried at amortized cost net
diamortiasi setelah dikurangi cadangan of allowance for impairment losses.
kerugian penurunan nilai.

r. Imbalan Pasca-kerja r. Post-employment Benefits


Beban pensiun berdasarkan program dana Pension costs defined benefit pension plans
pensiun manfaat pasti ditentukan melalui are determined by periodic actuarial calculation
perhitungan aktuaria secara periodik dengan using the projected-unit-credit method and
menggunakan metode projected-unit-credit dan applying the assumptions on discount rate,
menerapkan asumsi atas tingkat diskonto, hasil expected return on plan assets and annual rate
yang diharapkan atas aset dana pensiun dan of increase in compensation.
tingkat kenaikan manfaat pasti pensiun
tahunan.
Seluruh pengukuran kembali, terdiri atas All re-measurements, comprising of actuarial
keuntungan dan kerugian aktuarial dan hasil gains and losses, and the return of plan assets
atas aset dana pensiun (tidak termasuk bunga (excluding net interest) are recognized
bersih) diakui langsung melalui penghasilan immediately through other comprehensive
komprehensif lainnya dengan tujuan agar aset income in order for the net pension asset or
atau kewajiban pensiun bersih diakui dalam liability recognized in the statements of financial
laporan posisi keuangan untuk mencerminkan position to reflect the full value of the plan deficit
nilai penuh dari defisit dan surplus dana and surplus. Re-measurements are not
pensiun. Pengukuran kembali tidak reclassified to profit or loss in subsequent
mengreklasifikasi laba atau rugi pada periode periods.
berikutnya.

Seluruh biaya jasa lalu diakui pada saat yang All past service costs are recognized at the
lebih dulu antara ketika amandemen/kurtailmen earlier of when the amendment/curtailment
terjadi atau ketika biaya restrukturisasi atau occurs and when the related restructuring or
pemutusan hubungan kerja diakui. Sebagai termination costs are recognized. As a result,
akibatnya, biaya jasa lalu yang belum vested unvested past service costs can no longer be
tidak lagi dapat ditangguhkan dan diakui deferred and recognized over the future vesting
selama periode vesting masa depan. period.

Beban bunga dan pengembalian aset dana The interest cost and expected return on plan
pensiun yang diharapkan sebagaimana assets used in the previous version of
digunakan dalam PSAK No. 24 versi SFAS No. 24 (Revised 2013) are replaced with
sebelumnya digantikan dengan beban bunga - a net-interest amount, which is calculated by
bersih, yang dihitung dengan menggunakan applying the discount rate to the net defined
tingkat diskonto untuk mengukur kewajiban benefit liability or asset at the start of each
manfaat pasti - bersih atau aset pada saat awal annual reporting period.
dari tiap periode pelaporan tahunan.

Imbalan kerja jangka pendek Short-term employee benefits

Imbalan kerja jangka pendek seperti upah, Short-term employee benefits such as wages,
iuran jaminan sosial, cuti jangka pendek, bonus social security contributions, short-term
dan imbalan non-moneter lainnya diakui selama compensated leaves, bonuses and other non-
periode jasa diberikan. Imbalan kerja jangka monetary benefits are recognized during the
pendek dihitung sebesar jumlah yang tidak period when services are rendered. Short-term
didiskontokan. employee benefits are measured using
undiscounted amounts.

36
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

s. Pinjaman Subordinasi s. Subordinated Loan

Pinjaman subordinasi diakui sebesar nilai wajar Subordinated loans are initially recognized at
pada awalnya dan selanjutnya diukur sebesar fair value subsequently meansured at amortised
biaya perolehan diamortisasi dengan cost using effective interest rate method.
menggunakan suku bunga efektif.

Biaya perolehan diamortisasi dihitung dengan Amortised cost is calculated by taking


memperhitungkan adanya diskonto atau premi into account and discount or premium on
terkait dengan pengakuan awal pinjaman subordinated loan and transaction cost that are
subordinasi dan biaya transaksi yang an integral part of effective interest rate.
merupakan bagian yang tidak terpisahkan dari
suku bunga efektif.

t. Surat berharga yang diterbitkan t. Marketable Securities issued

Surat berharga yang diterbitkan Bank adalah Marketable securities issued by Bank is
Negotiable Certificate of Deposit (NCD). Surat Negotiable Certificate of Deposit (NCD). The
berharga yang diterbitkan pada awalnya diakui marketable securities issued are recognized
sebesar nilai wajar dan selanjutnya diukur initially at fair value and subsequently measured
sebesar biaya perolehan diamortisasi dengan at amortized cost using the effective interest rate
menggunakan metode suku bunga efektif (EIR). method (EIR). Amortized cost is calculated by
Biaya perolehan diamortisasi dihitung dengan taking into account any discount or premium
memperhitungkan adanya diskonto atau premi associated related to the initial recognitation and
terkait dengan pengakuan awal dan biaya transaction costs that are an integral part of the
transaksi yang tidak terpisah dari suku bunga effective interest rate.
efektif.

u. Modal Saham u. Share Capital


Saham diklasifikasikan sebagai ekuitas jika Shares are classified as equity when there is no
tidak terdapat kewajiban kontraktual untuk contractual obligation to transfer cash or other
mentransfer kas atau aset keuangan lainnya. financial assets.

v. Beban Emisi Saham v. Shares Issuance Costs

Sesuai dengan Peraturan No. VIII.G.7 lampiran Based on the Regulation No. VIII.G.7, appendix
Surat Keputusan Bapepam No. Kep- of Bapepam Decision Letter No. Kep-
06/PM/2000 tanggal 13 Maret 2000 mengenai 06/PM/2000 dated March 13, 2000 regarding
“Pedoman Penyajian Laporan Keuangan”, “Guidance for Financial Statements
biaya-biaya emisi efek yang terjadi sehubungan Presentation”, costs related to the public
dengan penawaran saham kepada masyarakat offering of shares (including pre-emptive rights
(termasuk penerbitan hak memesan efek issue) are deducted from the proceeds and
terlebih dahulu) dikurangkan langsung dari hasil presented as a deduction from the “Additional
emisi dan disajikan sebagai pengurang pada Paid-in-Capital - Net” account, under Equity
akun “Tambahan Modal Disetor - Neto”, section in the statement of financial position.
sebagai bagian dari Ekuitas pada laporan posisi
keuangan.

w. Laba per Saham w. Earnings per Share

Laba (rugi) per saham dasar dihitung dengan Basic earnings (loss) per share is computed by
membagi laba tahun berjalan dengan rata-rata dividing income for the year by the weighted
tertimbang jumlah saham yang beredar selama average number of outstanding shares during
tahun berjalan. the year.

Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, there were
tidak terdapat instrumen yang berpotensi no existing instruments which could result in the
menjadi saham biasa. Oleh karenanya, laba per issue of further ordinary shares. Therefore,
saham dilusian sama dengan laba per saham diluted earnings per share is equivalent to the
dasar. basic earnings per share.

37
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

x. Pendapatan dan Beban Bunga x. Interest Income and Expenses

Pendapatan dan beban bunga diakui dalam Interest income and expenses are recognized
laba rugi menggunakan metode suku bunga in profit or loss using the effective interest
efektif. Suku bunga efektif adalah suku bunga method. The effective interest rate is the rate
yang secara tepat mendiskontokan estimasi that exactly discounts the estimated future cash
pembayaran dan penerimaan kas di masa payments and receipts through the expected
datang selama perkiraan umur dari aset life of the financial asset or liability (or, where
keuangan atau liabilitas keuangan (atau, jika appropriate, a shorter period) to the carrying
lebih tepat, digunakan periode yang lebih amount of the financial asset or liability. When
singkat) untuk memperoleh nilai tercatat dari calculating the effective interest rate, the Bank
aset keuangan atau liabilitas keuangan. Saat estimates future cash flows considering all
menghitung suku bunga efektif, Bank contractual terms of the financial instrument but
mengestimasi arus kas di masa datang dengan not future credit losses.
mempertimbangkan seluruh persyaratan
kontraktual dalam instrumen keuangan
tersebut, tetapi tidak mempertimbangkan
kerugian kredit di masa mendatang.

Perhitungan suku bunga efektif mencakup The calculation of the effective interest rate
biaya transaksi (Catatan 2f) dan seluruh includes transaction costs (Note 2f) and all fees
imbalan/provisi dan bentuk lain yang and points paid or received that are an integral
dibayarkan atau diterima yang merupakan part of the effective interest rate.
bagian tak terpisahkan dari suku bunga efektif.
Pendapatan dan beban bunga yang disajikan di Interest income and expenses presented in the
dalam laporan laba rugi dan penghasilan statement of profit or loss and other
komprehensif lain meliputi: comprehensive income include:
• Bunga atas aset keuangan dan liabilitas • Interest on financial assets and liabilities at
keuangan yang dicatat pada biaya amortized cost calculated on an effective
perolehan diamortisasi yang dihitung interest basis;
menggunakan metode suku bunga efektif;

• Bunga atas efek-efek yang tersedia untuk • Interest on available-for-sale securities


dijual yang dihitung menggunakan metode calculated on an effective interest basis.
suku bunga efektif.

y. Pendapatan dan Beban Provisi dan Komisi y. Fees and Commission Income and
Expenses
Pendapatan dan beban provisi dan komisi yang Fees and commission income and expenses
merupakan bagian tak terpisahkan dari suku that are integral to the effective interest rate on
bunga efektif aset keuangan atau liabilitas a financial asset or liability are included in the
keuangan dimasukkan ke dalam perhitungan measurement of the effective interest rate.
suku bunga efektif.

Pendapatan provisi dan komisi yang diperoleh Fees and commissions income earned from a
atas beragam jasa yang diberikan kepada range of services rendered to customers are
nasabah umumnya diakui pada saat normally recognized upon a completion of a
penyelesaian transaksi. Untuk jasa yang transaction. For services provided over a period
diberikan selama periode waktu tertentu atau of time or credit risk undertaken, fees and
periode risiko kredit yang diterima, provisi dan commissions are amortized over the relevant
komisi diamortisasi selama periode waktu period.
terkait.
Beban provisi dan komisi lainnya terutama Other fees and commission expense relate
terkait dengan provisi atas transaksi dan jasa, mainly to transaction and service fees, which
yang diakui sebagai beban pada saat jasa are expensed as the services are received.
tersebut diterima.

38
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)

z. Pendapatan Bersih Instrumen yang z. Net Trading Income


Diperdagangkan

Pendapatan bersih instrumen yang Net trading income comprises gains less losses
diperdagangkan terdiri dari laba dikurangi rugi on trading assets, and includes all realized and
atas aset keuangan yang dimiliki untuk unrealized fair value changes, interest and
diperdagangkan, dan termasuk perubahan nilai foreign exchange differences.
wajar yang sudah ataupun yang belum
direalisasi, bunga dan selisih kurs.

aa. Segmen Operasi aa. Operating Segment

Segmen operasi adalah komponen dari entitas An operating segment is a component of an


yang terlibat dalam aktivitas bisnis yang mana entity that engages in business activities from
memperoleh pendapatan dan menimbulkan which it may earn revenues and incur expenses,
beban, termasuk pendapatan dan beban terkait including revenues and expenses that relate to
dengan transaksi dengan komponen lainnya transactions with any of the entity’s other
dari entitas, yang hasil operasinya dikaji ulang components, whose operating results are
secara berkala oleh pengambil keputusan reviewed regularly by the chief operating
operasional untuk membuat keputusan tentang decision maker to make decisions about
sumber daya yang dialokasikan pada segmen resources allocated to the segment and assess
tersebut dan menilai kinerjanya, dan tersedia its performance, and for which discrete financial
informasi keuangan yang dapat dipisahkan. information is available.

Karena pada saat ini Direksi Bank hanya As the Bank’s Board of Directors currently only
menelaah alokasi aset keuangan tertentu di reviews the allocation of certain financial assets
antara nasabah ritel dan wholesale, tetapi tidak amongst retail and wholesale customers, but not
untuk hasil operasi lainnya serta informasi the other operating results and the discrete
keuangan yang dapat dipisahkan juga tidak financial information is also currently unavailable
tersedia di Bank, maka manajemen within the Bank, the management believes that
berkeyakinan bahwa Bank pada saat ini the Bank is being managed as a single operating
dikelola sebagai segmen operasi tunggal. segment.

ab. Perubahan kebijakan akuntansi dan ab. Changes in accounting policies and
pengungkapan disclosures

Bank telah menerapkan standar akuntansi The Bank adopted the following accounting
berikut pada tanggal 1 Januari 2016 yang standards, which are considered relevant,
dianggap relevan dengan Bank: starting on January 1, 2016:

• Amandemen PSAK No. 1: Penyajian Laporan • Amendments to SFAS No. 1: Presentation of


Keuangan tentang Prakarsa Pengungkapan. Financial Statements on Disclosures initiative.
Amandemen ini mengklarifikasi, bukan This amendments clarify, rather than
mengubah secara signifikan, persyaratan significantly change, existing SFAS No. 1
PSAK No. 1, antara lain, mengklasifikasi requirements, among others, to clarify the
mengenai materialitas, fleksibilitas urutan materiality, flexibility as to the order in which
sistematis catatan atas laporan keuangan dan they present the notes to financial statements
pengidentifikasian kebijakan akuntansi and identification of significant accounting
signifikan. policies.

39
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
ab. Perubahan kebijakan akuntansi dan ab. Changes in accounting policies and
pengungkapan (lanjutan) disclosures (continued)

• Amandemen PSAK No. 16: Aset Tetap • Amendments to SFAS No. 16: Property, Plant
tentang Klarifikasi Metode yang Diterima and Equipment on Clarification of the
untuk Penyusutan dan Amortisasi. accepted method for depreciation and
Amandemen ini mengklarifikasi prinsip amortization. The amendments clarify the
yang terdapat dalam PSAK No. 16 dan principle in SFAS No. 16 and SFAS No. 19
PSAK No. 19 Aset Tak Berwujud bahwa Intangible Asset that revenue reflects a
pendapatan mencerminkan suatu pola pattern of economic benefits that are
manfaat ekonomik yang dihasilkan dari generated from operating a business (of
pengoperasian usaha (yang mana aset which the asset is part) rather than the
tersebut adalah bagiannya) dari pada economic benefits that are consumed through
manfaat ekonomik dari pemakaian melalui use of the asset. As a result, a revenue-based
penggunaan aset. Sebagai kesimpulan method connot be used to depreciate the
bahwa penggunaan metode penyusutan Property, Plant and Equipment.
aset tetap yang berdasarkan pada
pendapatan adalah tidak tepat.

• Amandemen PSAK No. 24: Imbalan Kerja • Amendment to SFAS No. 24: Employee
tentang Program Imbalan Pasti: Iuran Benefits on Defined benefit plans: Employee
Pekerja. PSAK No. 24 meminta entitas untuk Contributions. SFAS No. 24 requires an entity
memperhatikan iuran dari pekerja atau pihak to consider contributions from employees or
ketiga ketika memperhitungkan program third parties when accounting for defined
manfaat pasti. Ketika iuran tersebut benefit plans. Where the contributions are
sehubungan dengan jasa, harus diatribusikan linked to service, they should be attributed to
pada periode jasa sebagai imbalan negatif. periods of service as a negative benefit.
Amandemen ini mengklarifikasi bahwa, jika These amendments clarify that, if the amount
jumlah iuran tidak bergantung pada jumlah of the contributions is independent of the
tahun jasa, entitas diperbolehkan untuk number of years of service, an entity is
mengakui iuran tersebut sebagai pengurang permitted to recognise such contributions as a
dari biaya jasa dalam periode ketika jasa reduction in the service cost in the period in
terkait diberikan, daripada alokasi iuran which the service is rendered, instead of
tersebut pada periode jasa allocating the contributions to the periods of
service.
• PSAK No. 5 (Penyesuaian 2015): Segmen • SFAS No. 5 (2015 Improvement): Operating
Operasi. Penyesuaian ini mengklarifikasi: Segments. The improvement clarifies that:

- Entitas mengungkapkan pertimbangan - An entity must disclose the judgements


yang dibuat manajemen dalam made by management in applying the
penerapan kriteria agregasi PSAK No. 5 aggregation criteria in paragraph 12 of
paragraf 12 termasuk penjelasan SFAS No. 5 including a brief description of
singkat segmen operasi yang operating segments that have been
digabungkan dan karakteristik ekonomi. aggregated and the economic
- Pengungkapan rekonsiliasi aset characteristics.
segmen terhadap total aset jika - Disclose the reconciliation of segment
rekonsiliasi dilaporkan kepada assets to total assets if the reconciliation
pengambil keputusan operasional, is reported to the chief operating decision
demikian juga untuk pengungkapan maker, similar to the required disclosure
liabilitas segmen. for segment liabilities.

40
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

2. IKHTISAR KEBIJAKAN AKUNTANSI YANG 2. SUMMARY OF SIGNIFICANT ACCOUNTING


PENTING (lanjutan) POLICIES (continued)
ab. Perubahan kebijakan akuntansi dan ab. Changes in accounting policies and
pengungkapan (lanjutan) disclosures (continued)

• PSAK No. 7 (Penyesuaian 2015): • SFAS No. No. 7 (2015 Improvement):


Pengungkapan Pihak-pihak Berelasi. Related Party Disclosures. The
Penyesuaian ini mengklarifikasi bahwa improvement clarifies that a management
entitas manajemen (entitas yang entity (an entity that provides key
menyediakan jasa personil manajemen management personnel services) is a
kunci) adalah pihak berelasi yang related party subject to the related party
dikenakan pengungkapan pihak berelasi. disclosures. In addition, an entity that uses
Dan entitas yang memakai entitas a management entity is required to disclose
manajemen mengungkapkan biaya yang the expenses incurred for management
terjadi untuk jasa manajemennya. services.

• PSAK No. 16 (Penyesuaian 2015): Aset • SFAS No. 16 (2015 Improvement):


Tetap. Penyesuaian ini mengklarifikasi Property, Plant and Equipment. The
bahwa dalam PSAK No. 16 dan PSAK No. improvement clarifies that in SFAS No. 16
19 aset dapat direvaluasi dengan mengacu and SFAS No. 19 that the asset may be
pada data pasar yang dapat diobservasi revalued by reference to observable data on
terhadap jumlah tercatat bruto ataupun either the gross or the net carrying amount.
neto. Dan akumulasi penyusutan atau In addition, the accumulated depreciation or
amortisasi adalah perbedaan antara jumlah amortisation is the difference between the
tercatat bruto dan jumlah tercatat aset gross and carrying amounts of the asset.
tersebut. Jumlah tercatat aset tersebut Carrying amounts of the asset is restated by
disajikan kembali pada jumlah revaluated amounts.
revaluasiannya.

• PSAK No. 19 (Penyesuaian 2015): Aset • SFAS No. 19 (2015 Improvement):


Takberwujud. Penyesuaian ini Intangible Assets. The improvement clarifies
mengklarifikasi bahwa dalam PSAK No. 16 that in SFAS No. 16 and SFAS No. 19 that
dan PSAK No. 19 aset dapat direvaluasi the asset may be revalued by reference to
dengan mengacu pada data pasar yang observable data on either the gross or the
dapat diobservasi terhadap jumlah tercatat net carrying amount. In addition, the
bruto ataupun neto. Dan akumulasi accumulated depreciation or amortisation is
penyusutan atau amortisasi adalah the difference between the gross and
perbedaan antara jumlah tercatat bruto dan carrying amounts of the asset. Carrying
jumlah tercatat aset tersebut. Jumlah amounts of the asset is restated by
tercatat aset tersebut disajikan kembali revaluated amounts.
pada jumlah revaluasiannya.

• PSAK No. 68 (Penyesuaian 2015): • SFAS No. 68 (2015 Improvement): Fair


Pengukuran Nilai Wajar. Penyesuaian ini value Measurement. The improvement
mengklarifikasi bahwa pengecualian clarifies that the portfolio exception in SFAS
portofolio dalam PSAK 68 dapat diterapkan No. 68 can be applied not only to financial
tidak hanya kelompok aset keuangan dan assets and financial liabilities, but also to
liabilitas keuangan, tetapi juga diterapkan other contracts within the scope of SFAS
pada kontrak lain dalam ruang lingkup No. 55.
PSAK No. 55.

41
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL MANAGEMENT

a. Kerangka Manajemen Risiko a. Risk Management Framework

Manajemen risiko yang efektif merupakan Effective risk management is fundamental to


landasan untuk dapat menghasilkan being able to generate profits consistently and
keuntungan secara konsisten dan sustainably and is thus a central part of the
berkelanjutan dan oleh karenanya, merupakan financial and operational management of the
bagian yang penting dari manajemen keuangan Bank.
dan operasional Bank.

Dewan Komisaris dan Direksi Bank terus The Board of Commissioners and the Board of
melakukan pengawasan dan mitigasi secara Directors of the Bank actively supervise and
aktif terhadap risiko-risiko yang dihadapi Bank, mitigate the risks faced by the Bank, as well as
serta mengembangkan budaya manajemen develop a risk management culture at all levels
risiko pada seluruh jenjang organisasi untuk of the organization to ensure that all working
memastikan seluruh satuan kerja memahami units understand the strategy, the level of risks
strategi, tingkat risiko yang diambil, dan taken, and the Bank’s risk management
kerangka manajemen risiko yang telah framework. In the implementation, Board of
ditetapkan. Dalam pelaksanaanya, Dewan Commissioners is represented by Risk Oversight
Komisaris diwakilkan oleh Komite Pemantau Committee which is highest risk committee in the
Risiko yang merupakan komite risiko tertinggi di level of the Board of Commissioners which
tingkat Dewan Komisaris yang bertanggung responsible in review on certain risk areas and
jawab untuk melakukan penelaahan terhadap analyses other areas related to risk, its mitigating
area risiko tertentu dan mendiskusikan hal controls and as well as potential loss.
lainnya terkait dengan permasalahan risiko,
mekanisme mitigasi serta potensi kerugiannya.

Dewan Komisaris mendelegasikan kuasa Board of Commissioners delegate authority to


kepada Direktur Utama dan Direksi untuk President Director and Board of Directors to
mengimplementasikan strategi manajemen implement risk management strategy.
risiko.

Untuk mendukung penerapan manajemen To support the implementation of effective risk


risiko yang efektif, Direksi membentuk komite- management, Board of Directors formed
komite yang membantu kelancaran dan tata committees, which help smooth and good
kelola perusahaan yang sehat dalam lingkup corporate governance in the scope of the
organisasi: organization:

1. Komite Manajemen Risiko 1. Risk Management Committee


2. Komite Aset dan Liabilitas (“ALCO”) 2. Asset and Liability Committee (“ALCO”)
3. Komite Sumber Daya Manusia 3. Human Resources Committee
4. Komite Pengadaan Barang dan Jasa 4. Procurement Committee
5. Komite Kredit 5. Credit Committee
6. Komite Produk dan Aktivitas Baru, dan 6. Products and New Activities Committee, and
7. IT Steering Committee 7. IT Steering Committee

Komite Manajemen Risiko dibentuk pada The Risk Management Committee is established
tingkat Direksi dan bertanggung jawab untuk by Board of Directors and is responsible to
mengawasi perkembangan strategi dan oversee the day to day risk management
kebijakan manajemen risiko sehari-hari. strategy and policy development. The
Komite ini diketuai oleh Direktur Risiko. Committee is chaired by Risk Director.

42
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
a. Kerangka Manajemen Risiko (lanjutan) a. Risk Management Framework (continued)
Esensi dari penerapan manajemen risiko The essence of risk management application is
adalah kecukupan prosedur dan metodologi the adequacy of risk management procedures
pengelolaan risiko sehingga kegiatan usaha and methodologies so that the business activities
Bank tetap dapat terkendali (manageable) of Bank are manageable at the acceptable limits
pada batas/limit yang dapat diterima serta and able to generate profitability. Application of
menguntungkan. Penerapan manajemen risiko risk management includes active monitoring of
meliputi pengawasan aktif Pengurus Bank, Bank’s Management, policies, procedures and
kebijakan, prosedur dan penetapan limit risiko, risk limits, the process of risk identification,
proses identifikasi, pengukuran, pemantauan, measurement, monitoring, information system,
sistem informasi, dan pengendalian risiko, and control, as well as internal control.
serta pengendalian internal. Penerapan Application of risk management is stated in a
manajemen ini tertuang dalam suatu Risk Risk Management Framework (RMF). RMF sets
Management Framework (RMF). RMF out the Bank’s approach to risk management and
menetapkan pendekatan Bank terhadap the control framework within which risks are
manajemen risiko dan kerangka pengendalian managed and risk-return tradeoffs are made.
dimana risiko dikelola dan keseimbangan
antara risiko dan pendapatan dapat tercapai.
Secara umum RMF terdiri atas serangkaian In general, RMF consists of the following
proses sebagai berikut: processes:
Proses Identifikasi Risiko Risk Identification Process

Kegiatan identifikasi risiko merupakan langkah The identification of risk is the first step of a series
awal dari serangkaian kegiatan pengelolaan of management and risk control activities. Risk
dan pengendalian risiko. Kegiatan identifikasi identification activity is a proactive and not
risiko merupakan kegiatan yang bersifat reactive activity in terms of mapping the risk
proaktif dan bukan reaktif dalam hal profile of the entire operations of the Bank.
memetakan profil risiko terhadap seluruh
kegiatan operasional Bank.
Proses Pengukuran Risiko Risk Measurement Process

Kegiatan pengukuran risiko merupakan bagian Risk measurement activity is part of risk
dari kegiatan penerapan manajemen risiko management implementation activities that are
yang dimaksudkan untuk mengukur profil risiko intended to measure the risk profile of Bank in
yang dimiliki oleh Bank sehingga diperoleh order to obtain a description of the effectiveness
suatu gambaran tentang efektifitas penerapan of risk management through the application of a
manajemen risiko melalui suatu pendekatan particular approach.
tertentu.
Proses Pemantauan Risiko dan Proses Risk Monitoring Process and Risk Control
Pengendalian Risiko Process

Bank menerapkan prinsip Pendekatan Bank has implemented the principle of Three
Pertahanan Tiga Lapis dalam memantau, Lines of Defense Approach in monitoring,
mengontrol, dan mengelola risiko: controlling, and managing risks:
- Pertahanan Tingkat Pertama - First Line of Defense

Unit Bisnis berperan sebagai pertahanan Business unit serves as the first line of defense
tingkat pertama dan bertanggung jawab and is responsible to identify, evaluate, control,
untuk mengidentifikasi, mengevaluasi, and mitigate risks in business. Senior
mengendalikan dan memitigasi risiko Managements and the Risk Management
dalam bisnis. Manajemen Senior dan Committee play an important role in ensuring
Komite Manajemen Risiko memegang the overall business unit effectively functions
peranan penting dalam memastikan unit as “First Line of Defense” to establish a risk and
bisnis secara keseluruhan berfungsi control environment as part of day-to-day
efektif sebagai “Pertahanan Tingkat
operations.
Pertama” untuk membangun sebuah risk
and control environment sebagai bagian
dari kegiatan operasional sehari-hari.

43
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

a. Kerangka Manajemen Risiko (lanjutan) a. Risk Management Framework (continued)

Proses Pemantauan Risiko dan Proses Risk Monitoring Process and Risk Control
Pengendalian Risiko (lanjutan) Process (continued)

Bank menerapkan prinsip Pendekatan Bank has implemented the principle of Three
Pertahanan Tiga Lapis dalam memantau, Lines of Defense Approach in monitoring,
mengontrol, dan mengelola risiko: (lanjutan) controlling, and managing risks: (continued)

- Pertahanan Tingkat Kedua - Second Line of Defense

Divisi Manajemen Risiko dan Divisi The independent Risk Management Division
Kepatuhan yang independen berperan and Compliance Division serve as key units in
sebagai unit kunci dalam memberikan constructing second layer protection through
pertahanan tingkat kedua melalui fungsi independent monitoring function. In general,
pemantauan yang independen. Secara the second line of defense is responsible for
garis besar, pertahanan tingkat kedua setting the boundaries, guidance and directions
bertanggung jawab untuk menetapkan through development of policies, review and
batas-batas (boundaries), pedoman dan approval of risk limits, as well as ensuring the
arahan melalui pengembangan kebijakan, compliance with all regulations of Bank
kaji ulang dan persetujuan limit risiko, Indonesia and other authorities.
serta memastikan kepatuhan terhadap
seluruh peraturan yang diterbikan oleh
Bank Indonesia dan otoritas lainnya.

- Pertahanan Tingkat Ketiga - Third Line of Defense

Satuan Kerja Audit Internal berperan Internal Audit serves as the third line of
sebagai pertahanan tingkat ketiga yang defense which role is to provide independent
berperan untuk memberikan kegiatan and objective assurance and consulting
assurance dan konsultasi yang activities designed to add value and improve
independen dan yang dirancang untuk the bank operational process as well as help
menambah nilai dan memperbaiki the bank to accomplish its objectives.
operasional bank serta membantu bank
dalam mencapai tujuannya.

Pedoman dalam penerapan RMF tersebut Guideline for the application of RMF is stated in a
dituangkan ke dalam suatu Risk Appetite Risk Appetite Statement (RAS). RAS elaborates
Statement (RAS). RAS menguraikan tingkat level and characteristics of risks taken by the
dan karakterisik risiko yang akan diambil Bank, Bank in order to realize its mission for the
agar dapat merealisasikan misinya untuk para stakeholders while referring to the limitations set
pemangku kepentingan, dengan by debtors, regulators, and customers. The Board
memperhatikan batasan-batasan yang of Directors and senior management are
dikenakan oleh para debitur, regulator dan responsible to define RAS while ensuring that risk
nasabah. Direksi dan manajemen senior management framework has included detail
bertanggung jawab mendefinisikan RAS serta policies pertaining to limitations for all
memastikan bahwa kerangka manajemen organization toward the Bank’s activities, which
risiko telah mencakup kebijakan yang rinci are consistent with RAS and the capability of
terkait batasan bagi seluruh organisasi Bank.
terhadap kegiatan bank, yang konsisten
dengan RAS dan kapasitas Bank.

44
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

a. Kerangka Manajemen Risiko (lanjutan) a. Risk Management Framework (continued)

Tujuan dari Risk Appetite Statement adalah The purpose of the Risk Appetite Statement is to
agar Bank dapat melaksanakan strateginya support Bank to implement its strategy and fulfill
serta memenuhi harapan para pemangku the expectations of the shareholders. RAS does
kepentingan. RAS tidak bertujuan mencegah not aim to prevent risk-taking, but rather to ensure
pengambilan risiko, melainkan memastikan that the process of risk taking is:
bahwa proses pengambilan risiko:
a. Sejalan dengan sasaran; a. In line with the objectives;
b. Dipahami di tingkat yang sesuai di dalam b. Comprehended at the appropriate level in the
organisasi; dan organization; and
c. Dilaksanakan secara optimum berdasarkan c. Implementation of optimum risk return basis
keseimbangan risiko imbal balik dalam within the Group Risk Appetite limits.
batasan-batasan Risk Appetite Group.

b. Risiko Kredit b. Credit Risk

Risiko Kredit adalah risiko akibat kegagalan Credit Risk is the risk arising from the failure of
piak lain dalam memenuhi kewajiban kepada counterparties to fulfill its obligations, including
Bank, termasuk Risiko Kredit akibat kegagalan credit risk due to falure of the debtor, credit
debitur, Risiko konsentrasi kredit, counterparty concentration risk, counterparty credit risk, and
credit risk, dan settlement risk. Manajemen settlement risk. Credit risk management is to
risiko kredit bertujuan untuk memastikan ensure that the credit is granted based on the
bahwa kredit diberikan berdasarkan prinsip principles of sound lending.
pemberian kredit yang sehat.

Beberapa prinsip utama dalam manajemen Some key principles in the management of credit
risiko kredit yang ditetapkan Bank antara lain: risk applied by the Bank are as follows:

• Dewan Komisaris dan Direksi bertanggung • Board of Commissioners and Board of


jawab atas efektivitas penerapan Directors are responsible for the effective
manajemen risiko kredit; implementation of credit risk management;
• Melakukan pemberdayaan unit-unit kerja • Empower independent work units to perform
independen untuk melakukan internal control over the work units
pengendalian intern atas unit-unit kerja associated with the process of granting
yang terkait dengan proses pemberian credit;
kredit;
• Melakukan perbaikan kualitas aset • Improve the quality of productive assets,
produktif, penyebaran risiko portofolio credit portfolio risk distribution by ensuring
kredit dengan memastikan diversifikasi diversified loan portfolio in industry sectors
portofolio kredit di sektor-sektor industri and market segments;
maupun segmen pasar;
• Melakukan restrukturisasi dan • Conduct restructuring and/or settlement of
penyelesaian agunan yang diambil alih; foreclosed assets;
• Melakukan pengawasan harian terhadap • Conduct daily monitoring of credit arrears,
tunggakan kredit, baik di atas maupun di both above and below 30 days to anticipate
bawah 30 hari untuk mengantisipasi the non-performing loans, monitor and
terjadinya kredit bermasalah, memonitor provide early warning of potential losses due
dan memberikan peringatan dini (early to a deterioration in loan collectability;
warning) atas potensi kerugian yang
disebabkan penurunan kolektibilitas kredit;
• Melakukan identifikasi risiko yang terdapat • Identify the risks inherent in new products
pada produk dan aktivitas baru; and activities;
• Menerapkan sistem scoring untuk retail • Apply scoring system for retail banking and
banking dan interbank counterparty; interbank counterparty;
• Proses persetujuan kredit dilakukan • Loan approval process is done on a
secara sentralisasi di Kantor Pusat melalui centralized basis at the Head Office through
pertemuan Komite Kredit untuk kredit yang Credit Committee meeting for big account
bernilai besar. loans.

45
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Untuk mengendalikan dan memelihara To control and sustain minimal exposure of


eksposur risiko kredit pada tingkat minimal credit risk to the Bank resulting from its loans:
yang berasal dari kredit yang diberikan:

• Bank telah memiliki prinsip-prinsip dasar • The Bank has a Credit Risk Principles,
risiko kredit, yang berguna sebagai acuan which is used as a basic reference in
dasar dalam menjalankan fungsi performing Credit Risk Management
Manajemen Risiko Kredit yang tidak boleh function which cannot be violated;
dilanggar;

• Bank telah memiliki pedoman tertulis • The Bank has a documented credit policy
mengenai kebijakan dan prosedur kredit and procedures manual that covers all
yang mencakup seluruh aspek aktivitas aspects of the Bank’s lending activities. At
pemberian kredit. Setiap pemberian kredit all times, loan transactions must adhere to
harus senantiasa mengacu pada kebijakan the requirements of the Bank’s policy;
tersebut;

• Bank telah memiliki sistem deteksi dini • The Bank has early problem detection
permasalahan melalui ”early warning system through “early warning system” and
system” dan pemantauan yang ketat; dan disciplined monitoring; and

• Seluruh kredit yang diberikan dijamin • All loans are secured by collateral, except
dengan agunan, kecuali untuk jenis kredit for certain loans such as high quality
tertentu seperti kredit korporasi berkualitas corporate loans, personal loans and
tinggi, kredit perorangan dan fasilitas antar interbank loans.
bank.

Untuk mengantisipasi adanya risiko kredit yang To anticipate the inherent credit risk in debtors’
melekat pada kegiatan usaha debitur, Bank business activities, the Bank needs to review
perlu menelaah kualitas kredit calon debitur dan the credit quality of new debtors and existing
debitur lama, serta menerapkan peraturan dan debtors, and implements the Bank’s regulation
kebijakan Bank mengenai Credit Acceptance and policy on Credit Acceptance Criteria, which
Criteria, yang mengatur persyaratan minimum describes minimum requirements covering
owner, management, industry, financial
yang diperlukan, yang mencakup aspek pemilik,
performance, administration and
manajemen, industri, kinerja keuangan,
documentation and collateral aspects.
dokumentasi dan administrasi dan agunan.

Agar penerapan fungsi manajemen risiko kredit In order for the implementation of credit risk
sejalan dengan risk appetite yang telah management function in line with the risk
ditetapkan, Direksi membentuk Komite Kredit appetite set by the Bank, Board of Directors
yang memiliki fungsi dan tanggung jawab established Credit Committee which functions
sebagai berikut: and responsibilities are as follows:

1. Memberikan persetujuan atau penolakan 1. Giving approval or rejection of credit in


kredit sesuai dengan batas wewenang/jenis accordance with the authority/type of credit
kredit yang ditetapkan oleh Direksi dan established by the Board of Directors and
mengkaji ulang permohonan kredit yang reviewing the loan application that exceeds
melebihi limit yang telah ditetapkan; a preset limit;

2. Menolak permintaan dan/atau pengaruh 2. Rejecting the request and/or influence of


pihak-pihak yang berkepentingan dengan the related parties with the credit applicants,
pemohon kredit untuk memberikan to give credit approval for formality only;
persetujuan kredit yang hanya bersifat
formalitas;

46
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Agar penerapan fungsi manajemen risiko kredit In order for the implementation of credit risk
sejalan dengan risk appetite yang telah management function in line with the risk
ditetapkan, Direksi membentuk Komite Kredit appetite set by the Bank, Board of Directors
yang memiliki fungsi dan tanggung jawab established Credit Committee which functions
sebagai berikut: (lanjutan) and responsibilities are as follows: (continued)

3. Mengembangkan kebijakan pinjaman dan 3. Developing lending policies and submit to


menyerahkan kepada Komite Manajemen the Risk Management Committee for
Risiko untuk memperoleh persetujuan; approval;

4. Bertindak sebagai penasehat, bila 4. Acting as advisor, if necessary, in relation to


diperlukan, sehubungan dengan hal-hal complex credit issues;
perkreditan yang kompleks;

5. Memantau pelaksanaan kebijakan kredit; 5. Monitoring the implementation of credit


policy;

6. Mengevaluasi/menilai kinerja dari unit kerja 6. Evaluating/assessing the performance of


yang mengajukan dan menelaah kredit; the units that proposed and reviewed credit;

7. Melakukan koordinasi dengan Komite Aset 7. Coordinating with Assets and Liabilities
dan Liabilitas (ALCO) dalam aspek Committee (ALCO) for financing of credit.
pendanaan kredit.

Pengendalian Batas Risiko dan Kebijakan Risk Limit Control and Mitigation Policies
Mitigasi

Limit pemberian kredit ditelaah mengikuti Lending limits are reviewed in the light of
perubahan kondisi pasar dan ekonomi, dan changing market and economic conditions and
penelaahan kredit secara periodik, serta periodic credit reviews and assessments of
penilaian atas kemungkinan wanprestasi. probability of default.

Bank menerapkan kebijakan untuk memitigasi The Bank implements policies to mitigate credit
risiko kredit dengan mengharuskan adanya risk by requiring collateral to secure the
agunan sebagai jaminan pelunasan kredit jika repayment of loan if the main source of debtor’s
sumber pembayaran utama debitur melalui arus payment through cash flows is not fulfilled.
kas tidak terpenuhi.

Eksposur maksimum risiko kredit Maximum exposure to credit risk

Untuk aset keuangan yang diakui di laporan For financial assets recognized in the financial
posisi keuangan, eksposur maksimum terhadap statement, the maximum exposure to credit risk
risiko kredit sama dengan nilai tercatatnya. is equal to their carrying amount. For bank
Untuk bank garansi dan irrevocable L/C yang guarantees and irrevocable L/C issued, the
diterbitkan, eksposur maksimum terhadap risiko maximum exposure to credit risk is the maximum
kredit adalah nilai yang harus dibayarkan oleh amount that the Bank would have to pay if the
Bank jika kewajiban atas bank garansi dan obligations on the bank guarantees and
irrevocable L/C yang diterbitkan terjadi. irrevocable L/C issued are called upon.

47
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Tabel berikut menyajikan eksposur maksimum The following table presents the Bank’s
Bank terhadap risiko kredit untuk instrumen maximum exposure to credit risk of financial
keuangan pada laporan posisi keuangan dan instruments in the statement of financial position
rekening administratif, tanpa memperhitungkan and off-balance sheet accounts, without taking
agunan yang dimiliki atau perlindungan kredit into account any collateral held or other credit
lainnya; enhancement;

31 Desember/December 31
2016 2015
Instrumen keuangan pada laporan Financial instruments in the
posisi keuangan: statement of financial position:
Giro pada Bank Indonesia 1.635.116 1.710.947 Current accounts with Bank Indonesia
Giro pada bank-bank lain 80.815 31.146 Current accounts with other banks
Penempatan pada Bank Indonesia Placements with Bank Indonesia
dan bank-bank lain 2.230.074 2.113.813 and other banks
Tagihan derivatif 550 2.921 Derivatives receivable
Tagihan akseptasi 22.193 61.821 Acceptance receivable
Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali 471.350 269.117 agreement to resell
Kredit yang diberikan 17.551.188 20.788.304 Loans
Efek-efek 571.862 325.444 Securities
Aset lain-lain 156.267 127.018 Other Assets

Rekening administratif: Off-balance sheet accounts:


L/C yang tidak dapat dibatalkan
yang masih beredar 37.015 25.357 Outstanding irrevocable L/C
Bank garansi yang diterbitkan 15.632 25.320 Bank guarantees issued

Total 22.772.062 25.481.208 Total

Tabel di bawah ini menunjukkan net maximum The table below shows the net maximum
exposure (setelah memperhitungkan agunan) exposure (after considering collateral) to credit
atas risiko kredit untuk efek-efek yang dibeli risk of securities purchase under agreement to
dengan janji dijual kembali pada tanggal resell as of December 31, 2016 and 2015:
31 Desember 2016 dan 2015:
Eksposur maksimum/ Agunan/ Eksposur - neto/
Maximum exposure Collateral Net exposure

2016 2016
Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali 471.350 472.599 - agreement to resell

2015 2015
Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali 269.117 270.457 - agreement to resell

Untuk kredit yang diberikan, Bank For the loans and receivables, Bank uses the
menggunakan agunan untuk meminimalkan collateral to minimize the credit risk. Loans and
risiko kredit. Berdasarkan klasifikasi, kredit receivables in Bank are classified into two major
Bank dapat dibedakan menjadi dua kelompok category:
besar, yaitu:
1. Secured loans 1. Secured loans
2. Unsecured loans 2. Unsecured loans

48
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Untuk Secured loans, Bank menetapkan jenis For secured loans, Bank determined the type
dan nilai agunan yang dijaminkan sesuai and value of collateral according to the loan
skema kredit. Jenis dari agunan terdiri dari: scheme. Types of collateral are as follows :
a. Physical collateral, antara lain tanah, a. Physical collateral, such as land, buildings
bangunan dan BPKB kendaraan motor. and proof of vehicle ownership.
b. Financial collateral, antara lain simpanan b. Financial collateral, such as time deposit,
(tabungan, giro dan deposito berjangka), savings, current accounts, securities, and
surat berharga dan emas. gold.
c. Lainnya antara lain garansi dan lembaga c. Others, such as guarantees, government
penjamin. guarantees and guarantee institution.

Apabila terjadi default (gagal bayar), Bank In times of default, Bank will use the collateral as
akan menggunakan agunan tersebut sebagai the last resort in recovering its investment.
pilihan terakhir untuk pemenuhan kewajiban
counterparty.

Unsecured loans terdiri dari fully unsecured Unsecured loans consist of fully unsecured
loans dan partially secured loans seperti kredit loans and partially secured loans such as loans
untuk karyawan golongan berpenghasilan for fixed income employees, and other
tetap dan kredit konsumer lainnya. Dalam consumer loans. In their payment obligations,
pembayaran kewajibannya, partially secured partially secured loans are generally made
loans umumnya dilakukan melalui through automatic payroll deduction.
pemotongan penghasilan secara otomatis.

Dengan demikian, meskipun kredit tersebut Although it is included in the unsecured loans
termasuk dalam kategori unsecured loans category, the risk level of partially secured loans
namun tingkat risiko dari partially secured is lower than the carrying value. As for fully
loans tidak sebesar nilai tercatat kredit. unsecured loan, the risk level is equal to the
Sedangkan untuk fully unsecured loans, carrying value.
tingkat risiko adalah sebesar nilai tercatat
kredit.

Proses penentuan peringkat kredit Bank The Bank’s credit rating determination processes
membedakan eksposur untuk menentukan differentiate exposures in order to highlight those
eksposur mana yang memiliki faktor risiko with greater risk factors and higher potential
lebih besar dan tingkat kerugian potensial severity of loss. The credit rating for each debtor
yang lebih tinggi. Peringkat kredit setiap is reviewed regularly and any amendments are
debitur ditelaah secara berkala dan implemented promptly. The credit rating applied
perubahannya diimplementasikan secepatnya for each debtor also considered credit quality of
Peringkat kredit yang diterapkan atas setiap the respective debtor as determined by other
debitur juga mempertimbangkan kualitas banks.
kredit dari debitur tersebut yang telah
ditentukan oleh bank-bank lain.

Peringkat kredit Bank sesuai dengan The Bank’s credit rating follows Bank Indonesia’s
peringkat kredit dari Bank Indonesia credit rating as stipulated in the prevailing Bank
sebagaimana diatur dalam peraturan Bank Indonesia regulations.
Indonesia yang berlaku.

49
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Pembagian aset keuangan berdasarkan Distribution of financial assets by their credit quality
kualitas kreditnya disajikan di bawah ini: is summarised as below:

31 Desember/December 31, 2016

Belum jatuh Cadangan


tempo dan Jatuh tempo kerugian
tidak mengalami dan tidak penurunan
penurunan nilai/ mengalami Mengalami nilai/
Neither penurunan nilai/ penurunan Allowance for
past due nor Past due and nilai impairment
impaired not impaired /Impaired losses Total

Aset pada biaya


perolehan diamortisasi Assets at amortized cost
Current account with
Giro pada Bank Indonesia 1.635.116 - - - 1.635.116 Bank Indonesia
Current account with
Giro pada bank-bank lain 80.815 - - - 80.815 other banks
Penempatan pada Bank
Indonesia dan bank- Placement with Bank Indonesia
bank lain 2.230.074 - - - 2.230.074 and other banks
Tagihan akseptasi 22.193 - - - 22.193 Acceptances receivable
Efek-efek yang dibeli
dengan janji dijual Securities purchased under
kembali 471.350 - - - 471.350 agreement to resell
Kredit yang diberikan 13.855.371 3.178.797 1.253.746 (736.726) 17.551.188 Loans
Efek-efek 324.355 - - - 324.355 Securities
Aset lain-lain 103.237 53.030 - - 156.267 Other assets

Aset tersedia untuk dijual Available for sales assets


Efek-efek 247.506 - - - 247.506 Securities

Aset pada nilai wajar Assets at fair value


melalui laba rugi through profit or loss
Tagihan derivatif 550 - - - 550 Derivative receivables

18.970.567 3.231.827 1.253.746 (736.726) 22.719.414

31 Desember/December 31, 2015

Belum jatuh Cadangan


tempo dan Jatuh tempo kerugian
tidak mengalami dan tidak penurunan
penurunan nilai/ mengalami Mengalami nilai/
Neither penurunan nilai/ penurunan Allowance for
past due nor Past due and nilai impairment
impaired not impaired /Impaired losses Total

Aset pada biaya


perolehan diamortisasi Assets at amortized cost
Current account with
Giro pada Bank Indonesia 1.710.947 - - - 1.710.947 Bank Indonesia
Current account with
Giro pada bank-bank lain 31.146 - - - 31.146 other banks
Penempatan pada Bank
Indonesia dan bank- Placement with Bank Indonesia
bank lain 2.111.813 - - - 2.111.813 and other banks
Tagihan akseptasi 61.821 - - - 61.821 Acceptances receivable
Efek-efek yang dibeli
dengan janji dijual Securities purchased under
kembali 269.117 - - - 269.117 agreement to resell
Kredit yang diberikan 18.650.912 1.640.025 539.107 (41.740) 20.788.304 Loans
Efek-efek 325.444 - - - 325.444 Securities
Aset lain-lain 127.018 31.160 - - 158.178 Other assets

Aset pada nilai wajar Assets at fair value


melalui laba rugi through profit or loss
Tagihan derivatif 2.921 - - - 2.921 Derivative receivables

23.291.139 1.671.185 539.107 (41.740) 25.459.691

50
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Analisis umur pinjaman yang jatuh tempo tetapi The aging analysis of past due but not impaired
tidak mengalami penurunan nilai pada tanggal loans as of December 31, 2016 and 2015, are
31 Desember 2016 dan 2015, sebagai berikut: as follows:

31 Desember/ December 31, 2016

1 sampai 31 sampai 61 sampai


30 hari/ 60 hari/ 90 hari/
1 to 30 days 31 to 60 days 61 to 90 days Total

Modal kerja 335.742 270.806 223.114 829.662 Working capital


Investasi 1.796.897 222.869 241.987 2.261.753 Investment
Konsumen 72.197 12.500 2.685 87.383 Consumer

Total 2.204.836 506.175 467.786 3.178.797 Total


Cadangan kerugian
penurunan nilai (949 ) (228) (552) (1.729) Allowance for impairment losses

Neto 2.203.887 505.947 467.234 3.177.068 Net

31 Desember/December 31, 2015

1 sampai 31 sampai 61 sampai


30 hari/ 60 hari/ 90 hari/
1 to 30 days 31 to 60 days 61 to 90 days Total

Modal kerja 178.780 15.832 442.155 636.767 Working capital


Investasi - 2.713 959.354 962.067 Investment
Konsumen 52 33 41.044 41.129 Consumer
Karyawan 9 6 47 62 Employee

Total 178.841 18.584 1.442.600 1.640.025 Total


Cadangan kerugian
penurunan nilai (59 ) (11) (479) (549) Allowance for impairment losses

Neto 178.782 18.573 1.442.121 1.639.476 Net

Bank mengevaluasi penurunan nilai aset The Bank assesses impairment of financial
keuangan secara individual dan kolektif. assets on an individual and collective basis.
Penurunan nilai secara individual terkait dengan The individual impairment related to
eksposur yang secara individual signifikan, individually significant exposures, while
sedangkan penurunan nilai kolektif terkait collective impairment related to groups of
kelompok aset keuangan yang sejenis dimana homogeneous financial assets in respect of
kerugian telah terjadi namun belum dapat losses that have been incurred but have not
diidentifikasi atas aset yang secara individual been identified on assets that are considered
tidak signifikan dan eksposur yang secara individually insignificant as well as individually
individual signifikan yang telah dievaluasi significant exposures that were subject to
penurunan nilainya secara individual namun individual assessment for impairment but not
tidak ditemukan adanya penurunan nilai secara found to be individually impaired.
individual.

51
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Definisi kualitas kredit debitur dalam The definition of the debtor’s credit quality in
menentukan peringkat kredit sesuai dengan determining credit rating is in accordance with
kualitas kredit yang diatur dalam Peraturan credit quality stipulated in the prevailing Bank
Bank Indonesia No.14/15/PBI/2012 tanggal Indonesia Regulation No.14/15/PBI/2012
24 Oktober 2012 tentang “Penilaian Kualitas dated 24 October 2012 about “Assessment of
Aset Bank Umum” sebagai berikut: Commercial Banks’ Asset Quality”, as follows:

• Lancar: eksposur menunjukkan laba yang • Current: exposures exhibit high or stable
tinggi atau stabil, modal dan likuiditas yang earnings, adequate capital and liquidity,
memadai, secara umum tercermin dari as generally evidenced by prompt
pembayaran komitmen terhadap Bank dan repayment of its commitment with the
kreditur lainnya secara tepat waktu. Bank and other creditors. Source of
Sumber pembayaran dapat payment can be clearly identifiable and
diidentifikasikan secara jelas dan Bank the Bank does not rely on collateral for
tidak bergantung pada jaminan untuk settlement of the debtor’s future
penyelesaian komitmen debitur di masa commitments.
datang.

• Dalam perhatian khusus: eksposur • Special mention: exposures require


memerlukan tingkat pemantauan yang varying degrees of special attention and
bervariasi dan risiko wanprestasi menjadi default risk is of concern.
perhatian.

• Kurang lancar: eksposur dimana nasabah • Substandard: exposures which the debtor
dalam tahap keterlambatan pembayaran is in the stages of delinquency and has
dan telah gagal untuk melakukan failed to make a payment on overdue
pembayaran kewajiban yang lewat jatuh accounts for 91 days up to 120 days, in
tempo 91 hari sampai dengan 120 hari, accordance with the contractual terms of
sesuai dengan persyaratan kontraktual the loan agreement.
dalam perjanjian kredit.

• Diragukan: eksposur dimana nasabah • Doubtful: exposures which the debtor is in


dalam tahap keterlambatan pembayaran the stages of delinquency and has failed
dan telah gagal untuk melakukan to make a payment on overdue accounts
pembayaran kewajiban yang lewat jatuh for 121 days up to 180 days, in
tempo 121 hari sampai dengan 180 hari, accordance with the contractual terms of
sesuai dengan persyaratan kontraktual the loan agreement.
dalam perjanjian kredit.

• Macet: eksposur dimana nasabah dalam • Loss: exposures which the debtor is in the
tahap keterlambatan pembayaran dan stages of delinquency and has failed to
telah gagal untuk melakukan pembayaran make a payment on overdue accounts for
kewajiban yang lewat jatuh tempo lebih more than 180 days, in accordance with
dari 180 hari, sesuai dengan persyaratan the contractual terms of the loan
kontraktual dalam perjanjian kredit. agreement.

Sehubungan dengan kepatuhan terhadap Bank In compliance with Bank Indonesia (OJK),
Indonesia (OJK), Bank menerapkan Peraturan Bank implements Regulation of the Financial
Otoritas Jasa Keuangan (POJK) Services Authority (POJK)
No.11/POJK.03/2015 tanggal 21 Agustus 2015 No.11/POJK.03/2015 dated 21 August 2015
tentang ”Ketentuan Kehati-hatian dalam on "Prudential Provisions in relation to the
Rangka Stimulus Perekonomian Nasional bagi National Economic Stimulus for Commercial
Bank Umum” yang berlaku sampai dengan 21 Banks" which is valid until August 21, 2017.
Agustus 2017.

52
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Definisi kualitas aset keuangan lainnya selain The definition of quality of financial assets
kredit yang diberikan adalah sebagai berikut: other than loans are as follows:

• Lancar: eksposur menunjukkan tidak • Current: exposures indicate that no


terdapatnya tunggakan pembayaran delinquency of payment of amounts due
jumlah yang jatuh tempo sesuai in accordance with the contractual terms.
perjanjian kontraktual.

• Kurang lancar: eksposur menunjukkan • Substandard: exposures indicate that


adanya tunggakan jumlah yang jatuh there is delinquency of payment of
tempo sesuai perjanjian kontraktual. amounts due in accordance with the
contractual terms.

• Macet: eksposur yang seluruh jumlah • Loss: exposures that all the principal and
pokok dan jumlah yang jatuh tempo other amounts due cannot be expected
lainnya tidak dapat diharapkan untuk to be received/recovered in accordance
diterima kembali/dipulihkan sesuai with the contractual terms.
dengan perjanjian kontraktual.

Belum jatuh tempo dan tidak mengalami Neither past due nor impaired
penurunan nilai

Eksposur menunjukkan laba yang tinggi atau Exposures exhibit high or stable earnings,
stabil, modal dan likuiditas yang memadai, adequate capital and liquidity, as generally
secara umum tercermin dengan pembayaran evidenced by prompt repayment of its
komitmen terhadap Bank secara tepat waktu. commitment with the Bank. Source of
Sumber pembayaran dapat diidentifikasikan payment can be clearly identifiable.
secara jelas.

Jatuh tempo dan tidak mengalami Past due and not impaired
penurunan nilai

Eksposur dimana telah terjadi tunggakan Exposures, for which contractual interest or
pembayaran pokok atau bunga kontraktual, principal payments are past due, however the
tetapi Bank berkeyakinan bahwa penurunan Bank believes that individual impairment has
nilai individual belum terjadi dengan not occurred with consideration of the
mempertimbangkan agunan yang tersedia collateral pledged and/or the stage of
dan/atau tingkat tertagihnya jumlah yang collection of amounts owned.
masih terutang kepada Bank.

Mengalami penurunan nilai Impaired

Eksposur dengan peringkat kurang lancar, Exposures with substandard, doubtful and
diragukan dan macet dimana Bank telah loss grading for which the Bank determines
menentukan bahwa terdapat bukti obyektif that there is objective evidence of impairment
penurunan nilai dan Bank tidak mengharapkan and it does not expect to collect all principal
untuk menerima kembali seluruh nilai pokok and interest due according to the contractual
dan bunga tertunggak sesuai dengan terms of the agreement.
persyaratan kontraktual dalam perjanjian.

53
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Kredit dengan persyaratan yang Loans with renegotiated terms


dinegosiasikan kembali

Kredit dengan persyaratan yang Loans with renegotiated terms are loans that
dinegosiasikan kembali adalah kredit yang have been restructured due to deterioration in
telah direstrukturisasi karena memburuknya the borrower’s financial position and where
posisi keuangan nasabah dan Bank telah the Bank has made concessions that it would
memberikan konsesi yang mana tidak akan not otherwise consider. Once the loan is
dipertimbangkan dalam kondisi normal. restructured, it remains in this category
Ketika kredit telah direstrukturisasi, kredit independent of satisfactory performance after
tersebut tetap berada dalam kelompok ini restructuring.
walaupun kinerja nasabah membaik setelah
restrukturisasi.

Agunan Collateral

Bank memiliki agunan atas kredit dalam bentuk The Bank holds collateral against loans in the
properti, kas, aset bergerak dan aset lainnya. form of property, cash, movable assets and
Estimasi nilai wajar didasarkan atas nilai others. Estimates of fair value are based on
agunan pada saat pemberian kredit. Penilaian the value of collateral assessed at the time of
jaminan dapat dilakukan oleh penilai eksternal borrowing. Collateral assessment can be
dan/atau penilai internal. Untuk kredit dengan performed by external and/or internal
jumlah plafon debitur/grup debitur lebih dari appraiser. Loans with plafond above Rp5,000
Rp5.000, penilaiannya harus dilakukan oleh should be assessed by external/independent
appraiser. Re-assessment of collaterals is
penilai eksternal/independen. Penilaian
performed by internal and/or external
kembali jaminan dilakukan baik oleh penilai
appraiser every year for performing loan. For
internal dan/atau eksternal setahun sekali non-performing loan, the frequency of re-
untuk kredit yang performing. Untuk kredit yang assessment could be conducted more often.
non-performing, frekuensi penilaian kembali In term of down graded loans, re-assessment
dilakukan lebih sering. Untuk kredit yang should be conducted immediately. Collateral
mengalami penurunan grading, maka penilaian generally is not held over placements with
kembali harus segera dilakukan. Pada Bank Indonesia and other banks, and
umumnya, agunan tidak dimiliki atas securities.
penempatan pada Bank Indonesia dan bank-
bank lain, dan efek-efek.

Analisa konsentrasi risiko kredit Concentration of credit risk analysis

Konsentrasi risiko kredit timbul ketika sejumlah Concentrations of credit risk arise when a
nasabah menjalankan kegiatan usaha yang number of customers are engaged in similar
sejenis atau menjalankan kegiatan usaha dalam business activities or activities within the same
wilayah geografis yang sama, atau ketika geographic region, or when they have similar
nasabah memiliki karakteristik yang sejenis yang characteristics that would cause their ability to
akan menyebabkan kemampuan mereka untuk meet contractual obligations to be similarly
memenuhi kewajiban kontraktualnya secara affected by changes in economic or other
serupa dipengaruhi oleh perubahan kondisi conditions.
ekonomi atau kondisi lainnya.

54
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
b. Risiko Kredit (lanjutan) b. Credit Risk (continued)
Konsentrasi risiko kredit berdasarkan jenis Concentration of credit risk by type of debtors:
debitur:

31 Desember/December 31, 2016

Pemerintah
dan Bank
Indonesia/
Government
Korporasi/ and Bank Bank/
Corporates Indonesia Banks Ritel/Retail Total

Current accounts with Bank


Giro pada Bank Indonesia - 1.635.116 - - 1.635.116 Indonesia
Giro pada bank-bank lain - - 80.815 - 80.815 Current accounts with other banks
Penempatan pada Bank
Indonesia dan Placements with Bank Indonesia
bank lain - 2.230.074 - - 2.230.074 and other bank
Tagihan derivatif - - 550 - 550 Derivatives receivable
Tagihan akseptasi - - 22.193 - 22.193 Acceptance receivable
Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali - 471.350 - - 471.350 agreement to resell
Kredit yang diberikan 15.807.393 - - 1.743.795 17.551.188 Loans
Efek-efek - 571.862 - - 571.862 Securities
Aset lain-lain 129.245 8.458 - 18.564 156.267 Other asset
Komitmen dan kontinjensi Commitments and
dengan risiko kredit 52.647 - - - 52.647 contingencies with credit risk

Total 15.989.285 4.916.860 103.558 1.762.359 22.772.062 Total

Persentase 70% 21,5% 0,5% 8% 100% Percentage

31 Desember/December 31, 2015

Pemerintah
dan Bank
Indonesia/
Government
Korporasi/ and Bank Bank/
Corporates Indonesia Banks Ritel/Retail Total

Current accounts with Bank


Giro pada Bank Indonesia - 1.710.947 - - 1.710.947 Indonesia
Giro pada bank-bank lain - - 31.146 - 31.146 Current accounts with other banks
Penempatan pada Bank
Indonesia dan Placements with Bank Indonesia
bank lain - 2.103.542 8.271 - 2.111.813 and other bank
Tagihan derivatif - - 2.921 - 2.921 Derivatives receivable
Tagihan akseptasi - - 61.821 - 61.821 Acceptance receivable
Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali - 269.117 - - 269.117 agreement to resell
Kredit yang diberikan 19.046.689 - - 1.741.615 20.788.304 Loans
Efek-efek 231 325.213 - - 325.444 Securities
Aset lain-lain 93.750 8.716 - 24.552 127.018 Other asset
Komitmen dan kontinjensi Commitments and
dengan risiko kredit 50.697 - - - 50.697 contingencies with credit risk

Total 19.191.367 4.417.535 104.159 1.766.167 25.479.228 Total

Persentase 76% 17% 0% 7% 100% Percentage

Konsentrasi risiko kredit dari kredit yang Concentration of credit risk of loans by type of
diberikan berdasarkan jenis kredit, valuta dan loans, currency and economic sector is
sektor ekonomi diungkapkan pada Catatan 12. disclosed in Note 12.

Stress Testing Stress Testing

Stress Testing adalah metode pengukuran Stress Testing is a method of risk


risiko dengan memperkirakan potensi kerugian measurement by estimating the potential
ekonomi Bank berdasarkan kondisi pasar economic loss to the Bank under abnormal
abnormal untuk memastikan sensitivitas kinerja market conditions in order to ascertain the
Bank terhadap perubahan faktor risiko dan sensitivity of the Bank’s performances to
mengidentifikasi faktor yang mempengaruhi changes in risk factors and to identify
dan berdampak pada pendapatan dan modal influencing factors that significantly impact the
Bank secara signifikan Bank’s revenue and capital.

55
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

b. Risiko Kredit (lanjutan) b. Credit Risk (continued)

Stress Testing (lanjutan) Stress Testing (continued)

Dalam menghadapi kondisi fluktuasi nilai tukar In facing with the fluctuation of rupiah
rupiah terhadap Dolar Amerika Serikat, Bank exchange rate to United States Dollar, Bank
telah melakukan stress test terhadap nasabah has conducted stress test to wholesale
wholesale yang memiliki eksposur kredit valas customers who have foreign currency credit
dengan melakukan beberapa skenario kurs. exposure by conducting several exchange rate
scenarios.

c. Risiko Pasar c. Market Risk

Risiko pasar adalah risiko yang timbul dari Market Risk is the risk arising from movement in
pergerakan variabel pasar dalam portofolio yang market variables in portfolios held by the Bank
dimiliki oleh Bank yang dapat menimbulkan that could incur losses for the Bank (adverse
kerugian bagi Bank (adverse movement). movements). Market variables are defined as
Variabel pasar didefinisikan sebagai suku bunga interest rates and exchange rates including
dan nilai tukar termasuk derivatif dari kedua jenis derivatives of these two type of risks. The
risiko ini. Tujuan dari manajemen risiko pasar objective of market risk management is to
adalah untuk mengelola dan mengendalikan manage and control market risk exposures
eksposur risiko pasar dalam parameter yang within acceptable parameters, while optimizing
dapat diterima, dan secara bersamaan the return on risk.
mengoptimalkan hasil pengembalian atas risiko
yang diterima.

ALCO Bank yang beranggotakan Direksi dan The Bank’s ALCO, which consists of the Board
beberapa anggota manajemen senior of Directors and selected members of senior
bertanggungjawab untuk menetapkan kebijakan management, is responsible for determining
dan strategi pengelolaan risiko tingkat suku interest rate risk management policies and
bunga di banking book, serta mengawasi strategies in banking book and monitoring its
penerapan dan pelaksanaannya. Tujuan utama implementation and execution. The main
ALCO adalah untuk mengoptimalkan hasil usaha objective of ALCO is to optimize the Bank’s
Bank dengan tetap memperhatikan limit risiko return within predetermined risk limits.
yang telah ditetapkan.
Secara keseluruhan, risiko pasar dibagi dalam In overall, market risk is divided into the
risiko-risiko berikut: following risks:

I. Risiko mata uang I. Currency risk

Bank memiliki eksposur risiko mata uang akibat The Bank is exposed to currency risk through
adanya transaksi dalam valuta asing. Bank transaction in foreign currencies. The Bank
memonitor risiko konsentrasi yang terjadi untuk monitors any concentration risk in relation to any
setiap valuta sehubungan dengan penjabaran individual currency in regard to the translation of
transaksi dan aset dan liabilitas moneter dalam foreign currency transactions and monetary
valuta asing ke dalam Rupiah. assets and liabilities into Rupiah.

Agar sejalan dengan risk appetite yang telah To align with the risk appetite set by the Bank,
ditetapkan oleh Bank, maka kegiatan propierty hence propierty trading activity is not allowed.
trading tidak diperkenankan. Pengelolaan posisi The Bank’s foreign currency position
valuta asing Bank dilakukan dengan cara management is conducted by managing the
mengendalikan Posisi Devisa Neto (“PDN”) Bank’s overall Net Foreign Exchange Position
Bank secara keseluruhan. (“NOP”).

56
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)

c. Risiko Pasar (lanjutan) c. Market Risk (continued)

I. Risiko mata uang (lanjutan) I. Currency risk (continued)

Pengelolaan risiko mata uang dilengkapi The management of currency risk is


dengan pemantauan sensitivitas posisi supplemented by monitoring the sensitivity
devisa neto Bank terhadap berbagai skenario of the Bank’s net open position to various
kurs mata uang yang ditelaah secara currency exchange rate scenarios on a
triwulanan. Skenario standar yang quarterly basis. Standard scenarios that
dipertimbangkan meliputi perubahan nilai are considered include a 4% movement in
tukar rata-rata valuta asing terhadap Rupiah average foreign currencies against Rupiah,
sebesar 4%, yang menurut penilaian which according to management’s
manajemen, relevan untuk menilai assessment, is relevant to assess its
signifikansinya terhadap hasil usaha Bank. significance to the Bank’s financial results.
Analisa tersebut (tidak diaudit) adalah The analysis (unaudited) are as follows:
sebagai berikut:

4% kenaikan/ 4% penurunan/
increase *) decrease **)

Sensitivitas terhadap laba rugi Sensitivity to profit or loss


Per 31 Desember 2016 (166) 166 For the year ended December 31, 2016
Per 31 Desember 2015 (289) 289 For the year ended December 31, 2015

*) Kurs valuta asing rata-rata meningkat terhadap Rupiah/Average foreign exchange rates are appreciated against Rupiah.
**) Kurs valuta asing rata-rata menurun terhadap Rupiah/Average foreign exchange rates are depreciated against Rupiah.

31 Desember/December 31, 2016


Posisi Devisa Neto
(nilai absolut)/
Liabilitas/ Net Open Position
Valuta Aset/Assets Liabilities (absolute amount) Currencies

Aggregate (statement of
Keseluruhan (laporan posisi keuangan financial position and
dan rekening administratif) administrative accounts)
Euro Eropa 38.133 37.546 587 European Euro
Dolar Amerika Serikat 6.688.241 6.693.869 5.628 United States Dollar
Dolar Australia 44.512 43.965 547 Australian Dollar
Dolar Singapura 165.972 165.560 412 Singapore Dollar
Dolar Hong Kong 969 917 52 Hong Kong Dollar
Yen Jepang 17.333 17.515 182 Japanese Yen
Dolar Selandia Baru 44 3 41 New Zealand Dollar
Swiss Franc 308 154 154 Swiss Franc
Great Britain
Poundsterling Inggris 25.063 25.111 48 Poundsterling
Riyal Qatar 218 301 83 Qatari Riyal
Baht Thailand 439 - 439 Baht Thailand
Total 8.173 Total

Total modal (Catatan 3f) 3.321.304 Total capital (Note 3f)

Rasio PDN 0,25% NOP ratio

57
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
c. Risiko Pasar (lanjutan) c. Market Risk (continued)
I. Risiko mata uang (lanjutan) I. Currency risk (continued)
31 Desember/December 31, 2015
Posisi Devisa Neto
(nilai absolut)/
Liabilitas/ Net Open Position
Valuta Aset/Assets Liabilities (absolute amount) Currencies

Aggregate (statement of
Keseluruhan (laporan posisi keuangan financial position and
dan rekening administratif) administrative accounts)
Euro Eropa 48.199 47.267 932 European Euro
Dolar Amerika Serikat 8.520.351 8.515.738 4.613 United States Dollar
Dolar Australia 54.595 53.886 709 Australian Dollar
Dolar Singapura 223.941 224.315 374 Singapore Dollar
Dolar Hong Kong 895 927 32 Hong Kong Dollar
Yen Jepang 3.498 3.114 384 Japanese Yen
Dolar Selandia Baru 127 - 127 New Zealand Dollar
Swiss Franc 345 172 173 Swiss Franc
Great Britain
Poundsterling Inggris 30.467 29.879 588 Poundsterling
Riyal Qatar 197 93 104 Qatari Riyal
Baht Thailand 498 - 498 Baht Thailand
Total 8.534 Total

Total modal (Catatan 3f) 3.225.289 Total capital (Note 3f)

Rasio PDN 0,26% NOP ratio

II. Risiko tingkat suku bunga II. Interest rate risk


Kegiatan usaha Bank dipengaruhi oleh risiko The Bank’s operations are subject to the
fluktuasi suku bunga terhadap aset berbunga risk of interest rate fluctuations to the
dan liabilitas berbunga (bukan untuk tujuan extent that interest-earning assets and
diperdagangkan) yang memiliki jatuh tempo interest-bearing liabilities (not for trading
atau re-price pada saat yang berbeda-beda purpose) mature or re-price at different
atau dalam jumlah yang beragam. times or in different amounts.

Tabel di bawah ini menyajikan aset berbunga


dan liabilitas berbunga (bukan untuk tujuan The table below summarizes the Bank’s
diperdagangkan) Bank pada nilai tercatat, yang interest-earning assets and interest-bearing
dikategorikan menurut mana yang terlebih liabilities (not for trading purpose) at carrying
dahulu antara tanggal re-pricing atau tanggal amounts, categorized by the earlier of
jatuh tempo kontraktual: contractual re-pricing or maturity dates:
31 Desember/December 31, 2016
Suku bunga mengambang/
Floating rate Suku bunga tetap/Fixed rate
_ ________________

Nilai tercatat/ > 3 - 12 >1-2 > 3 - 12 >1-2


Carrying ≤ 3 bulan/ bulan/ tahun/ > 2 tahun/ ≤ 3 bulan/ bulan/ tahun/ > 2 tahun/
amount months months years years months months years years
Penempatan pada Placements with
Bank Indonesia dan Bank Indonesia
Bank lain 2.230.074 - - - - 2.230.074 - - - and other bank
Efek-efek yang dibeli Securities purchased
dengan janji dijual under agreement
kembali 471.350 - - - - 471.350 - - - to resell
Kredit yang diberikan 17.551.188 197.643 872.794 370.988 4.053.780 2.755,189 2.743.067 435.789 6.121.938 Loans
Efek-efek 571.862 - - - - 247.507 - 73.336 251.019 Securities
20.824.474 197.643 872.794 370.988 4.053.780 5.704.120 2.743.067 509.125 6.372.957
Simpanan dari Deposits from
nasabah 19.344.962 - - - - 14.895.497 4.449.465 - - customers
Simpanan dari Deposits from
bank-bank lain 662.798 - - - - 662.798 - - - other banks
Surat berharga Marketable securities
yang diterbitkan 315.520 - - - - - 315.520 - - issued
20.323.280 - - - - 15.558.295 4.764.985 - -

501.194 197.643 872.794 370.988 4.053.780 (9.854.175) (2.021.918) 509.125 6.372.957

58
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

c. Risiko Pasar (lanjutan) c. Market Risk (continued)

II. Risiko tingkat suku bunga II. Interest rate risk


31 Desember/December 31, 2015

Suku bunga mengambang/


Floating rate Suku bunga tetap/Fixed rate
_ ________________

Nilai tercatat/ > 3 - 12 >1-2 > 3 - 12 >1-2


Carrying ≤ 3 bulan/ bulan/ tahun/ > 2 tahun/ ≤ 3 bulan/ bulan/ tahun/ > 2 tahun/
amount months months years years months months years years

Penempatan pada Placements with


Bank Indonesia dan Bank Indonesia
bank-bank lain 2.111.813 - - - - 2.111.813 - - -and other banks
Efek-efek yang dibeli Securities purchased
dengan janji dijual under agreement
kembali 269.117 - - - - 269.117 - - - to resell
Kredit yang diberikan 20.788.304 263.367 771.379 570.699 4.259.124 2.170.608 5.170.556 319.676 7.262.895 Loans
Efek-efek 325.444 - - - - - 69 73.994 251.381 Securities

23.494.678 263.367 771.379 570.699 4.259.124 4.551.538 5.170.625 393.670 7.514.276

Simpanan dari Deposits from


nasabah 18.509.008 - - - - 17.841.843 499.555 167.610 - customers
Simpanan dari Deposits from
bank-bank lain 3.179.111 - - - - 3.179.111 - - - other banks
Pinjaman Subordinasi 964.950 - - - - - - - 964.950 Subordinated Loan

22.653.069 - - - - 21.020.954 499.555 167.610 964.950

841.609 263.367 771.379 570.699 4.259.124 (16.469.416) 4.671.070 226.060 6.549.326

Untuk mengurangi risiko tingkat suku bunga To mitigate the interest rate risk arising from fixed
yang ditimbulkan oleh kredit yang diberikan rate loans, based on the loan agreements with
dengan suku bunga tetap, berdasarkan the debtors/customers, the Bank has the rights to
perjanjian kredit dengan debitur/ nasabah, Bank change the interest rates at any time at its
berhak mengubah besaran suku bunga discretion, except for certain loans which re-
sewaktu-waktu atas dasar pertimbangan Bank, pricing period have been determined.
kecuali untuk kredit-kredit tertentu yang telah
ditetapkan jangka waktu re-pricing.

Secara umum, Bank sensitif terhadap liabilitas In general, the Bank is liability sensitive because
karena aset berbunga memiliki jangka waktu its interest-earning assets have a longer duration
jatuh tempo yang lebih panjang dan frekuensi and being repriced less frequently than interest-
re-price yang lebih jarang dibandingkan bearing liabilities. This means that in rising
liabilitas berbunga. Hal ini berarti dalam kondisi interest rate environment, margin earned will
suku bunga yang meningkat, marjin yang narrow as liabilities reprice. However, the actual
dihasilkan akan mengecil sejalan dengan re- effect will depend on a number of factors,
price liabilitas. Namun demikian, dampak aktual including the extent to which repayments are
akan dipengaruhi oleh sejumlah faktor, made earlier or later than the contractual maturity
termasuk pembayaran yang dilakukan sebelum dates and extension of customer deposits on a
atau setelah tanggal jatuh tempo kontraktual roll-over basis.
dan perpanjangan simpanan dari nasabah
secara berkesinambungan pada saat jatuh
tempo (roll-over).

Tabel dibawah ini mengikhtisarkan kisaran suku The tables below summarize the range of
bunga kontraktual dan suku bunga efektif rata- contractual interest rates and weighted average
rata tertimbang setahun pada tanggal effective interest rates per annum as of
31 Desember 2016 dan 2015 untuk masing- 31 December 2016 and 2015 for each financial
masing instrument keuangan: instrument:

59
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
c. Risiko Pasar (lanjutan) c. Market Risk (continued)
II. Risiko tingkat suku bunga (lanjutan) II. Interest rate risk (continued)
Tahun yang berakhir pada tanggal
31 Desember/ Year ended December 31
2016 2015
Kontraktual/ Kontraktual/
Contractual Efektif/Effective Contractual Efektif/Effective
Aset Assets
Rupiah: Rupiah:
Penempatan pada Bank Indonesia dan Placements with Bank
bank-bank lain Indonesia and other banks
Bank Indonesia 4,00% 4,00% 5,50% 5,50% Bank Indonesia
Efek-efek yang dibeli dengan janji dijual Securities purchased under
kembali 4,95% - 5,20% 5,04% 6,40% 6,40% agreement to resell
Kredit yang diberikan 0,00% - 36,00% 12,90% 0,00% - 32,98% 12,89% Loans
Efek-efek Securities
Sertifikat Bank Indonesia 6,30% 6,30% - - Certificates of Bank Indonesia
Obligasi korporasi - - 15,25%-15,50% 15,35% Corporate bonds
Obligasi Pemerintah 8,25% - 11,00% 8,54% 8,25% -11,00% 8,52% Government bonds

Valuta asing: Foreign currencies:


Penempatan pada Bank Indonesia dan Placements with Bank
bank-bank lain Indonesia and other banks
Bank Indonesia 0,69% 0,69% 0,38% 0,38% Bank Indonesia
Kredit yang diberikan 2,00% - 7,67% 5,79% 4,66% - 6,11% 5,59% Loans

Liabilitas Liabilities
Rupiah: Rupiah:
Simpanan dari nasabah Deposits from customers
Giro 0,00% - 7,00% 1,19% 0,00% - 4,25% 0,81% Current accounts
Tabungan 0,00% - 5,00% 1,32% 0,00% - 5,00% 1,61% Saving accounts
Deposito berjangka dan deposit Time deposits and deposit
on call 0,00% - 10,00% 8,38% 0,25% - 12,00% 9,43% on call
Simpanan dari bank-bank lain Deposits from other banks
Giro 0,05% - 2,00% 0,97% 0,00% - 1,00% 1,86% Current Accounts
Deposito berjangka dan deposit Time deposits and deposit
on call 0,05% - 7,25% 6,48% 5,50% - 7,00% 6,17% on call
Call money 5,00% 5,00% 7,25% - 8,40% 7,89% Call money
Surat berharga yang diterbitkan 8,50% 8,50% - - Marketable securities issued

Valuta asing: Foregn currencies:


Simpanan dari nasabah Deposits from customers
Giro 0,00% - 1,50% 0,12% 0,00% - 1,50% 0,17% Current accounts
Deposito berjangka dan deposit Time deposits and deposit
on call 0,00% - 2,25% 1,80% 0,10% - 3,50% 2,14% on call
Simpanan dari bank-bank lain Deposit from other banks
Call Money 0,75% - 2,15% 1,71% Call money
Pinjaman Subordinasi - - 7.25% 7,25% Subordinated Loan

Analisa sensitivitas atas risiko tingkat suku Sensitivity analysis on interest rate and
bunga dan risiko mata uang currency risk
Pengelolaan risiko tingkat suku bunga The management of interest rate risk is
dilengkapi dengan pemantauan atas supplemented by monitoring the sensitivity of
sensitivitas terhadap aset dan liabilitas the Bank’s financial assets and liabilities which
keuangan Bank yang memiliki tingkat suku have floating and fixed interest rate to various
bunga mengambang dan tetap terhadap interest rate scenarios. Standard scenarios
berbagai skenario suku bunga. Skenario that are considered on a quarterly basis
standar yang dipertimbangkan secara include a 100 basis point (bp) parallel fall or
triwulanan meliputi penurunan atau kenaikan rise in all yield curves. An analysis of the
yield curve secara paralel sebesar 100 basis Bank’s sensitivity to increase or decrease in
point (bp). Analisa sensitivitas Bank atas market interest rates, assuming no
kenaikan atau penurunan tingkat suku bunga asymmetrical movement in yield curves and a
pasar, dengan asumsi tidak terdapat constant financial position, (unaudited) is as
perubahan asimetris pada yield curve dan follows:
posisi keuangan yang konstan, (tidak diaudit)
adalah sebagai berikut:

60
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)

c. Risiko Pasar (lanjutan) c. Market Risk (continued)

Analisa sensitivitas atas risiko tingkat suku Sensitivity analysis on interest rate and
bunga dan risiko mata uang (lanjutan) currency risk (continued)
100 bp 100 bp
kenaikan/increase penurunan/decrease
Sensitivitas terhadap Sensitivity to net interest
pendapatan bunga bersih income
Per 31 Desember 2016 (30.898) 30.898 For the year ended December 31, 2016
Per 31 Desember 2015 (45.673) 45.673 For the year ended December 31, 2015

d. Risiko Likuiditas d. Liquidity Risk


Risiko Likuiditas adala risiko akibat Liquidity Risk is the risk that arising from Bank’s
ketidakmampuan Bank memenui kewajiban yang inability to fulfill matured obligation from cash
telah jatuh waktu dari sumber pendanaan arus kas flow and/or high-quality liquid assets that can
dan/atau dari aset likuid berkualitas tinggi yang be pledged, without disturbing the activities and
dapat diagunkan, tanpa menggangu aktivitas dan financial condition of the Bank. Liquidity risk can
keuangan Bank. Risiko likuiditas dapat be categorised as follows:
dikategorikan sebagai berikut:

• Risiko Likuiditas-Pasar, yaitu risiko yang timbul • Market-Liquidity Risk, namely arising from
dari ketidakmampuan Bank untuk the inability of the Bank to offset certain
mengimbangi posisi tertentu dengan harga position at market prices due to poor
pasar karena kondisi likuiditas pasar yang conditions of market liquidity or market
buruk atau gangguan pasar. disruptions.
• Risiko Likuiditas Pendanaan, yaitu risiko yang • Funding Liquidity Risk, namely risk arising
timbul dari ketidakmampuan Bank untuk from the inability of the Bank to convert
mengkonversi aset ke kas atau memperoleh assets to cash or obtain funding from other
pendanaan dari sumber lain sources
Pengelolaan likuiditas dan manajemen aset- Liquidity and asset-liability management
liabilitas meliputi pemeliharaan likuiditas di atas include maintaining liquidity above safety level
tingkat yang aman untuk memastikan bahwa setiap to ensure that funding requirement can be met
saat kebutuhan dana dapat dipenuhi untuk to pay liabilities which due at any time.
melunasi liabilitas yang telah jatuh tempo.
Ketidaksesuaian antara jangka waktu jatuh tempo The mismatch between maturities of funding
dana dari pihak ketiga yang pada umumnya lebih which in general is shorter than maturity of
pendek dari jatuh tempo kredit yang diberikan akan loans will cause liquidity problems, which will
menyebabkan masalah likuiditas, yang akan affect the capability of the Bank to meet its
mempengaruhi kemampuan Bank dalam obligations to customers. This may influence
memenuhi kewajibannya kepada para nasabah. public’s trust and may affect the going concern
Hal ini dapat mempengaruhi tingkat kepercayaan of the Bank.
masyarakat yang pada akhirnya dapat
mempengaruhi kelangsungan usaha Bank.
Dalam menghadapi kemungkinan adanya To face possibility of assets and liabilities
ketidaksesuaian jatuh tempo aset dan liabilitas, mismatch, the Bank’s management, through
manajemen Bank melalui rapat bulanan ALCO monthly ALCO meeting, reviews strategic
melakukan penelaahan atas beberapa hal yang matters, such as:
bersifat strategis, antara lain:
1. Pengelolaan dana yang memiliki jatuh tempo 1. Management of fund which has maturities
yang tidak sesuai dengan aset; mismatch;
2. Ketepatan pengelolaan aset dan liabilitas 2. Accuracy of management of assets and
yang sensitif terhadap perubahan suku liabilities which are sensitive to interest rate
bunga; movement;
3. Analisa simpanan nasabah yang 3. Customer deposits analysis which
menggambarkan tren berbagai produk dana describes the trend of all third party fund
pihak ketiga di seluruh Indonesia; products throughout Indonesia;
4. Penempatan dana pada portofolio efek-efek; 4. Investment in securities portfolio;
5. Laporan perkembangan kredit yang telah 5. Existing and new loans progress report;
ada dan yang baru;

61
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
d. Risiko Likuiditas (lanjutan) d. Liquidity Risk (continued)
Dalam menghadapi kemungkinan adanya To face possibility of assets and liabilities
ketidaksesuaian jatuh tempo aset dan liabilitas, mismatch, the Bank’s management, through
manajemen Bank melalui rapat bulanan ALCO monthly ALCO meeting, reviews strategic
melakukan penelaahan atas beberapa hal yang matters, such as (continued):
bersifat strategis, antara lain (lanjutan):

6. Strategi penetapan harga sesuai dengan 6. Pricing strategy in accordance with current
kondisi pasar saat ini; market condition;
7. Perbandingan antara target dengan 7. Comparison between target and
realisasi dana pihak ketiga. realization of third party fund.

Pengelolaan likuiditas Bank ditekankan pada The focus of the Bank’s management of liquidity
penyesuaian arus kas masuk dan keluar. is to match the cash inflows and cash outflows.
Kesenjangan arus kas diantisipasi melalui The gap between cash flows will be anticipated
pemeliharaan cadangan likuiditas primer yang with the proper maintenance of primary liquidity
memadai sesuai dengan perkiraan arus kas dan reserve in accordance with proforma cash flows
struktur liabilitas yang ada. Pemeliharaan and existing liabilities structure. Maintenance of
cadangan likuiditas primer meliputi pemeliharaan primary liquidity reserve consists of
cadangan wajib pada tingkat yang optimal yang maintenance of reserve requirement that should
ditetapkan Bank Indonesia serta pemeliharaan be in optimal level based on Bank Indonesia
efek-efek berjangka pendek yang sangat likuid regulation and short-term highly liquid
seperti Sertifikat Bank Indonesia dan instrumen securities, such as Certificates of Bank
operasi moneter Bank Indonesia lainnya. Bank juga Indonesia and other Bank Indonesia monetary
memelihara cadangan likuiditas sekunder yang operation instruments. The Bank also maintains
terdiri dari penempatan dana jangka pendek di secondary liquidity reserve, which consists of
bank-bank lain serta efek-efek berjangka panjang short- term placements with other banks and
yang likuid seperti obligasi pemerintah, obligasi liquid long- term securities such as government
bank dan obligasi korporasi yang memiliki bonds, private bank bonds and corporate bonds
peringkat baik. Pengelolaan likuiditas juga that have good rating. Liquidity management is
dilakukan melalui pengelolaan struktur sumber also conducted through financial resources
dana dengan menerapkan limit konsentrasi structure, such as by applying the depositors
deposan dan berusaha mengurangi concentration limit and trying to decrease the
ketergantungannya pada dana mahal seperti dependence on high cost fund such as time
deposito berjangka dan menggantinya dengan deposits and replace it with lower cost fund such
sumber dana murah seperti giro dan tabungan. as current accounts and saving deposits. The
Bank juga senantiasa memelihara kemampuannya Bank also maintains its ability to access money
untuk memiliki akses ke pasar uang dengan selalu market by maintaining relationship with
memelihara hubungan dengan bank-bank correspondent banks. The Bank also regularly
koresponden. Bank juga secara berkala memonitor monitors all situations above and takes some
seluruh keadaan di atas dan mengambil tindakan actions to achieve funding variations.
agar terdapat variasi pendanaan.

Eksposur terhadap Risiko Likuiditas Exposure to Liquidity Risk

Ukuran utama yang digunakan oleh Bank untuk The key measure used by the Bank for
mengelola risiko likuiditas adalah rasio aset likuid managing liquidity risk is the ratio of net liquid
bersih terhadap simpanan dari nasabah. Untuk assets to deposits from customers. For this
tujuan ini, aset likuid bersih termasuk kas dan purpose, net liquid assets are considered as
setara kas dan efek utang dengan peringkat including cash and cash equivalents and
investasi yang memiliki pasar yang aktif dan investment grade debt securities for which
likuid, dikurangi simpanan dari bank-bank dan there is an active and liquid market, less any
komitmen yang jatuh tempo dalam satu bulan ke deposits from banks and commitments
depan, jika ada. Pada tanggal 31 Desember 2016 maturing within the next month, if any. As of
dan 2015, rasio aset likuid bersih terhadap December 31, 2016 and 2015, the reported
simpanan dari nasabah adalah masing-masing ratios of net liquid assets to deposits from
18,56% dan 5,65%. customers were 18.56% and 5.65%,
respectively.

62
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)
d. Risiko Likuiditas (lanjutan) d. Liquidity Risk (continued)
31 Desember/December 31
2016 2015

Kas dan setara kas 3.997.265 3.899.338 Cash and cash equivalents
Efek-efek 571.862 325.444 Securities
Simpanan dari bank-bank lain (662.798) (3.179.111) Deposits from other banks
Surat berharga yang diterbitkan (315.520) - Marketable securities issued

Total aset likuid neto 3.590.809 1.045.671 Total net liquid assets
Simpanan dari nasabah 19.344.962 18.509.008 Deposits from customers
Rasio aset likuid bersih terhadap Ratio of net liquid assets to
simpanan dari nasabah 18,56% 5,65% deposits from customers

Bank bergantung pada simpanan dari nasabah The Bank relies on deposits from customers
dan bank-bank lain sebagai sumber utama and other banks as its primary sources of
pendanaannya yang secara umum memiliki funding which generally have shorter
periode jatuh tempo yang lebih singkat dan maturities and a large proportion of them are
sebagian besar merupakan liabilitas yang harus repayable on demand. The short-term
dibayarkan segera. Simpanan-simpanan yang nature of these deposits increases the
memiliki jangka waktu jatuh tempo yang singkat Bank’s liquidity risk and the Bank actively
ini meningkatkan risiko likuiditas Bank dan manages this risk through maintaining
Bank secara aktif mengelola risiko ini dengan competitive pricing and constant monitoring
memelihara tingkat harga yang kompetitif dan of market trends.
pengawasan tren pasar secara
berkesinambungan.

Sumber pendanaan jangka pendek tersebut Short-term funding source is constantly made
senantiasa diperpanjang secara otomatis an automatic renewal, so it can reduce the
sehingga dapat mengurangi selisih/gap dari difference/gap of maturities between assets
jatuh tempo antara aset dan liabilitas. and liabilities.

Sisa umur kontraktual liabilitas keuangan Residual contractual maturities of financial


sampai dengan jatuh tempo pada tanggal liabilities as of December 31, 2016 and 2015
31 Desember 2016 dan 2015 adalah sebagai are as follows:
berikut:
2016

Nilai nominal
bruto arus kas
Nilai tercatat/ masuk (keluar)/ Kurang dari
Carrying Gross nominal 1 bulan/Less 1 - 3 bulan/ > 3 - 12 bulan/
amount inflow (outflow) than 1 month months months

Liabilitas non-derivatif Non-derivative liabilities


Simpanan dari nasabah (19.344.962) (19.437.451) (8.722.879) (6.265.108) (4.449.464) Deposits from customers
Simpanan dari bank-bank lain (662.798) (663.389) (16.599) (646.790) - Deposits from other banks
Surat berharga yang
diterbitkan (315.520) (315.520) - - (315.520) Marketable securities issued

(20.323.280) (20.416.360) (8.739.478 ) (6.911.898) (4.764.984)

2015

Nilai nominal
bruto arus kas
Nilai tercatat/ masuk (keluar)/ Kurang dari
Carrying Gross nominal 1 bulan/Less 1 - 3 bulan/ > 3 - 12 bulan/
amount inflow (outflow) than 1 month months months

Liabilitas non-derivatif Non-derivative liabilities


Simpanan dari nasabah (18.509.008) (18.577.337) (6.550.615) (11.359.557) (667.165) Deposits from customers
Simpanan dari bank-bank lain (3.179.111) (3.180.755) (2.627.855) (552.900) - Deposits from other banks
Pinjaman Subordinasi (964.950) (1.367.214) (5.830) (11.600) (1.349.724) Subordinated Loan

(22.653.069) (23.125.306) (9.184.300) (11.924.057) (2.016.889)

63
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND CAPITAL


MANAJEMEN MODAL (lanjutan) MANAGEMENT (continued)
d. Risiko Likuiditas (lanjutan) d. Liquidity Risk (continued)

Tabel di atas menyajikan arus kas yang tidak The above table shows the undiscounted cash
didiskontokan dari liabilitas keuangan Bank flows on the Bank’s financial liabilities on the
berdasarkan periode jatuh tempo kontraktual basis of their earliest possible contractual
yang paling dekat. Arus kas atas instrumen maturity. The Bank’s expected cash flows on
keuangan yang diharapkan Bank bervariasi these instruments vary significantly from this
secara signifikan dari analisa ini. Sebagai analysis. For example, deposits from customers
contoh, simpanan dari nasabah diharapkan are expected to maintain a stable or increasing
memiliki saldo yang stabil atau meningkat. balance.

Nilai nominal arus kas masuk (keluar) yang The nominal inflow (outflow) disclosed in the
diungkapkan pada tabel di atas menyajikan arus above table represents the contractual
kas kontraktual yang tidak didiskontokan terkait undiscounted cash flows relating to the principal
dengan nilai pokok dan bunga dari liabilitas and interest on the financial liability.
keuangan.

Analisa jatuh tempo aset dan liabilitas keuangan Maturity gap analysis of financial assets and
liabilities

Tabel di bawah menganalisa nilai tercatat aset The table below analysis the carrying amount of
dan liabilitas keuangan Bank ke dalam kelompok financial assets and liabilities of the Bank into
jatuh tempo berdasarkan sisa jangka waktu maturity time bands based on remaining term to
sampai dengan tanggal jatuh tempo kontraktual contractual maturity as of December 31, 2016 and
pada tanggal 31 Desember 2016 dan 2015: 2015:
2016

Tanpa tanggal
jatuh tempo
Nilai tercatat/ kontraktual/
Carrying No contractual < 1 bulan/ 1 - 3 bulan/ > 3 - 12 >1-2 > 2 tahun/
amount maturity month months bulan/months tahun/years years

Kas 51.260 51.260 - - - - - Cash


Giro pada Bank Current accounts with
Indonesia 1.635.116 1.635.116 - - - - - Bank Indonesia
Giro pada Current accounts with
bank-bank lain 80.815 80.815 - - - - - other banks
Penempatan pada Placements with Bank
Bank Indonesia Indonesia and
dan bank lain 2.230.074 - 2.230.074 - - - - other banks
Efek-efek yang dibeli Securities purchased
dengan janji under agreement
dijual kembali 471.350 - 471.350 - - - - to resell
Tagihan derivatif 550 - 550 - - - - Derivatives receivable
Tagihan akseptasi 22.193 - - 16.681 5.512 - - Acceptances receivable
Kredit yang diberikan 17.551.188 - 1.320.977 1.631.855 3.615.862 806.777 10.175.717 Loans
Efek-efek 571.862 - - 247.506 - 73.336 251.019 Securities
Aset lain-lain - neto 156.267 - 19.232 17.086 32.219 11.065 76.665 Other assets - net

Total aset keuangan 22.770.675 1.767.191 4.042.183 1.913.128 3.653.593 891.178 10.503.401 Total financial assets

Simpanan dari
nasabah 19.344.962 2.238.789 6.391.600 6.265.108 4.449.465 - - Deposits from customers
Simpanan dari
bank-bank lain 662.798 14.508 1.500 646.790 - - - Deposits from other banks
Surat berharga Maketable securities
yang diterbitkan 315.520 - - - 315.520 - - issued
Liabilitas derivatif 12.890 - 12.890 - - - - Derivatives payable
Liabilitas akseptasi 22.193 - - 16.681 5.512 - - Acceptances payable
Beban masih harus
dibayar dan
liabilitas lain-lain 87.440 87.440 - - - - - Accruals and other liabilities

Total liabilitas
keuangan 20.445.803 2.340.737 6.405.990 6.928.579 4.770.497 - - Total financial liabilities

Selisih 2.324.872 (573.546 ) (2.363.807) (5.015.451) (1.116.904) 891.178 10.503.401 Difference

64
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)

d. Risiko Likuiditas (lanjutan) d. Liquidity Risk (continued)

2015

Tanpa tanggal
jatuh tempo
Nilai tercatat/ kontraktual/
Carrying No contractual < 1 bulan/ 1 - 3 bulan/ > 3 - 12 >1-2 > 2 tahun/
amount maturity month months bulan/months tahun/years years

Kas 45.432 45.432 - - - - - Cash


Giro pada Bank Current accounts with
Indonesia 1.710.947 1.710.947 - - - - - Bank Indonesia
Giro pada Current accounts with
bank-bank lain 31.146 31.146 - - - - - other banks
Penempatan pada Placements with Bank
Bank Indonesia Indonesia and
dan bank lain 2.111.813 - 2.111.813 - - - - other banks
Efek-efek yang dibeli Securities purchased
dengan janji under agreement
dijual kembali 269.117 - 204.484 64.633 - - - to resell
Tagihan derivatif 2.921 - 2.921 - - - - Derivatives receivable
Tagihan akseptasi 61.821 - 49.565 12.256 - - - Acceptances receivable
Kredit yang diberikan 20.788.304 - 899.520 1.534.455 5.941.935 890.375 11.522.019 Loans
Efek-efek 325.444 - - - - 74.063 251.381 Securities
Aset lain-lain - neto 127.018 127.018 - - - - - Other assets - net

Total aset keuangan 25.473.963 1.914.543 3.268.303 1.611.344 5.941.935 964.438 11.773.400 Total financial assets

Simpanan dari
nasabah (18.509.008) (2.010.849) (4.471.437) (11.359.557) (499.555 ) (167.610 ) - Deposits from customers
Simpanan dari
bank-bank lain (3.179.111) (4.256) (2.621.955) (552.900 ) - - - Deposits from other banks
Liabilitas derivatif (661) - (661) - - - - Derivatives payable
Liabilitas akseptasi (61.821) - (49.565) (12.256) - - - Acceptances payable
Beban masih harus
dibayar dan
liabilitas lain-lain (70.470) (70.470) - - - - - Accruals and other liabilities
Pinjaman Subordinasi (964.950 ) - - - - - (964.950 ) Subordinated Loan

Total liabilitas
keuangan (22.786.021) (2.085.575) (7.143.618) (11.924.713) (499.555 ) (167.610 ) (964.950 ) Total financial liabilities

Selisih 2.687.942 (171.032 ) (3.875.315) (10.313.369) 5.442.380 796.828 10.808.450 Difference

e. Risiko Operasional e. Operational Risk


Risiko operasional adalah risiko yang Operational Risk is the risk caused by among
disebabkan oleh antara lain ketidakcukupan others by inadequacy and/or fair of internal
dan/atau tidak berfungsinya proses internal, processes, human error, system failure or
kesalahan manusia, kegagalan sistem atau external problems affecting the operations of
adanya masalah eksternal yang mempengaruhi the Bank.
operasional Bank.

Kebijakan dan prosedur yang terkait dengan The related policy and procedures for the
pengelolaan risiko operasional termasuk management of operational risk including the
kebijakan pengendalian minimum standar telah standard minimum controls policies are issued,
diterbitkan, ditelaah dan diperbaharui secara reviewed and improved continuously to ensure
berkesinambungan untuk memastikan the adequacy of control mechanisms in all of
kecukupan mekanisme pengendalian pada the Bank’s policies and procedures. The Bank
semua kebijakan dan prosedur Bank. Bank actively conducts the socialization program to
secara aktif melakukan program sosialisasi develop risk awareness and quality control to
untuk mengembangkan risk awareness dan mitigate the operational risk.
meningkatkan pengendalian terhadap kualitas
dalam rangka menurunkan tingkat risiko
operasional.
Dalam rangka memitigasi risiko operasional, In order to mitigate operational risks, the Bank
Bank telah menyusun dan menerapkan has developed and enforced anti-fraud policy to
kebijakan anti-fraud untuk meminimisasi potensi minimize potential of fraud, which led to the
kecurangan (fraud), yang akan menyebabkan Bank’s losses, either caused by external or
kerugian Bank, baik dikarenakan kecurangan internal fraud.
eksternal maupun internal.

65
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)

e. Risiko Operasional (lanjutan) e. Operational Risk (continued)

Selain itu, Bank telah mengembangkan sebuah Beside that, Bank has developed Risk &
Risk & Control Self Assessment (RCSA) Control Self Assessment (RCSA) as tools to
sebagai tools identifikasi risiko operasional dan identify and mitigate operational risk. RCSA
mitigasi risiko operasional. RCSA telah has been conducted for number of units both
dilakukan untuk beberapa unit baik di cabang in the branches as well as in the head office.
maupun di kantor pusat. Secara berkala RCSA RCSA development will be periodically
akan senantiasa dipantau perkembangannya monitored and improved following business
dan disempurnakan mengikuti perkembangan development of the Bank. RCSA will also be
bisnis Bank. Selanjutnya RCSA akan developed across the Bank and periodically be
dikembangkan ke seluruh unit kerja di Bank dan implemented.
secara berkala diterapkan.

Business Continuity Management (BCM) Business Continuity Management (BCM)

BCM adalah proses manajemen menyeluruh BCM is a holistic management process that
yang mengidentifikasikan dampak potensial identifies potential impacts that threaten an
yang mengancam organisasi dan menyediakan organization and provides a framework for
kerangka kerja untuk membangun ketahanan building resilience and the capability to
dan kemampuan dengan respon yang efektif respond effectively safeguard the interests of
yang menjaga kepentingan stakeholder, the stakeholders, reputation, brand and value
reputasi, brand dan aktivitas penciptaan nilai. creating activities.
Sasaran dari penerapan BCM adalah untuk: The goal of the application of BCM is to:

1. Memastikan kelanjutan proses dari 1. Ensure the continuing process of critical


fungsi/unit yang kritikal sesuai dengan function/unit in accordance with a
toleransi waktu yang telah ditetapkan saat predetermined tolerance time during a
terjadi krisis atau bencana; crisis or disaster;

2. Memastikan setiap fungsi/unit yang kritikal 2. Ensure each critical function/unit has the
memiliki strategi pemulihan yang sesuai appropriate recovery strategies and can
dan dapat diimplementasikan saat terjadi be implemented during a crisis or
krisis atau bencana disaster;

3. Memastikan ketersediaan sumber daya 3. Ensure the availability of human and


manusia dan material yang dibutuhkan material resources required by the bank
oleh bank dalam menjalankan bisnis saat to continue run the business in the event
terjadi krisis atau bencana; of a crisis or disaster;

4. Meningkatkan kesadaran karyawan untuk 4. Increase awareness of employees to


selalu siap dalam menghadapi kondisi always be prepared to deal with a crisis
krisis atau bencana; situation or disaster;

5. Menjaga sumber daya utama yang 5. Keeping the main resources required to
dibutuhkan dalam mendukung pemulihan support the recovery of the Bank's
aktivitas Bank; activities;

6. Mengurangi dampak terhadap layanan 6. Reduce the impact on the Bank's


Bank; services;
7. Mengurangi risiko reputasi; 7. Reducing the risk of reputation;

8. Meningkatkan kepercayaan publik dan 8. Improve public confidence and macro


sistem keuangan makro; financial system;
9. Meningkatkan ketahanan atau 9. Increasing the resilience or recovery
kemampuan pemulihannya; dan capability, and
10. Menjaga eksistensi Bank. 10. Maintain the existence of the Bank.

66
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)

e. Risiko Operasional (lanjutan) e. Operational Risk (continued)

Penerapan program-program terkait BCM di The implementation of programs related to


Bank melibatkan seluruh komponen dan BCM at Bank involve all components and have
mendapat dukungan penuh dari manajemen the full support of management since the
sejak dari tahap perencanaan, penyusunan, planning stage, the preparation, maintenance,
pemeliharaan, pengawasan sampai supervision until perfected.
penyempurnaannya.

f. Manajemen Modal f. Capital Management

Bank diwajibkan untuk mentaati Peraturan The Bank is required to comply with prevailing
Otoritas Jasa Keuangan (“POJK”) yang Financial Service Authority Regulation (“POJK”)
berlaku dalam hal modal yang diwajibkan regulation in respect of regulatory capital. The
regulator. Pendekatan Bank terhadap Bank’s approach to capital management is
pengelolaan modal ditentukan oleh strategi driven by the Bank’s strategic and organizational
dan persyaratan organisasi Bank, dengan requirements, taking into account the regulatory,
mempertimbangkan peraturan, serta keadaan economic and commercial environment.
ekonomi dan komersial.

Bank menghitung kebutuhan modal The Bank calculates its capital requirements
berdasarkan POJK yang berlaku dimana using the prevailing POJK where the Bank’s
modal yang diwajibkan regulator Bank regulatory capital is analyzed into two tiers:
dianalisa dalam dua tier:

• Modal tier 1, meliputi modal ditempatkan • Tier 1 capital, which includes issued and
dan disetor penuh,dana setoran modal, fully paid share capital, disclosed reserve,
cadangan umum dan wajib, saldo laba general and legal reserve, retained
(rugi) dan laba tahun berjalan, laba (rugi) earnings and profit (loss) for the year, profit
tahun lalu, aset tak berwujud dan selisih (loss) from prior year, intagible assets, and
kurang antara penyisihan penghapusan difference between provision for loan
aset dan cadangan kerugian penurunan losses and allowance for impairment
nilai atas aset produktif dan non produktif, losses for productive asset and non
aset pajak tangguan serta instrumen yang productive asset, deffered tax asset and
memenuhi persyaratan. instruments that fulfills terms.

• Modal tier 2, meliputi instrumen modal • Tier 2 capital, which includes capital
dalam bentuk saham atau lainnya yang instruments in the form of shares or others
memenuhi persyaratan, cadangan umum that fulfills terms, provided provision for
aset produktif yang wajib dibentuk. productive asset.

Bank tidak mempunyai modal tambahan lain The Bank does not have any other
yang memenuhi kriteria modal tier 3 sesuai supplementary capital which meets the criteria
dengan POJK yang berlaku. of tier 3 capital under prevailing POJK.

Berbagai batasan telah diterapkan untuk Various limits are applied to elements of the
menentukan komponen modal yang diwajibkan regulatory capital. The effect of deferred taxation
oleh regulator. Pengaruh dari pajak tangguhan has been excluded in determining the amount of
telah dikeluarkan dalam menentukan jumlah retained earnings for tier 1 capital; 100 percent of
saldo laba untuk menghitung modal tier 1; 100 the profit for the year before deferred taxation
persen laba tahun berjalan sebelum aset pajak asset being included in tier 1 capital; and
tangguhan yang dapat diperhitungkan dalam qualifying tier 2 capital cannot exceed tier 1
modal tier 1; dan modal tier 2 tidak boleh capital. There is also a restriction on the amount
melebihi modal tier 1. Juga terdapat batasan
of general allowance for productive assets that
jumlah cadangan umum aset produktif yang
may be included as part of tier 2 capital.
boleh dimasukkan sebagai bagian dari modal
tier 2.

67
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)
f. Manajemen Modal (lanjutan) f. Capital Management (continued)

Aset Tertimbang Menurut Risiko (“ATMR”) The Bank’s risk weighted assets (“RWA”) are
Bank ditentukan berdasarkan persyaratan determined according to specified
yang telah ditentukan yang mencerminkan requirements that seek to reflect the varying
berbagai tingkatan risiko yang terkait dengan levels of risk attached to assets and exposures
aset dan eksposur yang tidak tercermin dalam not recognized in the statement of financial
laporan posisi keuangan. Berdasarkan PBI, position. Based on PBI, the Bank needs to take
Bank diharuskan untuk mempertimbangkan into consideration its credit risk, market risk and
risiko kredit, risiko pasar dan risiko operasional operational risk in measuring the RWA.
dalam mengukur ATMR Bank.

Kebijakan bank adalah menjaga modal yang The Bank’s policy is to maintain a strong capital
kuat untuk menjaga kepercayaan pemodal, base so as to maintain investor, creditor and
kreditur dan pasar dan untuk mempertahankan market confidence and to sustain future
perkembangan bisnis di masa depan. development of the business. The impact of the
Pengaruh tingkat modal terhadap tingkat level of capital on shareholders’ return is also
pengembalian ke pemegang saham juga recognized and the Bank also recognizes the
diperhitungkan dan Bank juga memahami need to maintain a balance between the higher
perlunya menjaga keseimbangan antara returns that might be possible with greater
tingkat pengembalian yang tinggi, yang
gearing and the advantages and security level
dimungkinkan dengan gearing yang lebih
afforded by a strong capital position.
besar serta keuntungan-keuntungan dan
tingkat keamanan yang didapat dari posisi
modal yang kuat.

Bank telah mematuhi semua persyaratan The Bank has complied with all externally
modal yang ditetapkan oleh pihak eksternal imposed capital requirements throughout the
sepanjang tahun. year.

Tabel di bawah ini menunjukkan modal dan The table below shows the Bank’s capital and
rasio kewajiban penyediaan modal minimum capital adequacy ratio as of December 31,
Bank masing-masing pada tanggal 2016 and 2015 are as follows:
31 Desember 2016 dan 2015 sebagai berikut:

2016 2015

Modal tier 1 3.185.137 2.086.745 Tier 1 capital


Modal tier 2 136.167 1.138.543 Tier 2 capital
3.321.304 3.225.288
Total modal yang diwajibkan regulator Total regulatory capital

Aset tertimbang menurut risiko Risk weighted assets


Risiko kredit 19.002.657 19.203.194 Credit risk
Risiko pasar 8.179 8.534 Market risk
Risiko operasional 1.171.272 719.834 Operational risk
Total aset tertimbang menurut risiko 20.182.108 19.931.562 Total risk weighted assets

Rasio kewajiban penyediaan modal


untuk risiko kredit dan risiko Capital adequacy ratio for credit
operasional 16,46% 16.19% risk and operational risk
Rasio kewajiban penyediaan modal
minimum untuk risiko kredit, pasar dan Capital adequacy ratio for credit risk,
operasional 16,46% 16.18% market risk and operational risk
Rasio kewajiban penyediaan modal
minimum yang diwajibkan 8,00% 8.00% Required capital adequacy ratio
Rasio kewajiban penyediaan modal
minimum yang diwajibkan menurut Required capital adequacy ratio
profil risiko 9,00% 9,00% accordance with risk profile

68
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

3. MANAJEMEN RISIKO KEUANGAN DAN 3. FINANCIAL RISK MANAGEMENT AND


MANAJEMEN MODAL (lanjutan) CAPITAL MANAGEMENT (continued)

f. Manajemen Modal (lanjutan) f. Capital Management (continued)

Manajemen menggunakan rasio modal yang Management uses regulatory capital ratios in
diwajibkan regulator untuk memantau modal order to monitor its capital base, and these
dan rasio-rasio modal ini tetap menjadi standar capital ratios remain the industry standards for
industri untuk mengukur kecukupan modal. measuring capital adequacy. BI’s approach to
Pendekatan BI untuk pengukuran ini terutama such measurement is primarily based on
berdasarkan pemantauan terhadap hubungan monitoring the relationship of the capital
antara modal yang diwajibkan berdasarkan resources requirement based on risk profile to
profil risiko terhadap modal yang tersedia. available capital resources.

g. Saling hapus aset dan liabilitas keuangan g. Offsetting financial asset and liabilities

Informasi tentang hak untuk membukukan Information about rights of offset and related
saling hapus dan perjanjian (seperti arrangements (such as collateral posting
persyaratan jaminan) terkait instrumen requirements) for financial instruments under
keuangan yang memiliki perjanjian utama atau and enforceable master netting agreements or
sejenis disajikan pada tabel berikut: similar arrangements disclosed in the following
tables:

Nilai offset Efek dari sisa hak untuk


bruto offset yang tidak memenuhi
sesuai kriteria offset/
Nilai dengan Nilai Effect of remaining rights of
tercatat kriteria neto yang offset that do not meet
bruto offsetting/ disajikan di offsetting criteria
(sebelum Gross laporan posisi
offsetting)/ amount keuangan/ Nilai wajar
Gross offset in Net amount Financial
carrying accordance presented in Instrumen collateral/ Financial Assets
Aset keuangan yang amount with the the statement keuangan/ Fair value Nilai eksposur recognized
diakui pada akhir (before offsetting of financial Financial of financial neto/ at the end of
periode pelaporan offsetting) criteria position instruments collateral Net exposure reporting period

31 Desember 2016 December 31, 2016


Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali 471.350 - 471.350 - 472.599 - agreement to resell

31 Desember 2015 December 31, 2015


Efek-efek yang dibeli dengan Securities purchased under
janji dijual kembali 269.117 - 269.117 - 270.457 - agreement to resell

4. PENGGUNAAN ESTIMASI DAN 4. USE OF ESTIMATES AND JUDGMENTS


PERTIMBANGAN

Pengungkapan ini merupakan tambahan atas These disclosures supplement the commentary on
pembahasan tentang manajemen risiko keuangan financial risk management (Note 3).
(Catatan 3).

a. Sumber utama atas ketidakpastian estimasi a. Key sources of estimation uncertainty

(i) Cadangan kerugian penurunan nilai aset (i) Allowances for impairment losses of
keuangan financial assets

Evaluasi atas kerugian penurunan nilai Financial assets accounted for at


aset keuangan yang dicatat pada biaya amortized cost are evaluated for
perolehan diamortisasi dijelaskan di impairment on a basis described in
Catatan 2o. Note 2o.

69
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

4. PENGGUNAAN ESTIMASI DAN 4. USE OF ESTIMATES AND JUDGMENTS


PERTIMBANGAN (lanjutan) (continued)

Pengungkapan ini merupakan tambahan atas These disclosures supplement the commentary on
pembahasan tentang manajemen risiko keuangan financial risk management (Note 3). (continued)
(Catatan 3). (lanjutan)

a. Sumber utama atas ketidakpastian estimasi a. Key sources of estimation uncertainty


(lanjutan) (continued)

(i) Cadangan kerugian penurunan nilai aset (i) Allowances for impairment losses of
keuangan (lanjutan) financial assets (continued)

Cadangan kerugian penurunan nilai terkait The specific counterparty component of


dengan pihak lawan spesifik dalam seluruh the total allowances for impairment applies
cadangan kerugian penurunan nilai to claims evaluated individually for
dibentuk atas tagihan yang penurunan impairment and is based upon
nilainya dievaluasi secara individual management’s best estimate of the
berdasarkan estimasi terbaik manajemen present value of the cash flows that are
atas nilai tunai arus kas yang diharapkan expected to be received. In estimating
akan diterima. Dalam mengestimasi arus these cash flows, management makes
kas ini, manajemen membuat judgments about the counterparty’s
pertimbangan mengenai kondisi keuangan financial situation and the net realizable
dari pihak lawan dan nilai bersih yang value of any underlying collateral. Each
dapat direalisasi dari agunan yang impaired asset is assessed on its merits,
diterima. Setiap aset yang mengalami and the workout strategy and estimate of
penurunan nilai dievaluasi, dan strategi cash flows considered recoverable are
penyelesaiannya serta estimasi arus kas independently approved by the Credit
yang dinilai dapat diperoleh kembali secara Department.
independen disetujui oleh Departemen
Kredit.

Evaluasi cadangan kerugian penurunan Collectively assessed impairment


nilai secara kolektif meliputi kerugian kredit allowances cover credit losses inherent in
yang melekat pada portofolio tagihan portfolios of claims with similar economic
dengan karakteristik ekonomi yang serupa characteristics when there is objective
ketika terdapat bukti obyektif bahwa telah evidence to suggest that they contain
terjadi penurunan nilai tagihan dalam impaired claims, but the individual
portofolio tersebut namun penurunan nilai impaired items cannot yet be identified. In
secara individu belum dapat diidentifikasi. assessing the need for collective loan loss
Dalam menentukan perlunya membentuk allowances, management considers
cadangan kerugian penurunan nilai kredit factors such as credit quality, portfolio
secara kolektif, manajemen size, credit concentrations and economic
mempertimbangkan faktor-faktor seperti factors.
kualitas kredit, besarnya portofolio,
konsentrasi kredit dan faktor-faktor
ekonomi.

Dalam mengestimasi cadangan yang In order to estimate the required


dibutuhkan, asumsi-asumsi dibuat untuk allowance, assumptions are made to
menentukan model kerugian bawaan dan define the way inherent losses are
untuk menentukan parameter input yang modeled and to determine the required
diperlukan, berdasarkan pengalaman input parameters, based on historical
historis dan kondisi ekonomi saat ini. experience and current economic
Ketepatan dari cadangan ini tergantung conditions. The accuracy of the
pada seberapa tepat estimasi arus kas allowances depends on how well the
masa depan untuk menentukan cadangan estimated future cash flows are
individual serta asumsi model dan determined for specific counterparty
parameter yang digunakan dalam allowances and the model assumptions
menentukan cadangan kolektif. and parameters used in determining
collective allowances.

70
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

4. PENGGUNAAN ESTIMASI DAN 4. USE OF ESTIMATES AND JUDGMENTS


PERTIMBANGAN (lanjutan) (continued)
a. Sumber utama atas ketidakpastian estimasi a. Key sources of estimation uncertainty
(lanjutan) (continued)
(ii) Penentuan nilai wajar (ii) Determining fair values
Dalam menentukan nilai wajar atas aset The determination of fair value for
keuangan dan liabilitas keuangan dimana financial assets and liabilities for which
tidak terdapat harga pasar yang dapat there is no observable market price
diobservasi, Bank harus menggunakan requires the use of valuation techniques
teknik penilaian seperti dijelaskan pada as described in Note 2f. For financial
Catatan 2f. Untuk instrumen keuangan instruments that trade infrequently and
yang jarang diperdagangkan dan tidak have little price transparency, fair value is
memiliki harga yang transparan, nilai less objective, and requires varying
wajarnya menjadi kurang obyektif dan degrees of judgment depending on
karenanya, membutuhkan tingkat liquidity, concentration, uncertainty of
pertimbangan yang beragam, tergantung market factors, pricing assumptions and
pada likuiditas, konsentrasi, ketidakpastian other risks affecting the specific
faktor pasar, asumsi penentuan harga dan instrument.
risiko lainnya yang mempengaruhi
instrumen tertentu.
(iii) Liabilitas imbalan pasca-kerja (iii) Obligation for post-employment benefits
Penentuan liabilitas imbalan pasca-kerja The determination of the Bank’s
Bank bergantung pada pemilihan asumsi obligation for post-employment benefits
yang digunakan oleh aktuaris independen is dependent on its selection of certain
dalam menghitung jumlah-jumlah assumptions used by the independent
tersebut. Asumsi tersebut termasuk actuaries in calculating such accounts.
antara lain, tingkat diskonto, tingkat Those assumptions include among
kenaikan gaji tahunan, tingkat others, discount rates, annual salary
pengunduran diri karyawan tahunan, increase rate, annual employee turn-over
tingkat kecacatan, umur pensiun dan rate, disability rate, retirement age and
tingkat kematian. mortality rate.
(iv) Umur ekonomis dan metode depresiasi (iv) Useful life and depreciation method of
dari aset tetap fixed assets
Manajemen Bank memperkirakan masa The management of Bank estimates the
manfaat aset tetap berdasarkan periode useful lives of fixed assets based on the
dimana aset tetap diharapkan akan period over which the assets are expected
tersedia untuk digunakan. Masa manfaat to be available for use. The estimated
ekonomis aset tetap ditinjau secara berkala useful lives of fixed assets are reviewed
dan diperbarui jika memiliki ekspektasi periodically and are updated if
yang berbeda dari perkiraan sebelumnya, expectations differ from previous
karena kerusakan secara fisik dan teknis, estimates due to physical wear and tear,
atau keusangan secara technical or commercial obsolescence
Komersial dan legal atau batasan lainnya Commercial and legal or other limits on
atas penggunaan aset tersebut. Selain hal the use of the assets. In addition,
tersebut, estimasi masa manfaat dari aset estimation of the useful lives of fixed
tetap didasarkan pada penilaian secara assets is based on collective assessment
kolektif dengan menggunakan praktik of industry practice, internal technical
industri, teknik evaluasi internal dan evaluation and experience with similar
pengalaman dengan aset serupa. Tetap assets. It is possible, however, that future
dimungkinkan, bagaimanapun, bahwa results of operations could be materially
hasil masa depan dapat secara material affected by changes in estimates brought
dipengaruhi oleh perubahan estimasi yang about by changes in the aforementioned
disebabkan perubahan faktor-faktor factors mentioned. The amounts and
tersebut di atas. Jumlah dan saat timing of recorded expenses for any
pencatatan biaya untuk setiap periode period are affected by changes of those
akan dipengaruhi oleh perubahan dari factors and circumstances during
faktor dan keadaan saat pencatatan. recording. A reduction in the estimated
Pengurangan dari taksiran masa manfaat useful lives of fixed assets increases the
dari aset tetap akan meningkatkan beban recorded operating expenses.
usaha.

71
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

4. PENGGUNAAN ESTIMASI DAN 4. USE OF ESTIMATES AND JUDGMENTS


PERTIMBANGAN (lanjutan) (continued)

b. Pertimbangan akuntansi yang penting dalam b. Critical accounting judgments in applying the
menerapkan kebijakan akuntansi Bank Bank’s accounting policies

Pertimbangan akuntansi yang penting dalam Critical accounting judgments made in applying
menerapkan kebijakan akuntansi Bank the Bank’s accounting policies include:
meliputi:

(i) Nilai wajar dari instrumen keuangan (i) Fair value of financial instruments

Kebijakan akuntansi Bank untuk The Bank’s accounting policy on fair value
pengukuran nilai wajar dibahas di measurements is discussed in Note 2f.
Catatan 2f.

Bank mengukur nilai wajar dengan The Bank measures fair values using the
menggunakan hirarki dari metode berikut: following hierarchy of methods:

• Tingkat 1: Harga kuotasi di pasar aktif • Level 1: Quoted market price in an


untuk instrumen keuangan yang active market for an identical instrument
sejenis.

• Tingkat 2: Teknik penilaian • Level 2: Valuation techniques based on


berdasarkan input yang dapat observable inputs. This category
diobservasi. Termasuk dalam kategori includes instruments valued using
ini adalah instrumen keuangan yang quoted market prices in active markets
dinilai dengan menggunakan harga for similar instruments; quoted prices
kuotasi di pasar aktif untuk instrumen for similar instruments in markets that
yang sejenis; harga kuotasi untuk are considered less than active; or other
instrumen keuangan yang sejenis di valuation techniques where all
pasar yang kurang aktif; atau teknik significant inputs are directly or
penilaian lainnya dimana seluruh input indirectly observable from market data.
signifikan yang digunakan dapat
diobservasi secara langsung ataupun
tidak langsung dari data yang tersedia
di pasar.

• Tingkat 3: Teknik penilaian • Level 3: Valuation techniques using


menggunakan input signifikan yang significant unobservable inputs:
tidak dapat diobservasi: instrumen financial instruments valued using
keuangan dinilai menggunakan teknik valuation techniques where one or
penilaian dimana satu atau lebih input more significant inputs are
signifikan tidak dapat diobservasi. unobservable. This category includes
Kategori ini termasuk instrumen yang instrument that are valued based on
diukur berdasarkan harga kuotasi quoted prices for similar instruments
untuk instrumen serupa dimana where significant unobservable
penyesuaian atau asumsi signifikan adjustments or assumptions are
yang tidak dapat diobservasi required to reflect differences between
diperlukan untuk mencerminkan the instruments.
perbedaan di antara instrumen
tersebut.

72
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

4. PENGGUNAAN ESTIMASI DAN 4. USE OF ESTIMATES AND JUDGMENTS


PERTIMBANGAN (lanjutan) (continued)

b. Pertimbangan akuntansi yang penting b. Critical accounting judgments in applying the


dalam menerapkan kebijakan akuntansi Bank’s accounting policies (continued)
Bank (lanjutan)

(i) Nilai wajar dari instrumen keuangan (i) Fair value of financial instruments (continued)
(lanjutan)

Nilai wajar atas instrumen derivatif yang The fair values of derivatives instrument
dinilai menggunakan teknik penilaian valued by valuation techniques using
dengan menggunakan komponen yang components which can be observed in the
dapat diamati di pasar terutama adalah market, primarily are interest rate swaps,
swap suku bunga, swap mata uang dan currency swaps and currency exchange
kontrak pertukaran mata uang. Teknik contracts. Most widely used valuation
penilaian yang paling banyak digunakan techniques include forward and swap
meliputi model penilaian forward dan swap valuation models which use the present value
yang menggunakan perhitungan nilai kini. calculation. The models incorporate various
Model tersebut menggabungkan berbagai components which include the credit quality of
komponen yang meliputi kualitas kredit dari the counterparty, spot value and future
counterparty, nilai spot dan kontrak contracts and interest rate curve.
berjangka serta kurva tingkat suku bunga.

Teknik penilaian termasuk model nilai tunai Valuation techniques include net present
dan arus kas yang didiskontokan, dan value and discounted cash flow models, and
perbandingan dengan instrumen yang comparison to similar instruments for which
sejenis dimana terdapat harga pasar yang market observable prices exist. Assumptions
dapat diobservasi. Asumsi dan input yang and inputs used in valuation techniques
digunakan dalam teknik penilaian termasuk include risk-free and benchmark interest
suku bunga bebas risiko (risk-free) dan rates, credit spreads and other variables used
suku bunga acuan, credit spread dan in estimating discount rates, bond prices,
variabel lainnya yang digunakan dalam foreign currency exchange rates, and
mengestimasi tingkat diskonto, harga expected price volatilities and correlations.
obligasi, kurs valuta asing, serta tingkat The objective of valuation technique is to
kerentanan dan korelasi harga yang arrive at a fair value determination that reflects
diharapkan. Tujuan dari teknik penilaian the price of the financial instrument at the
adalah penentuan nilai wajar yang reporting date that would have been
mencerminkan harga dari instrumen determined by market participants acting at
keuangan pada tanggal pelaporan yang arm’s length.
akan ditentukan oleh para partisipan di
pasar dalam suatu transaksi yang wajar.

Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, the
pengukuran Bank atas nilai wajar aset Bank’s measurement of fair value of financial
keuangan dan liabilitas keuangan yaitu, assets and financial liabilities, i.e. financial
aset keuangan dan liabilitas keuangan assets and financial liabilities held for trading,
untuk diperdagangkan, dan efek-efek yang and available-for-sale securities was
tersedia untuk dijual dikategorikan sebagai categorized as level 1 in the fair value
tingkat 1 dalam hirarki nilai wajar. hierarchy.

73
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

4. PENGGUNAAN ESTIMASI DAN 4. USE OF ESTIMATES AND JUDGMENTS


PERTIMBANGAN (lanjutan) (continued)

b. Pertimbangan akuntansi yang penting b. Critical accounting judgments in applying the


dalam menerapkan kebijakan akuntansi Bank’s accounting policies (continued)
Bank (lanjutan)

(ii) Klasifikasi aset dan liabilitas keuangan (ii) Financial asset and liability classification

Kebijakan akuntansi Bank memberikan The Bank’s accounting policies provide


keleluasaan untuk menetapkan aset dan scope for financial assets and liabilities to be
liabilitas keuangan ke dalam berbagai designated on inception into different
kategori pada saat pengakuan awal sesuai accounting categories in certain
dengan standar akuntansi yang berlaku circumstances.
berdasarkan kondisi tertentu.

• Dalam mengklasifikasikan aset • In classifying financial assets as


keuangan dalam kelompok “tersedia “available for sale”, the Bank has
untuk dijual”, Bank telah menetapkan determined that it meets the description
bahwa aset tersebut sesuai dengan of “available for sale” assets set out in
definisi aset dalam kelompok “tersedia Note 2f.
untuk dijual” yang dijabarkan di
Catatan 2f.

• Dalam mengklasifikasikan aset • In classifying financial assets as “held-


keuangan sebagai “dimiliki hingga to-maturity”, the Bank has determined
jatuh tempo”, Bank telah menetapkan that it has both the positive intention
bahwa Bank memiliki intensi positif and alibility to hold the assets until their
dan kemampuan untuk memiliki aset maturity date as required (Note 2f).
tersebut hingga tanggal jatuh tempo
seperti yang dipersyaratkan
(Catatan 2f).

(iii) Sewa operasi (iii) Operating leases

Bank, sebagai lessee, telah mengadakan The Bank, as lessee, has entered into lease
perjanjian sewa untuk bangunan yang on premises it uses for its operations. The
digunakannya untuk operasi. Bank telah Bank has determined that all significant
menentukan bahwa semua risiko dan risks and rewards of ownerships of the
manfaat signifikan dari kepemilikan properties it leases on operating lease are
properti yang disewa dalam sewa operasi not transferrable to the Bank.
tersebut tidak dapat dialihkan kepada
Bank.

74
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

5. KAS 5. CASH
31 Desember/December 31
2016 2015
Rupiah 46.344 40.239 Rupiah

Valuta asing Foreign currencies


Dolar Amerika Serikat 3.857 4.221 United States Dollar
Dolar Singapura 688 112 Singapore Dollar
Riyal Qatar 351 213 Qatari Riyal
Yen Jepang - 144 Japanese Yen
Poundsterling Inggris - 68 Great Britain Poundsterling
Euro Eropa 17 282 European Euro
Dolar Australia 3 153 Australian Dollar

Total 51.260 45.432 Total

Saldo kas dalam mata uang Rupiah termasuk Total cash in Rupiah currency includes cash
jumlah kas pada ATM masing-masing sebesar amount in ATMs amounted to Rp5,442 and
Rp5.442 dan Rp5.528 pada tanggal-tanggal Rp5,528 as of December 31, 2016 and 2015,
31 Desember 2016 dan 2015. respectively.

6. GIRO PADA BANK INDONESIA 6. CURRENT ACCOUNTS WITH BANK INDONESIA

31 Desember/December 31
2016 2015
Rupiah 1.164.926 987.235 Rupiah
Dolar Amerika Serikat 470.190 723.712 United States Dollar

Total 1.635.116 1.710.947 Total

Pada tanggal 31 Desember 2016 dan 2015, Giro As of December 31, 2016 and 2015, the minimum
Wajib Minimum (“GWM”) Bank masing-masing reserve requirements (“GWM”) of the Bank were
sebesar 13,73% dan 12,16% untuk mata uang 13.73% and 12.16% for Rupiah currency, and 8.37%
Rupiah serta sebesar 8,37% dan 8,54% untuk valuta and 8.54% for foreign currency, respectively.
asing.

Giro Wajib Minimum Bank dalam Rupiah pada The minimum reserve requirement of the Bank for
tanggal 31 Desember 2016 dan 2015 terdiri dari Rupiah currency as of December 31, 2016 and 2015
GWM Primer masing-masing sebesar 7,24% dan is consist of primary GWM of 7.24% and 7.59%,
7,59% dengan menggunakan saldo rekening giro respectively, through current accounts with Bank
Rupiah pada Bank Indonesia, dan GWM Sekunder Indonesia in Rupiah, and secondary GWM of 6.49%
masing-masing sebesar 6,49% dan 4,57% dengan and 4.57%, respectively, through Certificates of Bank
menggunakan Sertifikat Bank Indonesia dan Indonesia and government bonds.
obligasi pemerintah.
Pada tanggal 31 Desember 2016, Bank telah As December 31, 2016, the Bank has fulfilled Bank
memenuhi ketentuan Peraturan Bank Indonesia Indonesia’s regulation No. 18/14/PBI/2016 regarding
No.18/14/PBI/2016 tentang perubahan keempat the fourth amendment of PBI No. 15/15/PBI/2013
atas PBI No. 15/15/PBI/2013 tentang Giro Wajib about Minimum Reserve Requirement of Commercial
Minimum Bank Umum Dalam Rupiah dan Valuta Bank in Rupiah and forein currencies for
Asing Bagi Bank Umum Konvensional dimana Conventional Bank Which the fulfillment Primary
Pemenuhan GWM Primer rupiah dan valuta asing GWM for rupiah and foreign currencies were 6,5%
masing-masing sebesar 6,5% dan 8% dari rata-rata and 8% from average of third party fund,and GWM
DPK, sedangkan GWM Sekunder sebesar 4% dari Secondary at 4% from average of third party fund with
rata-rata DPK dengan batas bawah LFR target below limit of LFR target amounted 80%.
sebesar 80%.

75
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

6. GIRO PADA BANK INDONESIA (lanjutan) 6. CURRENT ACCOUNTS WITH BANK INDONESIA
(continue)

Pada tangal 31 Desember 2015, Bank telah As of December 31, 2015, the Bank has fulfilled Bank
memenuhi ketentuan Bank Indonesia Indonesia regulation No. 17/21/PBI/2015 regarding
No.17/21/PBI/2015 tentang perubaan kedua atas the second amendment of PBI No. 15/15/PBI/2013
PBI No. 15/15/PBI/2013 Tentang Giro Wajib about Minimum Reserve Requirement of Commercial
Minimum Bank Umum Dalam Rupiah dan Valuta Bank in Rupiah and foreign currencies were 7,5%
Asing Bagi Bank Umum Konvensional dimana and 8% from average of third party fund, and GWM
pemenuhan GWM Primer Rupiah dan Valuta Asing secondary at 4% from average of third party fund.
masing-masing sebesar 7,5% dan 8% dari rata-rata
DPK, sedangkan GWM Sekunder sebesar 4% dari
rata-rata DPK.

Informasi mengenai klasifikasi dan nilai wajar giro Information regarding the classification and fair
pada Bank Indonesia diungkapan pada Catatan 34. value of current accounts with Bank Indonesia is
disclosed in Note 34.

7. GIRO PADA BANK-BANK LAIN 7. CURRENT ACCOUNTS WITH OTHER BANKS


31 Desember/December 31

2016 2015

Rupiah Rupiah
Pihak ketiga Third parties
PT Bank Mandiri (Persero) Tbk 294 869 PT Bank Mandiri (Persero) Tbk
Standard Chartered Bank - Jakarta 25 25 Standard Chartered Bank - Jakarta
PT Bank Central Asia Tbk 22 22 PT Bank Central Asia Tbk

Total - Rupiah 341 916 Total - Rupiah

Valuta asing Foreign currencies


Pihak berelasi Related party
Qatar National Bank SAQ - Qatar 193 172 Qatar National Bank SAQ - Qatar
Pihak ketiga Third parties
Standard Chartered Bank - New York 39.544 7.097 Standard Chartered Bank - New York
PT Bank Mandiri ( Persero) Tbk 18.707 7.918 PT Bank Mandiri (Persero) Tbk
Bank Mizuho Ltd. Tokyo 5.820 814 Bank Mizuho Ltd. Tokyo
PT Bank Central Asia Tbk 2.713 1.162 PT Bank Central Asia Tbk
Deutsche Bank AG - Frankfurt 2.340 444 Deutsche Bank AG - Frankfurt
JP Morgan Chase Bank - New York 2.193 1.500 JP Morgan Chase Bank - New York
Wells Fargo Bank N.A - Amerika 1.927 1.932 Wells Fargo Bank - America
Standard Chartered Bank - London 1.747 2.102 Standard Chartered Bank - London
Standard Chartered Bank - Singapura 1.424 1.541 Standard Chartered Bank - Singapore
ANZ Banking Group Ltd. - Australia 1.138 1.843 ANZ Banking Group Ltd. - Australia
Deutsche Bank Trust Company Deutsche Bank Trust Company
Americas - New York 1.101 470 Americas - New York
United Overseas Bank Ltd. - Hong Kong 510 431 United Overseas Bank Ltd. - Hong Kong
United Overseas Bank Ltd. - Singapura 478 957 United Overseas Bank Ltd. - Singapore
Bank Bangkok - Jakarta 439 498 Bangkok Bank - Jakarta
Zurcher Katonal Bank - Swiss 154 172 Zurcher Katonal Bank - Swiss
ANZ Banking Group Ltd. - Selandia Baru 46 127 ANZ Banking Group Ltd. - New Zealand
Sumitomo Mitsui Banking Corporation - Sumitomo Mitsui Banking Corporation -
Jepang - 1.050 Japan

Total - Valuta asing 80.474 30.230 Total - Foreign currencies

Total giro pada bank-bank lain 80.815 31.146 Total current accounts with other banks

Pada tanggal 31 Desember 2016 dan 2015, seluruh As of December 31, 2016 and 2015, all current
giro pada bank-bank lain tidak mengalami accounts with other banks were not impaired.
penurunan nilai.

76
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

7. GIRO PADA BANK-BANK LAIN (lanjutan) 7. CURRENT ACCOUNTS WITH OTHER BANKS
(continued)

Manajemen Bank berkeyakinan bahwa tidak ada The Bank’s management believes that no
cadangan kerugian penurunan nilai giro pada bank- allowance for impairment losses on current
bank lain yang perlu dibentuk pada tanggal-tanggal accounts with other banks should be provided as of
31 Desember 2016 dan 2015. December 31, 2016 and 2015.

Pada tanggal 31 Desember 2016 dan 2015, tidak As of December 31, 2016 and 2015, there were no
ada giro pada bank-bank lain yang dijadikan current accounts with other banks pledged as
jaminan. collateral.

Informasi mengenai klasifikasi dan nilai wajar giro Information regarding the classification and fair
pada bank-bank lain diungkapkan pada Catatan 34. value of current accounts with other banks is
Giro pada pihak berelasi diungkapkan pada disclosed in Note 34. Current accounts with related
Catatan 36. parties are disclosed in Note 36.

Informasi mengenai giro pada bank-bank lain Information regarding the currency type of current
berdasarkan jenis mata uang diungkapkan pada accounts with other banks is disclosed in Note 38.
Catatan 38.

8. PENEMPATAN PADA BANK INDONESIA DAN 8. PLACEMENTS WITH BANK INDONESIA AND
BANK LAIN OTHER BANK

Rincian penempatan pada Bank Indonesia dan bank The details of placements with Bank Indonesia and
lain adalah sebagai berikut: other bank are as follows:
31 Desember/December 31
2016 2015
Rupiah Rupiah
Pihak ketiga Third party
Bank Indonesia 343.924 683.687 Bank Indonesia

Total - Rupiah 343.924 683.687 Total - Rupiah

Valuta asing Foreign currencies


Pihak ketiga Third party
Bank Indonesia 1.886.150 1.419.855 Bank Indonesia
Wells Fargo Bank - 8.271 Wells Fargo Bank

Total - Valuta asing 1.886.150 1.428.126 Total - Foreign currencies

Total Penempatan pada Bank Total Placements with Bank


Indonesia dan bank lain 2.230.074 2.111.813 Indonesia and other bank

Jangka waktu penempatan pada Bank Indonesia The term of placements with Bank Indonesia and
dan bank lain adalah sebagai berikut: other bank are as follows:

31 Desember/December 31
2016 2015
Rupiah Rupiah
Bank Indonesia 3 hari/days 7 hari/days Bank Indonesia

Valuta asing Foreign currencies


Bank Indonesia 4 hari/days 7 hari/days Bank Indonesia
Call money - 1 hari/day Call money

Pada tanggal 31 Desember 2016 dan 2015, seluruh As of December 31, 2016 and 2015, all placements
penempatan pada Bank Indonesia dan bank lain with Bank Indonesia and other bank were not
tidak mengalami penurunan nilai. impaired.

77
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

8. PENEMPATAN PADA BANK INDONESIA DAN 8. PLACEMENTS WITH BANK INDONESIA AND
BANK LAIN (lanjutan) OTHER BANK (continued)

Manajemen Bank berkeyakinan bahwa tidak ada The Bank’s management believes that no allowance
cadangan kerugian penurunan nilai penempatan for impairment losses on placements with other banks
pada bank-bank lain yang perlu dibentuk pada should be provided as of December 31, 2016 and
tanggal 31 Desember 2016 dan 2015. 2015.

Informasi mengenai suku bunga penempatan pada Information in respect of interest rate of placements
Bank Indonesia dan bank lain diungkapkan pada with Bank Indonesia and other bank is disclosed in
Catatan 3c. Informasi mengenai jatuh tempo Note 3c. Information in respect of maturities of
penempatan pada Bank Indonesia dan bank lain placements with Bank Indonesia and other bank is
diungkapkan pada Catatan 3d. Informasi mengenai disclosed in Note 3d. Information regarding the
klasifikasi dan nilai wajar penempatan pada Bank classification and fair value of placements with Bank
Indonesia dan bank lain diungkapkan pada Indonesia and other bank is disclosed in Note 34.
Catatan 34.

9. TAGIHAN DAN LIABILITAS DERIVATIF 9. DERIVATIVES RECEIVABLE AND PAYABLE

Pada tanggal 31 Desember 2016 dan 2015, tagihan As of December 31, 2016 and 2015, derivatives
dan liabilitas derivatif adalah sebagai berikut: receivable and payable were as follows
2016 2015
Tagihan Liabilitas Tagihan Liabilitas
Derivatif/ Derivatif/ Derivatif/ Derivatif/
Derivatives Derivatives Derivatives Derivatives
Receivable Payable Receivable Payable

Kontrak berjangka Valuta asing Currency forward contract


Bank 550 12.890 2.921 661 Banks
Total 550 12.890 2.921 661 Total

Pada tanggal 31 Desember 2016 dan 2015, semua As of December 31, 2016 and 2015, all derivatives
tagihan derivatif dan liabilitas derivatif merupakan receivable and payable were made with third parties.
transaksi dengan pihak ketiga.
Pada tanggal 31 Desember 2016 dan 2015, nilai As of December 31, 2016 and 2015, the contract
kontrak dan rata-rata jangka waktu kontrak amount and average contract period of currency
berjangka valuta asing adalah sebagai berikut: forward contracts are as follows:
31 Desember/December 31, 2016
Nilai kontrak Rentang tanggal
(dalam valuta asal)/ jatuh tempo/
Jenis valuta/ Contract amount Range of
Currency (in original currency) maturity date

Kontrak pembelian 3 Januari - 23 Januari 2017/ Currency forward


berjangka valuta USD 340.500.000 January 3 - January 23, 2017 purchase
asing AUD 1.612.974 5 Januari 2017/January 5 , 2017 contracts
GBP 823.488 13 Januari 2017/January 13, 2017
EUR 1.262.998 5 Januari 2017/January 5, 2017

Kontrak penjualan 9 Januari - 16 Februari 2017/ Currency forward


berjangka valuta USD 610.000 January 9 - February 16, 2017 selling
asing contracts

78
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

9. TAGIHAN DAN LIABILITAS DERIVATIF (lanjutan) 9. DERIVATIVES RECEIVABLE AND PAYABLE


(continued)
31 Desember/December 31, 2015
Nilai kontrak Rentang tanggal
(dalam valuta asal)/ jatuh tempo/
Jenis valuta/ Contract amount Range of
Currency (in original currency) maturity date

Kontrak pembelian USD 7.700.00 6 January 2016/January 6, 2016 Currency forward


berjangka valuta AUD 1.862.280 8 Januari 2016/January 8, 2016 purchase
asing GBP 976.068 8 Januari 2016/January 8, 2016 contracts
EUR 1.974.783 14 Januari 2016/January 14, 2016

Kontrak penjualan 4 Januari - 2 Maret 2016/ Currency forward


berjangka valuta USD 26.490.000 January 4 - March 2, 2016 selling
asing EUR 434.194 14 Januari 2016/January 14, 2016 contracts

10. TAGIHAN DAN LIABILITAS AKSEPTASI 10. ACCEPTANCES RECEIVABLE AND


PAYABLE

a. Tagihan akseptasi: a. Acceptances receivable:


31 Desember/December 31
2016 2015
Valuta Asing Foreign Currencies
Pihak berelasi Related party
Bank − 24.995 Banks
Pihak ketiga Third parties
Bank 22.193 36.826 Banks
Total 22.193 61.821 Total

Manajemen Bank berkeyakinan bahwa tidak The Bank’s management believes that no
ada cadangan kerugian penurunan nilai allowance for impairment losses on
tagihan akseptasi yang perlu dibentuk pada acceptance receivable should be provided as
tanggal 31 Desember 2016 dan 2015. of December 31, 2016 and 2015.
b. Liabilitas akseptasi: b. Acceptances payable:
31 Desember/December 31
2016 2015
Valuta Asing Foreign Currencies
Pihak berelasi Related party
Bank − 24.995 Banks
Pihak ketiga Third party
Bank 22.193 36.826 Banks
Total 22.193 61.821 Total

Informasi mengenai jatuh tempo diungkapkan Information in respect of maturities were


pada Catatan 3d. Informasi mengenai disclosed in Note 3d. Information with regards
klasifikasi dan nilai wajar diungkapkan pada to the classification and fair value were
Catatan 34. disclosed in Note 34.

11. EFEK-EFEK YANG DIBELI DENGAN JANJI 11. SECURITIES PURCHASED UNDER
DIJUAL KEMBALI AGREEMENT TO RESELL
31 Desember/December 31, 2016
Rentang tanggal Pendapatan
pembelian/ Rentang tanggal Harga bunga yang
Range of penjualan kembali/ penjualan belum diakui/ Nilai tercatat/
purchase Range of kembali/ Unearned Carrying
date resale date Resale price interest amount
Transaksi dengan Bank Indonesia, Transactions with Bank Indonesia,
pihak ketiga third party
Rupiah Rupiah
21 Desember/ 4 - 17 Januari/
December 21, January 4 -17,
Surat utang negara 2016 2017 472.599 (1.249) 471.350 Government promissory notes

79
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

11. EFEK-EFEK YANG DIBELI DENGAN JANJI 11. SECURITIES PURCHASED UNDER
DIJUAL KEMBALI (lanjutan) AGREEMENT TO RESELL (continued)

31 Desember/December 31, 2015


Rentang tanggal Pendapatan
pembelian/ Rentang tanggal Harga bunga yang
Range of penjualan kembali/ penjualan belum diakui/ Nilai tercatat/
purchase Range of kembali/ Unearned Carrying
date resale date Resale price interest amount
Transaksi dengan Bank Indonesia, Transactions with Bank Indonesia,
pihak ketiga third party
Rupiah Rupiah
10 - 11 Desember/ 7 - 8 Januari/
December 10 - 11, January 7 - 8,
Surat utang negara 2015 2016 270.457 (1.340) 269.117 Government promissory notes

Manajemen Bank berkeyakinan bahwa tidak ada The Bank’s management believes that no
cadangan kerugian penurunan nilai efek-efek yang allowance for impairment losses on securities
dibeli dengan janji dijual kembali yang perlu dibentuk purchased under agreement to resell should be
pada tanggal 31 Desember 2016 dan 2015. provided as of December 31, 2016 and 2015.
Informasi mengenai suku bunga efek-efek yang Information in respect of interest rate of securities
dibeli dengan janji dijual kembali diungkapkan pada purchased under agreement to resell is disclosed in
Catatan 3c. Informasi mengenai jatuh tempo efek- Note 3c. Information in respect of maturities of
efek yang dibeli dengan janji dijual kembali securitirs purchased under agreement to resell is
diungkapkan pada Catatan 3d. Informasi mengenai disclosed in Note 3d. Information regarding the
klasifikasi dan nilai wajar efek-efek yang dibeli classification and fair value of securities purchased
dengan janji dijual kembali diungkapkan pada under agreement to resell is disclosed in Note 34.
Catatan 34.

12. KREDIT YANG DIBERIKAN 12. LOANS


a. Berdasarkan jenis dan valuta a. By type and currency
31 Desember/December 31
2016 2015

Rupiah Rupiah
Investasi 5.733.142 6.640.386 Investment
Modal kerja 4.913.214 6.334.595 Working capital
Konsumsi 531.321 462.890 Consumer
Karyawan 36.195 48.845 Employee loans
Sindikasi 32.503 29.003 Syndication

Total - Rupiah 11.246.375 13.515.719 Total - Rupiah

Valuta asing Foreign currencies


Sindikasi 3.194.847 2.967.146 Syndication
Modal kerja 1.991.943 2.300.614 Working capital
Investasi 1.854.749 2.046.565 Investment

Total - Valuta asing 7.041.539 7.314.325 Total - Foreign currencies

Total kredit yang diberikan 18.287.914 20.830.044 Total loans


Cadangan kerugian penurunan nilai (736.726) (41.740) Allowance for impairment losses

Total kredit yang diberikan - neto 17.551.188 20.788.304 Total loans - net

80
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued)

b. Berdasarkan sektor ekonomi b. By economic sectors


31 Desember/December 31
2016 2015
Rupiah Rupiah
Perdagangan, restoran dan hotel 3.230.859 4.221.216 Trading, restaurant and hotels
Jasa usaha 2.718.376 3.195.487 Business services
Manufaktur 1.897.688 2.132.744 Manufacturing
Konstruksi 1.152.594 1.251.837 Constructions
Listrik, gas dan air 618.938 831.334 Electricity, gas and water
Pengangkutan, pergudangan ) Transportation, warehousing
dan komunikasi 571.397 879.426 and communication
Jasa sosial masyarakat 377.091 407.475 Social and public services
Pertambangan 64.771 23.373 Mining
Pertanian, perkebunan, Agriculture, plantation,
dan sarana perkebunan 47.145 60.770 and plantation equipments
Lain-lain 567.516 512.057 Others

Total - Rupiah 11.246.375 13.515.719 Total - Rupiah


Valuta asing Foreign currencies
Manufaktur 2.061.992 2.526.596 Manufacturing
Jasa usaha 1.171.213 1.690.680 Business services
Perdagangan, restoran dan hotel 999.110 938.833 Trading, restaurant and hotels
Konstruksi 762.884 385.980 Construction
Pertanian, perkebunan, Agriculture, plantation,
dan sarana perkebunan 700.971 68.925 and plantation equipments
Pertambangan 606.035 827.839 Mining
Pengangkutan, pergudangan Transportation, warehousing
dan komunikasi 561.986 703.619 and communication
Jasa sosial masyarakat 177.348 171.853 Social and public services

Total - Valuta asing 7.041.539 7.314.325 Total - Foreign currencies


Total kredit yang diberikan 18.287.914 20.830.044 Total loans
Cadangan kerugian penurunan nilai (736.726) (41.740) Allowance for impairment losses
Total kredit yang diberikan - neto 17.551.188 20.788.304 Total loans - net

c. Berdasarkan periode jatuh tempo c. By maturity


Berdasarkan periode perjanjian kredit: Based on the term of loan agreements:
31 Desember/December 31
2016 2015
Rupiah Rupiah
≤ 1 tahun 3.806.918 2.594.575 ≤ 1 year
> 1 - 3 tahun 844.355 3.513.920 ) > 1 - 3 years
> 3 - 5 tahun 1.302.722 1.648.269 > 3 - 5 years
> 5 tahun 5.292.380 5.758.955 > 5 years
Total - Rupiah 11.246.375 13.515.719 Total - Rupiah
Valuta asing Foreign currencies
≤ 1 tahun 1.538.732 1.130.231 ≤ 1 year
> 1 - 3 tahun 801.494 1.677.880 > 1 - 3 years
> 3 - 5 tahun 335.892 596.666 > 3 - 5 years
> 5 tahun 4.365.421 3.909.548 > 5 years
Total - Valuta asing 7.041.539 7.314.325 Total - Foreign currencies
Total kredit yang diberikan 18.287.914 20.830.044 Total loans
Cadangan kerugian penurunan nilai (736.726) (41.740) Allowance for impairment losses
Total kredit yang diberikan - neto 17.551.188 20.788.304 Total loans - net

81
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued)

d. Kredit dijamin dengan agunan yang diikat d. The loans are secured by collaterals which are
dengan akta pemberian hak tanggungan, legalized by deed of encumbrance, other
jaminan lain atau aset yang umumnya diterima guarantees or assets that are generally
oleh bank, antara lain deposito berjangka, giro, accepted in the banking industry, such as time
kendaraan bermotor, tanah dan bangunan. deposits, Currents accounts, motor vehicles,
land and buildings.

Pada tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, total loans
jumlah kredit yang dijaminkan dengan jaminan secured by cash collateral (back to back loans)
tunai (back to back loans) adalah masing- amounted to Rp1,322,209 and Rp1,359,063,
masing sebesar Rp1.322.209 dan respectively.
Rp1.359.063.

e. Kredit modal kerja dan investasi diberikan e. Working capital loans and investment loans
kepada debitur untuk kepentingan modal kerja were granted to customers for working capital
dan pembelian barang modal. Kredit modal and purchase of capital goods. Working capital
kerja mencakup kredit dalam bentuk rekening loans include current account.
koran.

f. Kredit konsumsi terdiri dari kredit pemilikan f. Consumer loans consist of housing, motor
rumah, kredit pemilikan kendaraan bermotor vehicles ownership loans and other personal
dan kredit perorangan lainnya. loans.

g. Pada tanggal 31 Desember 2016 dan 2015, g. As of December 31, 2016 and 2015, the ratio of
rasio kredit usaha kecil terhadap jumlah kredit small business loans to total loans is 0.07% and
yang diberikan adalah masing-masing sebesar 0.17%, respectively.
0,07% dan 0,17%.

h. Kredit sindikasi merupakan kredit yang h. Syndicated loans represent loans provided to
diberikan kepada nasabah berdasarkan borrowers under a syndication agreement with
perjanjian pembiayaan bersama dengan bank- other banks. The Bank’s participation in
bank lain. Partisipasi Bank dalam kredit syndicated loans with other banks as of
sindikasi dengan bank-bank lain pada tanggal December 31, 2016 and 2015 amounted to
31 Desember 2016 dan 2015 masing-masing Rp3,227,350 and Rp2,996,149 or 17.65% and
sebesar Rp3.227.350 dan Rp2.996.149 atau 20.58% of syndicated loans balance,
17,65% dan 20,58% dari saldo kredit sindikasi. respectively. The bank acted as arranger and
Bank berperan sebagai pimpinan dan participant in the said syndicated loans.
partisipan dalam kredit sindikasi tersebut.

i. Kredit yang diberikan kepada karyawan Bank i. The loans given to the Bank’s employees are
digunakan untuk keperluan pinjaman atas used for purchase of houses, cars and other
pembelian rumah, kendaraan, dan keperluan personal necessities with maturities ranging
lainnya dengan jangka waktu jatuh tempo from 1 to 15 years, with interest rates ranging
berkisar antara 1 sampai 15 tahun, yang from 0% to 8% per annum. These loans will be
dikenakan bunga berkisar antara 0% sampai settled through their monthly salary deductions.
8% per tahun. Kredit tersebut akan dilunasi The loans to the employees amounted to
melalui pemotongan gaji setiap bulan. Jumlah Rp36,195 and Rp48,845 or represented 0.20%
kredit yang diberikan kepada karyawan and 0.23% of total loans as of December 31,
masing-masing sebesar Rp36.195 dan 2016 and 2015, respectively.
Rp48.845 atau 0,20% dan 0,23% dari jumlah
kredit yang diberikan pada tanggal-tanggal
31 Desember 2016 dan 2015.

82
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued)

j. Restrukturisasi kredit dilakukan melalui j. Loans restructuring was conducted through


modifikasi persyaratan jumlah pokok dan modification of terms of principal and interest
bunga dan perpanjangan jangka waktu kredit. and extension of terms. As of December 31,
Pada tanggal-tanggal 31 Desember 2016 dan 2016 and 2015, restructured loans amounted
2015, kredit yang direstrukturisasi masing- to Rp3,730,867 or 20.40% and Rp2,071,171 or
masing sebesar Rp3.730.867 atau 20,40% dan 9.94% of total loans, respectively, with the
Rp2.071.171 atau 9,94% dari jumlah kredit respective allowance for impairment losses
yang diberikan, dengan cadangan kerugian amounted to Rp206,334 and Rp16,872. From
penurunan nilai masing-masing sebesar the restructured loans, the Bank did not have
Rp206.334 dan Rp16.872. Dari kredit yang any commitments to extend additional loan
direstrukturisasi tersebut, Bank tidak memiliki facilities.
komitmen untuk memberikan fasilitas kredit
tambahan.

k. Pada tanggal 31 Desember 2016 dan 2015, k. As of December 31, 2016 and 2015, the Bank
Bank telah memenuhi ketentuan Batas complied with the Legal Lending Limit (“LLL”)
Maksimum Pemberian Kredit (“BMPK”), baik requirements for both related parties and third
untuk pihak berelasi maupun untuk pihak parties.
ketiga.

l. Pada tanggal 31 Desember 2016 dan 2015, l. As of December 31, 2016 and 2015, details of
rincian kredit bermasalah (klasifikasi kurang non-performing loans (substandard, doubtful
lancar, diragukan dan macet menurut and loss grading based on Bank Indonesia
peraturan Bank Indonesia) menurut sektor regulation) based on economic sector are as
ekonomi adalah sebagai berikut: follows:
31 Desember/December 31

2016 2015

Cadangan Cadangan
Kredit kerugian Kredit kerugian
bermasalah/ penurunan nilai/ bermasalah/ penurunan nilai/
Non-performing Allowance for Non-performing Allowance for
loans impairment losses loans impairment losses

Manufaktur 376.559 (145.824) 161.024 (20.039) Manufacturing


Konstruksi 332.604 (297.675) 226.881 (2.483) Construction
Perdagangan, restoran dan hotel 298.757 (136.647) 43.187 (8.742) Trading, restaurant and hotels
Pengangkutan, pergudangan dan Transportation, warehousing and
komunikasi 73.925 (24.805) 8.320 (13) communicaton
Jasa Usaha 54.451 (50.183) - - Business Service
Jasa sosial masyarakat 40.547 (11.005) 3.189 (1.762) Social and public services
Pertanian, perkebunan dan Agriculture, plantation and
sarana perkebunan 5.732 (3.906) 6.517 (1.423) plantation improvement
Pertambangan 2.857 (389) Mining
Lain-lain 71.171 (45.634) 87.132 (5.566) Others

Total 1.253.746 (715.679) 539.107 (40.417) Total

m. Pada tanggal 31 Desember 2016 dan 2015, m. As of December 31, 2016 and 2015, the
rasio non-performing loan (“NPL”) sesuai nonperforming loan (“NPL”) ratio based on
dengan peraturan Bank Indonesia yang prevailing Bank Indonesia regulation are as
berlaku adalah sebagai berikut: follows:

31 Desember/December 31
2016 2015

NPL bruto 6,86% 2,59% Gross NPL


NPL neto 2,94% 2,40% Net NPL

83
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

12. KREDIT YANG DIBERIKAN (lanjutan) 12. LOANS (continued)

n. Bank mengadakan perjanjian fasilitas kredit n. The Bank has entered into chanelling loan,
penerusan, kredit pembiayaan bersama serta joint financing and receivables purchase
perjanjian pengambilalihan piutang dengan agreements with several multifinance
beberapa lembaga pembiayaan untuk companies for financing retail purchases of
membiayai kepemilikan kendaraan bermotor. vehicles. The outstanding balance of
Jumlah saldo fasilitas kredit penerusan, kredit chanelling loans, joint financing loans and
pembiayaan bersama, serta kredit yang diambil receivables purchased under without recourse
alih dengan skema tanpa tanggung renteng scheme as of December 31, 2016 and 2015 is
pada tanggal 31 Desember 2016 dan 2015 amounted to Rp25,835 and Rp178,678,
adalah masing-masing sebesar Rp25.835 dan respectively, which was included in consumer
Rp178.678, yang termasuk dalam kredit loans.
konsumsi.
o. Perubahan cadangan kerugian penurunan nilai o. The changes in allowance for impairment
kredit yang diberikan selama tahun berjalan losses on loans during the year are as follows:
adalah sebagai berikut:

31 Desember/December 31
2016 2015

Cadangan kerugian penurunan Collective allowance for impairment


nilai kolektif: losses:
Saldo, awal tahun 9.054 8.293 Balance, beginning of year
Penyisihan kerugian
penurunan nilai Provision for impairment losses
selama tahun berjalan 83.880 21.145 during the year
Penghapusbukuan (23.808) (20.663) Write off
Selisih kurs karena penjabaran Foreign exchange translation
mata uang asing - 279 difference

Saldo, akhir tahun 69.126 9.054 Balance, end of year

Cadangan kerugian penurunan nilai Individual allowance for impairment


individual: losses:
Saldo, awal tahun 32.686 4.168 Balance, beginning of year
Penyisihan kerugian
penurunan nilai Provision for impairment losses
selama tahun berjalan 816.892 66.327 during the year
Unwinding Interest (29.509) (37.809) Unwinding Interest
Penghapusbukuan (152.050) - Write Off
Selisih kurs karena penjabaran Foreign exchange translation
Mata uang asing (419) - difference

Saldo, akhir tahun 667.600 32.686 Balance, end of year

Total cadangan kerugian Total allowance for impairment


penurunan nilai 736.726 41.740 losses

Manajemen Bank berkeyakinan bahwa jumlah The Bank’s management believes that the
cadangan kerugian penurunan nilai yang allowance for impairment losses provided is
dibentuk cukup untuk menutupi kemungkinan adequate to cover any possible impairment on
penurunan nilai kredit yang diberikan. loans.
p. Pada tanggal-tanggal 31 Desember 2016 dan p. As of December 31, 2016 and 2015, loans
2015, kredit pada pihak berelasi diungkapkan with related parties were disclosed in Note 36.
pada Catatan 36.

q. Informasi mengenai suku bunga kredit yang q. Information in respect if interest rate of loans
diberikan diungkapkan pada Catatan 3c. is disclosed in Note 3c. Information in respect
Informasi mengenai jatuh tempo kredit yang of maturities of loans is disclosed in Note 3d.
diberikan diungkapkan pada Catatan 3d. Information regarding the classification and
Informasi mengenai klasifikasi dan nilai wajar fair value of loans is disclosed in Note 34.
kredit yang diberikan diungkapkan pada
Catatan 34.

84
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

13. EFEK-EFEK 13. SECURITIES


31 Desember/December 31

2016 2015

Dimiliki hingga jatuh tempo Held-to-maturity


Rupiah Rupiah
Obligasi Pemerintah: Government Bonds:
Nilai nominal 320.000 320.000 Nominal value
Premi yang belum diamortisasi 4.355 5.213 Unamortized Premiums

Nilai tercatat 324.355 325.213 Carrying amount

Obligasi korporasi Corporate bonds:


Nilai tercatat - 231 Carrying amount

Total efek-efek yang dimiliki hingga


jatuh tempo 324.355 325.444 Total held-to-maturity securities

Tersedia untuk dijual Available-for-sale


Rupiah Rupiah
Sertifikat Bank Indonesia: Certificates of Bank Indonesia:
Nilai nominal 250.000 - Nominal value
Diskonto yang belum diamortisasi (2.536) - Unamortized discounts
Laba yang belum direalisasi 43 Unrealized gain
Nilai wajar 247.507 - Fair value

Total efek-efek tersedia untuk dijual 247.507 - Total available-for-sale securities


Total efek-efek 571.862 325.444 Total securities

Rincian efek-efek adalah sebagai berikut: Details of the securities are as follows:
31 Desember/December 31, 2016

Nilai tercatat/
nilai wajar/
Nilai nominal/ Carrying amount/ Rentang tanggal jatuh tempo/ Frekuensi pembayaran bunga/
Nominal value fair value Range of maturity date Frequency of interest payment

Sertifikat Bank Indonesia/ 03 Maret 2017 - 02 Desember 2017/


Certificates of Bank Indonesia 250.000 247.507 March 03, 2017 - December 02, 2017 -

Obligasi Pemerintah/ 15 September 2020 - 15 Maret 2024/


Goverment Bonds 320.000 324.355 September 15, 2020 - March 15, 2024 6 bulan/months

31 Desember/December 31, 2015

Nilai tercatat/
nilai wajar/
Nilai nominal/ Carrying amount/ Rentang tanggal jatuh tempo/ Frekuensi pembayaran bunga/
Nominal value fair value Range of maturity date Frequency of interest payment

Obligasi Pemerintah/ 15 September 2020 - 15 Maret 2024/


Goverment Bonds 320.000 325.213 September 15, 2020 - March 15, 2024 6 bulan /months

Obligasi korporasi/ 5 Januari 2016 - 5 Januari 2021/


Corporate bonds 231 231 January 5, 2016 - January 5, 2021 3 bulan/months

Rincian obligasi korporasi berdasarkan penerbit dan The details of corporate bonds by issuer and rating
peringkat obligasi pada tanggal 31 Desember 2016 as of December 31, 2016 and 2015 are as follows:
dan 2015 adalah sebagai berikut:
Peringkat/Rating Total

2016 2015 2016 2015

Obligasi Bonds
PT Jasa Marga (Persero) Tbk - idAA - 231 PT Jasa Marga (Persero) Tbk

85
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

13. EFEK-EFEK (lanjutan) 13. SECURITIES (continued)


Obligasi korporasi di atas telah diperingkat oleh The above corporate bonds have been rated by
Pefindo. Pefindo.

Pada tanggal-tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, all securities
seluruh efek-efek tidak mengalami penurunan nilai. were not impaired. The Bank’s management
Manajemen Bank berkeyakinan bahwa tidak ada believes that no allowance for impairment lossess
cadangan kerugian penurunan nilai efek-efek yang on securities should be provided as of
perlu dibentuk pada tanggal-tanggal 31 Desember December 31, 2016 and 2015.
2016 dan 2015.

Informasi mengenai suku bunga surat-surat Information in respect of interest rate of securities
berharga diungkapkan pada Catatan 3c. Informasi is disclosed in Note 3c. Information in respect of
mengenai jatuh tempo surat-surat berharga maturities of securities is disclosed in Note 3d.
diungkapkan pada Catatan 3d. Informasi mengenai Information regarding the classification and fair
klasifikasi dan nilai wajar efek-efek diungkapkan value of securities is disclosed in Note 34.
pada Catatan 34.

14. BEBAN DIBAYAR DIMUKA 14. PREPAYMENTS

Rincian beban dibayar dimuka adalah sebagai Details of prepayments are as follows:
berikut:
31 Desember/December 31
2016 2015

Uang Muka kepada pihak ketiga 85.818 20.387 Prepaid to third parties
Sewa (Catatan 40) 58.797 61.317 Rent (Note 40)
Uang Muka atas perolehan aset tetap 32.125 6.930 Prepaid acquisition of fixed assets
Asuransi 1.316 261 Insurance
Lainnya 10.913 19.548 Other

188.969 108.443

15. ASET TETAP 15. FIXED ASSETS


31 Desember/December 31, 2016
Saldo awal/
Beginning Penambahan/ Pengurangan/ Saldo akhir/
balance Additions Deductions Ending balance

Biaya perolehan: Cost:


Tanah 11.529 50.873 (73) 62.329 Land
Gedung 24.666 3.951 (1.026) 27.591 Buildings
Renovasi dan perbaikan gedung 91.286 6.846 (911) 97.221 Leasehold improvement
Office equipment, furniture
Perlengkapan dan perabot kantor 109.169 8.007 (2.803) 114.373 and fixtures
Kendaraan bermotor 410 - - 410 Vehicles

237.060 69.677 (4.813) 301.924

Akumulasi penyusutan: Accumulated depreciation:


Gedung (9.878) (1.090) 420 10.548 Buildings
Renovasi dan perbaikan gedung (45.724) (16.339) 911 61.152 Leasehold improvement
Office equipment, furniture
Perlengkapan dan perabot kantor (70.536) (17.340) 2.792 85.084 and fixtures
Kendaraan bermotor (345) (33) - 378 Vehicles

(126.483) (34.802) 4.123 157.162

Nilai buku-neto 110.577 144.762 Net book value

86
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

15. ASET TETAP (lanjutan) 15. FIXED ASSETS (continued)


31 Desember/December 31, 2015
Saldo awal/
Beginning Penambahan/ Pengurangan/ Saldo akhir/
balance Additions Deductions Ending balance

Biaya perolehan: Cost:


Tanah 11.529 - - 11.529 Land
Gedung 23.860 806 - 24.666 Buildings
Renovasi dan perbaikan gedung 79.331 11.955 - 91.286 Leasehold improvement
Office equipment, furniture
Perlengkapan dan perabot kantor 97.348 12.872 (1.051) 109.169 and fixtures
Kendaraan bermotor 389 40 (19) 410 Vehicles

212.457 25.673 (1.070) 237.060

Akumulasi penyusutan: Accumulated depreciation:


Gedung (8.841) (1.037) - (9.878) Buildings
Renovasi dan perbaikan gedung (30.867) (14.857) - (45.724) Leasehold improvement
Office equipment, furniture
Perlengkapan dan perabot kantor (57.783) (13.730) 977 (70.536) and fixtures
Kendaraan bermotor (335) (29) 19 (345) Vehicles

(97.826) (29.653) 996 (126.483)

Nilai buku-neto 114.631 110.577 Net book value

Beban penyusutan yang dibebankan ke dalam Depreciation expense charged to general and
beban umum dan administrasi masing-masing administrative expenses amounted to Rp34,802
sebesar Rp34.802 dan Rp29.653 untuk tahun yang and Rp29,653 for the year ended December 31,
berakhir tanggal-tanggal 31 Desember 2016 dan 2016 and 2015, respectively.
2015.

Rincian penjualan aset tetap adalah sebagai berikut: Details of sale of fixed assets are as follows:

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31

2016 2015
Hasil penjualan aset tetap 1.158 115 Proceeds from sale of fixed assets
Nilai buku (690) (74) Net book value
Laba penjualan aset tetap 468 41 Gain on sale of fixed assets

Pada tanggal 31 Desember 2016, seluruh hak As of December 31, 2016, all the Bank’s land were
kepemilikan atas tanah Bank adalah dalam bentuk in the form of landrights (Hak Guna Bangunan),
Hak Guna Bangunan (HGB), yang memiliki sisa which have remaining period of legal rights ranging
jangka waktu hak legal berkisar antara 3 sampai from 3 to 27 years. The Bank’s management
dengan 27 tahun. Manajemen Bank berkeyakinan believes that the landrights can be extended upon
bahwa hak kepemilikan atas tanah tersebut dapat expiry.
diperpanjang pada saat jatuh tempo.

Pada tanggal-tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, fixed assets
aset tetap yang telah disusutkan penuh dan masih that have been fully depreciated yet still being used
digunakan masing-masing sejumlah Rp51.069 dan amounted to Rp51,069 and Rp17,556, respectively
Rp17.556 (tidak diaudit). (unaudited).

Pada tanggal-tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, motor vehicles,
kendaraan, gedung dan perlengkapan dan perabot buildings and office equipment, furniture and
kantor telah diasuransikan kepada PT Asuransi fixtures were insured with
Bosowa Periskop terhadap semua risiko kehilangan PT Asuransi Bosowa Periskop against all risks of
atau kerusakan fisik dengan nilai pertanggungan physical loss or damage for sum insured of
sebesar masing-masing sejumlah Rp217.385 dan Rp217,385 and USD3,259,713 (full amount) for the
USD3.259.713 (nilai penuh) untuk tahun 2016 dan year 2016 and Rp279,669 and USD1,019,731 (full
Rp279.669 dan USD1.019.731 (nilai penuh) untuk amount) for year 2015.
tahun 2015.

87
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

15. ASET TETAP (lanjutan) 15. FIXED ASSETS (continued)


Manajemen Bank berkeyakinan bahwa nilai The Bank’s management believes that the
pertanggungan aset tetap yang diasuransikan insurance coverage is adequate to cover possible
adalah cukup untuk menutupi kemungkinan losses on the assets insured. The Bank’s
kerugian atas aset yang dipertanggungkan. management also believes that there was no
Manajemen Bank juga berkeyakinan tidak terdapat impairment of fixed assets during the year.
penurunan nilai aset tetap selama tahun berjalan.

16. ASET TAK BERWUJUD 16. INTANGIBLE ASSETS

31 Desember/December 31, 2016


Saldo awal/
Beginning Penambahan/ Pengurangan/ Saldo akhir/
balance Additions Deductions Ending balance
Biaya perolehan: Cost:
Perangkat lunak 44.490 772 (1.386) 43.876 Software
Lisensi penggunaan
perangkat lunak 31.474 2.959 (120) 34.313 Software license
75.964 3.731 (1.506) 78.189
Akumulasi amortisasi: Accumulated amortization:
Perangkat lunak (21.377) (4.334) 1.386 (24.325) Software
Lisensi penggunaan
perangkat lunak (8.917) (3.891) 120 (12.688) Software license
(30.294) (8.225) 1.506 (37.013)
Nilai buku - neto 45.670 41.176 Net book value

31 Desember/December 31, 2015


Saldo awal/
Beginning Penambahan/ Pengurangan/ Saldo akhir/
balance Additions Deductions Ending balance
Biaya perolehan: Cost:
Perangkat lunak 39.172 5.318 - 44.490 Software
Lisensi penggunaan
perangkat lunak 26.001 5.473 - 31.474 Software license
65.173 10.791 - 75.964
Akumulasi amortisasi: Accumulated amortization:
Perangkat lunak (16.774) (4.603) - (21.377) Software
Lisensi penggunaan
perangkat lunak (6.029) (2.888) - (8.917) Software license
(22.803) (7.491) - (30.294)
Nilai buku - neto 42.370 45.670 Net book value

Beban amortisasi yang dibebankan dalam beban Amortization expense charged to general and
umum dan administrasi masing-masing sejumlah administrative expenses amounted to Rp8,225 and
Rp8.225 dan Rp7.491 untuk tahun yang berakhir Rp7,491, for the year ended December 31, 2016
tanggal-tanggal 31 Desember 2016 dan 2015. and 2015, respectively.

Pada tanggal 31 Desember 2016 dan 2015, seluruh As of December 31, 2016 and 2015, all intangible
aset tak berwujud tidak mengalami penurunan nilai. assets were not impaired.

88
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

17. AGUNAN YANG DIAMBIL ALIH 17. FORECLOSED ASSETS

Agunan yang diambil alih untuk penyelesaian kredit Foreclosed Assets in settlement of loans are included
dicatat dalam akun “Agunan yang Diambil Alih” under “Foreclosed Assets” account. The details in
(AYDA). Rincian dalam akun ini adalah: this account are as follows:

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31

2016 2015

Agunan yang diambil alih 1.019.382 - Foreclosed Assets

Manajemen Bank berkeyakinan bahwa cadangan The Bank’s Management believes that the above
kerugian penurunan nilai yang telah dibentuk cukup allowance for impairment losses is adequate to cover
untuk menutup kemungkinan kerugian atas AYDA. possible losses on foreclosed assets.

Penilaian nilai wajar atas tanah dan bangunan The fair value valuations of land and building are
dilakukan oleh penilai independen eksternal sebagai perfomed by the following external independent
berikut: appraiser:
a) KJPP Toto Suharto & Rekan a) KJPP Toto Suharto & Rekan
b) KJPP Ristia Kurnia & Rekan b) KJPP Ristia Kurnia & Rekan
c) KJPP Munir, Wisnu, Heru & Rekan c) KJPP Munir, Wisnu, Heru & Rekan
d) KJPP Sarwono, Indrastuti & Rekan d) KJPP Sarwono, Indrastuti & Rekan
e) KJPP Rengganis, Hamid & Rekan e) KJPP Rengganis, Hamid & Rekan
f) KJPP Yanuar Bey & Rekan f) KJPP Yanuar Bey & Rekan

18. LIABILITAS SEGERA 18. LIABILITIES PAYABLE ON DEMAND

31 Desember/December 31

2016 2015

Escrow accounts 199.088 297.270 Escrow accounts


Liabilitas pajak 30.981 30.196 Tax liabilities
Lain-lain 10.589 9.891 Others

Total 240.658 337.357 Total

Escrow account merupakan rekening nasabah yang Escrow account represents the customer’s accounts
khusus digunakan untuk transaksi kredit. which were specifically used for loan transactions.

Titipan dana nasabah merupakan pengiriman dana Customer fund deposits represents transfer from one
(transfer) dari satu pihak kepada pihak lainnya party to another through the Bank as an intermediary,
melalui Bank sebagai perantara, dimana pada which on the date of the financial statements, the fund
tanggal laporan keuangan, dana tersebut belum has not been effectively received or credited into the
efektif diterima atau dikredit ke rekening penerima beneficiary’s account.
dana (beneficiary).

89
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

19. SIMPANAN DARI NASABAH 19. DEPOSITS FROM CUSTOMERS

31 Desember/December 31, 2016

Pihak berelasi/ Pihak ketiga/


Related parties Third parties Total
Rupiah Rupiah
Giro 10.969 967.658 978.627 Current accounts
Tabungan 529 969.882 970.411 Saving accounts
Deposito berjangka Time deposits
dan deposit on call 1.400 13.152.321 13.153.721 and deposit on call

Total - Rupiah 12.898 15.089.861 15.102.759 Total - Rupiah

Valuta asing Foreign currencies


Giro 4.291 285.461 289.752 Current accounts
Deposito berjangka Time deposits
dan deposit on call 47.226 3.905.225 3.952.451 and deposit on call

Total - valuta asing 51.517 4.190.686 4.242.203 Total - foreign currencies

Total 64.415 19.280.547 19.344.962 Total

31 Desember/December 31, 2015

Pihak berelasi/ Pihak ketiga/


Related parties Third parties Total
Rupiah Rupiah
Giro 24.619 1.113.403 1.138.022 Current accounts
Tabungan 337 411.713 412.050 Saving accounts
Deposito berjangka Time deposits
dan deposit on call 553.353 10.505.227 11.058.580 and deposit on call

Total - Rupiah 578.309 12.030.343 12.608.652 Total - Rupiah

Valuta asing Foreign currencies


Giro 631 460.147 460.778 Current accounts
Deposito berjangka Time deposits
dan deposit on call 461.798 4.977.780 5.439.578 and deposit on call

Total - valuta asing 462.429 5.437.927 5.900.356 Total - foreign currencies

Total 1.040.738 17.468.270 18.509.008 Total

Pada tanggal 31 Desember 2016 dan 2015, jumlah As of December 31, 2016 and 2015, time deposits
deposito yang dijadikan sebagai jaminan kredit yang pledged as loans collateral amounted to
diberikan adalah masing-masing sebesar Rp557,136 and Rp836,819, respectively. Current
Rp557.136 dan Rp836.819. Giro yang dijadikan account pledged as loans collateral amounted to
sebagai jaminan kredit yang diberikan sebesar Rp388,624 and Rp378,850 as of December 2016
Rp388.624 dan Rp378.850 masing-masing pada and 2015, respectively. There were no saving
tanggal 31 Desember 2016 dan 2015. Tidak ada accounts pledged as collateral as of December 31,
tabungan yang dijadikan jaminan pada tanggal 2016 and 2015.
31 Desember 2016 dan 2015.

Saldo deposito berjangka berdasarkan periodenya: The amount of time deposits based on period:
31 Desember/December 31, 2016 31 Desember/December 31, 2015
Valuta asing/ Valuta asing/
Foreign Foreign
Rupiah currencies Total Rupiah currencies Total
≤ 1 bulan 2.706.158 1.516.385 4.222.543 3.714.421 3.673.816 7.388.237 ≤ 1 month
> 1 - 3 bulan 5.595.958 669.149 6.265.107 4.821.729 1.022.679 5.844.408 > 1 - 3 months
> 3 - 6 bulan 3.064.211 532.841 3.597.052 794.639 143.550 938.189 > 3 - 6 months
> 6 - 12 bulan 839.597 12.816 852.413 61.944 4.221 66.165 > 6 - 12 months
On call 947.797 1.221.260 2.169.057 1.665.847 595.312 2.261.159 On call

Total 13.153.721 3.952.451 17.106.172 11.058.580 5.439.578 16.498.158 Total

90
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

19. SIMPANAN DARI NASABAH (lanjutan) 19. DEPOSITS FROM CUSTOMERS (continued)
Informasi mengenai suku bunga simpanan dari Information in respect of interest rate of deposits
nasabah diungkapkan pada Catatan 3c. Informasi from customers is disclosed in Note 3c. Information
mengenai jatuh tempo simpanan dari nasabah in respect of maturities of deposits from customers
diungkapkan pada Catatan 3d. Informasi mengenai is disclosed in Note 3d. Information regarding the
klasifikasi dan nilai wajar simpanan dari nasabah classification and fair value of deposits from
diungkapkan pada Catatan 34. Simpanan dari pihak customers is disclosed in Note 34. Deposits from
berelasi diungkapkan pada Catatan 36. related parties are disclosed in Note 36.

20. SIMPANAN DARI BANK-BANK LAIN 20. DEPOSITS FROM OTHER BANKS
31 Desember/December 31
2016 2015
Rupiah Rupiah
Pihak berelasi Related party
Giro 622 616 Current accounts
Pihak ketiga Third parties
Giro 13.886 3.640 Current accounts
Deposito berjangka 5.500 1.500 Time deposits
Interbank call money 50.000 375.000 Interbank call money

70.008 380.756
Valuta asing Foreign currency
Pihak berelasi Related party
Interbank call money 404.175 2.688.075 Interbank call money
Pihak ketiga Third parties
Interbank call money 188.615 110.280 Interbank call money

592.790 2.798.355
Total 662.798 3.179.111 Total

Saldo deposito berjangka dan interbank call money The amounts of time deposits and interbank call
berdasarkan periodenya: money based on its period:
31 Desember/December 31
2016 2015

≤ 1 bulan 644.290 3.173.355 ≤ 1 month


> 1 - 3 bulan 4.000 1.500 > 1 - 3 months
Total 648.290 3.174.855 Total

Pada tanggal-tanggal 31 Desember 2016 dan 2015, As of December 31, 2016 and 2015, there were no
tidak ada simpanan dari bank-bank lain yang deposits from other banks pledged as collateral.
dijadikan jaminan.
Informasi mengenai suku bunga simpanan dari Information in respect of interest rate of deposits
bank-bank lain diungkapkan pada from other banks is disclosed in Note 3c.
Catatan 3c. Informasi mengenai jatuh tempo Information in respect of maturities of deposits from
simpanan dari bank-bank lain diungkapkan pada other banks is disclosed in Note 3d. Information
Catatan 3d. Informasi mengenai klasifikasi dan nilai regarding the classification and fair value of
wajar simpanan dari bank-bank lain diungkapkan deposits from other banks is disclosed in Note 34.
pada Catatan 34. Simpanan dari pihak berelasi Deposits from related parties are disclosed in
diungkapkan pada Catatan 36. Note 36.

91
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

21. PAJAK PENGHASILAN 21. INCOME TAX


a. Utang pajak penghasilan terdiri dari: a. Income tax payable consisted of:
31 Desember/December 31
2016 2015
PPh pasal 29 − 2.401 Income tax Article 29

b. Beban pajak penghasilan terdiri dari: b. The components of income tax expense are as
follows:
Tahun yang berakhir pada tanggal
31 Desember/Year ended December 31
2016 2015

Pajak kini - 18.635 Current tax


Pajak tangguhan 215.617 34.254 Deferred tax
Total 215.617 52.889 Total

c. Berdasarkan Undang-Undang perpajakan di c. Under the Indonesian taxation laws, the Bank
Indonesia, Bank menghitung dan submits tax returns on a self-assessment
melaporkan/menyetorkan pajak berdasarkan basis. The tax authorities may assess/amend
sistem self-assesment. Fiskus dapat taxes within the statute of limitations under
menetapkan/mengubah pajak-pajak tersebut prevailing regulations.
dalam jangka waktu tertentu sesuai peraturan
yang berlaku.
d. Rekonsiliasi antara laba sebelum beban pajak d. The reconciliation between income before
penghasilan yang disajikan dalam laporan laba income tax expense as presented in the
rugi dan penghasilan komprehensif dengan statement profit or loss and other
(rugi) laba kena pajak untuk tahun yang berakhir comprehensive income and taxable (loss)
pada tanggal-tanggal 31 Desember 2016 dan income for the year ended December 31, 2016
2015 adalah sebagai berikut : and 2015 are as follows:
2016 2015

(Rugi) Laba sebelum beban (Loss) Income before


Pajak penghasilan (865.950) 208.935 income tax expense

Beda temporer: Temporary differences:


Imbalan pasca-kerja 21.504 20.805 Post-employment benefits
Bonus dan tunjangan yang masih
harus dibayar 8.615 7.093 Accrued bonus and allowances
Penyusutan aset tetap Depreciation of fixed assets
dan amortisasi aset tak berwujud 4.271 (483) and amortization of intangible assets
Cadangan kerugian penurunan Allowance for impairment
Nilai kredit 232.214 (169.368) losses on loans
Cadangan kerugian penurunan atas Allowance for impairment
agunan yang diambil alih 28.747 - losses on foreclosed assets
Lain-lain (1.884) 4.936 Others

293.467 (137.017)

Beda permanen: Permanent differences:


Bentuk natura dan kenikmatan 2.262 1.722 Benefits in kind
Beban promosi lainnya - 777 Other promotion expenses
Lain-lain 1.222 123 Others

3.484 2.622

(Rugi) laba kena pajak (568.999) 74.540 Taxable (loss) income

(Manfaat) Beban pajak penghasilan badan (142.250) 18.635 Current income tax (benefit) expense
Dikurangi: pajak penghasilan
dibayar dimuka - (16.234) Less: prepayment of income tax

Liabilitas pajak kini - 2.401 Current tax liability

92
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

21. PAJAK PENGHASILAN (lanjutan) 21. INCOME TAX (continued)


e. Rekonsiliasi antara hasil perkalian (rugi) laba e. The reconciliation between (loss) income
sebelum beban pajak penghasilan dengan tarif before income tax expense multiplied by the
pajak yang berlaku dan (manfaat) beban pajak prevailing tax rate and income tax (benefit)
penghasilan adalah sebagai berikut: expense are as follows:
Tahun yang berakhir pada tanggal
31 Desember/Year ended December 31

2016 2015

(Rugi) laba sebelum beban pajak


penghasilan (865.950) 208.935 (Loss) Income before income tax expense
Tarif pajak yang berlaku 25% 25% Prevailing tax rate

(216.488) 52.233
Beda permanen dengan Permanent differences at
tarif pajak 25% 871 656 25% tax rate

(Manfaat) Beban Pajak (215.617) 52.889 Income tax (benefit) expense

f. Rincian aset (liabilitas) pajak tangguhan pada c. The details of the deferred tax assets (liabilities)
tanggal-tanggal 31 Desember 2016 dan 2015 as of December 31, 2016 and 2015 were as
adalah sebagai berikut: follows:
Tahun yang berakhir pada tanggal
31 Desember/Year ended December 31
2016 2015

Aset pajak tangguhan: Deferred tax assets:


Liabilitas imbalan pasca-kerja 24.352 20.155 Post-employment benefits obligation
Bonus dan tunjangan yang masih
harus dibayar 10.782 8.628 Accrued bonus and allowances
Penyusutan aset tetap Depreciation of fixed assets
dan amortisasi aset tak berwujud 1.131 63 and amortization of intangible assets
Cadangan kerugian penurunan nilai Allowance for impairment losses on
atas agunan yang diambil alih 7.187 - Foreclosed Assets
Rugi belum direalisasi dari perubahan Unrealized loss from changes in fair
nilai wajar efek-efek yang tersedia value of available-for-sale
untuk dijual (11) - securities
Kerugian pajak tahun berjalan 142.250 - Current tax loss
Lain-lain 764 1.234 Others

186.455 30.080

Liabilitas pajak tangguhan: Deferred tax liabilities:


Cadangan kerugian penurunan nilai Allowance for impairment losses on
aset keuangan (14.350) (72.404) financial assets

(Liabilitas) Aset pajak


tangguhan, neto 172.105 (42.324) Deferred tax (liabilities) assets, net

g. Manajemen Bank berkeyakinan bahwa seluruh g. The Bank’s management believes that total
aset pajak tangguhan yang timbul dari beda deferred tax assets arising from temporary
temporer kemungkinan besar dapat direalisasi differences are probable to be realized in the
pada tahun-tahun mendatang. future years.

h. (Rugi) laba kena pajak hasil rekonsiliasi tahun h. Taxable (loss) income which is a result from the
2016 dan 2015 menjadi dasar dalam pengisian reconciliation for the year 2016 and 2015 will be
Surat Pemberitahuan Tahunan (SPT) Pajak used as basis in the submission of the Company’s
Penghasilan Badan. Annual Corporate Tax Return.

93
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

22. LIABILITAS IMBALAN PASCA-KERJA 22. OBLIGATION FOR POST-EMPLOYMENT


BENEFITS

Sesuai dengan Undang-Undang Republik Indonesia In accordance with Law of the Republic of
No. 13/2003 tentang ketenagakerjaan, Bank wajib Indonesia No. 13/2003 relating to labor regulations,
memberikan imbalan pasca-kerja kepada the Bank is required to provide post-employment
karyawannya pada saat pemutusan hubungan kerja benefits to its employees when their employment is
atau pada saat karyawan menyelesaikan masa terminated or when they retire. These benefits are
kerjanya. Imbalan pasca-kerja ini diberikan terutama primarily based on years of service and the
berdasarkan masa kerja dan kompensasi karyawan employees’ compensation at termination or
pada saat pemutusan hubungan kerja atau retirement.
selesainya masa kerja.

Dengan demikian, Bank mencatat liabilitas yang Therefore, the Bank recorded a liability, which
mencerminkan imbalan pasca-kerja yang represents post-employment benefits as required
diwajibkan oleh Undang-Undang No.13/2003. by Law No.13/2003.

Tabel berikut menyajikan liabilitas imbalan pasca- The following table summarizes the obligation for
kerja Bank yang tercatat di laporan posisi keuangan post-employment benefits of the Bank as recorded
pada tanggal 31 Desember 2016 dan 2015, dan in the statement of financial position as of
perubahan liabilitas imbalan pasca-kerja dan beban December 31, 2016 and 2015, and movement in
yang diakui dalam laporan laba rugi dan penghasilan the obligation and expense recognized in the
komprehensif lain untuk tahun yang berakhir tanggal statement of profit or loss and other comprehensive
31 Desember 2016 dan 2015: income for the year ended December 31, 2016 and
2015:
2016 2015
Beban imbalan kerja Employee benefit expense
Beban jasa kini 20.147 19.365 Current service cost
Beban atas kewajiban 6.933 5.111 Interest on obligation
Penilaian kembali atas biaya Remeasurement of
jangka panjang lainnya (406) (10) other long term benefit
Total 26.674 24.466 Total

Obligation for post-


Liabilitas imbalan pasca kerja employement benefits
Liabilitas imbalan pasca-kerja, Obligation for post-employment benefits,
awal tahun 80.619 63.892 beginning of the year
Beban imbalan pasca-kerja Post-employment benefits expense
tahun berjalan 26.674 24.466 for the year
Total yang diakui di penghasilan Total amount recognized in
komprehensif lainnya (4.716) (4.078) other comprehensive income
Pembayaran imbalan pasca-kerja
selama tahun berjalan (5.170) (3.661) Payments of benefits during the year
Liabilitas imbalan pasca-kerja, Obligation for post-employment
akhir tahun 97.407 80.619 benefits, end of the year

Mutasi atas nilai kini liabilitas imbalan pasca-kerja Movement in the present value of obligation for
pada tanggal 31 Desember 2016 dan 2015 adalah post-employment benefit for the year ended
sebagai berikut: December 31, 2016 and 2015 are as follows:
2016 2015
Present value of obligation for post-
Nilai kini liabilitas imbalan pasca-kerja, employment benefits,
awal periode 80.619 63.892 beginning of the year
Beban jasa kini 20.147 19.365 Current service cost
Beban atas kewajiban 6.933 5.111 Interest on obligation
Pembayaran imbalan pasca-kerja selama
tahun berjalan (5.170) (3.661) Payments of benefits during the year
Keuntungan aktuarial (5.122) (4.088) Actuarial gain

Present value of obligation for


Nilai kini liabilitas imbalan for post - employment benefits,
pasca-kerja akhir periode 97.407 80.619 end of the year

94
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

22. LIABILITAS IMBALAN PASCA-KERJA (lanjutan) 22. OBLIGATION FOR POST-EMPLOYMENT


BENEFITS (continued)

Jatuh tempo kewajiban aset dana manfaat pasti The maturity of defined benefit plan obligation as of
pada tanggal 31 Desember 2016 dan 2015 (tidak December 31, 2016 and 2015 (unaudited) is as
diaudit) adalah sebagai berikut: follows:

2016 2015

Dalam waktu 12 bulan berikutnya Within the next 12 months


(periode laporan tahun berikutnya) 5.908 777 (the next annual reporting period)
Antara 2 dan 5 tahun 29.117 30.348 Between 2 and 5 years
Antara 5 dan 10 tahun 131.031 1.025.137 Between 5 and 10 years
Di atas 10 tahun 844.353 1.056.263 Beyond 10 years

Jumlah 1.010.409 2.112.525 Total

Perhitungan liabilitas imbalan pasca-kerja pada The calculation of obligation for post-employment
tanggal 31 Desember 2016 dan 2015 dilakukan oleh benefits as of December 31, 2016 and 2015 was
Biro Pusat Aktuaria sebagai aktuaris independen performed by Biro Pusat Aktuaria as the
berdasarkan laporannya masing-masing pada independent actuary based on its reports dated
tanggal-tanggal 9 Januari 2017 dan 5 Januari 2016. January 9, 2017 and January 5, 2016, respectively.
Liabilitas imbalan pasti atas imbalan pasca-kerja Obligation for post-employment benefits are
(post-employment benefit) tersebut dihitung calculated using the “Projected Unit Credit” method
dengan menggunakan metode “Projected Unit with the following assumptions:
Credit” dan asumsi-asumsi signifikan sebagai
berikut:

31 Desember/December 31

2016 2015

Tingkat diskonto per tahun 8.3% 8.6% Discount rate per annum
Kenaikan gaji per tahun 6.0% 6.0% Salary increase per annum
Usia pensiun 55 tahun/years 55 tahun/years Pension age
Tabel TMI 2011/ Tabel TMI 2011/
Tingkat kematian TMI 2011 table TMI 2011 table Mortality rate

31 Desember/December 31

2016 2015 2014 2013

Nilai kini liabilitas Present value of obligation for


imbalan pasca-kerja (97.407) (80.619) (63.892) (42.954) post-employment benefits
Pengalaman penyesuaian yang Experience adjustments
timbul pada liabilitas program 6.586 1.456 (3.354) 478 arising on plan liability

95
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

22. LIABILITAS IMBALAN PASCA-KERJA (lanjutan) 22. OBLIGATION FOR POST-EMPLOYMENT


BENEFITS (continued)

Tabel berikut menunjukan analisa sensitivitas nilai The tables below show the sensitivity analysis of
kini liabilitas imbalan kerja dan biaya jasa kini the present value of employee benefit obligation
diasumsikan terdapat perubahan atas tingkat and current service cost in the assumed changes
diskonto dan tingkat kenaikan upah: in the discount rate and salary increment rate:

Tingkat Diskonto Discount Rate


31 Desember /December 31, 2016

Pengaruh terhadap Pengaruh terhadap


Perubahan nilai kini liabilitas/ Perubahan biaya jasa kini/
Persentase/ Impact to present Persentase/ Impact to
Percentage value of employee Percentage current
Change benefit obligation Change service cost

+1% 91.122 +1% 104.493


-1% 18.711 -1% 21.778

31 Desember /December 31, 2015

Pengaruh terhadap Pengaruh terhadap


Perubahan nilai kini liabilitas/ Perubahan biaya jasa kini/
Persentase/ Impact to present Persentase/ Impact to
Percentage value of employee Percentage current
Change benefit obligation Change service cost

+1% 75.165 +1% 86.768


-1% 17.910 -1% 21.021

Tingkat Kenaikan Upah Salary Increment Rate

31 Desember /December 31, 2016

Pengaruh terhadap Pengaruh terhadap


Perubahan nilai kini liabilitas/ Perubahan biaya jasa kini/
Persentase/ Impact to present Persentase/ Impact to
Percentage value of employee Percentage current
Change benefit obligation Change service cost

+1% 104.585 +1% 90.937


-1% 21.799 -1% 18.669

31 Desember /December 31, 2015

Pengaruh terhadap Pengaruh terhadap


Perubahan nilai kini liabilitas/ Perubahan biaya jasa kini/
Persentase/ Impact to present Persentase/ Impact to
Percentage value of employee Percentage current
Change benefit obligation Change service cost

+1% 86.865 +1% 74.991


-1% 21.04 -1% 17.864

23. SURAT BERHARGA YANG DITERBITKAN 23. MARKETABLE SECURITIES ISSUED

Pada tanggal 8 Juni 2016, Bank menerbitkan On June 8, 2016, Bank issued Negotiable
Negotiable Certificate of Deposit (NCD) dengan nilai Certificate of Deposit (NCD) with principal value
pokok sebesar Rp320.000 dengan bunga tetap amounting Rp320,000 with a fixed interest rate of
sebesar 8,5% per tahun, untuk jangka waktu 9 8.5% per annum, for 9 (nine) months period with
(sembilan) bulan dan jatuh tempo pada tanggal 8 maturity date on March 8, 2017. NCD issued at
Maret 2017. NCD tersebut diterbitkan sebesar 93.94%. As of December 31, 2016, the
93,94%. Pada tanggal 31 Desember 2016, diskonto unamortized portion of the discount are amounted
yang belum diamortisasi adalah sebesar Rp4.480. to Rp4,480.

96
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

24. PINJAMAN SUBORDINASI 24. SUBORDINATED LOAN

Bank memperoleh pinjaman subordinasi dari Qatar The Bank obtained subordinated loans from Qatar
National Bank S.A.Q, pemegang saham mayoritas National Bank S.A.Q, the Bank’s majority
Bank. shareholder.
31 Desember/December 31
2016 2015
Tanggal perolehan Date obtained
30 September 2015 − 964.950 September 30, 2015
Total − 964.950 Total

Pada tanggal 30 September 2015, Bank On September 30, 2015 the subordinated loan of
memperoleh pinjaman subordinasi sebesar USD70 USD70 million was obtained for Supplementary
juta dan digunakan sebagai Modal Pelengkap Capital (Tier 2). The interest rate at 7.25% per
(Tier 2). Suku bunga pinjaman sebesar 7,25% per annum, payable on quarterly basis from the date of
tahun, dibayarkan setiap triwulan yang dihitung principal loan drawdown. Maturity of subordinated
sejak tanggal penarikan pinjaman pokok. Jatuh loan is on September 29, 2020. On November 30,
tempo pinjaman subordinasi pada tanggal 2016 subordinated loan amounted USD70 million
29 September 2020. Pada tanggal 30 Nopember was converted into disclosed reserve amounted to
2016, pinjaman subordinasi sebesar USD70 Juta Rp948,709. Information in respect of interest rate of
dialihkan menjadi dana setoran modal sebesar subordinated loan is disclosed in Notes 3c.
Rp948.709. Informasi mengenai suku bunga
pinjaman subordinasi diungkapkan pada
Catatan 3c.

25. MODAL SAHAM 25. SHARE CAPITAL

Komposisi pemegang saham Bank pada tanggal The composition of the Banks’ shareholders as of
31 Desember 2016 dan 2015 adalah sebagai December 31, 2016 and 2015 are as follows:
berikut:
31 Desember/December 31, 2016
Persentase
Total saham/ kepemilikan/
Number Percentage of
of shares ownership (%) Total
Qatar National Bank SAQ 7.232.691.746 82,59% 1.808.173 Qatar National Bank SAQ
PT Bosowa Kapital 713.429.674 8,15% 178.358 PT Bosowa Kapital
Masyarakat (masing-masing
di bawah 5%) 811.024.577 9,26% 202.756 Public (each below 5%)

Total 8.757.145.997 100,00% 2.189.287 Total

31 Desember/December 31, 2015


Persentase
Total saham/ kepemilikan/
Number Percentage of
of shares ownership (%) Total

Qatar National Bank SAQ 7.232.691.746 82,59% 1.808.173 Qatar National Bank SAQ
PT Bosowa Kapital 713.429.674 8,15% 178.358 PT Bosowa Kapital
Masyarakat (masing-masing
di bawah 5%) 811.024.577 9,26% 202.756 Public (each below 5%)

Total 8.757.145.997 100,00% 2.189.287 Total

Berdasarkan Akta Pernyataan Keputusan Rapat Based on the Deed of Minutes of Annual
Umum Pemegang Saham Tahunan Bank No. 37 Shareholders’ General Meeting of Bank No. 37
tanggal 27 Februari 2015 yang dibuat di hadapan dated February 27, 2015 of Fathiah Helmi, SH,
Fathiah Helmi, SH, notaris di Jakarta, para notary public in Jakarta, the shareholders agreed to
pemegang saham menyetujui peningkatan modal increase the Bank’s authorized share capital from
dasar Bank dari Rp2.500.000 atau sebanyak Rp2,500,000 or 10,000,000,000 shares to
10.000.000.000 saham menjadi Rp8.000.000 atau Rp8,000,000 or 32,000,000,000 shares.
sebanyak 32.000.000.000 saham.

97
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

25. MODAL SAHAM (lanjutan) 25. SHARE CAPITAL (continued)

Peningkatan modal dasar tersebut telah disetujui The increase in the authorized share capital has
oleh Menteri Hukum dan Hak Asasi Manusia been approved by the Minister of Laws and Human
Republik Indonesia dengan Surat Keputusan Rights of the Republic of Indonesia under his
No. AHU-0004611.AH.01.02 Tahun 2015 tanggal Decree No. AHU-0004611.AH.01.02 Year 2015
24 Maret 2015. dated March 24, 2015.

Berdasarkan Rapat Umum Pemegang Saham Luar Based on the Second Extraordinary Shareholders’
Biasa Kedua pada tanggal 26 Juni 2009, General Meeting on June 26, 2009, effected by
sebagaimana dinyatakan dalam akta No. 85 tanggal deed No. 85 dated June 26, 2009 of Fathiah Helmi,
26 Juni 2009 yang dibuat dihadapan Fathiah Helmi, SH, notary public in Jakarta, the Bank released the
SH, notaris di Jakarta, Bank melakukan Penawaran First Limited Public Offering (PUT I) by issuing the
Umum Terbatas I (PUT I) dengan menerbitkan Hak Rights Issue (HMETD) amounting to 125,304,750
Memesan Efek Terlebih Dahulu (HMETD) sejumlah shares with par value of Rp250 (in full amount) per
125.304.750 saham dengan nilai nominal sebesar share at an offering price of Rp320 (in full amount)
Rp250 (dalam Rupiah penuh) per saham yang per share. This share issuance through PUT I
ditawarkan dengan harga Rp320 (dalam Rupiah resulted in additional paid-in capital of Rp8,771.
penuh) per saham. Penerbitan saham melalui PUT I
tersebut menghasilkan agio saham sebesar
Rp8.771.

Setelah PUT I, modal ditempatkan dan disetor Bank After the PUT I, the Bank’s issued and fully paid
meningkat menjadi 626.523.750 lembar saham atau capital increased to 626,523,750 shares or
senilai Rp156.631. Rp156,631.

Berdasarkan Rapat Umum Pemegang Saham Luar Based on the Extraordinary Shareholders’ General
Biasa pada tanggal 27 Desember 2010 Meeting on December 27, 2010, as effected by
sebagaimana dinyatakan dalam akta No. 63 tanggal deed No. 63 dated December 27, 2010 of Fathiah
27 Desember 2010 yang dibuat di hadapan Fathiah Helmi, SH, notary public in Jakarta, the Bank
Helmi, SH, notaris di Jakarta, Bank melakukan released the Second Limited Public Offering (PUT
Penawaran Umum Terbatas II (PUT II) dengan II) by issuing the Rights Issue (HMETD) amounting
menerbitkan Hak Memesan Efek Terlebih Dahulu to 2,935,263,768 shares with par value and at the
(HMETD) sejumlah 2.935.263.768 saham dengan offering price of Rp250 (in full amount) per share.
nilai nominal dan harga penawaran sebesar Rp250
(dalam Rupiah penuh) per saham.

Setelah PUT II, modal ditempatkan dan disetor Bank After the PUT II, the Bank’s issued and fully paid
meningkat menjadi 3.561.787.518 saham atau capital increased to 3,561,787,518 shares or
senilai Rp890.447. Rp890,447.

Berdasarkan Akta Akuisisi No. 26 tanggal 26 Januari Based on the Acquisition Deed No. 26 dated
2011 yang dibuat di hadapan Fathiah Helmi, SH, January 26, 2011 of Fathiah Helmi, SH, notary
notaris di Jakarta, Bank dan Qatar National Bank public in Jakarta, the Bank and Qatar National
SAQ (“QNB”) telah menandatangani Akta Akuisisi Bank SAQ (“QNB”) have signed the Deed of
dimana QNB sebagai pembeli siaga dalam rights Acquisition where QNB as a standby buyer in the
issue telah memperoleh 2.478.728.032 saham biasa rights issue has acquired 2,478,728,032 ordinary
atas Saham Baru dengan nominal Rp250 (dalam shares of New Shares with a nominal value of
Rupiah penuh) per saham atau senilai Rp619.682. Rp250 (in full amount) per share or Rp619,682.

Pada tanggal 27 Mei 2013, Bank memperoleh On May 27, 2013, the Bank obtained the Effective
Pernyataan Efektif dari Otoritas Jasa Keuangan Notification from the Financial Service Authority
(“OJK”) berdasarkan Surat Keputusan (“OJK”) through its Decree No. S-141/D.04/2013 in
No. S-141/D.04/2013 dalam rangka Penawaran relation to the Third Limited Public Offering (PUT
Umum Terbatas III (PUT III) dengan menerbitkan III) by conducting the Rights Issue (HMETD)
Hak Memesan Efek Terlebih Dahulu (HMETD) amounting to2,596,543,000 shares with par value
sejumlah 2.596.543.000 saham dengan nilai and at the offering price of Rp250 (in full amount)
nominal dan harga penawaran sebesar Rp250 per share.
(dalam Rupiah penuh) per saham.

98
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

25. MODAL SAHAM (lanjutan) 25. SHARE CAPITAL (continued)

Setelah PUT III, modal ditempatkan dan disetor After the PUT III, the Bank’s issued and fully paid
Bank meningkat menjadi 6.158.330.518 lembar capital increased to 6,158,330,518 shares or
saham atau senilai Rp1.539.583. Rp1,539,583.

Pada tanggal 2 Juni 2014, Bank memperoleh On June 2, 2014, the Bank obtained the Effective
Pernyataan Efektif dari Otoritas Jasa Keuangan Notification from the Financial Service Authority
(“OJK”) berdasarkan Surat Keputusan (“OJK”) through its Decree No..S-253/D.04/2014 in
No. S-253/D.04/2014 dalam rangka Penawaran relation to the Fourth Limited Public Offering (PUT
Umum Terbatas IV (PUT IV) dengan menerbitkan IV) by conducting the Rights Issue (HMETD)
Hak Memesan Efek Terlebih Dahulu (HMETD) amounting to 2,598,815,479 shares with par value
sejumlah 2.598.815.479 saham dengan nilai and at the offering price of Rp250 (in full amount)
nominal dan harga penawaran sebesar Rp250 per share.
(dalam Rupiah penuh) per saham.

Setelah PUT IV, modal ditempatkan dan disetor After the PUT IV, the Bank’s issued and fully paid
Bank meningkat menjadi 8.757.145.997 lembar capital increased to 8,757,145,997 shares or
saham atau senilai Rp2.189.287. equivalent to Rp2,189,287.
Pada tanggal 14 desember 2016, Bank memperoleh On December 14, 2016, Bank obtained other
tambahan modal lainnya berupa dana setoran disclosed reserve in the form of capital - fund
modal yang dilakukan dengan cara penyetoran injection shall be done through fund transfer by
dana oleh Qatar National Bank SAQ sebesar Qatar National Bank SAQ amounted to USD56
USD56 juta atau setara dengan Rp751.800. million or equivalent to Rp751,800.

26. TAMBAHAN MODAL DISETOR 26. ADDITIONAL PAID-IN CAPITAL


Tambahan modal disetor pada tanggal The additional paid-in capital as of December 31,
31 Desember 2016 dan 2015 berasal dari: 2016 and 2015 were derived from:
31 Desember/December 31
2016 2015
Agio saham 8.771 8.771 Additional paid-in capital
Beban emisi saham (33.341) (33.341) Shares issuance costs
Total - neto (24.570) (24.570) Total - net

Beban emisi saham timbul dari penerbitan saham Share issuance costs arose from shares issuance
melalui Penawaran Umum Perdana, PUT I, PUT II, through Initial Public Offering, PUT I, PUT II, PUT
PUT III dan PUT IV masing-masing sebesar III, and PUT IV amounting to Rp1,635, Rp1,032,
Rp1.635, Rp1.032, Rp25.562, Rp2.525 dan Rp25,562, Rp2,525 and Rp2,587 respectively
Rp2.587 (Catatan 1b dan 25). (Notes 1b and 25).

27. CADANGAN UMUM DAN WAJIB 27. GENERAL AND LEGAL RESERVE
Cadangan umum dan wajib dibentuk sesuai dengan The general and legal reserve was provided in
Undang-Undang Republik Indonesia No.)1/1995 relation with the Law of the Republic of Indonesia
sebagaimana telah diubah dengan Undang-Undang No.)1/1995 which has been replaced with the Law
No..40/2007 tentang Perseroan Terbatas yang No.)40/2007 regarding the Limited Liability
berlaku efektif sejak tanggal 16 Agustus 2007 yang Company effective on August 16, 2007 which
mengharuskan perusahaan-perusahaan untuk requires companies to set up a general reserve
membentuk cadangan umum dengan jumlah amounting to at least 20% of the issued and paid
minimum 20% dari modal saham yang ditempatkan up share capital. There is no timeline over which
dan disetor. Tidak ada batas waktu pembentukan this amount should be provided.
cadangan ini.

Berdasarkan akta Berita Acara Rapat Umum Based on the deed of Annual Shareholder’s
Pemegang Saham Tahunan No. 13 tanggal General Meeting No. 13 dated February 16, 2016
16 Februari 2016 dibuat dihadapan Fathiah Helmi, of Fathiah Helmi, SH, notary public in Jakarta, was
SH, notaris di Jakarta, disetujui pembentukan approved that approriation of the 2015 retained
cadangan umum sebesar Rp 1.000 dari saldo laba earnings amounted to Rp1,000.
tahun 2015.

99
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

27. CADANGAN UMUM DAN WAJIB (lanjutan) 27. GENERAL AND LEGAL RESERVE (continued)

Berdasarkan akta Berita Acara Rapat Umum Based on deed of Annual Shareholder’s General
Pemegang Saham Tahunan No. 36 tanggal 27 Meeting No. 36 dated February 27, 2015 of Fathiah
Februari 2015 dibuat dihadapan Fathiah Helmi, SH, Helmi, SH, notary public in Jakarta, was approved
notaris Jakarta, disetujui penetapan laba bersih that profit for the year 2014 was used to increase
tahun 2014 digunakan untuk menambah modal the capital and to strengthen capital adequacy
Bank dan memperkuat rasio modal. ratio.

28. PENDAPATAN BUNGA - NETO 28. NET INTEREST INCOME

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31

2016 2015
Pendapatan bunga Interest income
Kredit yang diberikan 1.870.530 1.926.821 Loans
Efek-efek yang dibeli Securities purchased under agreement
dengan janji dijual kembali 71.286 8.046 to resell
Penempatan pada Bank Indonesia Placements with Bank Indonesia
dan bank-bank lain 64.352 58.437 and other banks
Efek-efek 42.362 47.209 Securities
Lainnya 62 69 Others
2.048.592 2.040.582

Beban bunga Interest expense


Simpanan dari nasabah Deposits from customers
Deposito berjangka Time deposits
dan deposit on call (1.312.768) (1.167.481) and deposits on call
Giro (70.524) (89.005) Current accounts
Tabungan (16.182) (3.862) Saving accounts
Simpanan dari bank-bank lain Deposits from other banks
Deposit on call (12.083) (32.229) Deposits on call
Deposito berjangka (452) (80) Time deposits
Giro (64) (7) Currents accounts
Pinjaman Subordinasi (61.759) (17.662) Subordinated Loan
Premi penjaminan ke LPS (Catatan 39) (43.446) (41.005) Guarantee premium to LPS (Note 39)
Surat berharga yang diterbitkan (14.897) - Marketable securities issued

(1.532.175) (1.351.331)

Pendapatan bunga - neto 516.417 689.251 Net interest income

29. PENDAPATAN PROVISI DAN KOMISI - NETO 29. NET FEES AND COMMISSION INCOME

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31

2016 2015
Pendapatan provisi dan komisi Fees and commission income
Jasa 112.677 184.214 Services
Jasa administrasi 5.843 2.017 Administration fees
Lain-lain 6.405 10.047 Others

124.925 196.278

Beban provisi dan komisi Fees and commission expenses


Transaksi antar bank (1.435) (2.020) Inter-bank transactions

Pendapatan provisi dan komisi - neto 123.490 194.258 Net fees and commission income

100
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

30. PENYISIHAN KERUGIAN PENURUNAN NILAI 30. PROVISION FOR IMPAIRMENT LOSSES ON
ASET KEUANGAN DAN NON KEUANGAN FINANCIAL ASSETS AND NON FINANCIAL

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31

2016 2015
Kredit yang diberikan (Catatan 12) 900.772 87.472 Loans (Note 12)
Cadangan kerugian atas agunan yang
diambil alih 28.747 - Allowance for lossess of foreclosed assets

Total 929.519 87.472 Total

31. BEBAN KARYAWAN 31. PERSONNEL EXPENSES

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31

2016 2015
Gaji pokok 172.943 175.850 Basic salaries
THR/bonus 77.926 81.251 THR/bonus
Outsourcing 54.804 31.657 Outsourcing
Imbalan pasca-kerja 26.674 24.466 Post-employment benefits
Tunjangan jabatan 17.966 18.082 Functional allowance
Pengobatan 17.530 13.144 Medical
Pendidikan dan pelatihan 17.203 16.159 Education and training
Asuransi 7.490 7.657 Insurance
Tunjangan cuti, kehadiran, Leave, attendance,
dan tranportasi 2.217 827 and transportation allowance
Perekrutan 406 1.681 Recruitment
Lain-lain 2.173 4.969 Others

Total 397.332 375.743 Total

32. BEBAN UMUM DAN ADMINISTRASI 32. GENERAL AND ADMINISTRATIVE EXPENSES

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31
2016 2015
Sewa 66.348 54.354 Rental
Penyusutan aset tetap 34.802 29.653 Depreciation of fixed assets
Telephone, telex and
Telepon, telex dan data komunikasi 24.952 19.321 data communication
Jasa profesional 22.928 17.624 Professional fees
Pemeliharaan dan perbaikan 22.227 21.259 Repair and maintenance
Iklan dan promosi 22.186 30.818 Advertising and promotion
Transportasi 10.155 12.120 Transportation
Amortisasi aset tak berwujud 8.225 7.491 Amortization of intagible assets
Air, gas dan listrik 7.615 8.482 Water, gas and electricity
Percetakan dan perlengkapan 4.385 8.588 Printing and stationary
Asuransi 3.248 2.153 Insurance
Pajak dan retribusi 1.049 2.420 Tax and retribution
Lain-lain 15.842 10.823 Others
Total 243.962 225.106 Total

101
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

33. (RUGI) LABA PER SAHAM - DASAR 33. (LOSS) EARNINGS PER SHARE - BASIC

(Rugi) laba per saham - dasar dihitung dengan (Loss) earnings per share - basic is computed by
membagi laba tahun berjalan dengan rata-rata dividing income for the year by the weighted
tertimbang jumlah saham yang beredar pada tahun average number of outstanding shares during the
yang bersangkutan. year.

Tahun yang Berakhir pada tanggal


31 Desember/Year ended
December 31
2016 2015
(Rugi) laba tahun berjalan (650.333) 156.046 (Loss) Income for the year
Weighted average number of
Rata-rata tertimbang jumlah saham outstanding shares for basic
yang beredar untuk perhitungan earnings per share
laba per saham dasar (nilai penuh) 8.757.145.997 8.757.145.997 computation (full amount)
(Rugi) laba per saham - dasar (Loss) earnings per share -
(dalam Rupiah penuh) (74,26) 17,82 basic (in full amount)

34. ASET KEUANGAN DAN LIABILITAS KEUANGAN 34. FINANCIAL ASSETS AND FINANCIAL
LIABILITIES

Di bawah ini disajikan perbandingan antara nilai Below is the comparison of the carrying amounts, as
tercatat, seperti dilaporkan dalam laporan posisi reported in the statement of financial position, and
keuangan, dan nilai wajar semua aset keuangan the fair value of all financial assets and liabilities.
dan liabilitas keuangan.

Pada tabel di bawah ini, instrumen keuangan telah In the below table, financial instruments have been
dikelompokkan berdasarkan klasifikasi masing- allocated based on their classification. The
masing. Kebijakan akuntansi yang penting di significant accounting policies in Note 2f describe
Catatan 2f menjelaskan bagaimana kategori aset how the categories of the financial assets and
keuangan dan liabilitas keuangan tersebut diukur financial liabilities are measured and how income
dan bagaimana pendapatan dan beban, termasuk and expenses, including fair value gains and losses
laba dan rugi atas nilai wajar (perubahan nilai wajar (changes in fair value of financial instruments), are
instrument keuangan), diakui. recognized.

Aset keuangan telah dikelompokkan ke dalam aset Financial asset classes have been allocated into
keuangan yang diukur pada nilai wajar melalui laba assets at fair value through profit or loss, loans and
atau rugi, pinjaman yang diberikan dan piutang, receivables, held-to-maturity and available-for-sale
dimiliki hingga jatuh tempo dan tersedia untuk dijual. financial assets. Similarly, financial liability has been
Sama halnya dengan aset keuangan, liabilitas allocated into financial liabilities at fair value through
keuangan telah dikelompokkan ke dalam liabilitas profit or loss and other amortized cost.
keuangan yang diukur pada nilai wajar melalui laba
atau rugi dan yang dicatat pada biaya perolehan
diamortisasi lainnya.

Nilai wajar yang diungkapkan di bawah ini adalah The fair values are based on relevant information
berdasarkan informasi relevan yang tersedia pada available as at the date of statement of financial
tanggal laporan posisi keuangan dan tidak position and have not been updated to reflect
diperbaharui untuk mencerminkan perubahan changes in market condition after the date of
dalam kondisi pasar yang terjadi setelah tanggal statement of financial position.
laporan posisi keuangan.

102
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

34. ASET KEUANGAN DAN LIABILITAS KEUANGAN 34. FINANCIAL ASSETS AND FINANCIAL
(lanjutan) LIABILITIES (continued)

Tabel di bawah menyajikan nilai tercatat dan nilai The table below sets out the carrying amount and
wajar aset dan liabilitas keuangan Bank pada fair values of the Bank’s financial assets and
tanggal 31 Desember 2016 dan 2015. liabilities as of December 31, 2016 and 2015.
31 Desember/December 31, 2016

Biaya
Nilai wajar Pinjaman Dimiliki perolehan Jumlah
melalui yang hingga Tersedia diamortisasi Nilai
laba rugi/ diberikan jatuh untuk lainnya/ tercatat/
Fair value dan piutang/ tempo/ dijual/ Amortized Total Nilai wajar/
through Loans and Held-to Available for- other carrying Fair
profit or loss receivables maturity sale cost amount value

Aset keuangan Financial assets


Kas - 51.260 - - - 51.260 51.260 Cash
Giro pada Bank
Indonesia - 1.635.116 - - - 1.635.116 1.635.116 Current accounts with Bank Indonesia
Giro pada bank-bank lain - 80.815 - - - 80.815 80.815 Current accounts with other banks
Penempatan pada Bank Placements with
Indonesia dan bank lain - 2.230.074 - - - 2.230.074 2.230.074 Bank Indonesia and other bank
Tagihan derivatif 550 - - - - 550 550 Derivatives receivable
Tagihan akseptasi - 22.193 - - - 22.193 22.193 Acceptances receivable
Efek-efek yang dibeli Securites purchased under agreement
dengan janji dijual kembali - 471.350 - - - 471.350 471.350 to resell
Kredit yang diberikan - 17.551.188 - - - 17.551.188 17.551.188 Loans
Efek-efek - - 324.355 247.507 - 571.862 578.326 Securities
Aset lain-lain - 156.267 - - - 156.267 156.267 Other assets

550 22.198.263 324.355 247.507 - 22.770.675 22.777.139

Liabilitas keuangan Financial liabilities


Simpanan dari nasabah - - - - 19.344.962 19.344.962 19.344.962 Deposits from customers
Simpanan dari bank-bank lain - - - - 662.798 662.798 662.798 Deposits from other banks
Surat berharga yang diterbitkan 315.520 315.520 315.520 Marketable securities issued
Liabilitas derivatif 12.890 - - - - 12.890 12.890 Derivatives payable
Liabilitas akseptasi - - - - 22.193 22.193 22.193 Acceptance payable
Beban masih harus dibayar
dan liabilitas lain-lain - - - - 87.440 87.440 87.440 Accruals and other liabilities

12.890 - - - 20.432.913 20.445.803 20.445.803

31 Desember/December 31, 2015

Biaya
Nilai wajar Pinjaman Dimiliki perolehan Jumlah
melalui yang hingga Tersedia diamortisasi Nilai
laba rugi/ diberikan jatuh untuk lainnya/ tercatat/
Fair value dan piutang/ tempo/ dijual/ Amortized Total Nilai wajar/
through Loans and Held-to Available for- other carrying Fair
profit or loss receivables maturity sale cost amount value

Aset keuangan Financial assets


Kas - 45.432 - - - 45.432 45.432 Cash
Giro pada Bank
Indonesia - 1.710.947 - - - 1.710.947 1.710.947 Current accounts with Bank Indonesia
Giro pada bank-bank lain - 31.146 - - - 31.146 31.146 Current accounts with other banks
Penempatan pada Bank Placements with
Indonesia dan bank-bank Bank Indonesia and
lain 2.111.813 - - - 2.111.813 2.111.813 other banks
Tagihan derivatif 2.921 - - - - 2.921 2.921 Derivatives receivable
Tagihan akseptasi - 61.821 - - - 61.821 61.821 Acceptances receivable
Efek-efek yang dibeli Securites purchased under agreement
dengan janji dijual kembali - 269.117 - - - 269.117 269.117 to resell
Kredit yang diberikan - 20.788.304 - - - 20.788.304 20.788.304 Loans
Efek-efek - - - 325.444 - 325.444 325.444 Securities
Aset lain-lain - 127.018 - - - 127.018 127.018 Other assets

2.921 25.145.598 - 325.444 - 25.473.963 25.473.963

Liabilitas keuangan Financial liabilities


Simpanan dari nasabah - - - - 18.509.008 18.509.008 18.509.008 Deposits from customers
Simpanan dari bank-bank lain - - - - 3.179.111 3.179.111 3.179.111 Deposits from other banks
Liabilitas derivatif 661 - - - - 661 661 Derivatives payable
Liabilitas akseptasi - - - - 61.821 61.821 61.821 Acceptance payable
Beban masih harus dibayar
dan liabilitas lain-lain - - - - 68.354 68.354 68.354 Accruals and other liabilities
Pinjaman Subordinasi - - - - 964.950 964.950 964.950 Subordinated Loan

661 - - - 22.783.244 22.783.905 22.783.905

Berikut metode dan asumsi yang digunakan untuk The following methods and assumptions are used to
perkiraan nilai wajar: estimate the fair value:
Nilai wajar aset dan liabilitas keuangan tertentu Fair values of certain financial assets and liabilities
selain kredit yang diberikan dan efek-efek other than loans and securities are approximately
mendekati nilai tercatat karena instrumen keuangan the same with their carrying amounts due to the
tersebut memiliki jangka waktu jatuh tempo yang short-term maturities of these financial
singkat dan/atau suku bunganya sering ditinjau instrumentsand/or repriced frequently.
ulang.

103
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

34. ASET KEUANGAN DAN LIABILITAS KEUANGAN 34. FINANCIAL ASSETS AND FINANCIAL
(lanjutan) LIABILITIES (continued)

Berikut metode dan asumsi yang digunakan untuk The following methods and assumptions are used to
perkiraan nilai wajar: (lanjutan) estimate the fair value: (continued)

Nilai wajar dari kredit yang diberikan dengan suku The carrying amounts of variable loans and short-
bunga mengambang dan nilai tercatat atas kredit term fixed rate loans are the reasonable
jangka pendek dengan suku bunga tetap adalah approximation of their fair values. The carrying
perkiraan yang layak atas nilai wajar. Nilai wajar dari amount of long term fixed rate loans shows the
kredit jangka panjang yang diberikan dengan suku discounted estimated future cash flows. The cash
bunga tetap menunjukkan nilai diskon dari perkiraan flows estimation is discounted at the market interest
arus kas masa depan yang diharapkan akan rate to determine fair value.
diterima oleh Bank. Perkiraan arus kas ini
didiskontokan dengan menggunakan suku bunga
pasar untuk menentukan nilai wajar.

Nilai wajar efek-efek yang diklasifikasikan sebagai The carrying amount securities that classified as
dimiliki hingga jatuh tempo yang diberikan dengan held-to-maturity shows the discounted estimated
suku bunga tetap menunjukkan nilai diskon dari future cash flows. The cash flows estimation is
perkiraan arus kas masa depan yang diharapkan discounted at the market interest rate to determine
akan diterima oleh Bank. Perkiraan arus kas ini fair value. The fair value of securities that classified
didiskontokan dengan menggunakan suku bunga as available for sales was update on quated market
pasar untuk menentukan nilai wajar. Nilai wajar prices.
efek-efek yang diklasifikasikan sebagai tersedia
untuk dijual adalah berdasarkan harga kuotasi
pasar.

Nilai wajar atas instrumen derivatif yang dinilai The fair values of derivatives instrument valued by
menggunakan teknik penilaian dengan valuation techniques using components which can
menggunakan komponen yang dapat diamati di be observed in the market, primarily are interest rate
pasar terutama adalah swap suku bunga, swap swaps, currency swaps and currency exchange
mata uang dan kontrak pertukaran mata uang. contracts. Most widely used valuation techniques
Teknik penilaian yang paling banyak digunakan include forward and swap valuation models which
meliputi model penilaian forward dan swap yang use the present value calculation. The models
menggunakan perhitungan nilai kini. Model tersebut incorporate various components which include the
menggabungkan berbagai komponen yang meliputi credit quality of the counterparty, spot value and
kualitas kredit dari counterparty, nilai spot dan future contracts and interest rate curve.
kontrak berjangka serta kurva tingkat suku bunga.

Nilai wajar dari instrumen yang tidak dikuotasi, kredit The fair value of unquoted instruments, loans and
yang diberikan dan aset non keuangan lainnya other non financial assets is estimated by
diestimasi dengan mendiskonto arus kas masa discounting the future cash flow using rates
depan menggunakan tingkat suku bunga yang currently available for debt on similar terms, credit
tersedia untuk pinjaman dengan persyaratan, risiko risk and remaining maturities.
kredit dan sisa jangka waktu jatuh tempo yang
serupa.

Bank menggunakan hirarki nilai wajar untuk The Bank adopts the fair value hierarchy for
menentukan dan mengungkapkan nilai wajar dari determining and disclosing the fair value of financial
instrumen keuangan (Catatan 2f). instruments (Note 2f).

104
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

34. ASET KEUANGAN DAN LIABILITAS KEUANGAN 34. FINANCIAL ASSETS AND FINANCIAL
(lanjutan) LIABILITIES (continued)
Tabel di bawah ini menunjukkan instrumen The table below show the financial instruments
keuangan yang diukur pada nilai wajar yang measured at fair value grouped according to the fair
dikelompokkan berdasarkan hirarki nilai wajar. value hierarchy.
31 Desember/December 31, 2016
Nilai wajar/Fair value
Nilai tercatat/ Tingkat/ Tingkat/ Tingkat/
Carrying value Level 1 Level 2 Level 3
Aset Keuangan Financial Assets
Aset yang diukur pada
nilai wajar Assets measured at fair value

Efek-efek - Nilai wajar Securities - Fair value through


melalui laba atau rugi 550 - 550 - profit or loss

Efek-efek - Tersedia Securities - Available


Untuk dijual 247.507 247.507 - - for sale
Total asset yang diukur Total assets measured
pada nilai wajar 248.057 247.507 550 - at fair value

Aset yang nilai wajarnya Assets for which


diungkapkan fair value are disclosed

Kredit yang diberikan 17.551.188 - 17.042.850 508.338 Loans


Efek-efek - dimiliki hingga
jatuh tempo 324.355 324.355 - - Securities - held to maturity
Aset non keuangan: Non financial asset:
Agunan yang
diambil alih 1.019.382 - 1.019.382 - Foreclosed Assets
Total asset yang nilai Total assets which fair value
wajarnya diungkapkan 18.894.925 324.355 18.062.232 508.338 are disclosed

Liabilitas Keuangan Financial Liabilities


Liabilitas yang diukur Liabilities measured
pada nilai wajar at fair value

Liabilitas derivatif 12.890 - 12.890 - Derivatives payable

Liabilitas yang diukur


pada biaya perolehan Liabilities measured
amortisasi at amortized cost

Surat berharga yang Marketable


diterbitkan 315.520 - 315.520 - securities issued
Total liabilitas yang nilai Total liabilities which fair
wajarnya diungkapkan 328.410 - 328.410 - value are disclosed

31 Desember/December 31, 2015


Nilai wajar/Fair value
Nilai tercatat/ Tingkat/ Tingkat/ Tingkat/
Carrying value Level 1 Level 2 Level 3
Aset Keuangan Financial Assets
Aset yang diukur pada
nilai wajar Assets measured at fair value

Efek-efek - Nilai wajar Securities - Fair value through


melalui laba atau rugi 2.921 - 2.921 - profit or loss
Total asset yang diukur Total assets measured
pada nilai wajar 2.921 - 2.921 - at fair value

Aset yang nilai wajarnya Assets for which


diungkapkan fair value are disclosed

Kredit yang diberikan 20.788.304 - 20.388.217 400.087 Loans


Efek-efek - dimiliki hingga
jatuh tempo 325.444 325.444 - - Securities - held to maturity
Total asset yang nilai Total assets which fair value
wajarnya diungkapkan 21.113.748 325.444 20.388.217 400.087 are disclosed

105
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

34. ASET KEUANGAN DAN LIABILITAS KEUANGAN 34. FINANCIAL ASSETS AND FINANCIAL
(lanjutan) LIABILITIES (continued)

Tabel di bawah ini menunjukkan instrumen The table below show the financial instruments
keuangan yang diukur pada nilai wajar yang measured at fair value grouped according to the fair
dikelompokkan berdasarkan hirarki nilai wajar. value hierarchy. (continued)
(lanjutan)
31 Desember/December 31, 2015
Nilai wajar/Fair value
Nilai tercatat/ Tingkat/ Tingkat/ Tingkat/
Carrying value Level 1 Level 2 Level 3
Liabilitas Keuangan Financial Liabilities
Liabilitas yang diukur
pada biaya perolehan Liabilities measured
amortisasi at amortized cost

Pinjaman subordinasi 964.950 - 964.950 - Subordinated loan

Liabilitas yang diukur pada Liabilities measured


nilai wajar at fair value

Liabilitas derivatif 661 - 661 - Derivatives payable

Total liabilitas yang nilai Total liabilities which fair


wajarnya diungkapkan 965.611 - 965.611 - value are disclosed

35. KUALITAS ASET PRODUKTIF 35. QUALITY OF PRODUCTIVE ASSETS

Tabel di bawah ini menunjukkan kolektibilitas aset The tables below present the grading of productive
produktif Bank sesuai dengan peraturan Bank assets of the Bank in accordance with the prevailing
Indonesia yang berlaku yang disajikan pada nilai Bank Indonesia regulations at their carrying
tercatatnya: amounts:
31 Desember/December 31, 2016
Dalam
perhatian
khusus/
Special Kurang lancar/ Diragukan/
Lancar/Current mention Substandard Doubtful Macet/Loss Total
Giro pada Bank Current accounts with
Indonesia 1.635.116 - - - - 1.635.116 Bank Indonesia
Giro pada bank-bank lain 80.815 - - - - 80.815 Current accounts with other banks
Penempatan pada Placements with
Bank Indonesia dan Bank Indonesia
bank-bank lain 2.230.074 - - - - 2.230.074 and other banks
Tagihan derivatif 550 - - - - 550 Derivatives receivable
Tagihan akseptasi 22.193 - - - - 22.193 Acceptance receivable
Efek-efek yang dibeli Securites purchased under
dengan janji jual kembali 471.350 - - - - 471.350 agreement to resell
Kredit yang diberikan 13.836.053 3.177.068 21.630 140.204 376.233 17.551.188 Loans
Efek-efek 571.862 - - - - 571.862 Securities
Aset Lain-lain 103.237 53.030 - - - 156.267 Other assets

Total 18.951.250 3.230.098 21.630 140.204 376.233 22.719.415 Total

31 Desember/December 31, 2015


Dalam
perhatian
khusus/
Special Kurang lancar/ Diragukan/
Lancar/Current mention Substandard Doubtful Macet/Loss Total
Giro pada Bank Current accounts with
Indonesia 1.710.947 - - - - 1.710.947 Bank Indonesia
Giro pada bank-bank lain 31.146 - - - - 31.146 Current accounts with other banks
Penempatan pada Placements with
Bank Indonesia dan Bank Indonesia
bank-bank lain 2.111.813 - - - - 2.111.813 and other banks
Tagihan derivatif 2.921 - - - - 2.921 Derivatives receivable
Tagihan akseptasi 61.821 - - - - 61.821 Acceptance receivable
Efek-efek yang dibeli Securites purchased under
dengan janji jual kembali 269.117 - - - - 269.117 agreement to resell
Kredit yang diberikan 18.731.784 1.557.830 24.046 20.512 454.132 20.788.304 Loans
Efek-efek 325.444 - - - - 325.444 Securities
Total 23.244.993 1.557.830 24.046 20.512 454.132 25.301.513 Total

106
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

36. SIFAT HUBUNGAN DAN TRANSAKSI DENGAN 36. NATURE OF RELATIONSHIP AND
PIHAK BERELASI TRANSACTIONS WITH RELATED PARTIES
Rincian sifat hubungan dan jenis transaksi yang The details of the relationship and type of
signifikan dengan pihak berelasi pada tanggal significant transactions with related parties as of
31 Desember 2016 dan 2015 adalah sebagai December 31, 2016 and 2015 are as follows:
berikut:
Pihak berelasi/Related party Sifat relasi/Nature of relationship Jenis transaksi/Type of transaction

Muhammad Anas M Personil manajemen kunci/ Deposito berjangka dan Tabungan/


Key management personnel Time deposits and saving
Andrew McGregor Duff Personil manajemen kunci/ Giro dan pinjaman karyawan/
Key management personnel Current accounts and employee loan
Azhar bin Abdul Wahab Personil manajemen kunci/ Tabungan dan pinjaman karyawan/
Key management personnel Saving accounts and employee loan
Rusli Personil manajemen kunci/ Deposito berjangka, giro, tabungan dan pinjaman
Key management personnel karyawan/Time deposits, current account,
Saving accounts and employee loan
Lloyd Rolston Personil manajemen kunci/ Deposito berjangka, tabungan, giro dan
Key management personnel pinjaman karyawan/ Time deposits, saving
accounts, current accounts and employee loan.
Windiarto Tabingin Personil manajemen kunci/ Tabungan dan pinjaman karyawan/
Key management personnel Saving accounts and Employee Loan.
Novi Mayasari Personil manajemen kunci/ Pinjaman karyawan, giro, tabungan dan deposito
Key management personnel berjangka/ Employee loan, current accounts, saving
Accounts and time deposits.
Suroto Moehadji Personil manajemen kunci/ Pinjaman karyawan dan Tabungan/
Key management personnel Employee Loan and Saving Accounts
Qatar National Bank - London Mempunyai induk yang sama/Owned by the Liabilitas akseptasi/Acceptances payable
Same shareholder
Ooredoo Asia Perusahaan afiliasi/Affiliated company Giro/Current Accounts
Qatar National Bank SAQ Perusahaan induk/ Giro pada bank-bank lain, simpanan dari
Parent company bank lain dan Pinjaman Subordinasi/Current
accounts with other banks,
deposit from other banks and Subordinated Loan
PT Indosat Tbk Entitas yang dikendalikan Giro dan deposito berjangka/
oleh pemerintah yang sama sebagai Current accounts and time deposits
pemegang saham akhir,
State of Qatar/Entity controlled by
the same government as the ultimate
shareholder, State of Qatar

Transaksi dengan personil manajemen kunci Transactions with key management personnel

Personil manajemen kunci adalah pihak yang Key management personnel are parties who have
memiliki kewenangan dan tanggung jawab untuk authority and responsibility to control the Bank’s
mengendalikan aktivitas Bank baik secara langsung activities, directly or indirectly.
maupun tidak langsung.

Personil manajemen kunci termasuk Dewan Key management personnel include Board of
Komisaris dan Direksi yang memiliki kewenangan Commissioners and Board of Directors that have
dan tanggung jawab yang signifikan untuk significant authority and responsibility for planning,
merencanakan, mengarahkan dan mengendalikan directing and controlling the Bank’s activities.
kegiatan Bank.

Jumlah gaji, tunjangan dan bonus Dewan Komisaris, Total of salaries, allowances and bonuses of the
Direksi, Komite Audit dan Komite Pemantau Risiko Board of Commissioners, Board of Directors, Audit
selama tahun yang berakhir tanggal 31 Desember Committee and Risk Monitoring Committee for the
2016 dan 2015 adalah sebagai berikut: year ended December 31, 2016 and 2015 are as
follows:
Tahun yang Berakhir pada tanggal
31 Desember/Year ended
December 31

2016 2015

Dewan Komisaris 3.953 1.687 Board of Commissioners


Direksi 19.898 23.332 Board of Directors
Audit Committee and Risk Monitoring
Komite Audit dan Pemantau Risiko 649 551 Committee

24.500 25.570

107
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

36. SIFAT HUBUNGAN DAN TRANSAKSI DENGAN 36. NATURE OF RELATIONSHIP AND
PIHAK BERELASI (lanjutan) TRANSACTIONS WITH RELATED PARTIES
(continued)

Jumlah saldo dan transaksi yang signifikan dengan The total of significant balance and transactions
pihak-pihak berelasi pada tanggal dan untuk tahun with related parties as of and for the year ended
yang berakhir tanggal 31 Desember 2016 dan 2015 December 31, 2016 and 2015 were as follows:
adalah sebagai berikut:
2016 2015
Jumlah/ Persentase/ Jumlah/ Persentase/
Amount Percentage*) Amount Percentage*)
Giro pada bank-bank Current accounts with
lain 193 0,001% 172 0,001% other banks
Kredit yang diberikan 1.895 0,008% 3.434 0,013% Loans
Simpanan dari nasabah: Deposits from customers
Giro 15.260 0,073% 25.250 0,108% Current accounts
Tabungan 529 0,003% 337 0,001% Saving accounts
Deposito berjangka 48.626 0,233% 1.015.151 4,351% Time deposits
Simpanan dari bank lain 404.797 1,937% 2.688.691 11,523% Deposit from other bank
Liabilitas akseptasi - - 24.995 0,107% Acceptances payable
Pinjaman Subordinasi - - 964.950 4.135% Subordinated Loan
Pendapatan Bunga 163 0,008% 279 0,014% Interest income
Beban bunga 63.250 5,460% 19.922 1.474% Interest expenses

*) Persentase terhadap jumlah aset/liabilitas/pendapatan/beban *) Percentage of total assets/liabilities/respective income/ expense


terkait

Kompensasi personil manajemen kunci untuk The compensation for key management personnel
periode berjalan terdiri dari: for the period comprised of:

31 Desember/December 31
2016 2015

Imbalan kerja jangka pendek 23.851 25.019 Short-term employee benefits

37. KOMITMEN DAN KONTINJENSI 37. COMMITMENTS AND CONTINGENCIES


31 Desember/December 31
2016 2015

KOMITMEN COMMITMENTS
Liabilitas komitmen Committed liabilities
L/C yang tidak dapat dibatalkan (37.015) (25.357) Irrevocable letters of credit

Total liabilitas komitmen (37.015) (25.357) Total committed liabilities

KONTINJENSI CONTINGENCIES
Tagihan kontinjensi Contingent receivables
Pendapatan bunga dalam Interest income on
penyelesaian 141.091 50.660 non-performing loans
Liabilitas kontinjensi Contingent liabilities
Bank garansi yang diterbitkan (15.632) (25.340) Bank guarantees issued

Total aset (liabilitas) kontinjensi - neto 125.459 25.320 Total contingent assets (liabilities) - net

Total aset (liabilitas) komitmen dan Total committed and contingent


kontinjensi - neto 88.444 (37) assets (liabilities) - net

108
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

37. KOMITMEN DAN KONTINJENSI (lanjutan) 37. COMMITMENTS AND CONTINGENCIES


(continued)
Jumlah fasilitas kredit (uncommitted) Bank kepada The Bank’s unused loan facilities (uncommitted)
nasabah yang belum digunakan pada tanggal granted to customers as of December 31, 2016 and
31 Desember 2016 dan 2015 adalah masing-masing 2015 were amounted to Rp1,551,036 and
sebesar Rp1.551.036 dan Rp2.957.752. Rp2,957,752, respectively.
Pada tanggal 31 Desember 2016 dan 2015, jangka As of December 31 2016 and 2015, the term of
waktu untuk Letters of Credit (L/C) adalah sekitar Letters of Credit (L/C) were approximately 1 month
1 bulan sampai dengan 6 bulan, sedangkan jangka to 6 months, while the term of bank guarantees
waktu untuk bank garansi yang diterbitkan masing- issued ranged between 1 month to 1 year and
masing berkisar antara 1 bulan sampai dengan 90 days to 3 years, respectively.
1 tahun dan 90 hari sampai dengan 3 tahun.

38. ASET DAN LIABILITAS DALAM VALUTA ASING 38. ASSETS AND LIABILITIES DENOMINATED IN
FOREIGN CURRENCIES
31 Desember/December 31

2016 2015

Valuta Valuta
asing (dalam asing (dalam
Nilai penuh)/ Nilai penuh)
Foreign Foreign
currencies Ekuivalen Rp/ currencies Ekuivalen Rp/
(in full amount) Equivalent Rp (in full amount) Equivalent Rp

Aset Assets
Kas Cash
Dolar Amerika Serikat 286.284 3.857 306.244 4.221 United States Dollar
Dolar Singapura 73.938 689 11.436 112 Singapore Dollar
Dolar Australia 270 3 15.207 153 Australian Dollar
Yen Jepang - - 1.254.515 144 Japanese Yen
Euro Eropa 1.190 17 18.734 282 European Euro
Riyal Qatar 94.982 352 22.575 213 Qatari Riyal
Poundsterling Inggris - - 4.520 68 Great Britain Poundsterling
Giro pada Bank Indonesia Current accounts with Bank Indonesia
Dolar Amerika Serikat 34.900.000 470.190 52.500.000 723.712 United States Dollar

Giro pada bank-bank lain Current accounts with other banks


- Pihak berelasi Related party -
Riyal Qatar 52.270 193 45.427 172 Qatari Riyal
- Pihak ketiga Third parties -
Euro Eropa 165.081 2.340 29.483 444 European Euro
Dolar Amerika Serikat 3.871.776 52.163 980.796 13.520 United States Dollar
Dolar Australia 117.005 1.138 182.819 1.843 Australian Dollar
Dolar Singapura 1.710.165 15.925 928.119 9.057 Singapore Dollar
Dolar Hong kong 293.805 510 242.328 431 Hong Kong Dollar
Yen Jepang 50.574.162 5.820 16.276.963 1.864 Japanese Yen
Poundsterling Inggris 105.508 1.747 102.821 2.102 Great Britain Poundsterling
Dolar Selandia Baru 4.885 46 13.417 127 New Zealand Dollar
Swiss Franc 11.669 154 12.382 172 Swiss Franc
Baht Thailand 1.166.304 439 1.302.854 498 Thailand Baht
Penempatan pada Bank Indonesia Placements with Bank Indonesia
dan bank-bank lain and other banks
Dolar Amerika Serikat 140.000.000 1.886.150 103.600.000 1.428.126 United States Dollar
Tagihan akseptasi Acceptances receivable
Dolar Amerika Serikat 1.647.273 22.193 4.484.678 61.821 United States Dollar
Kredit yang diberikan Loans
Dolar Amerika Serikat 522.397.059 7.037.994 530.600.312 7.314.325 United States Dollar
Aset lain-lain Other assets
Dolar Amerika Serikat 1.567.096 21.113 1.179.955 16.266 United States Dollar
Yen Jepang Japanese Yen

Total aset 9.523.033 9.579.673 Total assets

109
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

38. ASET DAN LIABILITAS DALAM VALUTA ASING 38. ASSETS AND LIABILITIES DENOMINATED IN
(lanjutan) FOREIGN CURRENCIES (continued)
31 Desember/December 31
2016 2015
Valuta Valuta
asing (dalam asing (dalam
Nilai penuh)/ Nilai penuh)
Foreign Foreign
currencies Ekuivalen Rp/ currencies Ekuivalen Rp/
(in full amount) Equivalent Rp (in full amount) Equivalent Rp
Liabilitas Liabilities
Liabilitas segera Liabilities payable on demand
Euro Eropa 1.333 19 176 3 European Euro
Dolar Amerika Serikat 8.421.886 113.439 13.453.584 185.458 United States Dollar
Dolar Australia 501 5 731 7 Australian Dollar
Dolar Singapura 1.702 16 4.604 45 Singapore Dollar
Poundsterling Inggris 33 1 29 1 Great Britain Poundsterling
Simpanan dari nasabah Deposits from customers
- Pihak berelasi Related parties -
Dolar Amerika Serikat 3.680.411 49.584 33.545.771 462.429 United States Dollar
Dolar Australia 191.283 1.860 Australian Dollar
Yen Jepang 630.420 73 - - Japanese Yen
- Pihak ketiga Third parties -
Euro Eropa 1.322.773 18.751 1.371.164 20.645 European Euro
Dolar Amerika Serikat 300.901.224 4.053.892 381.396.261 5.257.548 United States Dollar
Dolar Australia 2.068.870 20.116 2.681.945 27.044 Australian Dollar
Dolar Singapura 8.682.522 80.851 11.834.118 115.489 Singapore Dollar
Dolar Hong Kong 263.357 458 259.733 462 Hong Kong Dollar
Yen Jepang 35.075.074 4.036 14.267.063 1.634 Japanese Yen
Poundsterling Inggris 758.459 12.556 737.810 15.080 Great Britain Poundsterling
Riyal Qatar 7.225 27 6.642 25 Qatari riyal
Simpanan dari bank-bank lain Deposits from other banks
- Pihak berelasi Related parties -
Dolar Amerika Serikat 30.000.000 404.175 203.000.000 2.798.355 United States Dollar
- Pihak ketiga Third parties -
Dolar Amerika Serikat 14.000.000 188.615 - - United States Dollar

Liabilitas akseptasi Acceptances payable


Dolar Amerika Serikat 1.647.273 22.193 4.484.678 61.821 United States Dollar
Beban masih harus dibayar dan
liabilitas lain-lain Accruals and other liabilities
Dolar Amerika Serikat 554.006 7.464 699.504 9.643 United States Dollar
Dolar Hongkong 955 2 1.258 2 Hong Kong Dollar
Euro Eropa 1.405 20 1.849 28 European Euro
Dolar Singapura 3.687 34 9.973 97 Singapore Dollar
Dolar Australia 3.081 30 4.724 48 Australian Dollar
Yen Jepang 974 0,11 3.147 - Japanese Yen
Poundsterling Inggris 153 3 152 3 Great Britain Poundsterling
Pinjaman Subordinasi Subordinated Loan
- Pihak berelasi Related parties -
Dolar Amerika Serikat − 70.000.000 964.950 United States Dollar
Total liabilitas 4.978.220 9.920.817 Total liabilities

Total liabilitas - neto 4.544.813 (341.144) Total liabilities - net

39. JAMINAN TERHADAP KEWAJIBAN 39. GUARANTEES ON THE OBLIGATIONS OF


PEMBAYARAN BANK UMUM COMMERCIAL BANKS

Berdasarkan Undang-Undang No. 24 tanggal Based on Law No. 24 dated September 22, 2004,
22 September 2004, efektif sejak tanggal effective September 22, 2005, Indonesian Deposit
22 September 2005, Lembaga Penjamin Simpanan Insurance Corporation (Lembaga Penjamin
(LPS) dibentuk untuk menjamin kewajiban tertentu Simpanan/LPS) was established to provide
bank-bank umum berdasarkan program penjaminan guarantee on certain deposits from customers
yang berlaku. based on prevailing guarantee schemes.

Total premi penjaminan yang dibayarkan untuk The guarantee premium paid for the year ended
tahun yang berakhir tanggal 31 Desember 2016 dan December, 2016 and 2015 amounted to
2015 masing-masing sebesar Rp43.446 dan Rp43,446 and Rp41,005, respectively.
Rp41.005.

Total simpanan yang dijamin oleh LPS pada tanggal Total deposits secured by LPS as of
31 Desember 2016 dan 2015 masing-masing December, 2016 and 2015 amounted to
sebesar Rp2.406.589 dan Rp7.686.743. Rp2,406,589 and Rp7,686,743, respectively.

110
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

39. JAMINAN TERHADAP KEWAJIBAN 39. GUARANTEES ON THE OBLIGATIONS OF


PEMBAYARAN BANK UMUM (lanjutan) COMMERCIAL BANKS (continued)
Pada tanggal 31 Desember 2016 dan 2015, tingkat As of December 31, 2016 and 2015, interest rates
suku bunga atas simpanan yang dijamin oleh LPS of deposits secured by LPS were 6.25% and
masing-masing sebesar 6,25% dan 7,50% untuk 7.50%, respectively, for Rupiah currency, and
mata uang Rupiah, serta masing-masing sebesar 0.75% and 1.25%, respectively, for foreign
0,75% dan 1,25% untuk valuta asing. currency.

40. PERJANJIAN DAN PERIKATAN PENTING 40. SIGNIFICANT AGREEMENTS

Perjanjian Kerjasama dengan PT Karta Metadata Mutual Agreement with PT Karta Metadata

Dalam rangka meningkatkan pelayanan Bank In order to increase the Bank’s services to its
terhadap masyarakat, Bank mengadakan Perjanjian customers, the Bank entered into Mutual
Kerjasama dengan PT Karta Metadata. Tujuan dari Agreement with PT Karta Metadata. The purpose
perjanjian ini adalah PT Karta Metadata ditunjuk of this mutual is to provide service facilities of Q
untuk menyediakan fasilitas layanan Virtual Account (QVA) that can be used to process
Q Virtual Account (QVA) yang dapat digunakan electronical financial transactions. This agreement
untuk proses transaksi keuangan elektronik. was effective since January 15, 2014 for the period
Perjanjian kerjasama ini berlaku sejak 15 Januari of 36 months since the signing of the agreement.
2014 untuk jangka waktu 36 bulan sejak
ditandatanganinya perjanjian ini.

Perjanjian Kerjasama dengan PT Delta Merlin Mutual Agreement with PT Delta Merlin Dunia
Dunia Properti Properti

Dalam rangka meningkatkan pelayanan bank In order to increase the Bank’s services to its
terhadap masyarakat, Bank mengadakan Perjanjian customers, the Bank entered into Mutual
Kerjasama dengan PT Delta Merlin Dunia Properti. Agreement with PT Delta Merlin Dunia Properti.
Tujuan dari perjanjian ini adalah PT Delta merlin The purpose of this mutual is PT Delta Merlin Dunia
Dunia Properti menyediakan fasilitas layanan Properti to provides service facilities of Q Virtual
Q Virtual Account (QVA) yang dapat digunakan Account (QVA) that can be used to process
untuk proses transaksi keuangan elektronik. electronical financial transactions. This agreement
Perjanjian kerjasama ini berlaku sejak 17 Oktober was effective since October 17, 2016 for the period
2016 untuk jangka waktu 12 bulan sejak of 12 months since the signing of the agreement.
ditandatanganinya perjanjian ini.

Perjanjian Sewa Menyewa Gedung dengan Building Lease Agreement with PT Dian Graha
PT Dian Graha Cipta Cipta

Pada tanggal 19 Desember 2011 Bank On December 19, 2011, the Bank signed lease
menandatangani perjanjian sewa menyewa dengan agreement with PT Dian Graha Cipta whereby the
PT Dian Graha Cipta, dimana Bank menyewa Bank leased QNB Tower building located at SCBD
gedung QNB Tower di SCBD Parc 18 Jalan Jend. Parc 18 Jalan Jend. Sudirman Kavling 52-53,
Sudirman Kavling 52-53, Jakarta, yang digunakan Jakarta, currently occupied as the Bank’s Head
sebagai Kantor Pusat Bank. Perjanjian sewa- Office. This lease agreement was effective for the
menyewa berlaku untuk jangka waktu 7 tahun sejak period of 7 years since the signing of the
ditandatanganinya perjanjian ini. agreement.

Perjanjian Perubahan Akta Sewa Menyewa Amendment in The Lease Deed Agreement on
Rumah (Kantor) dengan Tuan Halim Sajogo a House (Office) with Tuan Halim Sajogo

Pada tanggal 8 Januari 2014, Bank menandatangani On January 8, 2014, the Bank signed the lease
perubahan perjanjian sewa menyewa dengan Tuan deed agreement with Tuan Halim Sajogo, whereby
Halim Sajogo, dimana Bank melakukan the Bank will lease extension a house (office)
perpanjangan sewa menyewa rumah (kantor) Jalan located at Jalan Ir. H. Juanda No. 11, Bandung,
Ir. H. Juanda No. 11, Bandung, yang digunakan currently occupied as the Bank’s branch office. This
sebagai Kantor Cabang Bank. Perjanjian sewa- lease agreement was effective until December 3,
menyewa berlaku sampai dengan tanggal 2022.
3 Desember 2022.

111
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

40. PERJANJIAN DAN PERIKATAN PENTING 40. SIGNIFICANT AGREEMENTS (continued)


(lanjutan)

Perjanjian Kerjasama Penerimaan Pembayaran Mutual Agreement Bill Payment with


Tagihan dengan PT Prismalink International PT Prismalink International

Dalam rangka meningkatkan pelayanan Bank In order to increase the Bank’s service to its
terhadap masyarakat, Bank mengadakan Perjanjian customers, the Bank entered into Mutual
Kerjasama dengan PT Prismalink International. Agreement with PT Prismalink International. The
Tujuan dari perjanjian ini adalah PT Prismalink purpose of this mutual agreement is to provide
International menyediakan fasilitas layanan service facilities of biller payment and other bills of
penerimaan setoran pembayaran tagihan biller dan customers through the payment system. This
tagihan lainnya dari nasabah melalui system agreement was effective since January 8, 2014 for
pembayaran tersebut. Perjanjian kerjasama ini the period of 36 months since the signing of the
berlaku sejak 8 Januari 2014 untuk jangka waktu 36 agreement.
bulan sejak ditandatanganinya perjanjian ini.

Perjanjian Kerjasama dengan PT E2PAY Global Mutual Agreement with PT E2PAY Global
Utama Utama

Dalam rangka meningkatkan pelayanan Bank In order to increase the Bank’s service to its
terhadap masyarakat, Bank mengadakan Perjanjian customers, the Bank entered into Mutual
Kerjasama dengan PT E2PAY Global Utama. Agreement with PT E2PAY Global Utama. The
Tujuan dari perjanjian ini adalah PT E2Pay Global purpose of this mutual agreement is to provide
Utama menyediakan fasilitas layanan sistem service facilities of interconnection system, biller
interkoneksi, biller gateway yang mengelola gateway that manages the bill payments by using
pembayaran tagihan menggunakan fasilitas Online Online Payment Point’s facility. This agreement
Payment Point. PerjanjIan kerjasama berlaku sejak was effective since May 20, 2016 for the period of
20 Mei 2016 untuk jangka waktu 36 bulan sejak 36 months since the signing of the agreement.
ditandatanganinya perjanjian ini.

Perjanjian Kerjasama dengan PT Alpha EMS Mutual Agreement with PT Alpha EMS

Dalam rangka meningkatkan pelayanan Bank In order to increase the Bank’s service to its
terhadap masyarakat, Bank mengadakan Perjanjian customers, the Bank entered into Mutual
Kerjasama dengan PT Alpha EMS. Tujuan dari Agreement with PT Alpha EMS. The purpose of this
perjanjian ini adalah PT Alpha EMS menyediakan mutual is to provide services facilities of Cash
fasilitas layanan jasa Cash Replenishment dan First Replenishment and First Line Maintenance ATM.
Line Maintenance ATM. Perjanjian kerjasama ini This agreement was effective since October 1,
berlaku sejak 1 Oktober 2015 untuk jangka waktu 24 2015 for the period of 24 months since the signing
bulan sejak ditandatanganinya perjanjian ini. of the agreement.

Perjanjian Kerjasama dengan PT Multipolar Mutual Agreement with PT Multipolar


Technology Technology

Dalam rangka meningkatkan pelayanan bank In order to increase the Bank’s service to its
terhadap masyarakat, Bank mengadakan Perjanjian customers, the Bank entered into Mutual
Kerjasama dengan PT Multipolar Technology. Agreement with PT Multipolar Technology. The
Tujuan dari perjanjian ini adalah PT Multipolar purpose of this mutual agreement is to provide
Technology menyediakan fasilitas layanan facility of Hardware and Software’s implementation
implementasi Hardware dan Software untuk Tivoli for Tivoli Storage Manager (TSM). This agreement
Storage Manager (TSM). Perjanjian kerjasama ini was effective since February 11, 2014 for the
berlaku sejak 11 Februari 2014 untuk jangka waktu period of 36 months since the signing of the
36 bulan sejak ditandatanganinya perjanjian ini. agreement.

112
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

40. PERJANJIAN DAN PERIKATAN PENTING 40. SIGNIFICANT AGREEMENTS (continued)


(lanjutan)

Perjanjian Kerjasama dengan PT Trimegah Mutual Agreement with PT Trimegah Asset


Asset Management Management

Dalam rangka meningkatkan pelayanan bank In order to increase the Bank’s service to its
terhadap masyarakat, Bank mengadakan customers, the Bank entered into Mutual
Perjanjian Agreement with PT Trimegah Asset Management.
Kerjasama dengan PT Trimegah Asset The purpose of this mutual is to provide facility of
Management. Tujuan dari perjanjian ini adalah Financial Services and the best investing alternate
PT Trimegah Asset Management menyediakan through Wealth Management’s offering. This
fasilitas layanan keuangan dan alternatif investasi agreement was effective since January 29, 2015 for
yang terbaik melalui penawaran Reksa Dana. the period of 24 months since the signing of the
Perjanjian kerjasama ini berlaku sejak 29 Januari agreement.
2015 untuk jangka waktu 24 bulan sejak
ditandatanganinya perjanjian ini.

Perjanjian Kerjasama dengan PT Visiprima Mutual Agreement with PT Visiprima


Indoperforma Indoperforma

Dalam rangka meningkatkan pelayanan bank In order to increase the Bank’s service to its
terhadap masyarakat, Bank mengadakan customers, the Bank entered into Mutual
Perjanjian Kerjasama dengan PT Visiprima Agreement with PT Visiprima Indoperma. The
Indoperma. Tujuan dari perjanjian ini adalah PT purpose of this mutual is to provide service of
Visiprima Indoperma menyediakan fasilitas chatering in marketing bank products. This
layanan pemborongan dalam pemasaran produk agreement was effective since April 1, 2015 for the
bank. Perjanjian kerjasama ini berlaku sejak 1 April period of 24 months since the signing of the
2015 untuk jangka waktu 24 bulan sejak agreement.
ditandatanganinya perjanjian ini.

Perjanjian Kerjasama dengan PT Bank Victoria Mutual Agreement with PT Bank Victoria
International Tbk. International Tbk.

Dalam rangka meningkatkan pelayanan bank In order to increase the Bank’s services to it’s
terhadap masyarakat, Bank mengadakan customers, the Bank entered into Mutual
Perjanjian Kerjasama dengan PT Bank Victoria Agreement with PT Bank Victoria International,
International, Tbk. Tujuan dari perjanjian ini adalah Tbk. The purpose of this mutual agreement is
PT Bank QNB Indonesia Tbk menyediakan jasa PT Bank QNB Indonesia Tbk to provides service of
penerbitan Letter of Credit (L/C) untuk nasabah PT Publishing Letter of Credit (L/C) for the customers
Bank Victoria International Tbk. Perjanjian of PT Bank Victoria International Tbk. This
kerjasama ini berlaku sejak 7 Desember 2016 agreement was effective since December 7, 2016
untuk jangka waktu 12 bulan sejak for the period of 12 months since the signing of the
ditandatanganinya perjanjian ini. agreement.

41.0 SEGMEN OPERASI 41.0 OPERATION SEGMENT

a. Bidang usaha a. Business activities

Segmen Bank disajikan berdasarkan jenis The Bank’s segment information is presented
kegiatan usahanya, yakni kredit, treasuri dan based on its business activities, namely credit,
ekspor-impor. treasury and trade finance.

b. Segmen usaha b. Business segment

Segmen geografis Geographic segment


Bank tidak mempunyai pendapatan dan aset The Bank does not have revenues and non-
tidak lancar dari pelanggan eksternal selain current asset from external customers other
yang diatribusikan kepada negara domisili than attributed to the Bank’s country of
bank. domicile.

113
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

41.0SEGMEN OPERASI (lanjutan) 41.0 OPERATION SEGMENT (continued)

b. Segmen usaha (lanjutan) b. Business segment (continued)

Segmen operasi Operating segment

Segmen operasi dilaporkan sesuai dengan Operating segments are reported in accordance
laporan internal Bank yang disiapkan untuk with the internal reporting provided to the chief
mengambil keputusan operasional yang operating decision maker which is responsible
bertanggung jawab untuk mengalokasikan for allocating resources to certain segments
sumber daya ke segmen tertentu dan penilaian and performance assessments.
atas performanya.

Seperti yang dijelaskan di Catatan 2aa, Bank As discussed in Note 2aa, the Bank is being
pada saat ini dikelola sebagai segmen operasi managed as a single operating segment.
tunggal. Pada saat ini, Bank hanya Currently, the Bank only performs segment
menganalisa segmen secara geografis dimana analysis based on the geographical area where
manajemen menelaah laporan internal the management reviews internal management
manajemen secara bulanan untuk masing- reports on a monthly basis.
masing area.

Tidak ada pendapatan dari satu konsumen No revenue from transactions with a single
eksternal atau pihak lain yang mencapai 10% external customer or counterparty amounted to
atau lebih dari total pendapatan Bank untuk 10% or more of the Bank’s total revenue for the
tahun yang berakhir pada tanggal 31 Desember period ended December 31, 2016 and 2015.
2016 dan 2015.

Bank mengelola kegiatan operasinya dan The Bank manages its operating activities and
mengidentifikasi segmen yang dilaporkan indentifies its reporting segments based on
berdasarkan wilayah geografis yang terbagi geographical area that allocated into several
menjadi beberapa area, yaitu Jakarta, areas, namely, Jakarta, Sumatera, Jawa and
Sumatera, Jawa dan wilayah Timur. East Region.

Segmen Operasi Bank berdasarkan letak Geographical segment information of the Bank
geografis adalah sebagai berikut: was as follows:

31 Desember/December 31, 2016

Wilayah Timur/
Jakarta Sumatera Jawa East Region Total

Total aset 18.812.829 1.685.439 2.617.297 1.257.137 24.372.702 Total assets


Total liabilitas 13.889.632 3.823.337 2.990.921 190.883 20.894.773 Total liabilities

31 Desember/December 31, 2015

Wilayah Timur/
Jakarta Sumatera Jawa East Region Total

Total aset 19.333.304 1.854.141 3.081.541 1.488.663 25.757.649 Total assets


Total liabilitas 18.107.169 2.260.257 2.815.819 150.220 23.333.465 Total liabilities

Tahun yang berakhir pada tanggal 31 Desember 2016/


Year ended December 31, 2016

Wilayah Timur/
Jakarta Sumatera Jawa East Region Total

Pendapatan (beban) Net interest


bunga bersih 288.876 92.284 85.086 50.171 516.417 income (expenses)
Pendapatan provisi Net fees and
dan komisi neto 80.458 5.404 34.447 3.181 123.490 commission income
Pendapatan operasional
lainnya 74.905 1.151 93 23 76.172 Other operating income
Beban operasional (1.414.372 ) (49.054) (82.438) (32.826) (1.578.690) Operating expenses
Pendapatan (beban)
non-operasional - Non-operating income
neto (3.970 ) 628 - 3 (3.339) (expenses) - net

Laba (rugi) sebelum pajak Income (loss) before


penghasilan (974.103 ) 50.413 37.188 20.552 (865.950 ) income tax

114
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

41.0SEGMEN OPERASI (lanjutan) 41.0 OPERATION SEGMENT (continued)

b. Segmen usaha (lanjutan) b. Business segment (continued)

Segmen operasi (lanjutan) Operating segment (continued)

Tahun yang berakhir pada tanggal 31 Desember 2015/


Year ended December 31, 2015

Wilayah Timur/
Jakarta Sumatera Jawa East Region Total

Pendapatan (beban) Net interest


bunga bersih 486.019 75.687 73.460 54.085 689.251 income (expenses)
Pendapatan provisi Net fees and
dan komisi bersih 173.005 3.848 15.366 2.039 194.258 commission income
Pendapatan operasional
lainnya 13.509 2.554 737 1.460 18.260 Other operating income
Beban operasional (616.524 ) (44.004 ) (22.623) (13.345) (696.496 ) Operating expenses
Pendapatan (beban)
non-operasional - Non-operating income
neto 3.616 50 18 (22) 3.662 (expenses) - net

Laba (rugi) sebelum pajak Income (loss) before


penghasilan 59.625 38.135 66.958 44.217 208.935 income tax

Pendapatan bunga, pendapatan provisi dan komisi, Bank’s interest income, fees and commission
pendapatan operasional lainnya dan pendapatan income, other operating income and non-operating
non-operasional Bank berasal dari pelanggan/pihak income were generated from its
lawan yang berdomisili di Negara Indonesia. customers/counterparties domiciled in Indonesia

Tidak terdapat transaksi dengan pelanggan There was no transaction with single external
eksternal tunggal yang mencapai 10% dari jumlah customer which reached 10% of total interest
pendapatan bunga yang dihasilkan Bank. income generated by the Bank.

42. STANDAR AKUNTANSI YANG TELAH 42. ACCOUNTING STANDARDS ISSUED BUT NOT
DISAHKAN NAMUN BELUM BERLAKU EFEKTIF YET EFFECTIVE

Standar akuntansi dan interpretasi yang telah The standards and interpretations that are issued by
disahkan oleh Dewan Standar Akuntansi Keuangan the Indonesian Financial Accounting Standards
(DSAK), tetapi belum berlaku efektif untuk laporan Board (DSAK), but not yet effective for current
keuangan tahun berjalan diungkapkan di bawah ini. financial statements are disclosed below. The Bank
Bank berencana untuk menerapkan standar intends to adopt these standards, if applicable,
tersebut, jika dipandang relevan, saat telah menjadi when they become effective.
efektif.

• Amandemen PSAK No. 1: Penyajian Laporan • Amendments to SFAS No. 1: Presentation of


Keuangan tentang Prakarsa Pengungkapan, Financial Statements on Disclosures Initiative,
berlaku efektif 1 Januari 2017. effective January 1, 2017.

Amandemen ini mengklarifikasi, bukan This amendments clarify, rather than significantly
mengubah secara signifikan, persyaratan change, existing SFAS No. 1 requirements,
PSAK No. 1, antara lain, mengklarifikasi among others, to clarify the materiality, flexibility
mengenai materialitas, fleksibilitas urutan as to the order in which they present the notes to
sistematis penyajian catatan atas laporan financial statements and identification of
keuangan dan pengidentifikasian kebijakan significant accounting policies.
akuntansi signifikan.

115
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

42. STANDAR AKUNTANSI YANG TELAH 42. ACCOUNTING STANDARDS ISSUED BUT NOT
DISAHKAN NAMUN BELUM BERLAKU EFEKTIF YET EFFECTIVE (continued)
(lanjutan)

• Amandemen PSAK No. 2: Laporan Arus Kas • Amendments to SFAS No. 2: Statement of Cash
tentang Prakarsa Pengungkapan, berlaku efektif Flows on the Disclosures Initiative, effective
1 Januari 2018 dengan penerapan dini January 1, 2018 with earlier application is
diperkenankan. permitted.

Amandemen ini mensyaratkan entitas untuk This amendments requires entities to provide
menyediakan pengungkapan yang disclosures that enable the financial statements
memungkinkan pengguna laporan keuangan users to evaluate the changes in liabilities arising
untuk mengevaluasi perubahan pada liabilitas from financing activities, including changes from
yang timbul dari aktivitas pendanaan, termasuk cash flow and non-cash
perubahan yang timbul dari arus kas maupun
perubahan non-kas.

• Amandemen PSAK No. 46: Pajak Penghasilan • Amendments to SFAS No. 46: Income Taxes on
tentang Pengakuan Aset Pajak Tangguhan untuk the Recognition of Deferred Tax Assets for
Rugi yang Belum Direalisasi, berlaku efektif Unrealized Losses, effective January 1, 2018 with
1 Januari 2018 dengan penerapan dini earlier application is permitted.
diperkenankan.

Amandemen ini mengklarifikasi bahwa untuk This amendments clarifies that to determine
menentukan apakah laba kena pajak akan whether the taxable income will be available so
tersedia sehingga perbedaan temporer yang that the deductible temporary differences can be
dapat dikurangkan dapat dimanfaatkan; estimasi utilized; estimates of the most likely future taxable
atas kemungkinan besar laba kena pajak masa income can include recovery of certain assets of
depan dapat mencakup pemulihan beberapa the entity exceeds its carrying amount.
aset entitas melebihi jumlah tercatatnya.

• PSAK No. 3 (Penyesuaian 2016): Laporan • SFAS No. 3 (2016 Improvement): Interim
Keuangan Interim, berlaku efektif 1 Januari 2017 Financial Reporting, effective January 1, 2017
dengan penerapan dini diperkenankan. with earlier application is permitted.

Penyesuaian ini mengklarifikasi bahwa This improvement clarifies that the interim
pengungkapan interim yang dipersyaratkan disclosures required should be included in the
harus dicantumkan dalam laporan keuangan interim financial statements or through cross-
interim atau melalui referensi silang dari laporan references of the interim financial statements,
keuangan interim seperti komentar manajemen such as management commentary or risk
atau laporan risiko yang tersedia untuk pengguna management report, that available to users of the
laporan keuangan interim dan pada saat yang interim financial statements and should at the
sama. same time.

• PSAK No. 24 (Penyesuaian 2016): Imbalan • SFAS No. 24 (2016 Improvement): Employee
Kerja, berlaku efektif 1 Januari 2017 dengan Benefits, effective January 1, 2017 with earlier
penerapan dini diperkenankan. application is permitted.

Penyesuaian ini mengklarifikasi bahwa pasar This improvement clarifies that the market of high
obligasi korporasi berkualitas tinggi dinilai quality corporate bonds is valued by denominated
berdasarkan denominasi mata uang obligasi bonds and not based on the country in which the
tersebut dan bukan berdasarkan negara di mana bonds are.
obligasi tersebut berada.

116
The original financial statements included herein are in Indonesian
language.

PT BANK QNB INDONESIA TBK PT BANK QNB INDONESIA TBK


CATATAN ATAS LAPORAN KEUANGAN NOTES TO THE FINANCIAL STATEMENTS
Tanggal 31 Desember 2016 dan untuk As of December 31, 2016 and for
Tahun yang Berakhir pada Tanggal Tersebut the Year Then Ended
(Disajikan dalam jutaan Rupiah, (Expressed in millions of Rupiah,
kecuali dinyatakan lain) unless otherwise stated)

42. STANDAR AKUNTANSI YANG TELAH 42. ACCOUNTING STANDARDS ISSUED BUT NOT
DISAHKAN NAMUN BELUM BERLAKU EFEKTIF YET EFFECTIVE (continued)
(lanjutan)

• PSAK No. 58 (Penyesuaian 2016): Aset Tidak • SFAS No. 58 (2016 Improvement): Non-Current
Lancar yang Dimiliki Untuk Dijual dan Operasi Assets, Held for Sale and Discontinued
yang Dihentikan, berlaku efektif 1 Januari 2017 Operation, effective January 1, 2017 with earlier
dengan penerapan dini diperkenankan. application is permitted.

Penyesuaian ini mengklarifikasi bahwa This improvement clarifies that a change from one
perubahan dari satu metode pelepasan ke disposal method to the other disposal methods
metode pelepasan lainnya dianggap sebagai are considered as the beginning of a sustainable
rencana awal yang berkelanjutan dan bukan plan and not as a new disposal plan. This
sebagai rencana pelepasan baru. Penyesuaian improvement also clarifies that the change in the
ini juga mengklarifikasi bahwa perubahan disposal method does not change the date of
metode pelepasan ini tidak mengubah tanggal classification as an asset or disposal group.
klasifikasi sebagai aset atau kelompok lepasan.

• PSAK No. 60 (Penyesuaian 2016): Instrumen • SFAS No. 60 (2016 Improvement): Financial
Keuangan: Pengungkapan, berlaku efektif Instruments, effective January 1, 2017 with earlier
1 Januari 2017 dengan penerapan dini application is permitted.
diperkenankan.

Penyesuaian ini mengklarifikasi bahwa entitas This improvement Clarifies that an entity must
harus menilai sifat dari imbalan kontrak jasa assess the nature of the service contract benefits
untuk menentukan apakah entitas memiliki to determine whether the entity has a continuing
keterlibatan berkelanjutan dalam aset keuangan involvement in financial assets and whether the
dan apakah persyaratan pengungkapan terkait disclosure requirements related to the continuing
keterlibatan berkelanjutan terpenuhi. involvement are met.

Bank sedang mengevaluasi dampak dari standar The Bank is presently evaluating and has not yet
akuntansi tersebut dan belum menentukan determined the effects of these accounting
dampaknya terhadap laporan keuangan Bank. standards on its financial statements.

117
Disclaimer
Certain of the matters discussed in this Annual Report about future performance, including, without limitation,
future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely
historical constitute “forward-looking statements”.

These prospective statements in this annual report are prepared based on various assumptions on current and
future conditions of the Bank, as well as its business environment in which the Bank operates. The Bank does not
guarantee that the documents which have been ensured of their validity will bring certain results as targeted. Due
care and attention have been used in the preparation of forecast information. Such forward-looking statements are
not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many
of which are beyond the control of PT Bank QNB Indonesia Tbk, which may cause actual results to differ materially
from those expressed or implied in such statements due to changes in the business environment and other factors.

This annual report contains the word “Bank” which are defined as PT Bank QNB Indonesia Tbk that operates in the
field of banking industry.
Annual Report 2016

PT Bank QNB Indonesia Tbk


Passion for Excellence
at Its Best

Passion for Excellence at Its Best


Annual Report 2016

PT Bank QNB Indonesia Tbk


QNB Tower
18 Parc SCBD
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190
Annual Report 2016

Telp : (+6221) 515 5155


Fax : (+6221) 515 5388
e-mail : corporate.communication@qnb.co.id

qnb.co.id

Potrebbero piacerti anche